Simon Thompson, Esri commercial business industry manager, tells you how GIS can be used to solve business problems and add ROI.
00:01 Houston, we have a problem.
00:03 Imagine who can't relate to that phrase.
00:07 You know, those five words struck fear into the heart of NASA, but there's only one word that's actually important.
00:16 Imagine what it felt like to be a NASA engineer on that day.
00:21 Its three astronauts up there on the way to the moon, thousands of miles away from earth...
00:27 ...and have a life-threatening systems failure.
00:32 And it's not just NASA engineers that hate problems, business leaders hate them, too.
00:39 They lie awake at night worrying about their corporate problems.
00:43 But I'm one of those weird guys that actually like problems, because most problems are actually puzzles.
00:51 Puzzles are solvable.
00:53 I believe that GIS is the ultimate puzzle solver.
00:57 What better than GIS to figure out how things fit together, to zero in on a solution.
01:03 And we've heard all throughout today the incredible business opportunities in solutions.
01:10 So what I want to do is take some time to go through two examples...
01:15 ...of how we've been able to puzzle through the problems in business.
01:21 So it's lunchtime.
01:23 I'm in the Redlands office.
01:27 Within 15 minutes of the office, there's over 300 franchise restaurants, chicken, burger, pizza, the list goes on and on.
01:38 But what happens if you have too many restaurants and not enough customers?
01:44 One of our clients, and no, I'm not going to tell you who they are, figure it out.
01:50 They're actually dealing with this problem.
01:53 The CEO's pissed because there's not enough revenue, and there's too much competition.
02:00 A pissed-off CEO?
02:02 That's what I call a business problem.
02:07 So his problem is actually a puzzle with three parts, the restaurants, the meals, and the customers.
02:17 The trick is to figure out how we get those three parts, put them together in a way that makes the company more profitable.
02:25 How do we do that?
02:27 First, we generate more customers and make them more loyal through marketing.
02:31 If you have 15 new customers come to your restaurant every day of the year and spend five dollars at lunch...
02:39 ...with only 3,600 restaurants, you'll generate a hundred million dollars in new revenue.
02:44 A hundred million dollars.
02:47 Secondly, make the meals appeal to the marketplace.
02:51 If you do that, you're more likely to get your 15 customers in the door.
02:56 The third piece of the puzzle is obvious.
02:59 Locate your restaurants in a place that deals in such a way that it minimizes competition and maximizes market potential.
03:08 This client adopted that strategy.
03:12 They went from decline to industry-leading growth literally overnight.
03:18 They solved the biggest problem in their corporate history with simple GIS techniques...
03:24 ...like trade area analysis and customer profiling.
03:28 What better validation of the business value of GIS than somebody like that?
03:35 My second example is Cisco, the company whose routers are the backbone of the Internet.
03:40 We're going to rely on this company when we move to the cloud.
03:46 They provide an enterprise, sorry, a service-level agreement that guarantees to get routers, equipment...
03:54 ...engineers on-site to fix your outage problems should you have a system failure.
03:59 At Esri, we have a four-hour agreement, and our equipment comes from a depot in Orange County.
04:06 At the best of times, it takes 60 minutes to get to Redlands.
04:10 But what would happen if there was traffic, if we had a failure during rush hour?
04:16 Is it possible for Cisco to meet their obligation for us?
04:20 And could they scale this out to every business in the United States or every client in the world?
04:27 Well, the answer to this is yes.
04:30 Because Cisco has smart people that worked out this actually a puzzle, there's actually two puzzles, the first is a strategic puzzle.
04:40 It's about location/allocation, taking your clients, your engineers, and the customers and ultimately assigning them to depots.
04:50 And then you need to distribute those depots throughout the territory that you want to serve.
04:56 The second issue is a real-time logistics application, dealing with traffic...
05:02 ...making sure that you can meet your obligations to the customer.
05:06 Once you figure that out, it's easy to solve, and you'll realize that we have ready-made...
05:14 ...incredibly good analytical techniques to deal with this puzzle.
05:20 So these are two examples of thousands of ways that GIS is the answer.
05:26 Every day we're impacting the bottom line in business with saving companies hundreds of millions of dollars.
05:34 We're making them tens of millions of dollars.
05:37 The ROI is huge, but the GIS isn't rocket science.
05:42 The GIS part is easy because ArcGIS makes it easy.
05:48 Jack, Chris, and Dean have told you that this is our biggest growth market.
05:54 We grew by 30 percent last year.
05:56 This year, doing it ourselves with the business we see, could be 100 percent growth.
06:03 Imagine what we could do together if we actually came together to build solutions for this marketplace and this opportunity.
06:12 So what do I want you to do?
06:14 You're all expert puzzle solvers.
06:18 Go find those executives that don't sleep at night, tell them how we can puzzle through their problems and end their nightmare.
06:27 I guarantee you they'll never think about their problems in the same way ever again.
© Esri 2013 http://www.esri.com