The document discusses the integration of location intelligence into marketing and retailing through predictive analytics, emphasizing the importance of geographic spatial data in improving business decision-making. It outlines best practices for implementing location intelligence, providing case studies and examples of how retail companies benefit from understanding spatial relationships and trends. The Galigeo platform is highlighted as a tool that combines location data with business intelligence to drive better marketing strategies and operational performance.

1. Predictive Analytics
in Marketing & Retailings
Location Intelligence: the Benefits of Adding
The “Where” Factor to Retail

2. Overview
Galigeo Market Partners Clients
• Founded in 2001 • SAP Business Objects • 50,000 users
• Offices: • IBM Cognos • Selected customers:
• New York • Esri • Heineken
• Paris • Microsoft • European Commission
• Brussels • Navteq • Carrefour
• Autodesk
• Total
The Galigeo Value Proposition – Delivering the “Where” Factor
Innovative
Directly map multiple Customized location
connect to and large- Apply spatial data intelligence
enterprise scale toolsets visualization solutions
applications datasets & reporting for superior
business
analytics
2

3. What is Location Intelligence?
For Business Users For IT
Nature
Business of Data
Intelligence
• Transactional
• Operational
• Analytical
Spatial
GIS Geo BI
• Aggregated
Geospatial Data DB BI
Analysis Visualization
Non
Spatial
• GIS • Charts
• SOLAP • Graphs
• Maps • Plots
Non Aggregated Aggregated Level of
• Maps
Aggregation
Location (Source: Université Laval)
Intelligence

4. Making Location Intelligence
successful in an organization
Pro-analytics culture Build the infrastructure
Deploy technology widely
46% of “very
effective” companies
use simulations and
71% of “very scenario
effective” development
companies employ
forecasting tools
72% of “very
effective” companies Easy to access data
use business
reporting, KPI’s and
dashboards
Practice strong data
Test and learn
governance
Source: Bloomberg Businessweek Research Services , May 2011

5. 3 best practices to de-risk
the implementation of Location Intelligence
1. Proof of Value (Concept) Approach
B. Preliminary C. Install Galigeo E. Summarize Value
A. PoV Definition D. Run PoV
Internal Assessment PoV Sandbox Outcomes
Estimated
Timeframe 1 Day 1-2 Days 1-2 Days 1-3 Weeks 1-2 Days
Key Activities • Determine Proof of • Identify data sources • Build data mart (if • Run PoV • Organize results
Value objectives and access rights required)
 Brief discovery phase
• Develop and run • Develop Read-Out
• Identify specific Use • Determine need for • ETL Data (if required) reports to support and Executive
Case for testing configuration changes identified Use Case Presentation
to Galigeo data • Load Galigeo software
• Determine target data, connectors on servers
report outputs and
user group • Determine any ETL • Load GIS software on
requirements server
• Identify macro-level
 Learning via a “demonstration environment”
business processes • Validate the ability to • Stabilize and perform
impacted access and use the pre-launch tests
desired data • Connect to BI data
• Develop PoV
evaluation criteria sources
Key • PoV Objectives • PoV Go/No Go • Stabilized Galigeo • Reports/Map Views & • Presentation to
Deliverables decision and sign-off PoV solution Location Analysis Managers
PoV Evaluation
 Assess software to meet the company’s objectives
•
Criteria • PoV Launch sign-off • Evaluation Use Case • Presentation to
and PoV Objectives Executive Committee
2 . Report Design Project
Prepare Plan Design Develop Deploy
 For high priority reports identify data sources, SOR’s, A
• Finalize contracts
and SOW
• Translate
• Facilitate a user
visioning session
• Identify Use Case
• Map the desired
use cases &
processes
• Build the reports
based on design
and BI sources
• Train Galigeo
administrator on
the LI platform
priorities into the and reports • Design the • Review outputs • Launch initial
query & report structures key performance
indicators
• Locate and
assess all BI data
• Define high level
requirements
• Determine target
standard report
structures and
parameters
• Define the report
with user groups
and validate
• Build standard
visualization
standard reports
and visualization
layers
• Finalize resource
data, report
 Determine value-added Location Intelligence visualization
sources user group(s) and formats requirements
outputs and user
delivery options
• Confirm GIS group
Source • Determine report
• Identify impacted
schedule/delivery
processes
requirements
elements B
• Technical
Consultant
• Sales Executive
• Business
Consultant
• Technical
• Business
Consultant
• Technical
• Business
Consultant
• Technical
• Business
Consultant
• Technical
Consultant Consultant Consultant Consultant
• Business
 Develop report wireframes for validation
Consultant
3. Implementation Approach
 Repeatable, structured implementation methodology Project and Program Management
Risk and Quality Management
 Supports install, start-up, Admin and User training and 
Planning
Project 
Definition
Design Solution 
Develop-
ment
Stabilize solution  Integration
QA
& Test

Deployment
Finalize 
Support
Production
Mobilization environment environment Testing Production Support
initial report development 

Project Launch
Confirm Server
environments &
Software for


Develop initial
Report Designs
Finalize in scope
BI and GIS


Configure
Solution
Implement BI
Connectors


Performance
Tuning
BI Validation and
Traceability


Environment
Perform End-
User Training
Execute Cut-


Quality
Assessment
Post Go Live
Review
loading architectures over Plan
 Saves time and decreases risk for the customer
 Implement GIS  User Acceptance  Performance
connectors Testing  GO LIVE! Tuning
 Prepare Training
Materials
Knowledge Transfer

6. How leading retailers benefit
from Location Analytics
Reveals relationships, trends, dependencies, and patterns that my have
been undetectable in conventional reports and improves decision-making
1. Why, what & “Where” 2. Determine the optimum 3. Increase understanding of
factors, such as the regional structure of retail territories trends, relationships, and
demographic variables or and market by understanding behavior of customers located
location of competitor coverage, density and in a trade area for more
outlets, are impacting current distribution of prospect and precise and effective
operational performance. customers. marketing activities.
4. Gaining improved 5. Plan, manage and 6. Understand how the
understanding of “where” the optimize the distribution and patterns of incidents or
location of existing assets and retail system around OEM’s, outcomes from events may
inventories reside, in order to suppliers, Distribution Centers impact supply chains such as
better manage capital and and Store locations. from severe storms or other
logistics force majeure challenges.

7. Galigeo’s value for the retail industry
Sales/Business Department: Marketing Department:
 A real time spatial visualization of store performances  Spatial visualization of prospects/current customers,
 Predictive analysis of where potential customers are supporting distribution of marketing materials
located, consumer trends, change of location (leisure,  Address specific marketing promotions to customers
work, events…) located within target radius from location (i.e. inactive
 New site locations in high potential areas the last month/week, customers behavior of X products,
 Territory Management: loyalty card type, demographic/social changes, etc.).
 Efficiency of customer visits for sales force  The quantity/cost of marketing materials sent out/left-
 Prioritization list of potential customers by locations overs/new orders for specific target groups/regions
 The efficiency of addressing sales force to similar  Evaluate the results from these marketing campaigns
customer types/same sector/same location. (the return of customers to shop in the territory)
IT Department (BI/GIS):
 Avoid time-consuming work on extracting, transferring, creation of maps for all types of data (events,
factors, time, locations etc.)
 Get the multidimensional view of all data with direct access to BI/CRM system through the map)
 Bi-directional connector to BI/CRM and Map (GIS) so that changes in data (BI/CRM) will instantly
update the map AND inserted/changes of data in map will update data in BI/CRM system.
 Avoid the risks and hassles of duplicating data or creating multiple data stores and losing linkage to
Systems of Record.
 Possible to automatically send/receive daily/weakly geo-business reports to the respective
departments/users
7

8. Case Study: Global Retailer
Predictive Analytics
in Marketing & Retailing

9. Case Study: Geo-Marketing and Predictive
Analytics at a global retailer
• World leader in distribution-15,000 stores with four formats hyper-
markets, supermarkets, hard-discount stores, and convenience stores.
• 33 countries, 475,000+ employees, 2011 Revenues of 107 billion euros
• Integrates rich spatial data (GIS) and business intelligence data into a LI
platform to support predictive analysis
• Multiple spatial data combined with an intelligent map viewer
• Flexible but secure: visibility, data sources, user groups; report types
• Easy to use for non literate GIS users
• Objectives for the Location Intelligence program:
1. Guide site selection and expansion of the retail presence across
countries- defines potential markets and where to set-up new stores
2. Monitor store performance against forecasted sales –target vs.
actuals
3. Improve direct marketing efforts and return on investment- campaigns
and ROI

10. How the client achieves their business goals &
objectives with Galigeo’s solution
Site Selection
Data Sets
• Demographics & profiles Actions
• •Demographics & profiles
Vertical market-specific • Defines potential market
• Vertical market-specific • Defines where to set up
new stores
Marketing Store Performance
Data Sets Data Sets
• CRM • Performance Data / BI
• Data mining • Store, Customers, Products
• Monitors Target vs. Actual
• Analyzes and Reports
Actions Actions
• Campaigns • Monitors Target vs. Actual
• Customer acquisition • Analyzes and Reports
Document confidentiel

11. Gain a better understanding of the territory
• The location of existing assets and inventories in order to manage
them more effectively.
• The location proximity and patterns associated with incidents or
events that impact upon resource allocation.
 Why and what external factors, such as the regional demographic variables
or location of competitor outlets, are impacting current operational
performance at a detailed level.
 The optimum way to structure sales territories and strategies through a
clearer under-standing of the density and distribution of clients within a
territory.
 To understand the trends, relationships, and behavior of customers located
in a trade area to support precise and effective marketing activity.

12. Objective #1: Site Selection- Measuring the potential
of the Retail Trade Area
The analyst gets the
accurate location of the
opportunity

13. Objective #1: Site Selection- Measuring the potential
of the Retail Trade Area
Widgets to measure
potential store
square footage via
satellite view

14. Objective #1: Site Selection- Enter Potential New
Store Criteria to Model Store Performance

15. Objective #1: Site Selection- Measuring the potential
of the Retail Trade Area
Travel radius to measure the
potential of the trade area which is a
combination of drive time (or walk
time) with demographics.
Benefit: Adds proximity context to scenario
planning models and shows the outcomes in a
visual manner that makes it easy to grasp the
implications

16. Site Selection: Interrogating additional data leads to
refinement of the RTA boundaries
RTA is taking into account
the potential, competition,
cannibalization with other
stores
Benefits: Analysis is informed by business data presented
in enhanced visualization layers, and supports improved
decision making.
More mature site planning teams collaborating with store
operations and marketing can spin off predictive analytics
loops to forecast business outcomes early in the market
development effort

17. How the client achieves their business goals &
objectives with Galigeo’s solution
Site Selection
Data Sets
• Demographics & profiles Actions
• •Demographics & profiles
Vertical market-specific • Defines potential market
• Vertical market-specific • Defines where to set up
new stores
Marketing Store Performance
Data Sets Data Sets
• CRM • Performance Data / BI
• Data mining • Store, Customers, Products
• Monitors Target vs. Actual
• Analyzes and Reports
Actions Actions
• Campaigns • Monitors Target vs. Actual
• Customer acquisition • Analyzes and Reports

18. Gain a better understanding of the territory
• Why and what external factors, such as the regional demographic
variables or location of competitor outlets, are impacting current
operational performance at a detailed level.
• The optimum way to structure sales territories and strategies
through a clearer under-standing of the density and distribution of
clients within a territory.
 The location of existing assets and inventories in order to manage them more
effectively.
 The location proximity and patterns associated with incidents or events that
impact upon resource allocation.
 To understand the trends, relationships, and behavior of customers located
in a trade area to support precise and effective marketing activity.

19. Objective #2: Store Performance- BI “reports” moved
from crosstabs to maps bring “Where” to life
Benefit: Extends existing BI functional richness
where client does not have pre-existing GIS
capability.
Dynamically blends powerful GIS spatial context
with business rich data to deliver easy to
understand information

20. Store Performance: Location Intelligence with
visualization rapidly synthesizes combinations
• Measures of competition and customer density
• Dynamic geographic sales information needed
to efficiently respond to the changing nature of
customers
Benefit: Reveals
relationships, trends, dependencies, and
patterns that would have been undetectable in
conventional reports.

21. How the client achieves their business goals &
objectives with Galigeo’s solution
Site Selection
Data Sets
• Demographics & profiles Actions
• •Demographics & profiles
Vertical market-specific • Defines potential market
• Vertical market-specific • Defines where to set up
new stores
Marketing Store Performance
Data Sets Data Sets
• CRM • Performance Data / BI
• Data mining • Store, Customers, Products
• Monitors Target vs. Actual
• Analyzes and Reports
Actions Actions
• Campaigns • Monitors Target vs. Actual
• Customer acquisition • Analyzes and Reports

22. Gain a better understanding of the territory
To understand the trends, relationships, and behavior of customers
located in a trade area to support precise and effective marketing
activity.
• Why and what external factors, such as the regional demographic
variables or location of competitor outlets, are impacting current
operational performance at a detailed level.
• The location of existing assets and inventories in order to manage them
more effectively.
• The location proximity and patterns associated with incidents or events
that impact upon resource allocation.
• The optimum way to structure sales territories and strategies through a
clearer under-standing of the density and distribution of clients within a
territory.

23. Objective #3: Market Action- Leverage Location
Intelligence to predict marketing campaign outcomes
Benefit: Targets and aligns sales and
1. Selection of the trade area to define where spend marketing budget where it is
mailings have to be distributed easy to reach the most customers
2. Apply a management rule; Consolidation,
Destabilization or Conquest
3. Optimize direct marketing actions, such as
distributing weekly circulars according to the
store strategy

24. Results
1. Tools in the hands of decision-makers to respond to changing
business dynamics
This Global Retailer has implemented a bottom-up approach to GeoMarketing
by providing store managers with the dynamic geographic sales information
needed to efficiently respond to the changing nature of customers
2. Added the "where" factor to its analysis methodology
The GeoMarketing platform provided the capabilities that the Global Retailer
required to add the "where" factor to its business intelligence and CRM. By
developing a bottom-up approach, Global Retailer has gained greater efficiency
in responding to the changing spatial nature of customers behavior.
3. Enables new data sets to support outcomes based analysis and
predictive modeling
Offers the opportunity to integrate new data content directly into the database.
This innovative functionality lets the operation level feed and enrich the
database with information related to its store.

25. Implementing a Location Intelligence
strategy; Traditional architecture vs
Galigeo’s architecture

26. Traditional Architecture
BI Platform GIS Platform
• Mapping of BI data; linking
Geo-Spatial layers to Map
Reports
various data types: Services
 Transactional
 Operational
 Analytic
 Aggregated Map Server
BI • Avoiding duplication of
data
Server
• Security and access rights GIS
• Seamless, bi-directional Desktop
data exchange/update
Manual
Enterprise
ETL
GIS Database
Data Bases

27. How Galigeo’s Solution Solves the Problem
BI Platform GIS Platform
Reports Map
Geo-BI Services
Interactive
Map Viewer
BI Map
Server GALIGEO Connector (API) Server
Galigeo’s Value Added Functionality
• Thematics, historgrams, pie charts
• Isochrone, spider charts, pop-up windows
Enterprise • Mini-maps, publishing to PDF/PNG GIS Database
Data Bases
• Advanced - Heatmap, Spatial Time slider, Geo
clustering

28. For more information
www.galigeo.com
.