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Esri News for Business Winter 2012/2013 issue
 

Esri News for Business Winter 2012/2013 issue

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Esri News for Business Winter 2012/2013 newsletter

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    Esri News for Business Winter 2012/2013 issue Esri News for Business Winter 2012/2013 issue Document Transcript

    • for Business Winter 2012/2013Esri NewsCloud GIS to the RescueCloud-based GIS from Esri helped the staff atWall Street Network (WSN) keep producingonline maps even after flooding from super-storm Sandy cut the power at the company’soffices at 110 Wall Street in New York City. Coincidentally—and fortunately—WSN, atechnology solution provider based in NewYork City’s Financial District, had recentlylicensed ArcGIS and ArcGIS Online. Thecompany uses the software to create solutionsthat help its clients—including risk manag-ers in organizations such as insurance andfinancial service companies—analyze andeffectively present vast amounts of data tobetter understand the risks associated with acatastrophe such as Sandy. Kristina Mazelis, chief operating officer andchief financial officer at WSN, learned aboutflooding near the WSN offices from Sandy inthe early evening of October 29, 2012. Shereceived a notification from her data centermonitoring equipment, indicating that theoffices’ backup power supplies had beenactivated. “The loss of power we experienced, alongwith flooding, meant that the company wouldnot be able to use [its] offices and had toinstead rely on people to work from home,” Modeling and visualizing high winds can give risk managers a better idea of what may happenduring and after a storm.Mazelis said. “We also had to support dozensof small and medium-sized business clientsin the same situation. They needed us todeploy their business continuity and disasterresponse plans—making sure they, too, couldcontinue to do business even in the face ofsuch a devastating event.” WSN’s engineers located in New York andMichigan were already equipped with all thetools they needed to remotely monitor andmanage their systems as well as provide liveend-user support over the Internet. ArcGISOnline, a cloud-based platform, was one ofthose tools.Failsafe Business SystemWSN uses ArcGIS Online to create interactivemaps and applications that can be quicklyincorporated in risk managers’ workflows sothat content created by one user can easilybe shared with others. WSN’s clients can viewand work with maps and perform analysis onsmartphones, tablets, and notebooks, as wellas the traditional office desktop. “BecauseEsri software is easy to use and incorporatesall the data we need, we can build betterproducts quickly and focus on solving busi-ness problems and delivering users newperspectives,” Mazelis said. “We can removethe complexities of working with spatial dataand provide our clients with the extensivediscovery, collaboration, and analysis toolsthey need in their businesses.” When Sandy hit on October 29, WSN engi-neers never missed a beat. They continued tocreate customized solutions for their clientsusing ArcGIS Online and other cloud-basedsoftware. “Because our development is in thecloud, our developers’ efforts have not beenimpacted,” Mazelis said. “If we hadn’t beencontinued on page 3
    • Winter 2012/2013Esri News for Business is a publication of theBusiness Solutions Group of Esri.To contact the Esri Desktop Order Center, call 1-800-447-9778within the United States or 909-793-2853, ext. 1-1235, outsidethe United States.Visit the Esri website at esri.com.View Esri News for Business online at esri.com/business or scanthe code below with your smartphone.Advertise with UsE-mail ads@esri.com.Submit ContentTo submit articles for publication in Esri News for Business,contact Karen Richardson at krichardson@esri.com.Manage Your SubscriptionTo update your mailing address or subscribe or unsubscribe toEsri publications, visit esri.com/publications.Customers outside the US should contact an Esri distributor tomanage their subscriptions.For a directory of distributors, visit esri.com/distributors.Circulation ServicesFor back issues, missed issues, and other circulation services,e-mail requests@esri.com; call 909-793-2853, extension 2778;or fax 909-798-0560.2 Esri News for Business  Winter 2012/2013ContentsCover 1 Cloud GIS to the RescueCase Study 4 Born Again7 Miele Turns to Esri to Drive Growth7 A&P Enhances Real Estate Strategy with Esri GIS SoftwareSpotlight 8 Location Intelligence Is More Than a MapSoftware 10 Esri Maps for Office Is Now Available 11 Business SenseData 12 Demographic State of the United States in 2012Solution14 Location Analytics: The Next Big Step in Business Analysis16 Esri OnlinePartner Spotlight 17 Location—The Tie That BindsSpecial18 Keeping Service Levels High and Costs LowThe information contained in this work is the exclusive property of Esri or its licensors. This work is protectedunder United States copyright law and other international copyright treaties and conventions. No part of thiswork may be reproduced or transmitted in any form or by any means, electronic or mechanical, includingphotocopying and recording, or by any information storage or retrieval system, except as expressly permittedin writing by Esri. All requests should be sent to Attention: Contracts and Legal Services Manager, Esri, 380 NewYork Street, Redlands, CA 92373-8100 USA.The information contained in this work is subject to change without notice.The Geographic Advantage, Esri, the Esri globe logo, 3D Analyst, ArcAtlas, ArcCatalog, ArcData, ArcDoc,ArcEditor, ArcExplorer, ArcGIS, the ArcGIS logo, ArcGlobe, ArcIMS, ARC/INFO, ArcInfo, ArcLogistics, ArcMap,ArcNetwork, ArcNews, ArcObjects, ArcPad, ArcPress, ArcReader, ArcSDE, ArcSurvey, ArcToolbox, ArcTools,ArcUser, ArcView, ArcVoyager, ArcWatch, ArcWeb, ArcWorld, ArcXML, Business Analyst Online, BusinessMAP,CommunityInfo, EDN, Geography Network, GIS Day, MapData, MapObjects, Maplex, MapStudio, ModelBuild-er, MOLE, NetEngine, RouteMAP, SDE, Sourcebook•America, StreetMap, Tapestry, @esri.com, esri.com, arcgis.com, geographynetwork.com, gis.com, and gisday.com are trademarks, service marks, or registered marks ofEsri in the United States, the European Community, or certain other jurisdictions.Other companies and products or services mentioned herein may be trademarks, service marks, or registeredmarks of their respective mark owners.Copyright © 2013 Esri.All rights reserved.Printed in the United States of America.
    • equipped with Internet and cloud capabilities,we would have been dead in the water—nopun intended.”Minimizing Risk before aCatastrophe HappensIn what may now seem like a bit of fore-shadowing, WSN decided months beforethe storm to create its first ArcGIS Onlineapplication for the insurance industry. “Wechose this solution because we wanted toprovide customers with tools to easily viewand understand their policies by location tosee how they are affected by perils just likesuperstorm Sandy,” Mazelis said. The ability for WSN to host this solu-tion means its clients don’t have to host itthemselves. “This is an important point,”said Mazelis. “The small carriers that exist inthe US provide quite a bit of insurance in themarketplace but lack the budget necessaryto run sophisticated catastrophe models.We’ve lowered the costs for some by hostingthe data and platform. We are able to puttogether these apps, so now carriers of anysize can subscribe to the solution without ahuge capital expense.” After a disaster like Sandy, insurance compa-nies try to quickly create models that calculateits impact. With ArcGIS Online, WSN staff canhelp these companies understand their truerisk instead of playing a guessing game. Geography traditionally plays a part in thisprocess. Risk managers use a property’s loca-tion to judge how far away it is from a hazardsuch as a storm surge zone. With the help ofArcGIS Online, WSN created a solution for riskmanagers to interactively view and discoverupdated spatial hazard inventory data toanalyze information in real time. Dependingon the catastrophe model created—a stormsurge, for example—a hazard can be displayedon a map. The map can also include the loca-tions of a client’s assets, so calculations can bemade to determine the company’s exposureto risk before, during, and after a storm.Cloud Helps Business ContinuityWSN’s solution is changing the insuranceindustry from having to react in an ad hocmanner—for example, after a storm hasoccurred, asking what the damage was—tobeing constantly proactive. Hazards such asstorms, political situations, and similar eventscan be monitored in real time. Ensuring that the monitoring systems inplace are available—even when the provideris hit—is invaluable. As of this article’s publica-tion, WSN’s telephones had not yet beenrerouted due to the storm surge, and the com-pany is not expecting to return to businessas usual in its offices for another six months.Saltwater damage to building wiring—includ-ing electrical, data, security, and elevatorsystems—means that all wiring must be com-pletely reengineered and replaced. This is thefate for thousands of businesses in New YorkCity. In many places, fuel, oil, and wastewaterinundation has made buildings uninhabit-able. The City of New York is working withstorm-impacted businesses by coordinatingprograms that provide temporary workspacesand free services and supplies. Businesses inneed of these services can view a completelist of locations. “Lessons learned from Sandy were theunexpected benefits of cloud and mobiletechnology for business continuity,” Mazelissaid. “We benefited from implementing thesetechnologies to deploy, manage, and imple-ment our client solutions and understandfirsthand the importance of implementingthese technologies in our business continuityand disaster response solutions.”For more information onhow ArcGIS Onlinebenefits business, visitesri.com/business. You can view real-time information via ArcGIS Online such as this advisory about TropicalStorm Beryl, which made landfall in Jacksonville Beach, Florida, in May 2012.3Winter 2012/2013 esri.com/businessCloud GIS to the Rescue  continued from cover“Because Esri softwareis easy to use andincorporates all the datawe need, we can buildbetter products quicklyand focus on solvingbusiness problems anddelivering users newperspectives.”Kristina Mazelis, Chief Operating Officerand Chief Financial Officer at WSNCover
    • Born AgainThe Antidote for Zombie Stores“He’s already dead, he just doesn’t know it yet.” That phrase, popular-ized by horror movies, describes the living dead who naively roamthe earth, not realizing that their lives have passed. This phrase hasalso been applied to retail outlets—stores, restaurants, and servicevenues—with declining businesses and dwindling operating capitalthat are limping along with marginal profits. Although these businesses have outlived their usefulness in theircurrent locations, their owners cling to the hope that they will be ableto keep the lights on for just one more lease cycle. “This recession has created zombie stores, stores that appear tobe alive but that are really dead,” said Ted Hurlbut, a consultant atthe retail consulting firm Hurlbut Associates. “In good times, in everychain there are below-average stores that only generate 70 percent or80 percent of the average store but are still four-wall profitable. In thisdownturn, with sales in some of these weaker stores off by as much as10 percent to 20 percent, these stores are now four-wall cash drains.”Finding the Best UseGIS can help retailers fight off the zombie virus. In real estate, it allcomes down to one simple question, What is the best use for this landor this building? according to David Beitz, president and cofounder,Beitz and Daigh, which is a developer, owner, and operator of commu-nity-oriented shopping places in primary markets along the East Coastof the United States.“I think about the world I was in just10 years ago—me having to buildapplications and run analyses forpeople—and now the barriers havebeen lifted. Today, I can focus on thecontent, the business use, and notworry about the infrastructure.”Matt Felton, GIS Director atMacKenzie Commercial Real Estate Services Often retail stores have not adapted to changesin the composition of the market and are no longersuited to their current location.4 Esri News for Business  Winter 2012/2013
    • “If a retail site is barely making it, GIS can be used proactively to spotopportunities that could increase the value of the real estate,” Beitzsaid. “Maybe that tired chain store location would make a great bankbranch. Or maybe it could be combined with several other parcels tobuild an apartment complex. GIS gives us the tools to research locationsand find opportunities in order to make smarter real estate decisions.” Matt Felton, GIS director at MacKenzie Commercial Real EstateServices, agrees: “With GIS, we can help owners of vacant stores with[information on] current, up-to-date market reach, customer profiles,and market potential for zombie sites. Most of these zombie stores arein markets that have dramatically changed quicker than the owners canadapt. Often, these types of stores have outlived their nature in a givenmarket and should instead turn into something new, or they have beencompletely outpositioned so that no other retailers will want to showinterest in the site.”Connecting People to Real PlacesAs a shopping center company, EDENS uses GIS in the leasing processto first identify potential retailers for a site, then uses the technology tocommunicate to the retailer why EDENS leasing and development staffthink a site is good for it. “Studies show that the more time customersspend at a shopping center, the more money they spend,” said Beitz.“Great shopping places provide a variety of activities for people in thecommunity to connect through shopping, services, entertainment, andrestaurants.” For example, when EDENS has a retail space or outparcel [a small lotat the outer edge of a shopping center, reserved for later sale] that—ifdeveloped as a restaurant—would complement one of their shoppingcenters, staff look at a number of questions:•• What other restaurants are nearby?•• Who is not in this market but is successfully operating in other similar markets?•• How do the demographics of their target site line up with the potential restaurant’s other locations?•• Is this a breakfast/lunch crowd or lunch/dinner crowd?•• What is the daytime (employment) population?•• Where are the schools nearby that help determine commuting patterns? GIS helps EDENS to understand and communicate the answersto these questions, determining if additional retail square footagemight be profitable for landlord and tenant. In addition to maps anddemographics, EDENS has also been using Esri Tapestry Segmentationdata to better understand its markets. Tapestry classifies US residentialneighborhoods into 65 unique market segments based on socioeco-nomic and demographic characteristics. By understanding the life-styles, life stages, likes, and wants of people, it is easier to understandwhat may interest people living in specific neighborhoods.“If a retail site is barely making it,GIS can be used proactively to spotopportunities that could increasethe value of the real estate. Maybethat tired chain store location wouldmake a great bank branch. Ormaybe it could be combined withseveral other parcels to build anapartment complex. GIS gives usthe tools to research locations andfind opportunities in order to makesmarter real estate decisions.”David Beitz, President and Cofounder, Beitz and Daighcontinued on page 6 Customers can see their entireportfolio, not just one lease at a time,allowing them to be proactive in theirmanagement strategies. This translatesinto healthier retail stores.5Winter 2012/2013 esri.com/businessCase Study
    • “Above and beyond demographics, the Tapestry data profiles thehouseholds and gives us a deeper view of the consumers in the market,”said Beitz. “I think the key here is to add retail space only if it accom-plishes the larger goal of creating a dynamic shopping place wherepeople want to spend time. If you only look at retail square footage percapita, then you will see that lots of areas are overretailed. The problemis that often the retailer has not adapted to the changing compositionof the market. Tapestry gives us the consumer understanding of thebusiness equation to better capitalize on opportunities in the market.”Secure Access to Information AnywhereMacKenzie brokers and retail partners can present retail centers inthe most positive light using an online dashboard created by Felton.MapDash, built on Esri’s cloud-based solution ArcGIS Online forOrganizations provides designated staff with secure access to informa-tion from anywhere. When an anchor store leaves a mall, customer counts and sales oftendecline. This triggers the material adverse change clause in most leasesand affects the rates other tenants pay. To counter this situation, Feltonand his team use MapDash to define the current customer dynamicsin trade areas and quantify the market opportunity, depth of demand,and spending capability of consumers in the area. With this informa-tion, MacKenzie staff can match opportunities with tenant prospects. “I think about the world I was in just 10 years ago—me having tobuild applications and run analyses for people—and now the barriershave been lifted,” said Felton. “Today, I can focus on the content, thebusiness use, and not worry about the infrastructure.”From Reactive to ProactiveMapDash helps the brokers communicate lease information to theircustomers. The dashboard helps organizations that hold between 10 and 40 leases in a region access all related information, identifywhere properties are located, and know when leases on those proper-ties should be renewed. Red flashing dots on the dashboard map signify stores that require at-tention relating to a time-sensitive issue such as a lease option. Clickingthese dots provides both street and bird’s-eye views of the retail loca-tion, along with reports that summarize the pertinent information aboutthe lease such as length of lease, price per square foot, and length oftime at the site. This gives decision makers a better understanding ofthe terms of all leases, turning the often reactive lease renewal processinto a proactive strategy for optimizing the company’s portfolio. “MapDash allows our customers to see their entire portfolio, not justone lease at a time,” said Felton. “Accessing information in this manneris better and faster and keeps our clients more informed. This givesthem more leverage in the process, and this translates into healthierretail stores.”Opportunity in a Sea of ChangeToday’s retailers have a tremendous opportunity to leverage their retaillocations to gain significant competitive advantages. GIS technologyand data help retailers gain a comprehensive understanding of dailystore operations and the customer. These retailers can more quicklyidentify key trends, make decisions, and respond to changing con-sumer behavior. This is a key competitive advantage. Being agile andresponsive is the key to maintaining a viable and growing business in adramatically evolving economic landscape.For more information on how GIS canhelp retailers, visit esri.com/retail. MapDash helps organizations thathold between 10 and 40 leases in aregion access all related information,identify property location, and knowwhen leases on those propertiesshould be renewed.6 Esri News for Business  Winter 2012/2013Born Again  continued from page 5
    • A&P Enhances Real Estate Strategywith Esri GIS SoftwareSolution Will Provide Grocer with Localized Shopping TrendsGreat Atlantic and Pacific Tea Company, Inc. (A&P), has licensed EsriGIS technology and data to provide localized shopping trends datathat supports the company’s commitment to being the number onefood and drug store in the neighborhoods it serves. Adopting Esri’s so-lutions for retail real estate and market planning will help the companymaintain and grow its market presence across the Northeast. “Partnering with Esri allows us to enhance our real estate strategyin the neighborhoods that we currently serve by enabling us to meetthe specific needs of our customers,” said Nrup Krishnamurthy, A&Pchief information officer. “In addition, this technology will serve as anessential business tool to help us make well-informed decisions aboutwhere and how we go to market in the future.” Esri’s powerful location analytics provide A&P staff with valuabledata on store locations, including key demographics and shoppingtrends in local communities. By analyzing geodemographic data, partof the Esri Business Analyst solution, A&P can continue to grow anddevelop its stores. “A&P will ensure its products and store positioning meet the needsof its customers with the adoption of location analytics,” said SimonMiele Turns to Esri to Drive GrowthLocation Analytics Propels Orange County, California, Dealer to 70 Percent IncreaseMiele, Inc., a premium provider of domestic appliances and commercialmachines, has streamlined its distribution network in the United Statesusing Esri technology. Esri’s software and data are used to betterunderstand which markets are best for the company’s hiqh-qualityproducts. By focusing on specific segments of the marketplace, Mielecan pinpoint customers and help its dealers be more successful. “GIS has been an important tool to help us navigate the Americaneconomy in the last few years,” said Matt Kueny, senior businessanalyst in sales at Miele. “Just because someone might have theincome to spend on one of our products doesn’t necessarily mean theyare a realistic target for our brand based on other lifestyle variables.Using Esri technology, we have been able to better analyze patternsand share this information with our dealer network so we can get theneeded item to the customer.” Using the ArcGIS platform, Miele was able to better gauge thehealth of its dealer network and ensure that products were avail-able in the most appropriate market segments. Esri Business AnalystOnline helps Miele communicate key marketing activities to its dealersand work in a collaborative environment. By being able to visualizeand analyze sales information and business data through maps, oneOrange County, California, Miele dealer achieved a 70 percent growthin sales. “Miele has done an astounding job of responding to a changing andhighly competitive marketplace by applying technology and expertisein an innovative manner,” said Simon Thompson, director, commercialsolutions, at Esri. “Miele really is inspirational in that it has helped itsdealers grow their businesses in an environment where many busi-nesses are failing.” Miele continues to adapt to its customers’ evolving retail sophistica-tion and help its dealers keep up their revenue by applying locationanalysis to online shopping. “By tracking search engine hits in our gapmarkets, we are able to geotarget the nearest dealer to that Internetshopper,” said Kueny. “We are making the shopping experience moreconvenient by helping the customer find the nearest product. It’s allabout customer service.”esri.com/businessCase StudyThompson, director, commercial solutions, at Esri. “We look forward toworking to assist A&P in achieving its vision.”esri.com/retail
    • Location Intelligence Is More Than a MapBy Wayne Eckerson, President, BI Leadership Forum, and Director of Research, TechTarget For my BI brethren, location intelligence isthe newest moniker for something that usedto be called spatial analytics, geographicinformation systems (GIS), or just mappingsoftware. Location intelligence creates mapsthat enable users to view the relationship ofobjects in space and perform a variety of spa-tial calculations, such as, How long will it taketo drive from Detroit to Cleveland? or Whatpercentage of high-income customers arelocated within a 15-minute drive of this store?or What’s my risk exposure to a hurricane thatplows through Dade County, Florida?For most business intelligence (BI) profes-sionals, maps are becoming an increasinglycommon way to view data in a dashboard orreport. However, most BI professionals haveyet to be exposed to the full power of loca-tion intelligence, and that’s a shame. But I’mhoping to change that. In July, I immersed myself in the world oflocation intelligence at the Esri InternationalUser Conference in San Diego, California. I’vebeen in the BI field for more than 20 years,so attending my first Esri conference was aneye-opener. Not only are the exhibits full offascinating geographic displays, more than15,000 people attended the event. That putsany BI event to shame.Without access to aGIS, analytically drivenorganizations missvaluable insights.
    • Parallel WorldsLike business intelligence, location intelligencesupports analysis and decision making. But forthe past 20 years, these two data-centricdisciplines have forged independent butparallel paths. Only now are they beginning toconverge. After my presentation at the conference,one attendee asked, “Why hasn’t locationintelligence taken off in the business intel-ligence community?” My first response wasthat a majority of BI shops have been con-sumed trying to get adoption for basic report-ing and analysis applications and only now areready to incorporate new capabilities such aslocation intelligence, predictive analytics, andunstructured data. But later I realized that the BI communityhas already embraced location intelligence,at least the mapping part of it. During thepast 10 years, most BI professionals havespent significant time learning how to displaythe shape and content of data in visual form,using charts and graphics, including maps.Meanwhile, BI vendors have invested heavilyin beefing up the visualization capabilities oftheir tools and adding new charting compo-nents, including maps. To BI professionals,maps are now an integral charting componentof any BI portfolio.The Intelligence in GISBut location intelligence is more than just amap with dots on it. Location intelligence is afull-fledged analytical system. These so-calledgeographic information systems specialize instoring and manipulating spatial data, whichconsists of points, lines, and polygons plottedas coordinates in space. Each spatial object can be imbued withvarious properties or rules that govern itsbehavior. For example, a road (i.e., a line) hasa surface condition and a speed limit, and theonly points that can be located in the middleof the road are traffic lights. Spatial enginescan then run complex calculations againstcoordinate data to determine relationshipsamong spatial objects, such as the drivingdistance between two cities or the shadowsthat a proposed skyscraper would cast on sur-rounding buildings or RFID tagged productsthat move beyond a specific area (e.g.,geofencing). In essence, a GIS is an object-oriented analytical system that models thingsin space. So without access to a GIS, analyticallydriven organizations miss valuable insights.Until recently, most spatial analysis was con-ducted by a handful of GIS specialists workingin the bowels of a company who importedbusiness data into GIS to create spatialmodels. But now, spatial insights can be deliv-ered to all users via GIS-enabled applications,including BI, ERP, and CRM. And GIS provid-ers, like Esri, can publish GIS applications tothe cloud, allowing users to access interactivemaps via web browsers.Integration with BusinessIntelligenceIn the BI world, the first step toward con-verging location and business intelligenceis plotting business metrics on a map. Likeother types of visualization, maps bring datato life and make it easier for business usersto identify the significant trends and issuescontained in most reports and dashboards.But location intelligence goes beyond basicgeographic displays; it delivers interactivespatial models that correlate business data ona three-dimensional surface. For example, BI users might use interactivemaps to sift through hundreds of variables tooptimize the siting of new stores, dealerships,branch offices, factories, drill heads, or pipe-lines. Or they could use maps to view how thebuying habits and demographics of custom-ers located around stores have changed overtime. Facilities managers could use interac-tive maps to plot the optimal evacuationroutes from any point in an office building orestimate the physical and financial impact of abomb that explodes outside their building atvarious distances. Insurance agents could useGIS-enabled BI tools to simulate what theywould have to pay policyholders whose homesare damaged by a hurricane, based on thewind speed and path of the oncoming storm. Finally, the explosion of mobile devices,such as smartphones and tablet computers,places a premium on integration of businessand location intelligence. For example, mobiledashboards will notify plant managers aboutthe status of poorly performing machines asthey walk a factory floor or alert store manag-ers about stock-outs as they move throughthe aisles. Mobile dashboards will deliver toexecutives and salespeople a 360-degreeview of a customer as they approach thecustomer’s site. The use cases are endless,and organizations will discover new ones oncethey GIS enable their BI applications.Integration OptionsIntegrating BI and GIS applications is not ashard as it once was. GIS vendors now offer richREST-based web services APIs to integrateGIS with other applications. And some, likeEsri, now offer cloud-based GIS services soyou don’t even need to own a GIS to benefitfrom GIS functionality. As a result, BI vendors are integratinggreater GIS functionality into their applica-tions. A decade ago, BI vendors deliveredstatic, graphic maps that customers couldoverlay with dots. Many now embed GISshapefiles that enable BI users to plot busi-ness data on standard baseline maps andsupport basic GIS functionality such as zoom,hover, drill, and synchronized filtering. Anda few interface directly with GIS, allowing BIreport authors to easily add custom mapsand more sophisticated GIS functionality toreports and dashboards without having towrite code.SummaryAs BI shops seek to infuse reports anddashboards with better visualization and moreanalytics, it’s imperative that they explorethe rich opportunities afforded by locationintelligence. GIS integration is a simple wayto add more robust analytical capabilities torun-of-the-mill reports and dashboards.9Winter 2012/2013 esri.com/businessSpotlight
    • As part of ArcGIS Online, Esri Maps for Office enables the use of famil-iar Microsoft Office tools to quickly and easily map and share data. Users can create maps directly in Excel and add them to PowerPointpresentations and other documents. They can publish and sharemaps on ArcGIS Online that others in an organization can then use tovisualize and interact with their data. Maps published on ArcGIS Onlinecan also be viewed or embedded in web pages or desktop and mobileapplications. All that’s needed to get started using Esri Maps for Office is anArcGIS Online paid or trial subscription, along with Microsoft Office2010 or later.Make Maps Directly in ExcelUsers can create interactive maps of theirExcel data—not only maps of locations(e.g., customer addresses, sites by mapcoordinates, facilities, businesses, opportuni-ties, distribution points) but also maps ofgeographic data, such as color-coded mapsof sales by ZIP code or enrollment by state. Through tight integration of Esri Maps forOffice with ArcGIS Online, users can access avariety of background maps, including street,satellite, and topographic maps. They canalso reuse and incorporate (mash up) any mapto which their organization provides access,as well as tens of thousands of maps pub-lished by Esri’s worldwide user community.Impact Your AudienceMaps are powerful communication tools thathelp users get their points across quickly andefficiently. Maps can also help them look attheir data in different ways to gain additionalinsight.Esri Maps for Office Is Now Available Once a map has been made, the results can be immediately sharedwith others by adding them to PowerPoint presentations or by one-click publishing to ArcGIS Online. Both interactive and static mapscan be shared. Users have full control over the map symbols and mapstyling so that they can tell their stories the way they want.Part of ArcGIS OnlineWith the ArcGIS Online collaboration capabilities and valuable content,Esri Maps for Office enables the use of familiar Microsoft Office tools toquickly and easily map and share data inside and outside an organization. Make interactive maps insideMicrosoft Excel and PowerPointwith Esri Maps for Office.10 Esri News for Business  Winter 2012/2013
    • Esri Maps for Office is made available as a component of ArcGISOnline. It’s delivered as an add-in to Microsoft Office, and currentArcGIS Online subscribers can get it as part of their subscription.For more information, visit esri.com/software/esri-maps-for-office.11Winter 2012/2013  esri.com/businessBusiness SenseSimon ThompsonDirector, Commercial Solutions, EsriCorralling the Connected ConsumerIf you look at the information that companies want to process tounderstand their businesses better, it is almost 100 percent loca-tion driven. All those shopping transactions and searches, all thosesocial media interactions and Tweets—they happen somewhere.Using all this information, companies are finding out where theircustomers live, what they want, and how to find them and servethem better. Consider that three years ago, most credit card companies hadlimited interest in location because they knew they could just blastout marketing materials, and over time, people would come in andget their card. That isn’t the case now—the economic environmenthas changed, and so have consumers and their expectations. Today, these same businesses are finding they need to marketdifferently and seek out new consumers, but they can no longerafford to carpet-bomb an entire metropolitan statistical area (MSA)like they might have done before. Instead, these organizations canbe smarter, more efficient, and more precise by picking individualgeographic areas, like a city block or neighborhood. Businesses caneven get down to the address level and seek out particular types ofcustomers at specific points of interaction—like leaving coupons fortutoring in a frozen yogurt shop or gym membership information ata health food store. Businesses are really looking to attract the attention of the“connected consumer” by developing applications that work acrossevery platform and capture insight from all the information thatcomes linked to any transaction. Connected consumers are particular. They require enhancedcustomer service, which means business owners must get closer tothe customer and deliver to them something they really want. Thisis driving new interest in location-enabled applications. Location technology and spatial analysis are making thesetypes of targeted marketing much easier and very accurate. Usinglocation analytics, business users can seek out the customers theyconnect with, find more like them, and engage with them. Whetheronline, in the mall, or down the street, customers can be attractedto your business—just meet them at their level.Software
    • Because the economic recovery is proceedingmuch more slowly than expected, companiesare still trying to attract consumers whoare reluctant to spend as they continue topay down debt. Although some positivesigns, such as modest increases in consumerspending and slightly higher sales of existinghomes, are noted in a few areas, effects of therecession are still impacting overall economicrecovery. The US population also continues tochange in terms of more diversity and differ-ent family types and households.Population Diversity and ChangeIn 2012, the US population was 313 million.Growing racial/ethnic diversity continued toproduce striking changes in the population.This is evident from use of Esri’s proprietaryDiversity Index, which summarizes racialand ethnic diversity in an area. This measureshows the likelihood that two people, chosenat random from the same area, belong todifferent races or ethnic groups. The indexranges from 0 (no diversity) to 100 (completediversity). Esri’s Diversity Index for the UnitedStates rose from 60.6 in 2010 to 61.4 in 2012,with a forecast to 63.8 in five years. The composition of America’s 118 millionhouseholds is also becoming more diverse.Although husband-wife families remain thedominant household type, their share of allhouseholds continues to slip—from52 percent in 2000 to 48 percent in 2010. From2000 to 2010, the real increase in family house-holds was in single-parent families, up by22 percent, and multigenerational house-holds, up by 30 percent. Husband-wifefamilies increased by less than 4 percent in10 years, and husband-wife families withchildren declined. All family households increased by 8 percentfrom 2000 to 2010; nonfamily households, by16 percent. The fastest-growing nonfamilyhouseholds, however, are unmarried part-ners—opposite sex partners by 40 percentand same-sex partners by 52 percent from2000 to 2010. At 80 percent, single-personhouseholds retain the highest proportion ofnonfamily households; however, the increasewas less than 15 percent in the past decade.in workers. The total number of unemployedshrank from 16.7 million to 14.9 million people.The US rate of unemployment (the percentageof unemployed people within the civilian laborforce) declined. The US labor force participa-tion rate (civilians employed, plus the unem-ployed as a percentage of the US populationaged 16 years and older) also declined by lessthan 1 percent to 63.4 percent. Some of thereduction in unemployment results from bothincreasing employment and workers leavingthe labor force.Impact of These Changes onBusinessChange is the new constant in these challeng-ing times. Just being “better, cheaper, faster”Demographic State of the United States in 2012Companies Still Struggle to Attract ConsumersNontraditional families are the types of house-holds that are growing.HousingAlthough positive signs are noted in areasless affected by the housing boom/bustand employment decline, recovery of theoverall housing market remains slow. The 2011homeownership rate of 64 percent remainedthe same for 2012. Since 2010, housing growthhas been sluggish. Fewer than 900,000 unitswere added annually, down from 2 million an-nually at the peak of the housing boom. Manymarkets are still coping with an excess ofvacant, for sale, and foreclosed properties leftover from the collapse of the housing marketand the Great Recession. Almost one in fourcounties shows no growth or a loss of housingfrom Census 2010 to 2012. Significant housinglosses also occurred due to natural disastersin the past year, such as the wildfire in BastropCounty, Texas, and tornadoes in Indiana andMissouri. Recovery is happening at differentrates across the nation. In many areas, nonew housing units are being built; however, inother places, new construction is back in fullswing, and demand is high. Diverse reasons are causing housing growthin certain metropolitan statistical areas (MSA).The military presence is driving housinggrowth in the Jacksonville, NC; Killeen-Temple-Fort Hood, TX; and Manhattan, KSMSAs. Growth is also apparent in Morgantown,WV; Auburn-Opelika, AL; Logan UT-ID; andManhattan, KS—large college towns withgood climates and growing economies.Kennewick-Pasco-Richland, WA is a retirementhot spot—especially for Californians. Growthalso continues in the Austin, TX; Raleigh-Cary,NC; and Myrtle Beach, SC MSAs.EmploymentThe US labor force is emerging from the mostsevere contraction since World War II. Since2010, the economy added nearly 3 millionjobs, raising the total work force to 142 million.This growth has been geographically broad,with every region and division adding peopleto payrolls. Only Alabama, Arizona, Hawaii,and Rhode Island registered a net reductionHAWAIIALASKA0 250Miles0 500Miles12 Esri News for Business  Winter 2012/2013
    • no longer works for companies to succeedin this age of social media and increasedcompetition with brick-and-mortar stores.Demographic changes offer additional chal-lenges and many opportunities for businessesto capture more consumers. For example,growing segments of nontraditional, multi-generational, and single-person households,along with increasingly racially/ethnicallydiverse populations, provide multiple oppor-tunities for business. Senior consumers alsohave formidable buying power and are readyto spend. Companies that target these newtypes of consumers with specific products andmessaging with multiple media have the bestchance of thriving in this difficult businessenvironment. How can you learn more about your area’sdemographics? Esri’s 2012/2017 UpdatedDemographics data can provide the answers.About 2012/2017 UpdatedDemographicsTo perform actionable location analytics inthis challenging business environment, youneed the industry’s most accurate data. Esri’s2012/2017 Updated Demographics databaseincludes a full roster of current-year estimatesand five-year projections for population,income, race/ethnicity, home value, net worth,disposable income, and more. Recently ranked number one for accuracyin a blind, independent study, Esri’s 2012/2017Updated Demographics data was producedFar Above Average (1.26% or More)Above Average (.64% to 1.25%)Below Average (.23% to .63%)Far Below Average (.22% or Less)Source: Esri 2012 UpdatedDemographics2010-2012 Population Growth Rate0 250 500 Mileswith proven methodologies to provide thehighest possible level of accuracy. Delivered in a variety of geographies,formats, and variables, Esri’s UpdatedDemographics is available as an ad hocdatabase that integrates seamlessly into GISsoftware and is packaged in products includingEsri Business Analyst Online, Esri BusinessAnalyst for Desktop, Esri Business Analyst forServer, Community Analyst, and ArcGIS Online.For more information aboutEsri’s 2012/2017 UpdatedDemographics, visitesri.com/demographicdata. Population growth providesabundant opportunities forcompanies to target new types ofconsumer segments. Areas of growthare clearly illustrated in this map ofthe United States by county.13Winter 2012/2013 esri.com/businessData
    • Today it seems that no conversation about information technology(IT) is complete without a discussion about big data, the cloud, or theconsumerization of IT. However, arguably, the most impactful trend tohit IT has been analytics—both in media buzz and in corporate invest-ment. Since the publication of Thomas Davenport and Jeanne Harris’sbook Competing on Analytics: The New Science of Winning in 2007,both private- and public-sector organizations have been sold on thenotion that they need to leverage analytics on their data to gain insightand drive decision making. Business analytics has now become pervasive in most large public-and private-sector organizations. Current estimates are that 97 percentof large companies leverage analytics, with over 100 million usersLocation Analytics:The Next Big Step in Business AnalysisThe Esri Location Analytics platformis designed for business analysts whospend much of their day using toolssuch as BI and Excel to see patternsand relationships in transaction data.worldwide. Users come from acrossall functional areas, from executivesto line operations and from manag-ers to knowledge workers. These analytic systems basicallyturn an organization’s data intoactionable information by discover-ing and illustrating patterns, trends,and relationships in tabular businessdata. Typical output is in the formof statistical reports that summarizetabular data and sometimes displaythis data in graphs and charts.Analytics are often implemented asindependent business intelligence(BI) systems but can also be part oflarger enterprise systems, like cus-tomer relationship, enterprise asset,and resource management systems. Esri Maps for Office bringsthe power of the Esri platform toexisting business systems. Esri Maps for IBM Cognoshighlights regional performance foran insurance company.14 Esri News for Business  Winter 2012/2013
    • Business Analytics and GeographyThere is a growing realization that by adding geographic location tobusiness data and mapping it, organizations can dramatically enhancetheir insights into tabular data. Maps and spatial analytics provide awhole new context that is simply not possible with tables and charts.This context can almost immediately help users reach new understand-ing and more effectively communicate and collaborate using maps asa common language. While this geographic aspect has been largelyabsent from business analytics solutions, many organizations would liketo incorporate it into their operations. For years, a few progressive organizations have integrated mapsand spatial analytics with their business data using GIS technology andnetted powerful results. This approach has not become widespreadbecause of the expense of custom integration with enterprise systemsand because the capabilities of GIS are beyond the technical knowl-edge of the business analytics users. A second approach has been the use of consumer web mappingtechnologies. This has likewise been problematic because of both dif-ficulties with enterprise integration and a fundamental lack of neededcapabilities.Location Analytics—The Missing PerspectiveIndustry analysts are suggesting that the demand for mapping and geo-graphic intelligence is emerging as an important segment of the businessanalytics software category. This interest is reflected in the fact that spa-tial visualization is one of Deloitte’s top 10 technology priorities of 2012.This new segment is being called location analytics and is focused onthematic mapping and spatial analysis for the world of business analytics.This solution space involves simple mapping and spatial analysis capabili-ties that work directly with business analytics packages and enterprisedata systems with no custom integration efforts.Esri Location Analytics—Esri MapsEsri has recently built a simple and powerful solution for the loca-tion analytics space known as Esri Maps. This product complementsand extends the leading business analytics products: Cognos,MicroStrategy, SharePoint, and others. Esri Maps supports easy-to-usemapping and spatial analytics. These capabilities are complementedwith a full library of geographic content for enrichment that makes EsriMaps simple to use and inexpensive, and users can immediately makemaps of data contained in business analytics systems. Esri’s directintegration with leading business analytics platforms means there is nocost for integration or ongoing maintenance. Also, because it is builtusing ArcGIS (Esri’s core technology platform), it can provide powerfulGIS analytic capabilities and make use of other GIS investments in anorganization. Specific capabilities include the following:•• Mapping visualization: Point, color-coded, temporal, clustered, heatmaps•• Spatial analytics: Bidirectional interaction, map filtering, proximity,custom area (drive time, trade area), and advanced analysis tools(geoprocessing)•• Geographic information enrichment: Basemaps, imagery, demo-graphics, consumer and lifestyle data, environment and weather,social media, business, etc. Esri supports multiple business analytics platforms. For example,Esri Maps for IBM Cognos delivers maps, spatial analytics, and geo-graphic information to the IBM Cognos BI environment. Similarly, EsriMaps for Office, a feature of ArcGIS Online, delivers complete locationanalytics capabilities to Microsoft Office users (see “Esri Maps forOffice Is Now Available,” page 10). The Esri technology augments and extends leading enterprisetechnology, like BI, customer relationship management, and enter-prise asset management, providing mapping, spatial analytics, andgeographic data enrichment in a complementary and nondisruptivemanner. Users of these systems benefit from enhanced insight intotheir business data without leaving the business system or changingtheir information workflow—making these systems more impactful andeffective for the users, as well as the business at large.Enterprise Implications of Location AnalyticsWhile Esri Maps provides a location analytics solution for businessanalysts, this capability is also part of a larger web mapping platform(ArcGIS Online—arcgis.com) that provides enterprise mapping andgeographic analysis services for an entire organization. ArcGIS is usedto share, visualize, and analyze all sorts of organization data usinggeography as a common framework. This system can also dynamicallyintegrate (mash up) varied data, including data that has been mappedusing location analytics. When integrated with the growing volume ofgeospatially referenced data available on the web, new insights beginto emerge.continued on page 16 Creating interactive maps inside existing business systems can helpusers see patterns that graphs and charts cannot reveal.15Winter 2012/2013 esri.com/businessSolution
    • Listen to New PodcastsVisit esri.com/podcasts to listen to the latest Speaker Seriespodcasts. Here’s a glimpse of what you’ll find:Understanding the American ConsumerMatt Carmichael, director of information for Ad Age magazine,discusses using GIS technology and data to understanddemographics and consumer trends.Become a FanJoin thousands from around the world in an online communityon Facebook, LinkedIn, and Twitter.“Like” these Facebook pages: Esri, Esri UC, Official EsriDevSummit, GIS Day.Sign up for these LinkedIn groups: Esri, Esri CommercialBusiness, Esri Insurance Special Interest Group.Follow these Twitter handles for the latest breaking newson Esri GIS in commercial business:•• Simon Thompson, director, commercial solutions, at Esri— @SiAction•• Esri business team—@EsriBizTeam•• Esri Business Summit—@BizSummit•• Karen Richardson, Esri News for Business editor—@mudmoFind ResourcesFor more information on Esri in the news, including videos andblogs, visit esri.com/news. Visit resources.arcgis.com to find the information youneed including help documentation, tutorials, videos, ArcGIStemplates, models, and scripts.Attend a Free Online Training SeminarLive training seminars bring the GIS instruction you need to yourdesktop. Technical experts lead these hour-long sessions, whichare streamed live. If you miss the interactive presentation, youcan access the recording online. Visit training.esri.com for moreinformation.Watch a recorded webinarVisit esri.com/business and click on any one of several informa-tive prerecorded webinars that will help you understand thepower of place in your business. The latest, Customizing the In-Store Experience by LifestyleSegment, explains how retailers can analyze the lifestyle of theircustomers down to the store level to grow market share.Esri News for Business NewsletterSubscribe to the Esri News for Business print newsletter,published quarterly, to keep up with the very latest news in thebusiness industry. To subscribe, visit esri.com/subscribe.Esri Online ArcGIS Online is helping enterprises extend the concepts of simplelocation analytics into whole new areas of information sharing; commu-nication; collaboration; and, ultimately, better decisions. In the privatesector, this capability is helping companies be more efficient andcreate a competitive advantage. In the public sector, it means moreeffective, transparent, and efficient services.Location Analytics:The Next Big Step in Business Analysiscontinued from page 15Location Analytics and Enterprise GISThe Esri Location Analytics platform is designed for business analystswho spend much of their day using tools such as BI and Excel to seepatterns and relationships in transaction data. They want self-servicemapping and simple spatial analytics that are delivered within theanalytic systems they use every day. These users will drive the prolifera-tion of location analytics across the organization. GIS professionals are in a unique position to help these analysts.They are already creating useful frameworks, data, and map layersthat let non-GIS professionals, knowledge workers, and anyone in theorganization start to use location and geography to make better busi-ness decisions. They can also support this new community and help integrate andleverage their capabilities with other enterprise data to maximize thepositive impact. The integration of mapping and geographic intelligence across theentire enterprise will reinforce and leverage the mission of GIS profes-sionals, particularly in transforming the way organizations leveragegeographic knowledge.For more information, visit esri.com/locationanalytics. Business intelligence dashboards are enhanced with interactive maps.16 Esri News for Business  Winter 2012/2013
    • Location—The Tie That BindsBy Keith King, General Manager, Private Sector Group, GISiAs an executive, how hard is it for you to get a complete view of what isreally happening in all parts of your enterprise? Is the information youreceive fragmented? Out of date? Do you have multiple versions of the“truth”? Can you spot trends?  Would you like to wake up in the morn-ing and use your iPad to review KPIs? Can you make timely decisionsabout your business with confidence? In other words, are you getting the information you need, in theformat you need, when and where you need it? Organizations have worked for years to tear down information silos,but challenges remain. If this is the case for you, consider utilizinggeography as an integrating platform to organize, analyze, visualize,and share your enterprise data assets. Spatial, or location, information is contained in much businessdata. For example, wouldn’t it be great to integrate and visualize thefollowing:•• Customer addresses and disaster event data•• Supply chain requirements with weather and traffic data•• Point of sale and demographic data•• Indoor customer mobility patterns with product placement and cus-tomer demographic data•• Regulatory compliance requirements with housing loans history•• Store location and crime data•• Location of Tweets related to marketing campaign actions•• Asset information and maintenance compliance performance The list goes on. My point: It makes good sense to utilize geographyas an integration strategy because location is often the common de-nominator across disparate data assets and systems. Once these itemsare integrated and organized around location, the next logical step isto use spatial technology to analyze, visualize,and share the data. Esri has developed an entire technologystack for utilizing geography as an enterpriseplatform. Wiring up CRMs, ERPs, data ware-houses, and other operational business systems to a geographicplatform is not as hard as you might think. If you want, you can startwith small investments in technology and services and quickly developnew and powerful ways of running your business. The trends are clear. It will be commonplace for organizations tohave specialized spatial analytics divisions. Interactive maps will be astandard part of the executive’s BI dashboard. Geographic platformsare increasingly being recognized as good options for dealing with bigdata, predictive analytics, risk analysis, and data from mobile devices,to name a few. Geography is also a great platform to use for providingvalue-added services for your customers. Put simply, maps serve as acommon language for effectively communicating complex ideas. Geography as a technology platform is a game changer that deliversa distinct competitive advantage. Don’t get left behind.Contact Keith King at kking@gisinc.comor 205-941-0442, extension 159, withquestions or comments. Visualizing the business environment is easier using ArcGIS BusinessAnalyst—trade areas, competition, and existing stores, along withroads and other information, can be seen together in one environment.17Winter 2012/2013 esri.com/businessPartner Spotlight
    • Keeping Service Levels High and Costs LowEsri Business Summit Delivers the Goods on Location AnalyticsBy Karen Richardson, Esri Writer“Using location analytics significantly changesyour insights into the future—you get anunderstanding of where you came fromand find out where you want to go,” saidBruce Wong, manager of advanced networkanalytics at General Motors (GM) Companyas he spoke at the Plenary Session of the 2012Esri Business Summit, held July 22–24 in SanDiego, California. The Esri Business Summit brings some ofthe best minds in business together to sharehow commercial organizations worldwideare using place-based decision making tosupport customer service, grow profitabil-ity, and manage change in an increasinglycomplex world. Nearly 400 attendees listenedto plenary speakers in the morning and thenattended focused sessions on topics such asusing GIS for better customer service, retailapplications, and spatial modeling for bettergrowth.Being in the Best PlaceWong was the first of several plenary speak-ers. He began the morning talking abouthow important it is for GM to understand andimprove its business analytics. The companytransformed itself, going from bankruptcy toprofitability and posting $1 billion in first quar-ter profits this year. Wong said the companyhas been using more GIS analytics to trim fatand become more fiscally fit. Dr. Wayne M. Gearey Jr., senior vice presi-dent of location intelligence at Jones LangLaSalle, reiterated Wong’s emphasis on loca-tion and added that location intelligence isthe game changer. “Using location analytics,we can define our data filters to understandthe best location based on what the businessecosystem looks like,” said Gearey. “This isimportant because our ultimate goal is to getour clients to a geography of opportunityusing the right people, data, and technology.As a result, we build trust and they come backagain and again.”Knowing What the Customer Needs and WantsRob Bakker, knowledge manager at Achmea,an insurance and financial services firm in theNetherlands, stressed that it is imperativefor business managers to think about oldthings in new ways. Achmea’s use of GIS hasled to streamlining processes for its 18,000employees, cutting costs, and innovating newproducts. While neither a GIS expert nor a practicedpublic speaker, Bakker said he felt compelledto share Achmea’s success using GIS for riskmanagement, more efficient business pro-cesses, and transparency to both governmentauthorities and its customers. “Achmea has a complex structure—manylabels and brands,” explained Bakker. “Wehave divisions in health, banking, real estate,life and pensions, and non-life. Each divisionhas its own dynamics and methods of productdistribution.” Working on priority key performanceindicators for each of these divisions, Bakker’sGIS team was able to build business casesshowcasing the effectiveness of GIS fordiverse business functions. “One tenet is tobe a leader in our industry,” said Bakker. “So,we focused on social solidarity and createda pilot project with the City of Eindhoven [inthe south of the Netherlands] to help themmeasure rainfall and mitigate flooding. Thattranslates to creating a digital underwrit-ing map for the reduction of unknown riskaccumulation. By doing this, we talk the samelanguage as the decision makers and connectGIS to the strategic goals of our business.” Using GIS, Achmea managers believe theyalso have a better view on underwritten firerisks and thus are more effective in their riskmanagement. Having this common opera-tional picture for the underwriters of severalAchmea brands is more efficient and competi-tive. It makes claims data available for custom-ers, increasing the company’s transparency,and allows Achmea staff to develop productsand services that make them an insurer thatcustomers can depend on. Rob Bakker of the insurance and financial services firm Achmea stressed the importance ofthinking about old things in new ways.18 Esri News for Business  Winter 2012/2013
    • Dependable and NondisruptiveInterstate Batteries leverages GIS to enhanceits outrageously dependable service model.A $1 billion, privately held company, InterstateBatteries relies on a vast network of dealers tosell its products and provide spent batteriesfor recycling. Esri technology is at the centerof its efforts to maximize the efficiencies ofInterstate Batteries distributors as they servesupported dealers. “Esri mapping technologyserves as the glue of our best-of-breed CRM[customer relationship management], busi-ness intelligence, and master data manage-ment solution by providing a visual deliverymechanism for distributor route fulfillment. AtInterstate Batteries, we strive to serve our dis-tributors and dealers with the best productsand business/technology solutions, includ-ing opportunities to make GIS useful andeffective,” said Mike Darr, program managerfor Interstate Batteries’ Market IQ Program.“Before you know it, you’ll have the user look-ing at data in ways he never pictured it anduncovering previously unknown opportunity.” Other plenary speakers during the morningsession included Felma Degefa, senior staffengineer at Kohler Co.; David Kniffin, businessmanager for 3M Traffic Safety Systems; andSudhir Potharaju, vice president of softwaredevelopment for AIR Worldwide. Theyemphasized the need to keep projects smalland simple and take care not to be a businessinterrupter that changes the way that manag-ers work.Keeping Service Levels HighAdam Kostecki, a claims examiner in theProperty Loss Division at Amica MutualInsurance, extended this train of thought in hisafternoon breakout session “Pushing GIS tothe Front Lines to Improve Customer Service.”Amica, headquartered in Lincoln, RhodeIsland, is a provider of personal insurance forautos, homes, and boats. Known in the indus-try for its high standard of customer service,the company has been awarded several J.D.Power and Associates customer satisfactionawards. During the presentation, Kostecki demon-strated how Amica uses GIS after hailstorms,tornadoes, and wildfires to proactivelyrespond to policyholders’ needs. In one com-pelling example, Kostecki showed how localbranch users kept policyholders informedduring the High Park and Waldo Canyon wild-fires in Colorado. During the height of thesefires, tens of thousands of homes were undermandatory evacuation. Some people couldn’taccess their homes for days. Amica used GIStechnology and up-to-date satellite imagesto notify some policyholders that their homeswere still standing. “They saw smoke and flames approachingas they evacuated and had no idea if theywould have a home to return to,” Kosteckiexplained. “Our policyholders were amazedwe had access to this technology. They reallyappreciated these updates.” Kostecki also showed examples of howGIS could be used during the claims adjust-ment process to improve efficiency and lowerexpenses. “With GIS, we have a much betteridea of what our claim potential is going tobe after an event,” he said. “In the past, itmight have taken days to fully understand themagnitude of an event. Now our branch userscan generate reports with a few mouse clicks,and they can do this in real time as the event isoccurring.” Breakout sessions and Lightning Talks filledthe balance of the afternoon. The day endedwith a poolside social at the Omni San DiegoHotel, courtesy of Gold sponsor Microsoft andSilver sponsors AccuWeather, CloudTrigger,i-cubed, Nokia, and TomTom.For information on the2013 Esri Business Summit,visit esri.com/bizsummit. “Look for the simple opportunities to make GIS useful and effective,” said Mike Darr, programmanager for Interstate Batteries’ Market IQ Program. “Before you know it, you’ll have the userlooking at data in ways he never pictured it.”19Winter 2012/2013 esri.com/businessSpecial
    • PresortedStandardUS PostagePaidEsri380 New York StreetRedlands, California 92373-8100  usaCopyright © 2012 Esri. All rights reserved. Better business analytics? Just add location.Learn all about it at the Esri Business Summit.July 7–9, 2013, San Diego, CaliforniaRegister to attend at esri.com/bizsummit.133809  QUAD51.8M3/13tk