1. Optimizing Geospatial Infrastructure Management with Geocoding Accuracy Nigel Taylor Trillium Software 2009

2. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Agenda What is geocoding? How geocoding can help optimize geospatial infrastructure management Industry-specific examples Action points

3. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com What is Geocoding? Turning an address into a geographic location Or The process of assigning latitude and longitude coordinates to a validated address. The two main challenges are: –Accurately locating individual addresses –Geocoding on a truly global basis

4. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Not all Geocodes are the Same Geocodes come in different levels of ‘granularity’: –True and interpolated (estimated) rooftop positions –Street-level –Centroid positions for postcodes, towns, and cities In international geocoding, the use of postcode-level geocodes is commonplace The problem is that postcode areas vary in size from country to country: –UK – 1.7million postcodes –Canada – 800,000 postcodes –Germany – 27,000 postcodes –France – 18,000 postcodes –Australia – 3,300 postcodes

5. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Different Levels of Geocode True Rooftop and ‘Interpolated’ Rooftop = 91 Crawford St, Richmond 4822 Australia (True rooftop in red, Interpolated rooftop on green)

6. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Different Levels of Geocode Street Centroid = Crawford St, Richmond 4822 Australia (0.7 miles from 91 Crawford Steet, shown by green circle)

7. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Different Levels of Geocode Town Centroid = Richmond 4822 Australia (again, 0.7 miles from 91 Crawford Steet, shown by green circle)

8. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Different Levels of Geocode Postcode Centroid = 4822 Australia (31 miles from 91 Crawford Steet, shown by green circle)

9. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com How can Geocoding Impact Decisions? Almost every organization uses at least one system that relies on the ‘geo-location’ of addresses –Logistics – deliveries, routing, navigation, depot planning, allocation of funding/resources –Risk management for terrorism and natural peril –Telecoms – service provision determination –Customer/Citizen analytics – marketing, store planning –Where’s my nearest? – branch locators, Local government resource Good quality geocoding extends the geographic reach of these systems, and improves the quality of their outputs Precise geocoding on a global basis means you can maximise your investment in systems you already own: –Reducing costs, increasing efficiency, and making better-informed decisions Here are some examples…

10. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry Systems for assessing and managing risk (flood, terrorism, etc) are often based on postcode areas in many countries True risk from perils is more accurately assessed using precise building locations Business benefits include: –More accurate pricing of risk –Better assessment of accumulated exposure in specific areas –Better decisions on capacity – e.g. ability to take on more business –Accurate assessment of reinsurance requirements and costs

11. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry Example Postcode level geocode = 150 00 Praha, Czech Republic = true position of building, 1mile from postcode centroid

12. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry Example Street level geocode = Ostrovského, 150 00 Praha, Czech Republic = true position of building, 0.3miles from street centroid

13. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry Example Building level geocode = Ostrovského 2, 150 00 Praha, Czech Republic = true position of building, 75ft from building-level geocode

14. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry Example X X The true address location is in the floodplain; whereas the street and postcode geocodes are out of danger

15. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Insurance Industry – impact on reinsurance costs

16. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Logistics Industry Systems for managing depot catchment areas are often based on postcode areas Postcodes in many countries cover large areas, and are irregular shapes Decisions on assigning depots for collections and deliveries can be optimised using precise address locations, rather than relying on postcodes Outcomes include reduced miles per collection/derlivery, with savings in fuel and man-hours

17. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Logistics Example - Depot Catchment Areas Depots at A and B, catchment areas defined by postcode boundaries Collection from location X, in same postcode area as Depot A Distance A to X = 4.2miles Distance B to X = 1.7miles A B X

18. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Fraud Detection Transaction monitoring systems are used by online retailers for decision support – i.e. whether to accept individual orders Models use various transaction attributes to detect fraudulent activity One such attribute is distance between billing address and shipping address: –Greater distance correlates strongly with higher risk of fraud The challenge lies with international address locations (measuring distances between addresses outside of core markets such as USA and UK) Global geocoding capability extends the reach of fraud detection systems to an international arena

19. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Fraud Detection – Example Results

20. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Action Points Identify systems in your business/organizations that rely on accurately located addresses Confirm the granularity or precision with which addresses are being geocoded at present Confirm the geographic reach of your systems If you find your systems are limited by an inability to geocode in certain countries, then this is easily remedied If your systems rely on street, postcode, or city ‘centroid’ positions, a switch to precision building-level geocoding will have a positive impact on your profitability

21. Harte-Hanks Trillium Software 25 Linnell Circle Billerica, MA 01821 1-978-436-8900 www.trilliumsoftware.com Ends Questions nigel.taylor@trilliumsoftware.com Global Locator from Trillium Software www.trilliumsoftware.com/home/products/GlobalLocator nigel.taylor@trilliumsoftware.com