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Introduction to Location Analysis for Business


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Workshop on Business Analytics run at the University of Edinburgh Business School​​ by Guy McGarva of EDINA on 3rd April 2017

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Introduction to Location Analysis for Business

  1. 1. Introduction to Location Analysis for Business Guy McGarva
  2. 2. Contents • EDINA & Digimap • Geospatial data • Geospatial tools and techniques • Business Use examples • Example techniques • Case study: Bonnie Burritos EDINA Digimap
  3. 3. Who is EDINA? delivers and supports online services Based at Part of Information Services Significant expertise in Geospatial technology and services We run the Digimap Service -
  4. 4. A quick plug: The Digimap Service - Overview- An online mapping and data delivery service - Originally built to provide access to Ordnance Survey (GB) maps and data - a 'virtual map library’ - Content now includes: - Historic OS maps, - British Geological Survey data - Marine maps and data (UKHO via Seazone) - Environment data (from CEH) - Aerial Imagery (Getmapping Plc) - Subscription service (free for users) with over 50,000 users at institutions throughout the UK
  5. 5. Online access to maps and data Online mapping: view, query, annotate, print Search for, select, and download raw geospatial data The Digimap Service – Applications
  6. 6. Some basics: What is geospatial data? Data which has a direct reference to its position on the surface of the earth: e.g. latitude / longitude, XY coordinates …or has an indirect reference – e.g. postcode, city etc. direct Spatial reference Attributes, including indirect georeference
  7. 7. Visualising geo-spatial data Spatial references can be used to draw a map from data Point (x, y) Line ( x1,y1, x2, y2, etc) Polygon ( x1,y1, x2, y2, etc.., x1, y1)
  8. 8. Statistical Account of Scotland NUMBER XIII. PARISH OF CULLEN. (COUNTY OF BANFF, SYNOD OF ABERDEEN, PRESBYTERY OF FORDYCE.) By the Rev. Mr. ROBERT GRANT. Royalty, Extent, Climate, etc. CULLEN, as appears from old charters, was originally called Inverculan, because it stands upon the bank of the Burn of Cullen, which, at the N. end of the town, falls into the sea: but now it is known by the name of Cullen on- ly. Cullen is a royal burgh, formerly a constabulary, of which the Earl of Findlater was hereditary constable. The set, as it is called, of the council, consists of 19, in which num- ber are included the Earl of Findlater, hereditary preses, 3 bailies, a treasurer, a dean-of-guild, and 13 counsellors. The parish extends from the sea fouthward, about 2 English miles in length. Directly geo-referenced Maps of different types Types of Geographic Information Indirectly geo-referenced text that contains geospatial data
  9. 9. Examples • Postcode/Zip code • Address • Country • City • Near? • Next to? • 325927,672863 • NT 25927 72863 • -3.187510, 55.943080 • 3° 11' 15'' W, 55° 56' 35'' N • EH8 9JS • fires.home.bucket Some examples of location information: The same location:
  10. 10. Geospatial data in research & teaching examples Air Pollution Refugee camps Archaeological Sites Migration Flows Resource Maps Noise Maps Demographic Distributions
  11. 11. Some fundamentals of GIScience Tobler’s First Law “All things are related, but nearby things are more related than distant things” –W.R.Tobler, 1970. A computer movie simulating urban growth in the Detroit region. Economic Geography 46: 234-240 Place matters. It fundamentally influences and connects our ways of doing business. “GIS and Location Analytics Drive Business” analytics-business.pdf
  12. 12. Definitions & Techniques EDINA Digimap Spatial Analysis The process of examining the locations, attributes, and relationships of features in spatial data through overlay and other analytical techniques in order to address a question or gain useful knowledge. Location Analysis A technique for discovering, assessing and specifying the optimal placement of an organizations people, information, activities and materials. Location Analysis
  13. 13. Business Analytics and Location Analysis EDINA Digimap Business Analytics and Geography “There is a growing realization that by adding geographic location to business data and mapping it, organizations can dramatically enhance their insights into tabular data.” Location Analytics: The Next Big Step in Business Analysis, ArcNews 2012. business-analysis.html
  14. 14. Further Information and Advanced Techniques Gravity Modelling (or Spatial Interaction Modelling) - Huff - Spatial interaction model that calculates gravity-based probabilities of consumers at each target location. - It is based on the principle that the probability of a given consumer visiting or purchasing at a given site is a function of the distance to that site, its attractiveness, and the distance and attractiveness of competing sites. Links and References • • the-huff-model/123411 • • toolbox/how-original-huff-model-works.htm
  15. 15. How is Geography relevant to Business Geospatial data and analysis can be useful in a wide number of business, management and financial disciplines, including: • Risk analysis • Finance • Property • Supply chain management • Demographics • Marketing • Economy • Global and International trade
  16. 16. Risk areas
  17. 17. Finance:
  18. 18. Property
  19. 19. Supply Chain
  20. 20. Demographics
  21. 21. Marketing
  22. 22. Population and Economy - Regional
  23. 23. International - Country
  24. 24. International - Global
  25. 25. Case studies EDINA Digimap Esri (ArcGIS) Pitney Bowes (MapInfo)
  26. 26. Location Analysis Tools EDINA Digimap Digimap: • Online web mapping and data download platform for UK Geospatial data • Available to anyone at the University Esri ArcGIS: • Online and Desktop GIS software, including specific Business Analysis application • Provides access to worldwide demographic data. • Online available to anyone in the University • Desktop available through IS Software Services QGIS: • Open Source desktop GIS • Can be downloaded from QGIS website
  27. 27. ArcGIS Online ArcGIS Online is an online, collaborative web GIS that allows you to use, create, and share maps, scenes, apps, layers, analytics, and data. • Cloud based platform for creating and sharing data • Upload and publish data layers • Create and style web maps • Incorporate Spatial Analysis tools into maps and custom applications EDINA Digimap
  28. 28. ArcGIS Online EDINA Digimap
  29. 29. Business Analyst Online Location analytics for market planning and site selection • Assess where to open, expand or close locations • Determine which locations are underperforming • Define and optimise sales and service territories • Compare and rank sites • Identify where to market your products and services • Segment customers and prospects • Optimise marketing strategies started/saas EDINA Digimap
  30. 30. Business Analyst Online EDINA Digimap
  31. 31. Examples: Demographic profiling EDINA Digimap
  32. 32. Examples: Drive/walk time analysis EDINA Digimap
  33. 33. Examples: Identify overlap areas EDINA Digimap
  34. 34. Examples: Choropleth visualisation EDINA Digimap
  35. 35. Examples: Density mapping EDINA Digimap
  36. 36. Real Example: Bonnie Burrito EDINA Digimap UG dissertation used GIS to plan the location of a new outlet Looked at: • Total Population (within 0.25 miles) • Purchasing Power per Capita • Annual Average Food and Beverage Spend per Capita • Population between 15-29 • Population between 30-45
  37. 37. Bonnie Burrito Expansion: Multiple Criteria EDINA Digimap Criteria Existing Burrito locations Existing Delivery Areas Potential new sites Delivery area with expansion Competitors From draft: Using Multi-Criteria Decision Making for Optimal Premises Location for a Growing Food Retail Business in Edinburgh, Stephen Scurr
  38. 38. Questions? EDINA Digimap Any Questions? Training: Available from EDINA/IS or online through Esri website. Support and Consultancy: Speak to us in EDINA Geosupport Contact: