The Change from Big GIS to Small GIS Andrew U. Frank Institute of Geoinformation Technical University Vienna - Austria

Geographic Information is important 80% of all data is space related 80% of all decisions have a spatial component

Geographic Information improves efficiency of economy Examples where efficiency improvement can be measured well: Logistics, Routing Typically measured 20 to 25% reduced distance or time in travel Not only economic contribution: reduction in environmental pollution as well

The Contribution of Geographic Information can reach 16% 20 % improvement for 80% of all decisions is 16% of GNP Not a short term goal, but can be achieved over the next 20 to 50 years

Value of Geographic Information GI is of economic value, if and only if it is used in a decision Decision-making is the only economic use of information

Geographic Information Products Information packaged to serve for a particular decision Form and content optimized for decision maker available when and where needed

Value of Geographic Information Products value is the improvement of the decision –better decision (less resources required) –faster decision –reduced risk

Big GIS Large projects serving ‘non-market’ users –e.g. urban planning cadastre topographic mapping utilities project responsibles and users are not the same

Small GI Products Support specific economic decisions –e.g. real estate markets logistics travel, tourism marketing

GI Product Market GI Products exist on the market pay per use packaged and paid for individual decision cost must be less than value to decision maker users make decisions about use

There is a market: business geography: one company alone has $500 million revenue/year with 30% benefits several efforts in a late stage of venture capital financing

GI Products allow Differential Pricing similar data can be sold at different prices when packaged for different decisions differential pricing is common in most markets –e.g. air travel, computer services, phone differential pricing is economically best solution to achieve optimal allocation of resources through the market

Small GIS relate to specific business processes Organization of GIS not oriented towards data collection but towards its use in ‘business process’ –e.g. Buying/selling of real estate, shipping of goods, vacations

Small GIS is GIS in a market economy The concept of Geographic Information Product requires marketing Small GIS projects are planned within the rules of private enterprises Opportunity for public-private partnership public partner may contribute geographic data

Conclusion Geographic Information Product has value because it improves decisions Small GI Products form a large market Future of GI is in Small GIS project, because it is market driven