How to measure the intangible value of location

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Overcoming the myth that the value of geospatial can’t be measured

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How to measure the intangible value of location

  1. 1. Overcoming the myth that the value of geospatial can’t be measured Keith Wishart, Public Sector Strategist ESRI (UK)
  2. 2. • Measuring the benefits Overview About me Keith Wishart Business Strategist ESRI (UK) kwishart@esriuk.com @keith_wishart My presentation Extend the business case: • Intangibles • Extended ROI • Case studies My message to you: “measuring intangibles is not so much a problem to be overcome as an opportunity to be seized”
  3. 3. • Measuring the benefits 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Budgetary constraints Difficulty in building a business case due to a lack of demonstrable financial benefits Lack of awareness and support from senior decision makers Benefitsof using more GIS don't seem to outweigh the cash costs Benefitsof using more GIS don't seem to outweigh the operational costs Limited scalability of existing technology Lack of internal demand for making greater use of GIS Cash costs of procuring external data Difficulty in building a business case due to a lack of demonstrable non-financial… Lack of GIS champions Your organisation's IT is not evolving to make greater use of enterprise systems Internal operating costs of generating and maintaining your own spatial data Your organisation's IT is not evolving to make greater use of web servicesand … Strong negative influence Some negative influence No influence
  4. 4. ROI of the beholder
  5. 5. • Measuring the benefits“businesses that place a high importance on managing the economic value of their intangible assets consistently outperform basic economic measures” “they are the sources of competitive advantages and above normal financial returns". Intangibles
  6. 6. Intangible benefits of GI: • Better decision making • Improved customer service • Easier access to data • Improved data quality Intangible Describable Detectable Measurable “Costable” Intangible Benefit Expected Outcomes Possible Metrics Better decision making Fewer wrong decisions Number of appeals Speed of process Improved customer service Less complaints Volume of contacts in CRM system Revenue/customer Easier access to data Quicker compilation of reports Staff time spend compiling reports Improved data quality Less errors in data Data audit Measurement
  7. 7. Extended ROI Measures of Social ROI Measures of Political ROI • Improved education • Lower unemployment • Reduced crime • Better health outcomes • Improved public trust • Positive media coverage • Political capital • Improved CPA/CAA rating
  8. 8. Green IT Carbon accounting, ROI & payback Innovative use of GIS
  9. 9. • Measuring the benefits Benefits “Spectrum” Lower Costs Raise Revenues Increase Satisfaction Improve Quality Increase Efficiency Decrease Risk Increase Capacity Increase Productivity Geographic Information Customer complaints System usage Defects reported Rework avoided Less waste Time saved Decrease in process appealsVolume of information served Amount of reuse of input information Data consolidation Income generated
  10. 10. • Measuring the benefits Intangibles “Target” Structural Capital Processes Systems Data Geographic Information
  11. 11. • Measuring the benefits Extended ROI “Prism” Environmental Emissions Waste Pollution Conservation Geographic Information
  12. 12. • Measuring the benefits Improve Quality Decrease Risk Lower Costs Strategic Objectives Better decision making Accurate Felling Faster Planning Business Metrics Business Visualisation Contract Maps Design Plans Business Projects Data Visualisation Tools Map Production System Data Capture & Database Technology Projects How? Why?
  13. 13. The value of GI to UKplc
  14. 14. Improving customer service • Customer Access Strategy developed through geographic analysis and resident profiling • New services will precisely meet the needs and preferences of residents • £4m pa savings
  15. 15. 16 Mapping Consolidated Demand Index arising from drugs misuse: 1) DAAT Needle Exchange volumes 2) NHS Business Authority - Opiate Dependence prescriptions spend 3) Police Data – drug possession offenders 4) Probation Service OASys – drug offenders with Criminogenic Need 5) Demographic Propensity - derived from ACORN profile of drug offenders 6) The team identified: 1) £53m in savings to the NHS 2) £42m to Criminal Justice 3) £5m to benefits Birmingham Total Place pilot
  16. 16. The value of GI to UKplc
  17. 17. Times up! Intangibles are the real value drivers Extend your business case Thanks!

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