Transcript A Framework for Enterprise Geospatial Software Systems

A Framework for Enterprise Geospatial
Software Systems: Empirical Findings on
Current Applications and Uses
James B. Pick, University of Redlands,
[email protected]
American Association of Geographers
Special Paper Session on Distributed Geospatial
Processing: Semantics and Ontology
Friday, April 20, 2007, noon-1:40pm
San Francisco
(Comments are appreciated. Please e-mail to the author.)
Outline of Talk
• A framework for spatial enterprise applications
• How GIS and spatial technologies support
enterprise applications
–
–
–
–
ERP
CRM
Supply Chain
Data Warehouses
• Research objectives and research question
• Findings
• Conclusion
Framework for Enterprise Applications
Features of an Enterprise-wide Approach to
GIS and Spatial Technologies
• Scalability.
The enterprise approach makes it easier to scale up GIS and
spatial technologies from relatively few to hundreds of
thousands of users. This is essential in an environment of
organizational growth.
• Supported and accessible everywhere.
In a global economy, the approach implies that a spatial
application can be made widely available geographically or
organizationally.
• Connection to external systems.
Companies’ systems are becoming more collaborative. They
are interacting with systems of other businesses, the
government, and nonprofit organizations.
For instance, a firm intermediate in the supply chain needs to
interconnect with organizations up and down the chain.
Features of an Enterprise-wide Approach to
GIS and Spatial Technologies
• Ability internally to collaborate and cross-share information.
Major functional systems are interrelated in their business
processes. An example is that marketing projects depend on
budgetary accounting, as well as manufacturing specifications to
produce products being marketed.
• Security.
Enterprise systems tend to run on a common technology base,
instead of having dispersed islands of technology around the
organization. Hence that the firm can focus on security and
protection of the common base.
• Better management.
Consolidating systems into major functional modules makes the
enterprise system more understandable and manageable in the long
term.
• Maintenance.
Having fewer and larger enterprise applications that are well-known
simplifies the maintenance burden over the long run.
ERP Software
• ERP (Enterprise Resource Planning) software
appeared in the 1990s in response to need to
solve Y2K problems, cost reduction, and lack of
compatibility of functional “silo’d” packages.
• ERP packages today cost many millions of
dollars, are time-consuming to implement, with
extensive training.
• ERP II is internet-based, using SOA, XML and
other web protocols.
– ERP II interacts flexibly with GIS and web map
services.
Relationship of GIS to Commercial
ERP Systems
• ERP is an enterprise-wide, complex software application
having multiple major business applications sharing a
common database and/or data warehouse. Information
flows automatically throughout the ERP structure (Gray,
2006).
• A basic ERP is limited to key functional systems of
marketing and sales, finance and accounting, human
resource management (HRM), and manufacturing (see
figure on next slide).
• For this ERP design, other applications such as business
intelligence and GIS, are implemented as separate
software applications outside the ERP, that coordinate
with it. In a comprehensive ERP, more modules are
purchased from the ERP vendor and included inside the
ERP
ERP with Basic Features and How it
Fits with the Enterprise Framework
Integration of ERP and GIS
Software
• ERP and GIS software can be connected
together, which takes advantage of key
strengths of each type, and yields a
stronger integrated result for the user.
• The ERP software is enriched by map
displays and spatial analysis, while the
GIS benefits by access to deeper and
broader attribute data.
Five methods of integration
of ERP and GIS
1.
2.
3.
Inclusion of GIS functionality in ERP commercial
products. Possibility. Not yet available
commercially or announced.
Remote Function Calls (RFCs). The ERP
software and GIS software invoke each other’s
remotely callable functions. Calling software is
usually developed by third-party vendors.
Third-party connectors. Connectors are built by
third party vendors that directly connect packaged
front-end and back-end systems. An example is
iWay Control Builder from Information Builders
Expensive, but usually has good performance and
scalability (ESRI, 2006).
Five methods of integration
of ERP and GIS (cont.)
4. Passive middleware. ERP and GIS are connected
at the level of passive middleware, that runs on top
of the operating system (ESRI, 2006). This solution
works as long as users stick to generic ERP and
GIS, and don’t try to customize their processes.
An example is the SAP’s GIS Business Connector.
5. Customized Enterprise Application Integration
(EAI). An environment of standards, platforms, and
connector software that together supports
enterprise integration between ERP and GIS. An
example is SAP Exchange Infrastructure, which
performs this comprehensive integration between
SAP and ArcGIS software.
Customer Relationship
Management (CRM)
• Customer Relationship Management (CRM) refers to a
business strategy or application intended to improve
customer satisfaction and in turn to grow revenues and
profits (Oracle, 2006).
• CRM also encompasses software packages to achieve
this and the transformation of an organization through
new thinking about customers (Oracle, 2006; Gray
2006).
• Advantage of CRM. Customers who sometimes feel
neglected benefit by the personal attention and
customized services provided by CRM. Direct, personal
interactions between the company and customer, termed
“touch points,” build and reinforce the customer
relationship (Oracle, 2006; Gray, 2006).
– CRM helps in this process by streamlining targeted information
and providing it to the customer and customer-service
employees.
GIS and CRM and their Joint
Applications
• GIS and CRM can be connected together in ways similar
to GIS-ERP connectors.
– Special connector software allows CRM data to be spatially
displayed
Once GIS and CRM are connected,
the Joint Applications include:
• Data collection and enhancement. GIS can be helpful in
error-cleaning customer data. Geocoding and mapping
reveal errors that can be corrected including on-theground.
– Spatial analysis can be used to impute missing values. For
instance, customer data for a missing location can be imputed
from customers at adjacent locations.
GIS-CRM Joint interactions (cont.)
• Business intelligence. BI is useful in CRM for data mining,
modeling, and forecasting. Many BI techniques can be spatiallyenhanced. For instance, one of these techniques, data mining, is
searching through a large data-base, for meaningful relationships
of variables. Data mining is strengthened by including the spatial
location of the variables.
• Site evaluation models. Spatial analysis can assist customers as
part of CRM by modeling optimal siting of business facilities,
properties, and transport corridors. In the real estate industry,
customers are interested in visualizing the siting aspects of their
properties. In banking. In real estate, site evaluation services and
analytics can be provided for high-value customers.
• Distribution of resources. The workforce and investments being
applied to enhance customer relationships can be modeled
spatially. For instance, sales force automation seeks to allocate a
sales force in the best way to identify customers and develop
relationships. Map layers of the locations of the sales force and its
customers can be overlaid and compared.
GIS-CRM Joint interactions –
through Business Intelligence
• Business intelligence for CRM. Chico’s is able to perform
analytics to make customer relationship processes more
efficient and to understand customer patterns better.
• For instance, Chico’s was able to determine that its best
customers on the average shopped in a Chico’s store every
four to five weeks.
• Through CRM and GIS, it was able to find out where
customers shopped and what they bought at particular
locations. In Florida, Chico’s many stores have a seasonal
customer flow. A woman Passport member vacationing from
Chicago may purchase two tops in Florida, that can be
compared with her purchase profile in her home city.
• Forecasting. The CRM enables the firm to predict, based on
historical records, how the customers residing in an area
would respond to a sales promotion. GIS is used to map the
results.
The Process of CRM: How GIS
Helps
• The process of CRM consists of identifying the
customer, differentiating how a particular
customer can be helped, interacting with the
customer, and customizing the actual services
provided.
• The next table (modified from Gray, 2006) shows
the Process of CRM (columns) and CRM, IT,
and GIS features (rows).
• The role of GIS varies by stages in the process
of CRM.
GIS and IT Factors in CRM
Process
Factor
CRM goal
Traditional mass marketing
CRM sub-function
IT used
GIS used
Identification
Identify individual
customer
Differentiation
Interaction
Customization
Evaluate
customer value
and needs
Clustering
Build a continuing
relationship
Fulfill customer needs
Generate profit
Call center
Sales,
services
Customer profiling
Individual level
analysis
Call center management Sales force automation, Marketing
for individual. Customized
auto response
Cookies,
Website,
personalization
Personalized mapping
Data mining,
organizational
learning
Spatial BI
Web applications,
wireless communication
ERP
E-Commerce
Spatial web, spatial
wireless
GIS and spatial technologies
(GPS, RFID) seamlessly linked to
CRM, ERP, and E-Commerce
Not done
Modified from Gray, 2006
Research Objective and Questions
• The research objective is to analyze the
prevalence and characteristics of enterprise
systems that are spatially-enabled for a sample
of twenty firms that utilize GIS.
The research questions are as follows:
1. For the sample, what is the prevalence of
enterprise geospatial systems?
2. For firms with enterprise geospatial systems,
what type of functions are supported and how is
GIS associated with the enterprise systems?
Research Study of the Prevalence,
Structure, and Applications of GIS
Connected to Enterprise Systems
• A interview research study was conducted over the past year of 20
case firms, to determine prevalence, structure, and applications of
GIS connected to enterprise systems
– ESRI’s help and support is acknowledged.
• The firms vary by industry, size and GIS maturity. Three of them
requested anonymity.
• The person responsible for GIS at the firm was interviewed for 1.5 to
2 hours. A standard protocol of questions was followed. The
interviews were taken down by hand notes and transcribed from
tape.
• The sections of the interview concerned applications, users,
enterprise GIS, spatial decision support, costs and benefits, and
strategic GIS.
• There are many findings some already published and others in
process. This report is limited to the findings on enterprise systems
and GIS.
Methodology
• The methodology for this research is case study (Yin
1994).
• The sample was selected as a convenience one, rather
than random or stratified. The reason for a convenience
sample is that many firms are proprietary and
confidential about their GIS and spatial technologies
• For each firm, the protocol is to interview the manager or
executive responsible for spatial technologies. The
interviews utilized a standard interview protocol and set
of general questions. They were transcribed in writing
and tape recorded if permission was granted.
• This was supplemented with business materials from the
firms and secondary sources.
Case Study Results for GIS Linked to Enterprise Systems –
large firms
Extent that GIS is linked
to ERP
Extent that GIS is linked
to CRM
Extent that GIS is linked
to Supply Chain
Management
Extent that GIS is linked
to Data Warehouse/ Data
Mining
Case Study Firm
Global Integrated Oil No.
No.
A little. One very small
project in the additives
company of GIO. Maps
show suppliers, processing
plants, customers and
company locations.
A little. One focused project
used data mining and GIS.
ESRI GIS and fuzzy logic
used to search data for
upstream applications.
Large Commercial
Bank
No.
No
No.
Yes. GIS Group extracts
data on value of customers
from the data warehouse,
and georeferences it.
Rand McNally
Yes. Rand McNally has an
internally-developed ERP.
Spatial functions link the
ERP with direct store
delivery coverage and
routes, and inventory
management.
Yes. In large sense, GIS are
a part of CRM. Plan-ograms (shelf layouts) created
for customers. These linked
with areal demographics.
Yes. GIS helps in
understanding parts of SCM
flows. Used for inventory
mgt. and projections.
Yes. Large data warehouses
are accessed with data
mining to create input data
that is scaled for GIS-based
products.
Sears
A little. In marketing.
A little. CAMS (Customer
Allocation Mgt System)
allows managers to provide
services where customer
densities are low.
No.
No.
Large U.S. Property
and Casualty
Insurance
No.
No. GIS team works with
No.
catastrophic response team
to give locational information
to customers.
Yes for data marts. Data
mart smaller than data
warehouse and specialized
for what used can access.
Case Study Results for GIS Linked to Enterprise Systems –
medium-size firms
Extent that GIS is linked
to Supply Chain
Management
Extent that GIS is linked
to Data Warehouse/ Data
Mining
Case Study Firm
Chico's
Extent that GIS is linked
to ERP
Extent that GIS is linked
to CRM
No.
Yes. A CRM package is
No.
usted for direct mailings and
customer information.
Through linkage with GIS
software, mapping and
saptial analysis supports the
CRM.
No.
Baystate Health
No. Slowly getting there.
No. Baystate has a CRM, but No.
not yet been linked to GIS.
No.
Sperry Van Ness
No.
Yes. GIS and Microsoft CRM No.
3.0 integrated for commercial
real estate by adding maps
and aerials.
No.
Research Findings
• 60 percent of the case study firms do not have
enterprise-wide spatial applications.
– In fact, only one case Rand McNally had widely
integrated GIS and enterprise spatial applications
(see Table 4).
• The least prevalent spatially-enabled enterprise
applications was GIS and ERP, represented by
only one firm, Rand McNally.
– This may be due to the current high cost and
technical difficulties in linking them up.
• Five out of 20 firms have integrated GIS and
supply chain management.
Research Findings (cont.)
• Spatially-enabled supply chain is present for
only one of the sample firms, Rand McNally.
GIS is used to visualized and better understand
parts of the supply-chain flows, and for the
related inventory management and forecasting.
• CRM and GIS are connected together in
applications for three firms in the sample. The
strongest example is Chico’s, a women’s
clothing company. The CRM package is used for
direct mailings and customer information. It is
discussed at more length as a case in the paper.
Research Findings (cont.)
• Data warehouses are linked with GIS for three of
the case firms.
– For the Large Commercial Bank, data on the value of
customers is extracted from the data warehouse and
then geo-referenced.
– The Large Insurance Company (LIC) has data marts,
which are small versions of data warehouses. LIC’s
GIS team has access to the data marts. It can extract
the data it needs and then apply GIS, mostly for trade
area and branch banking studies.
– Rand McNally utilizes data from its large data
warehouses for spatial applications. It extracts data
through data mining. Those data are then input into
GIS software.
Sample Results on Prevalence of
Enterprise Systems
• However, 63 percent of the 20 case study firms do not have
enterprise-wide spatial applications.
• In fact, only one case Rand McNally had widely integrated
GIS and enterprise spatial applications
• Five out of 19 firms had integrated GIS and supply chain
management. The least prevalent coupling (only Rand
McNally out of 19 firms) was between GIS and ERP.
• This may be due to the current high cost and technical
difficulties in linking them up.
• In the sample, three quarters of the integration of GIS and
enterprise software was for large firms.
– This is not surprising, since large companies tend to
have the resources to afford the high cost and skills
necessary to implement, manage, and maintain
enterprise software.
Case Study of GIS and CRM in a
customer-centric fashion company
• Chico’s is a women’s apparel chain that emphasizes customer
service and appeals to a “mature” (45-years-plus) market.
• Founded in 1983, by 2006 Chico’s had store, catalog, and
web sales that totaled $1.4 billion, and employed 11,000
persons.
• It has had rapid growth and planned to add 150 new stores in
2007 (Chico’s, 2006).
• It has always emphasized customer loyalty and direct
marketing (Roussel-Dupré, 2002). This is highlighted by its
Passport Club which requires $500 in cumulative purchases
for membership.
– There are 1.7 million permanent members of the Passport Club
and 334,000 members for its slightly less expensive White
House/Black Market chain of stores (for 35-year-plus age group).
– Club members provide 80 percent of Chico’s revenues.
Chico’s sales approach
• Chico’s sales approach is characterized by sales
personnel who offer an attentive and
personalized approach to customer care.
• Typical customers demand new apparel
frequently so there are rapid inventory turns.
• The philosophy is that employees act as if they
work for a small local store, e-mailing customers,
being friendly to, and even calling customers by
first names.
Chico’s Enterprise Systems
• There is not yet ERP but it is planned for rollout
in 2008. Instead there are a group of
specialized application packages, many leading
ones for the retail industry (Chico’s, 2006).
• For CRM, Chico’s uses the Connected Retailer
from NSB, which supports CRM as well as store
merchandising, planning, allocationreplenishment, and sourcing.
• GIS software is run alongside the Connected
Retailer and utilizes the same database of
customer information.
Chico’s Success with CRM and
GIS
• Chico’s has capitalized on its loyal customer
base by implementing a successful CRM
supported by GIS.
• GIS has reinforced CRM, by taking into account
where customers shop, what they buy where,
and what is the geography of customer
relationships.
• The strategic success of CRM coupled with GIS
is tied to its synchrony to Chico’s key value of
developing and sustaining customer loyalty.
Features of CRM with Spatial
Components
• Direct Mailing. An estimated 5 million items are sent
monthly to customers, including event promotions,
coupons, and catalogs (Roussel-Dupré, 2002). The CRM
refines this mailing through spatial analysis that gives the
optimal customer audience for a particular mailing.
• Unified customer database. Prior to the CRM, each
sales channel had its own customer information system.
The CRM gathered them into a uniform customer
database that supports the cross-organizational flows of
information for CRM (Roussel-Dupré, 2002). This allow
richer GIS, since the mapping can be done of broader,
integrated attribute data.
Conclusions
• Business enterprise applications are mainstays that
control the “back office” of firms, and monitor and
supervise the operational business processes.
• They include ERP, CRM, Supply Chain Management,
and Data Warehouses.
• A framework is presented that includes GIS as another
enterprise application that connects with the business
enterprise applications.
• The contributions of spatial technologies to enterprise
applications is to refine the accuracy of performance of
the applications by recognizing location of customers,
facilities, assets, transport vehicles, and other business
phenomena.
• GIS also provides visualization and exploration benefits
to understand enterprise information and make better
decisions.
Conclusions (cont.)
• The research analyzes 20 case companies to seek
answers about the prevalence of spatially-enabled
enterprise systems, types of spatial functions, and how
GIS connects to the other enterprise applications.
• The specific research questions and answers are as
follows.
1. For the sample, what is the prevalence of enterprise
geospatial systems?
About a quarter of the case firms had substantial
enterprise-GIS applications. They are mostly large firms,
with several medium ones included. Only one large firm
had GIS-enterprise connections across multiple
enterprise systems
Conclusions (research question 2)
2. For firms with enterprise geospatial systems, what type
of functions are supported and how is GIS associated
with the enterprise systems?
The most prevalent enterprise systems connected to GIS
are CRM and data warehousing. For ERP and supply
chain, there was only one solid example for each. In the
sample, GIS is not integrated into the enterprise
solutions, but rather stands as a separate enterprise
system that associates with functional applications
through connectors of different types.
For business practitioners, the challenge is to design
spatially-enabled enterprise architectures that provide
added value to corporate users and customers, and are
flexible enough to change with the rapid technology
advances in this field.