GIS Functions and Economic Applications Credits to Brian Mennecke, East Carolina University

GIS Functions 1. Mapping 2. Managing spatially-referenced data 3. Design and planning 4. Modeling decisions

Economic Applications Automated mapping Facilities management Market analysis Transportation and logistics Strategic planning

Automated mapping Where are our physical assets or resources? What are attributes of our physical assets, by location? Examples: oil exploration; outdoor billboards

Facilities management What and where are our facilities’ management needs? How can we rationalize the maintenance, re-investment, and dis-investment in facilities, based on relative location and location relative to demand? Examples: distribution centers, utilities

Market analysis Using information about current or potential customers to make decisions about functional market strategy: –product adaptation –pricing –promotion –distribution

(Spatial) Market analysis Using information about the location of potential or current customers to make decisions about geographically specific market strategy: –product adaptation –pricing –promotion –distribution (including location)

Market Analysis Uses at least functions (1) and (2). Can make use of the other functions as well, particularly decision modeling (decision support).

Transportation and logistics Vehicle routing (a priori) Navigation systems (real time) Optimizing logistics Logistical control

Strategic planning Requires all GIS functions, plus clear understanding of the human elements GIS as integral part of MIS SDSS: spatial decision support system

What is strategy? Matching assets to environmental needs and opportunities. Achieved by modifying (or moving) assets, or changing the (or moving to a different) environment.

Universality of strategic thinking This definition of strategy is useful at all levels: –functional –competitive (line-of-business) –corporate Useful in public, for-profit, and non-profit sectors.