MAY /JUNE 2008 

From operations to marketing, business is turning to location intelligence.

Location Data is Everywhere. And It’s Making Business Smarter Every Day.

Companies have always known that location analysis was  vital to situating a store or a factory, but more are realizing that location is a critical component of a wide range of or-ganizational activities, from operations to marketing. In fact, 

80 percent(1) of the data maintained by companies today has a location  component, and GPS solutions and  mobile commerce are rapidly adding to this total. Thanks to new software  solutions, this location information  can now be leveraged to improve 

Location doesn’t just

mean place,

It also means

smarter response.

 organizational response to a host of economic, environmental and competitive challenges. This enhanced decision-making capability is referred to as location intelligence. 

For instance, risks from changing and potentially disruptive weather patterns, which could wreak havoc on a company’s just-in-time supply chain, can now be effectively mitigated. By tracking a storm’s path and rerouting shipments in real-time, companies are able to minimize the impact to their  operations, while keeping their inventory costs low.  

2  Pivotal Thoughts . May/June 2008

80% of BUSINESS DATA

hAS A LocATIoNcoMpoNENT

broader adoption, location-based solutions will connect 

consumers and mobile professionals to the services they need while on the go. These mobile web applications will use location-based capabilities to instantly customize the  information that is presented to them, such as offers from nearby stores or points of interest.   

Even though these location-enabled decision support  solutions are still new to the landscape, in a recent Business Week survey almost two-thirds of business executives  recognized that it can improve their business processes(3).

Government agencies rely on geocoding capabilities to better protect and serve citizens with special medical needs or disabilities, so that in a crisis appropriate police, fire or other emergency personnel and equipment may be rushed to the scene.  Location intelligence technologies help these same government organizations optimize the provisioning of services by identifying relationships between the points of service, the skills and inventories that exist in those locations, and the needs of the constituents.  

Over the next few years, as the mobile web platform gains 

3  Pivotal Thoughts . May/June 2008

“Location ties all of the other datapoints in an organization’s operations together.”(2)

ATM two

blocks

west

Decision Support

4  Pivotal Thoughts . May/June 2008

It is not geography,

It is business.

A major wireless phone service provider uses pitney Bowes MapInfo products to manage its cell network, identify locations for expansion, and quickly inform customers about coverage changes and service enhancements through its website or customer service representatives.To learn more, visit www.pb.com/pT4A

While location intelligence relies on many types of geographic data, it goes much further. Advanced solutions might contain thousands of data variables, the vast majority of which are business data similar to those already used by business  intelligence solutions.

As a result, location intelligence does not end at analysis, but instead can be directly integrated into business operations. 

For example, it can be linked to billing statement production to add personalized marketing offers, or tied to logistics  systems to automate delivery schedules, route shipments  and optimize fleet usage.

When multiple layers of business data are combined with dynamic geographic data (e.g. GPS information, daily market reports), it can result in more actionable business outcomes.  For example, companies can quickly respond to changing 

5  Pivotal Thoughts . May/June 2008

RiskAssignment

Connect the dots,

See the big picture.

market dynamics and competitive threats by combining  real-time competitive pricing, available product inventory and the specific demographic make-up of a store’s trading area to recalibrate product pricing and in-store promotions.       

As it has often been said, a picture says a thousand words.The visual power of location intelligence allows executives to quickly see the relationships between various business 

data. Line managers can understand the implications of  complex information and query the data for a wide range of “what if” questions.  

Retailers use location intelligence to fine-tune their direct marketing by visualizing on a map where target customers live and work in relation to their stores. This allows them to determine which customers may be most vulnerable to competitive actions or changing economic conditions and take targeted action without blanketing an entire area.     

  

A leading reinsurance company uses MapInfo professional® from pitney Bowes to show clients if they are overexposed in a specific area. These easy to understand reports visualize the sophisticated event analysis the company uses and helps communicate

its results to an international customer base.To learn more, visit www.pb.com/pT4B

Integrated Markeing

6  Pivotal Thoughts .May/June 2008

Target prospects precisely,

Heighten message relevance.

Watch

Sale$799

at PK’s

LimitedOffer

In the near future, new applications of location intelligence will help companies target prospects with unprecedented  precision. These solutions will use location data to create links between media, such as direct mail, outdoor advertising and mobile communications, to break through the clutter and connect messages in new ways. 

For instance, a company will be able to synchronize direct mail sent to a prospect’s home with outdoor billboards they are likely to pass on the way to  work. Using data from cell

   

phones or highway scanners to map how prospects commute, advertisers will be able to select exact billboards and times (if it is a digital billboard), resulting in a highly targeted and coordinated marketing campaign. As the value of location data becomes clear, more and more companies will turn to location intelligence solutions to provide decision support for a wide variety of business functions.

Using 2-D barcodes on print ads that are scannable by cell phone cameras, companies can deliver personalized promotional offers and direct customers to nearby stores that offer the featured product(s). pitney Bowes is leading efforts to standardize these barcodes so

they may be used in a variety of media to facilitate targeted communications.To learn more, visit www.pb.com/pT4c

LimitedOffer

   

(c) 2008 Pitney Bowes.  Pitney Bowes, the Pitney Bowes logo and MapInfo Professional are trademarks  or registered trademarks of Pitney Bowes Inc.  All other trademarks and/or registered trademarks are the property of their respective owners. Printed by Pitney Bowes Management Services in the United States of America.

Go to: www.pb.com/pt4 

or contact: Scott Bounty203-351-7976pivotalthoughts@pb.com

for more information

coming in the next issue of pivotal Thoughts:  While many companies are looking to new technologies to help them reduce their carbon footprints, some are finding that immediate answers to going green may, in fact, come from existing solutions, such as data cleansing and  personalization.

We’re interested in your thoughts. If you would like to make a comment about this issue, or send us a topic suggestion for a future issue, please contact us by e-mail-- pivotalthoughts@pb.com, or by mail-- Scott Bounty, Pitney Bowes Inc.,1 Elmcroft Road MSC 63-04, Stamford, CT  06926-0700  

Footnotes:(1) Kevin R. Hopins, Location Intelligence:The new geography of business (2) Ibid (3) Ibid   

pitney Bowes Inc.1 Elmcroft RoadStamford, CT 06926-0700www.pb.com