Effectively Market Your Business Using Electronic Maps Part 2. GIS TUTORIAL University of Redlands James Pick Tutorial supported by U.S. SBA Grant No. SBAHQ

20 minutesIntroduction to GIS Geographical basis, data, boundary files, mapping, GIS software 10 minutesAn Example 15 minutesWorksheet and Discussion 15 minutesGIS analysis and modeling Distance, proximity, buffers, thematic mapping. location quotient The range of techniques available Outline

Introduction to GIS. Geographical basis, data, boundary files, map basics, GIS design elements ============================ Fundamental Definition of GIS A GIS consists of the following elements: Data-base of attributes Spatial information Some way to link the two Source: Clarke, 2003.

GIS as a Toolbox GIS can be viewed as a set of tools. Sometimes this is called a process definition because the subtasks are sequentially arranged. An example of using a set of tools as procedures is –Get addresses from a marketing list –Geocode them (to get X—Y points) –Map them

Example of Web-based application – ordering pizza on-line (Source: Pick, 2008)

GIS as an Information System GIS is a type of information system. Data for a GIS are stored in a data-base. They are processed and output as maps and other related outputs. Some definitions can go as far that GIS is a spatially-enabled data-base. GIS can be used in collaboration with other business systems such as accounting or marketing. GIS has also be provided from the World Wide Web as a Map Service. Google Maps is an example.

GIS-Intensive Organizations GIS developed earlier and much more fully in the public sector, while business uses are more recent. In many city, county, and state agencies in the U.S., such as country planning agencies, GIS permeates the way people think and interact with each other. In the business world, many large and medium- sized businesses have GIS systems. In some businesses, GIS permeates the company, such as ESRI, Sears Roebuck, and Rand McNally.

Impact of GIS on Organizations GIS changes job roles, alters teamwork, shifts cross- functional information exchange, and changes hierarchies. For example, historically companies that were map- intensive tended to have map rooms with skilled personnel to produce, print, store, and revise maps. If modern GIS becomes pervasive, the preponderance of these functions are done electronically, but some GIS expertise is needed to set up, test, train, and maintain the GIS applications. End users may also become proficient in GIS. In small business, GIS may be supported by one or two people inside or outside the firm. Users in the firm will be impacted by new capabilities intended to increase their efficiency and productivity.

Elements of a GIS A GIS –Accesses spatial boundaries and attribute (i.e. non-spatial) data –Analyzes the spatial and attribute data A GIS includes: –A data-base –Tools, algorithms, and models for manipulate spatial data and attributes

Design Elements of a GIS (Source: Greene and Pick, 2005)

Map Layer A GIS might have a single map layer, but more commonly include two or more layers

Example of Processing with Simple GIS (Source: Greene and Pick, 2005)

Relationship of Spatial and Attribute Data in Multiple GIS Layers Adapted from West, 2000.

Baseball example of non-spatial versus spatial query. Keith Clarke gives the example of baseball cards. If we associate the X-Y coordinate location of the stadium that the player is associated with, we are adding a spatial attribute. Example of query without the spatial attribute. “Find all players with a batting average over.300. Example of query with the spatial attribute. “Find all players with a batting average over.250 and whose location is within 300 miles of Yankee Stadium.”

Geographic Location How is geographic location determined. Often by latitude and longitude. It can be by more advanced coordinate systems, such as 3-D, but lat-long will do for now.

Coordinate System – Lat, Long Locations are represented in a GIS with the use of X and Y coordinates, which represent real-world coordinates (in 3 dimensions) that have been projected onto a two dimensional surface. The geographic grid of latitude and longitude is a commonly used geographic reference system. It is not a true coordinate system, however because it measures angles from the center of the earth in degrees, minutes, and seconds rather than distances on the earth's surface.

The latitude angle lambda “Imagine the Earth was a transparent sphere Its middle point is O, the center of the Earth. To specify the latitude of some point P on the surface, draw the radius OP to that point. Then the elevation angle of that point above the equator is its latitude λ--northern latitude if north of the equator, southern (or negative) latitude if south of it.” Latitude Source: NASA, 2006.

Longitude ”What that value is depends of course on where we begin to count--on where zero longitude is. For historical reasons, the meridian passing the old Royal Astronomical Observatory in Greenwich, England, is the one chosen as zero longitude. Located at the eastern edge of London, the British capital, the observatory is now a public museum and a brass band stretching across its yard marks the ‘prime meridian.’” Source: NASA, 2006.

Geographic Information A map stored inside a GIS is described by coordinates. A sophisticated map contains a huge number of coordinates. This is possible because of the huge gains in storage described in the introductory lecture.

Map Scale and Zooming Maps reduce the size of the earth. Map at 1:1 scale means 1 foot on the map is the same as 1 foot on the earth. It would be a life- sized drawing. 1:500 scale means that 1 foot on the map is the same as 500 feet on the earth. An idea of scale is that 1:40,000,000 implies that the circumference of the earth at the equator would map to the size of a postage stamp. U.S. – most important scales at 1:100,000 and 1:24,000 (USGS maps). Also 1:50,000 is important. In GIS software it is easy to shift between scales, a feature known as Zooming.

GIS Structures – Features and Feature Properties GIS structures are put together from points, lines, and areas (polygons). Points – the basic coordinate location – zero dimensional Lines – connected together by two points – one dimensional. Areas (also called polygons) bounded by three or more points connected by lines – two dimensional. Points, lines, and areas are features. They are further defined by feature properties of size, distribution, neighborhood, shape, pattern, contiguity, shape, and orientation. (Source: Pick, 2008)

Points, Lines, and Polygons Source: Clarke, 2003.

Summary on Geographic Roots of GIS A GIS is defined by location, data, and the relationships between them. Attribute data are stored in relational tables Locations are stored in map layers. Data and map layers are related together.

Coordinate systems determine the X-Y locations of points. “X” and “Y” are defined differently in different coordinate systems. The best known is latitude and longitude. Map scale relates the area on the map to the area on the earth. Points, lines, and areas (polygons) are the spatial features that all maps are composed of. Labels are attached to points. Summary on Geographic Roots of GIS

Design Elements of a GIS (Source: Greene and Pick, 2005)

GIS Capabilities GIS can enhance what is normally in tables and add many new insights. For instance, if a small business’s 500 customers are shown in a table, it is hard if not impossible to determine their locational patterns. GIS can show the locations. Further, it an analyze their relationships and trends.

Map Layer A GIS might have a single map layer, but more commonly include two or more layers

Addresses of business clients, converted to points.

Sometimes the greatest value comes from simply looking at your data from a different perspective! Over 50% of customers live within 2 miles Over 80% of customers live within 4 miles

Retail/Site Selection/Marketing Site Selection Find best locations for new storesFind best locations for new stores Identify inefficient storesIdentify inefficient stores Trade AreasTrade Areas Market PenetrationMarket Penetration Market ShareMarket Share Target Marketing Understand customer demographicsUnderstand customer demographics Identify untapped enclaves of future customersIdentify untapped enclaves of future customers Direct MailingsDirect Mailings

Example – Workforce for Industrial Siting - Using the Location Quotient (LQ) LQ = (E ij /E j )/(E i /E t ) * 100. Where E ij = Employment in sub-area j in sector i; E j = Total employment in sub-area j; E i = County employment in sector i; E t = Total County employment. A location quotient greater than 100 indicates specialization in the category, and less than 100 indicates that the ZIP Code is not specialized in that category. (Source: Greene and Stager, 2005)

Location Quotient Example ZIP Code A has 350 workers in the bottling industry out of a total labor force of 1,000, while in the county containing ZIP Code A, there are 50,000 workers in the bottling industry and a one million labor force total. The location quotient is calculated as follows: LQ = (E ZIP /LF ZIP ) / (E COUNTY /LF COUNTY ) * 100 = (350/1,000) / (50,000/1,000,000) * 100 = 700 Zip Code A is then said to be specialized in the bottling industry because the location quotient is greater than 100. In the Los Angeles County GIS, the sub-areas are zip codes while the larger area is Los Angeles County.

Location Quotients for Manufacturing and Professional Employment, Los Angeles, 2000 (Source: Greene and Stager, 2005)

Comparison of Professional Employment to the corridor of Wilshire Blvd. ( Source: Greene and Pick, 2005). Location Quotient of Professional Employment for same area

LQs for Nine Employment Sectors, LA (Source: Greene and Stager, 2005)

Worksheet and Discussion

GIS Analysis and Modeling Descriptive methods Buffer analysis Map overlays Proximity analysis Change detection Modeling and forecasting Statistical analysis (Source: Pick, 2008)

The spatial relationships lead to the following fundamental questions (1)How can two maps be compared with each other? (2)How can variations in geographic properties over a single area or GIS data set be described and analyzed? (3)How can we use what we have learned in the analysis to explain and predict future maps of the geography in question?

Map Overlay Example (Source: Greene and Stager, 2005)

Overlaying map layers: This example has layers for city boundaries, transportation, land use, and business locations.

Buffer Analysis In buffering, GIS software forms bands on either side of a points, line, or polygon to perform analysis within the bands. Simple example: to assign half-mile buffers on both sides of highway, and ask how many service stations are within the buffer

Example of Spatial Change. Example of Spatial Change. Change in population densities in Chicago, Source: Greene and Pick, 2006

Proximity Analysis It assesses how close certain map objects are to other map objects. For example, it can determine how close the population residing in a census tract is to a competing set of grocery stores.

Understanding the demographics of your market area.

Handheld GPS Unit Showing Redlands Streets and Businesses (Source: Pick, 2008)

Conclusion GIS can be used to analyze small business problems Customer mapping can reveal trends important to business planning and profits. Overlays can increase the information available. Time sequences can show changes in business activities and markets over time. Spatial analysis can lead to better targeting of customers, facilities, workers, and other business entities. GIS is a technology to make more data more usable and put it to greater use for efficiencies, better performance, and profits.