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Use GIS to shortlist suitable Locations

Writer's picture: Arpit ShahArpit Shah

Updated: 6 days ago

My recent posts delved on using Remote Sensing to extract information regarding Earth Observation parameters such as Pollution, Heating and Subsidence. Satellite Imagery is abundantly useful when one needs to obtain insights about the environmental challenges we face on Land, Water or Air. It is also technical field - to be able to extract accurate information from Earth Observation datasets requires adequate training. In my previous posts, I had replicated the methodology, which researchers have developed through much rigour over the years, on my Area of Interest.


However, Satellite Imagery is not individually sufficient to address many of the challenges faced by/to fulfill the objectives of private organizations and institutions. For example, Remote Sensing is not typically used to visualize supply chain operations, detect bottlenecks, gain competitive advantage, reduce costs, or earn more profits - aspects which for-profit organizations are desperate for. Fortunately, the wide field of Mapping has several tools in its armory which can fulfill such business needs. A Geographic Information System (GIS) can store, analyze and visualize any geospatial data i.e. any data which has a location/positional aspect to it, with ease.


A very basic example of this is a Physical Address - this information can be plotted on a map as one can obtain coordinates of that address through a process known as Geocoding. More importantly, if any other information is linked to the Physical Address - for example, the residents, their income, purchasing behaviours etc, these too can be attached to the map as an attribute of the Address, thereby rendering it suitable for further processing using the GIS software.


Moving on to a more advanced example, but vital from a business perspective - consider a situation that you are a mobile phone manufacturer who wants to shortlist a few markets within India which are ideal to launch your newest phone, which has been specifically developed for female users.


You know some parameters that would be useful in your ideal location search-

  • the total Female Population in that market must be sizeable,

  • the Population Density in that market has to be above the national average,

  • the Purchasing Power of the residents needs to be above a certain threshold, and

  • the residents' expenditure on Electronics & IT products should be significantly above the national average


With the latest in Mapping technology, these parameters can be factored in while analysing publicly available Location Datasets in order to identify high-potential launch markets - refer Figure 1 below-

High-potential markets to launch the new mobile phone for Female users. Output generated using a specialized GIS Location Analytics module - Esri's ArcGIS Business Analyst
Figure 1: High-potential markets to launch the new mobile phone for Female users. Output generated using a specialized GIS Location Analytics module - Esri's ArcGIS Business Analyst

The geospatial version of Solver has honed in on 9 pockets in India which match all your desired parameters. Moreover, the results are query-able i.e. you can tweak the constraints to be more conservative or aggressive as per your preferences and the GIS will dynamically update the output in an instant. Now imagine that alongside these publicly available datasets, you were to add in your own company's Operations geo-datasets. For example, the existing distribution network, competitor locations, supplier information and existing customers information. The output of the GIS tool would become even more relevant and powerful for you!


An more complex usage of GIS for siting purposes can be accessed here - contains a video walkthrough as well.

 

Let me share another example with you. In Figure 2 below, I have plotted the existing branches of a Canadian bank operating in Toronto. The Bank's leadership is considering to expand its Branch footprint - to across the border in the thriving financial market of USA.


The preferred parameters for the new branch locations entail attractive values for-

  • Population Density,

  • Average Household Size,

  • Percentage of Residents having a Savings Account, and

  • Median Disposable Income.

The Canadian bank also possesses the data regarding its main competitors' branch locations in USA which is indicative of prime markets and it would ideally like to be situated in and around these hubs.


Map depicting existing branches of Canadian Bank (blue) in Toronto, Canada and its competitors' branches (orange circles) and their respective headcount (red circles) in USA just across the border. Suitable sites for opening new branches are marked as blue polygons. Datasets and Tutorial developed and shared by Esri through their Location Advantage MOOC.
Figure 2: Map depicting existing branches of Canadian Bank (blue) in Toronto, Canada and its competitors' branches (orange circles) and their respective headcount (red circles) in USA just across the border. Suitable pockets for opening new branches are marked as blue polygons. Datasets and Tutorial developed and shared by Esri through their Location Advantage MOOC.

The geospatial tool is able to factor these desired criteria and the external as well as internal datasets to shortlist suitable land pockets (blue polygons) for setting up new Canadian Bank branches in the USA. Alongside the map-based output depicted above, the data can be visualized and analysed as charts and graphs (just as one does in Microsoft Excel) within the GIS tool itself which would enhance the Canadian Bank's ability to make a sound decision on entering a new market and siting the branches.


Isn't this Business Analytics-themed Mapping technology useful?

 

Leaving you with a video prepared by an intern at my firm - Tanisha Jain - she demonstrates a simple case study involving Siting a new Hospital - you'll get to see how GIS is useful for such workflows as it is able to factor in operational parameters and constraints in a location dataset-format-

In my opinion, in addition to Spreadsheet-based Modelling, Geospatial Site Suitability Modelling (as demonstrated in a basic way in this post) is useful for any Site Selection workflow - be it a new retail store, bank branch, hospital, service centre or factory. Not only is GIS relatively straightforward to operate but also its geospatial analytics and visualization capabilities lend a useful perspective to the situation. I must emphasize that the more high quality geospatial data you can obtain, the better your chances are to have a more relevant Siting output.

 

ABOUT US


Intelloc Mapping Services, Kolkata | Mapmyops.com offers Mapping services that can be integrated with Operations Planning, Design and Audit workflows. These include but are not limited to Drone Services, Subsurface Mapping Services, Location Analytics & App Development, Supply Chain Services, Remote Sensing Services and Wastewater Treatment. The services can be rendered pan-India and will aid your organization to meet its stated objectives pertaining to Operational Excellence, Sustainability and Growth.


Broadly, the firm's area of expertise can be split into two categories - Geographic Mapping and Operations Mapping. The Infographic below highlights our capabilities-

Mapmyops (Intelloc Mapping Services) - Range of Capabilities and Problem Statements that we can help address
Mapmyops (Intelloc Mapping Services) - Range of Capabilities and Problem Statements that we can help address

Our Mapping for Operations-themed workflow demonstrations can be accessed from the firm's Website / YouTube Channel and an overview can be obtained from this brochure. Happy to address queries and respond to documented requirements. Custom Demonstration, Training & Trials are facilitated only on a paid-basis. Looking forward to being of service.


Regards,

Mapmyops I Intelloc Mapping Services

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