1. GIS and Strategy – an Introduction Johannes Moenius

2. 2 A Little Personal Story … Client of mine (around 1990): Construction company specialized in road construction, 40 employees Saturday mornings: for bids: drove or flew to locations Once a month, spend one day asking himself: –Where do I want to be one / five years from now? –Did I reach what I wanted one year / five years ago? –What do I have to change in order to get there?

3. 3 Please Write Down: Where do I want my company to be one year from now? Where do I want it to be five years from now? What do I have to change to reach those goals?

4. 4 Now Please Ask Yourself: Would you like to know where your current and potential customers are located? What else would you like to know about your customers? Would you like to know where your competitors are located? What else would you like to know about your competitors?

5. 5 Goals and Strategy Competitive Advantage Above Average Returns Strategy Small Business Strategy?

6. 6 Decide: Which Markets to Serve and How to Serve Them Two Basic Strategies: –Cost Leader –Differentiation Not only for Products, also for Services, e.g.: –Cheap delivery –Fast / safe / reliable delivery

7. 7 Which Strategy? Depends on Your Environment: –Current Competitors –Threat of Entry? –Indirectly Competing Products –Buyer Concentration / Power –Supplier Concentration / Power

8. 8 Where Are Your Current Competitors? Example: location of competitors in some industry. Have map

9. 9 Are there any Underserved Markets? Again, example of new location for, e.g. coffee- shops or something like this

10. 10 Where Are my Buyers? Area profiling example

11. 11 How GIS Supports You Geo-coding Visualization Statistical Methods, e.g.: –Neighborhood-Analysis –Gravity Model

12. 12 Use Your Own Data First! Customer Records with Addresses Other Characteristics: Type of Product Purchased, Total Amount Spent … Driving Times (with daily profiles  Isochrones)

13. 13 Other Data Available Jim, your input please

14. 14 What Kind of Answers? Do all my customers buy the same stuff or does that vary by location? Are there any areas that I am not serving the right way? How far can I reach with my products? How far can my competitors likely reach with theirs? Am I offering the right product to the right market segment?

15. 15 Some Examples Location Analysis Product Adaptation Serving Strategy (logistics strategy)

16. 16 Conclusion Strategy essential for small businesses GIS can support strategic decision making Data and Technology for this is readily available: own customer data, buyable data, open-source software, high-end programs, mapping web-services