Geospatial Analysis to Enhance Business Decision Making

Dr. Sergei AndronikovDr. Sergei AndronikovExecutive Programs

Decision Support Systems

• DSS = Business Intelligence

Components:1. User interface

2 Database2. Database

3. Models and Analytical tools3 ode s a d a yt ca too s

4. DSS architecture and Network

Competitive Advantage with Decision Support Systems (DSS)

DSS support decision making and have tocreate changes in products, services or relationship

CRITERIA to gain Competitive Advantage:– Must be used. Major Organizational strength– Must be unique and proprietary– Advantage must be sustainable for at least three years

paybackpayback

SPATIAL Decision Support Systems

• SDSS = Spatial Business Intelligence• Components:p• 1. User interface

• 2. Database

• 3. Models and Analytical tools

• 4. DSS architecture and Network

GIS combines science and arts, ,boosts creative thinking by involving both

hemispheres of the cerebral cortex

GIS bridge

Scientific Left Artistic Right

NEW Competitive Advantage• Spatial Visual Interpretation of Business Decisions

and “What If?...” scenarios• Managing and Minimizing Risk• From Maps to Spatial Analytics and Business

Intelligence» From “What we think” to “What we know” – CEO Harrah’s

• 3D and 4D “live” business decisions• 3D and 4D live business decisions• Exploiting new tools as: Web Portals, Geodatabase

format Geostatistical methods for clusteringformat, Geostatistical methods for clustering, streamlining video

GIS in Business & Managemento Site Analysis & Market Analysiso Customer Analysiso Analysis of Demandyo Supply Chain Management

• What is my drive time from the central facility? • How long will it take me to reach delivery locations? g y• Which customers should be in separate service areas? • How can I track goods through my supply chain? • How can I see what is happening with my supply chain? o ca see at s appe g t y supp y c a

o Risk Management• What is my risk accumulation? What is my risk capacity? • Where is my coverage? What is my loss estimation?Where is my coverage? What is my loss estimation?• Capital allocation and exposure control with respect to risk

o Network Routing Modelingo Decision Support System

GIS in Management Services

Customer Location AnalysisCustomer Location Analysis

Site Prospecting AnalysisSite Prospecting Analysis

F th d b i d t b GIS tGIS in Everyday Business

From the everyday business database GIS can represent:o Customer profile by location, demography, purchasing power o Sales success by product site and sales representativeo Sales success by product, site, and sales representativeo Site locations of stores, factories, and warehouseso Asset location and analysiso Asset location and analysis o Resource locations of staff, products, and equipment o Delivery routes by land, sea, and air, and much more…

We need to start using ANALYSIS: Geostatistical, Multivariate Statistical, Regression analysis for

current events and forecasting the futurecurrent events and forecasting the future business operations

No need to “Reinvent the Wheel” ?!

…Better capitalize on past GIS projects

A l i f Si l t dGIS Analogy

Analysis of a Simulated Technological Disaster

159 simulated random samples of

Business ANALOGY…159 random samples of

Customer locations (banks retail159 simulated random samples ofCesium-137 deposits on the soilaround the plant were digitized.

A Semivariogram has been

Customer locations (banks, retailcenters, etc.) were taken fromBus. Analyst.

A Semivariogram has beenA Semivariogram has beencreated to explore the data andcustomize the analysis with winddirection, distance-direction lags,

A Semivariogram has beencreated to explore the data andcustomize the analysis with trafficpatterns and direction, distance-

and distribution model.Final Prediction Map was built

using Ordinary Kriging. Map is ai f f di d

patte s a d d ect o , d sta cedirection lags, and distributionmodel.

Final Prediction Map was builtcontinuous surface of predictedvalue

Best Route Analysis

using Ordinary Kriging – of acontinuous value of income

Best Destination Route A-s

Geostatistical Analysis

Key GIS Questions in Business

1. What need does GIS fill?2. Who are the potential users?2. Who are the potential users?3. What business process can be improved or automated?4. How will GIS technology be integrated with existing

department /business infrastructure?5. How can you leverage GIS data, methods, analysis to get

better decisions?better decisions?5. Will GIS make or save money and time? What is my ROI? 7. Does your GIS model/approach/analysis/decision correct and7. Does your GIS model/approach/analysis/decision correct and

accurate?

Intersection of GIS and BI

GIS and BI were focused on core users.

BI – graphic dashboards to monitor key business process (proprietary)

GIS – spatial geographic formats

Provide Access to Data across the Enterprise

Intersection of GIS and BI

Integration is recognized by BI providers

SAS, InformationBuilders, BusinessObjects, GeoAnalyticsAPOS Systems, Galigeo, Integeoy g g

Intersection of GIS and BI

Challenges:Challenges:

o User needs GIS understandingo User needs GIS understandingo High data cost at a detailed level

High storage capacity for large areaso High storage capacity for large areas

A W b l ti S t d b ESRIArcWeb solutions. Supported by ESRI Source: ESRISource: ESRI

Intersection of GIS and BI

Used in Marketing, Supply Chain ManagementService Delivery, Fraud Detection, Warranty Analysis

But…. Training, education???g

• DSS = Business IntelligenceSpatial Business Intelligence Initiative at SOM GMU

MISSION: Education and training in better business gperformances through innovative spatially-enabled Decision Support Systems

VISION:To develop introduce and implement the FourTo develop, introduce, and implement the Four-Dimensional Business Intelligence Decision Making System using modern GIS technology to provide an y g gyindispensable tool to Businesses and Governments

Education Opportunities by Career Tier

SOM: GIS CertificateIn Decision-Making, Operation M-t,Business Analysis

Executive

SOM: MBA/EMBA w/GIS concentration

Executive Lecture Series Distance learning version

• Industry• Govt (outside of DC)

Advanced AnalysisDomain-specific

• Retail, Health, Defense, Environmental

Business Analysis

Graduate Certificate in GIS: Geography

Manager

w/GIS concentration

SOM: GIS Certificate

Mi i GIS G h

MS in Geog.& Cartog: GeographyMS in Engineering: SITEMA in Public Policy: SPP

GIS Analyst

SOM: GIS CertificateIn Business DSS/Analysis

Minor in GIS: GeographyGeospatial Intelligence Certificate - Defense2-3 days training and Prof. Certificate in GIS: OCPE

ESRI TrainingGIS 101IT Fundamentals

GIS Technician

Potential customers in the DC Area

Potential customers’ distribution within the leading market segments

GIS in Bus. Education: SWOT AnalysisStrengths

o Utilize already created infrastructure, availability of GIS technological tools and vast business datasets;

o Innovative and powerful in providing

Weaknesseso Start-up programs;o Need to develop strong appealing content;o Need to attract participants, gain the market

recognition;o Innovative and powerful in providing knowledge of getting competitive edge;

o Results are applicable to different programs and/or problems;

o Provide real-time analysis and solutions;

recognition;o Programs are required basic knowledge of GIS

and availability of GIS software.

o Easy to apply and integrate to existing organizational infrastructure

Opportunitieso Continuing recognition of Spatial Data and

Spatial Decision Support Systems;

Threatso Competitors with established brand names in

business;Spatial Decision Support Systems;o Growing Federal Geospatial market;o Increasing GIS applications in Industry areas;o Expanding role of GIS in the Web, E-

commerce, and mobile environments;

business;o Training consultant teams with insight

recognition;o Better financed competitors;o Low entry cost for new programs.

o Integration of Business Intelligence and GIS technology on Executive dashboards;

o National GIS Initiative proposal.

Academic SBI EducationAcademic SBI Education

• For Academic Credit:Spatial Business Intelligence

Academic Graduate Business GIS Certificate(15 credit hours 5 GIS & Business Graduate courses)(15 credit hours, 5 GIS & Business Graduate courses)

• Executive MBA with electives courses in Spatial B i I t lliBusiness Intelligence

• MBA or MSTM Degree with a track in Spatial Business IntelligenceIntelligence

Executive SBI-GIS EducationExecutive SBI-GIS Education Executive Seminar Series:“On the Leading Edge”g gFive Executive Seminars in 2008:

o The Value of Spatial Intelligence to EnhanceDecision Making in BusinessDecision Making in Business

May 2o Design and implementation of GIS Enterprise.

Value of investing in GIS May 9y

o GIS in Enhancing Marketing Decisions andStrategy May 16

o Contemporary Strategy Analysis: SDSS and Strategy Computer Simulations May 23Strategy Computer Simulations May 23

o Executive Decision Support System: Advanced Spatial and 3D Analysis for Better Decision and Visual Interpretation May 306

GIS Application in SOM Executive Programs

•This presentation was created with using design template from PoweredTemplates.com'•The presentation is powered by PoweredTemplates.com'•Template Design by PoweredTemplates.com'

Thank you for your attention!

Questions?

Dr. Sergei AndronikovExecutive ProgramsExecutive ProgramsSchool of ManagementTelephone: (703) 993 - 9801E-mail: sandroni@gmu.edu

GIS in Financial Services

o Sales Patterns & Market HistoriesA l i f P fit M d l I ffi i io Analysis of Profit Model Inefficiencies

o Audit Conductingo Fiduciary Regulationso Fiduciary Regulationso Risk Management and Analysiso Regulatory Complianceg y po Business Continuity Planningo Asset and Facilities Managemento Operation Management

GIS in Marketing Analysis

• Where is my trade area?

• What is my market penetration?

• What is my market share?What is my market share?

• Where should I locate a new store,h th f ilit ?warehouse or other facility?

• What is my customer profile?

• What is marketing strategy?

GIS in Marketing Analysis

• Where is my trade area?

• What is my market penetration?

• What is my market share?What is my market share?

• Where should I locate a new store,h th f ilit ?warehouse or other facility?

• What is my customer profile?

• What is marketing strategy?

GIS in Financial Services

o Sales Patterns & Market HistoriesA l i f P fit M d l I ffi i io Analysis of Profit Model Inefficiencies

o Audit Conductingo Fiduciary Regulationso Fiduciary Regulationso Risk Management and Analysiso Regulatory Complianceg y po Business Continuity Planningo Asset and Facilities Managemento Operation Management

Intersection of GIS and BI

Desktop Integration. Bridge Applications

Server Integration.

ArcWeb Services

Source: ESRI

TTAnalysis of a Simulated Technological

104 ti i l l t i th U it d St t t

Analysis of a Simulated Technological Disaster

BROWNS FERRY NUCLEAR POWER PLAN104 active commercial nuclear power reactors in the United States, most of them located east of the Mississippi RiverMillions of people live in close proximity to these facilities, with most of

the population on the Eastern Seaboard living within less than 100 miles.

Geostatistical Analysis

DemographicAnalysis

Road NetworkAnalysis

p p g

Simulated radioactivesamples are taken

A three-ring bufferwill be overlayed on

A regional networkwill be built usingsamples are taken

from the soil around thereactor to determine

the probable directionand extent of the

will be overlayed on the radiation

dispersion plume to examine the

characteristics of

will be built usingtime and distance

weights todevelop and examine

severaland extent of the radiation dispersion

plume

characteristics of the population

potentially affected

severalevacuation scenarios

Risk & Vulnerability Analysis

Source: ESRIhttp://www.gis.com/showcase/graphics/government/wildfire_large.jpg

Debris & Removal Planning

SSource: USACE

Debris Transportation Planning

Source: USACE

Resources Management

Locations of EMPLOYEES, MEDICS, TRUCKS ANDTRUCKS, AND FOOD SERVICES (For demonstration

l )purposes only)

Source: GWU