A Framework for Enterprise Geospatial Software Systems: Empirical Findings on Current Applications a

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A Framework for Enterprise Geospatial Software
Systems Empirical Findings on Current
Applications and UsesJames B. Pick, University
of Redlands, james_pick_at_redlands.edu

• American Association of Geographers
• Special Paper Session on Distributed Geospatial
  Processing Semantics and Ontology
• Friday, April 20, 2007, noon-140pm
• San Francisco
• (Comments are appreciated. Please e-mail to the
  author.)

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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

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Framework for Enterprise Applications
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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.

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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.

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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 silod 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.

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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

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ERP with Basic Features and How it Fits with the
Enterprise Framework
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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.

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Five methods of integration of ERP and GIS

• 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 others 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).

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Five methods of integration of ERP and GIS
(cont.)

• 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 dont try to customize their
  processes. An example is the SAPs GIS Business
  Connector.
• 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.

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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.

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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-the-ground.
• 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.

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GIS-CRM Joint interactions (cont.)

• Business intelligence. BI is useful in CRM for
  data mining, modeling, and forecasting. Many BI
  techniques can be spatially-enhanced. 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.

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GIS-CRM Joint interactions through Business
Intelligence

• Business intelligence for CRM. Chicos is able
  to perform analytics to make customer
  relationship processes more efficient and to
  understand customer patterns better.
• For instance, Chicos was able to determine that
  its best customers on the average shopped in a
  Chicos 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, Chicos 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.

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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.

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GIS and IT Factors in CRM
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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?

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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
• ESRIs 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.

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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.

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Case Study Results for GIS Linked to Enterprise
Systems large firms
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Case Study Results for GIS Linked to Enterprise
Systems medium-size firms
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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.

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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 Chicos, a womens 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.

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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. LICs 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.

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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.

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Case Study of GIS and CRM in a customer-centric
fashion company

• Chicos is a womens apparel chain that
  emphasizes customer service and appeals to a
  mature (45-years-plus) market.
• Founded in 1983, by 2006 Chicos 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 (Chicos, 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 Chicos
  revenues.

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Chicos sales approach

• Chicos 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.

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Chicos 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 (Chicos, 2006).
• For CRM, Chicos uses the Connected Retailer from
  NSB, which supports CRM as well as store
  merchandising, planning, allocation-replenishment,
  and sourcing.
• GIS software is run alongside the Connected
  Retailer and utilizes the same database of
  customer information.

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Chicos Success with CRM and GIS

• Chicos 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 Chicos key value of
  developing and sustaining customer loyalty.

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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.

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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.

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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

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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.