In business for keeps: Business geographic and competitive advantage
The following subsection will illustrate how GIS tools and systems integration can support the
development of business geographies applications and the use of Intranetilnternet tools.
Figure 2. Use of GIS and internet tools for a business geographics Read/View Application
Figure 3. Systems integration using GIS tools
Internal and external market data within a common enterprise data store provides the
following:
- Easy access to existing customer data housed in isolated functional systems.
- Ability to maintain and access external market data within the same common data store as
internal data.
Developing a common enterprise data store for both spatial and nonspatial data using spatial data
management technology provides the following:
- Enables easy access and manipulation of spatial data from the same data source used for storing
non-spatial corporate data.
- Supports use of lntranet/lnternet front end and rapid applications development tools.
- Suppotts the use of a geographic market analysis user interface and associated applications
development tools.
How Business Geographic can Support Strategies and Tactics
Target Marketing
Target marketing provides decision support for developing proactive marketing plans, targeted
promotional campaigns, and sales prospect lists. Using consumer and business geocoded site
data, this application determines the location and characteristics of potential customers. By
measuring the distance from potential customer sites to existing distribution facilities, and using
estimated cost variables and expected new load, the cost to extend new service to potential
customer sites can be estimated. These cost estimates and projected new load can then be used
to determine new revenue and margin expectations. This application provides the ability to target
the most profitable geographic areas and specific customer sites for new gas service.
Market Segmentation
data regarding business type (by SIC) and size and consumer demographics can be
utilized to assist in segmenting the marketplace and in defining concentrations of certain market
segments and/or targets by geographic area. Additional data, such as the relationship of target
markets to competing distribution company service areas, associated energy price differentials,
and weather variations and associated energy use patterns, can be used to further refine the
market segmentation and targeting strategy.
Development of Defensive Marketing Strategies
Defensive marketing strategies define the next most likely alternative energy supplier(s) for certain
customers using several market variables such as competing supplier prices, existing service areas
of competing suppliers, the competition’s access to transmission, and available capacity.
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These strategies define new market opportunities by mapping the geographic concentrations of
targeted industry or consumer segments. By associating energy price by geographic area and
energy load and use patterns to each market segment, a company can assess the size and
profitability of a competitor’s market and/or a particular geographic market.
Development of National Account Strategies
National account strategies map site locations of multiplant industrial or large commercial
multisite corporations to assist in determining existing energy supplier(s); energy price
differentials; and site proximity to certain transmission, distribution, and production and/or
generation facilities.
Economic Development
This application maps available sites in a utility service area along with proximity to highways,
airports, and railway, as well as demographic and economic data for the area. This application
can be used to “sell” the utility service area to businesses looking to expand or relocate. Aerial
photography and/or satellite imagery can be added to this application to provide a more detailed
presentation to economic development prospects regarding specific areas of interest.
Point of Contact Mm and U
This application provides Customer Service and Sales representatives with information, such as
sales lead indicators from Marketing, to sel I new or additional products and services to existing
customers of other products and services. The CSR can query certain geographic areas to view
where coverage for certain services (e.g., gas distribution services, fixed network AMR-related
services, or appliance maintenance services) is provided. Landbase information, such as streets,
street intersections, and cities, is also displayed for reference. Information regarding population
demographics by census tract can be overlaid to assist in determining if a customer matches a
marketing-defined profile for a specific service offering. Data regarding geographic areas where
special promotions for certain services are being offered can also be included in the map display
to assist in the sale.
Sales Forecasting
This application is used to display and analyze customer and potential customer location and
actual or estimated usage to determine geographic market penetration in forecasting geographic
market sales and in estimating projected new market share.
Sales Planning/Resource Allocation
This application is used to display and analyze forecasted sales by geographic market area to
determine appropriate sales staffing for each area.
Product Managemd
This application maps forecasted product/setvice sales by geographic area compared to actuals
for that area. Related geographic data can then be used to evaluate why sales are falling short of
expectations in certain areas.
