GIS in Business Presentation Retail Information Systems Class October 29, 2003 Colleen M. Schelde ESRI Inc.

Presentation Agenda I. Background information on ESRI and ESRI BIS II. Definition and examples of a Geographic Information System (GIS) III. Components of a GIS IV. How Business benefits from GIS V. Where and how can GIS fit in a Fortune 1000 Retailer?

Who is ESRI?  Founded in 1969  Corporate Headquarters in Redlands, CA  World Leader in GIS  300,000+ Client Locations Worldwide  2,750 Full-Time employees  11 US Regional and 20 International Offices  1,200+ Business Partners  Worldwide revenues exceeded $469 million in 2002  Zero Debt and 20% Annual Growth  34 th Largest Software Company

Who is ESRI BIS? A Division of ESRI Acquired by ESRI in January 2002 Provides specific marketing application products and services including: - Customer profiling and segmentation - Custom target analysis - Demographic data reports and maps - Direct mail campaign implementation - Media Planning - Merchandise mix analysis - Site evaluation and selection - Target marketing

Definition of Geographic Information Systems (GIS) Formal Definition A GIS is a collection of computer hardware, software, and geographic data for capturing, storing, updating, manipulating, and displaying all forms of geographically referenced data. General Definition A GIS is a computerized tool for solving geographic problems.

Spreadsheet Geographic Analysis of Spreadsheet data Example of an Analysis in a GIS

Store/Customer Locations (points) Store Trade Areas (polygons) Streets and Rivers (lines) Land Features (lines) Counties/Zip Codes/Census Tracts (polygons) Demographic Data and Customer Data (attribute data) Components of a GIS (Points, Lines and Polygons)

Why Does Geography Matter to Business? Nearly 80 percent of Business data has some reference to geography – i.e. address or ZIPCode Location, location, location… Identifying the best market and the right location can mean the difference between a winner or a poor performing location Prospecting for MORE CUSTOMERS similar to your best customer profile means potential increase in profits Competitive market analysis Precise target marketing

Geography Matters to Business Identify your best customers Target those customers Locate the right site = Increased ROI

Site Prospecting

Demographic Report

Radius Ring Analysis

Drive-time polygon analysis

Desire Line Analysis

Customer Profiling

Customer Prospecting

Thematic Map Analysis

Population Density

Cannibalization Analysis

Store Portfolio Analysis

Lease Renewal Analysis

Special Projects

Where and how can GIS fit in a Fortune 1000 Retailer? Supply Chain Operations IT/IS Department Real Estate/ Store Development Marketing/ Advertising MerchandisingRetail Operations Facilities Management ArcLogistics Route ArcGIS ArcPad RouteMAP IMS ArcGIS ArcSDE ArcReader ArcGIS Publisher ArcView Business Analyst ArcGIS ArcIMS ArcPad ESRI BIS Data ESRIBIS.com ArcView Business Analyst ArcGIS ArcIMS ArcPad ESRI BIS Data ESRIBIS.com ArcView Business Analyst ArcGIS ArcIMS ArcPad ESRI BIS Data ArcView Business Analyst ArcGIS ArcIMS ArcPad ESRI BIS Data ArcGIS ArcIMS ArcSDE ArcPad

Supply Chain Operations Locate distribution centers (DC) Deliver and route from DC to store locations Reduce product cycle time Enable just-in-time scheduling Minimize overtime Schedule and manage your fleet Provide dispatcher summary reports

IT/IS Department Web based store locator Manage spatial data Integrate with corporate databases Spatially enable all departments Facilitate spatial data sharing and exchange Enterprise mapping and analysis

Real Estate/Store Development Evaluate Sites Analyze your competition Profile Customers Manage Store Portfolio Define traffic patterns Evaluate market potential Analyze trade areas Forecast and model sales

Marketing/Advertising Evaluate advertising effectiveness Focus advertising campaigns Define targets Analyze markets Develop targeted promotions and campaigns Understand customer spending

Merchandising Rank store locations by type and merchandise mix Analyze market demographics Evaluate, cross sell and up sell opportunities Analyze trade area Segment customers by lifestyle and product category Model store customer databases

Retail Operations District/Zone map changes Analyze markets Penetrate markets Profile customers Forecast market potential Score and predict consumer buying behavior Integrate in-store, catalog, and Internet market analyses

Facilities Management Map headquarters Map departmental areas/ zones Map and locate - Restrooms - Emergency Exits - Fire extinguishers - Conference rooms - Public telephones - Stairs - Elevators - Parking - Printers - Copiers