Presentation Title: ‘Geography – the hidden dimension of value add’ • The world of geography has changed a lot since we were all at school. It has been transformed by advances in computing power and information technology. • Simple applications of geography like SatNav are part of everyday life, but how are companies using the power of geography to generate efficiencies to create value add and to transform their business? • Using examples Graham Wallace will chart a course which shows you how to unlock the power of geography – the hidden dimension of value add.

1. Geography: The hidden dimension of value add
Graham Wallace Esri UK 29th March 2012
(c) Esri UK 2011

2. Esri UK – Understanding our world

3. Changes in Technology have changed Geography
Street Maps Imagery & Elevation
Asia
U.S.
Europe
Basemaps & Globes
Demographics &
Market Data
Thematic Maps
Geology
Hydro

4. Geographic Information Systems are used to
visualize and analyze dynamic data that is related
to a location

5. The geographical dimension
Geography gives information context
Human factors
Territories
Distribution outlets
Schools
Population
Road Networks
Physical factors Rivers/Streams
SSSI
Groundwater
Geology
Our World
Basemap:
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6. Deepwater Horizon
$21bn impact on shareholder funds

7. Enhancing client data
Extract client data, geo-code it & slot it into the framework
Operational / Financial / Risk data Environmental
impact /SSSI
Extraction
Reserves
Operational costs
Drilling data
Seismic data
Groundwater
Geology
Our World
Basemap:
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8. Building a complete picture
Add additional environment data layers to the framework
Remediation
Sites
Schools
Population
Road Networks
Rivers/Streams
SSSI
Groundwater
Geology
Our World
Basemap:
Soil type, groundwater , flood risk
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9. Insurance – the spatial dimension
• If we can build up a clear picture of
where the risks exist then resources
Prospects can be focused where they will have
most impact
Risks / Perils
• Build up data in spatial layers
Claims History
- Risks / perils (eg flood)
Pricing
- Claims history
- Accumulation risk (Multiple policies)
Re-insurance risk
• Quantify each data layer
Accumulation
- Revenue / claims / profit in £
Capital impact - Risk scores
- Pricing £
Profitability
- Accumulation risks £
- Net impact on capital £
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10. Risk scoring – building the risk profile
Understand location specific risks and build context specific risk scores
Risk Aggregate risk scores
scores displayed visually
River flood 4
Run off flood 5
Terrorist attack 2
Crime 7
Arson 8
Subsidence 7
Chemical hazard 5
Heat map: red implies higher risk
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11. Retail – the spatial dimension
• Stores are sited taking into account:
- Population – spend
Acquisition
targets
- Road network – accessibility
- Competition – Market share
Warehouse
location
• If we can build up a clear picture of
Stock allocation where the potential exists then we
can focus resources where they will
Merchandise mix
have most impact
Sales potential • Build up data in spatial layers
Store locations
- Sales plans
- Merchandise assortment
Road Network - Buying plans & stock allocation
Population
• Warehouse location
• Acquisition targets
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12. Retail property portfolio analysis
• Catchment analysis
• Demographic profiling
• Demand modelling
• Space allocation
• Space productivity – sales / margin
• Competitor space allocation
• What to refit – how much to pay?
• What to sell
• Sale & leaseback options
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13. Government – The spatial dimension
• If we can build up a clear picture of
where the problems exist then we can
Employment focus resources where they will have
most impact
Unemployment
• Build up data in spatial layers
Govt Employment
- Unemployment
Job loss - risk
- Investment
- Impact of government cuts
Benefit costs - Sources of export generation
Lending • Quantify each data layer
- The number of people affected
Investment
- Expected government cost reductions
Job creation - Hidden costs of unemployment
- Cost / benefit of job stimulation
schemes
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14. Managing the recovery – a spatial approach
 Where is unemployment?
 Where are jobs being created?
 Where are benefits being paid?
 Where are exports created?
 Where will HE / FE cuts bite?
 Where is investment needed?
 Where are banks lending?
 Where aren’t banks lending?
 Where do Govt employees work?
 Where is new investment needed?
All questions with a spatial dimension

15. Mobile phones power ahead size – and market dynamics
43% World’s top 5 mobile manufacturers
(by market share)
Global Sales growth
417m units sold Nokia 28.2%
117.5m phones sold world wide
Samsung
96% 17.2%
Increase in
smartphone sales
LG 6.6%
Apple 3.2%
19.3%
Of all phones sold RIM 2.9%
are smartphones
Global sales figures for mobile phones – 3 months to Sept 2010
Source Gartner and Ofcom
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16. Convergence of spatial and non-spatial
data management
• An added dimension to data analysis
• Data structures which support spatial
and non- spatial data
• Using Meta data and data keys to
speed up “problem specific” data
extraction
• Focus the processing power on
searching for patterns using
algorithms and benchmarking
• Use BI / BA and spatial exception
management to create value add
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17. Aeronautical
Telecommunication Retail
Land Records
Parks & Recreation
Coastal Protection & Marine
Defense Education
Agriculture Hospital Museum
Port Security
Rescue Economic Development
Government
Electric/Gas
Banking
Security
Facility Management Tourism
Refuse Collection
Lighting
Landscape Planning
Public Works
Sign Inventory

18. Closing thoughts:
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19. Esri UK – Understanding our world