00:01Houston, we have a problem.
00:03Imagine who can't relate to that phrase.
00:07You know, those five words struck fear into the heart of NASA, but there's only one word that's actually important.
00:16Imagine what it felt like to be a NASA engineer on that day.
00:21Its 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.
00:32And it's not just NASA engineers that hate problems, business leaders hate them, too.
00:39They lie awake at night worrying about their corporate problems.
00:43But I'm one of those weird guys that actually like problems, because most problems are actually puzzles.
00:51Puzzles are solvable.
00:53I believe that GIS is the ultimate puzzle solver.
00:57What better than GIS to figure out how things fit together, to zero in on a solution.
01:03And we've heard all throughout today the incredible business opportunities in solutions.
01:10So 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.
01:21So it's lunchtime.
01:23I'm in the Redlands office.
01:27Within 15 minutes of the office, there's over 300 franchise restaurants, chicken, burger, pizza, the list goes on and on.
01:38But what happens if you have too many restaurants and not enough customers?
01:44One of our clients, and no, I'm not going to tell you who they are, figure it out.
01:50They're actually dealing with this problem.
01:53The CEO's pissed because there's not enough revenue, and there's too much competition.
02:00A pissed-off CEO?
02:02That's what I call a business problem.
02:07So his problem is actually a puzzle with three parts, the restaurants, the meals, and the customers.
02:17The trick is to figure out how we get those three parts, put them together in a way that makes the company more profitable.
02:25How do we do that?
02:27First, we generate more customers and make them more loyal through marketing.
02:31If 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.
02:44A hundred million dollars.
02:47Secondly, make the meals appeal to the marketplace.
02:51If you do that, you're more likely to get your 15 customers in the door.
02:56The third piece of the puzzle is obvious.
02:59Locate your restaurants in a place that deals in such a way that it minimizes competition and maximizes market potential.
03:08This client adopted that strategy.
03:12They went from decline to industry-leading growth literally overnight.
03:18They solved the biggest problem in their corporate history with simple GIS techniques...
03:24...like trade area analysis and customer profiling.
03:28What better validation of the business value of GIS than somebody like that?
03:35My second example is Cisco, the company whose routers are the backbone of the Internet.
03:40We're going to rely on this company when we move to the cloud.
03:46They 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.
03:59At Esri, we have a four-hour agreement, and our equipment comes from a depot in Orange County.
04:06At the best of times, it takes 60 minutes to get to Redlands.
04:10But what would happen if there was traffic, if we had a failure during rush hour?
04:16Is it possible for Cisco to meet their obligation for us?
04:20And could they scale this out to every business in the United States or every client in the world?
04:27Well, the answer to this is yes.
04:30Because Cisco has smart people that worked out this actually a puzzle, there's actually two puzzles, the first is a strategic puzzle.
04:40It's about location/allocation, taking your clients, your engineers, and the customers and ultimately assigning them to depots.
04:50And then you need to distribute those depots throughout the territory that you want to serve.
04:56The second issue is a real-time logistics application, dealing with traffic...
05:02...making sure that you can meet your obligations to the customer.
05:06Once 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.
05:20So these are two examples of thousands of ways that GIS is the answer.
05:26Every day we're impacting the bottom line in business with saving companies hundreds of millions of dollars.
05:34We're making them tens of millions of dollars.
05:37The ROI is huge, but the GIS isn't rocket science.
05:42The GIS part is easy because ArcGIS makes it easy.
05:48Jack, Chris, and Dean have told you that this is our biggest growth market.
05:54We grew by 30 percent last year.
05:56This year, doing it ourselves with the business we see, could be 100 percent growth.
06:03Imagine what we could do together if we actually came together to build solutions for this marketplace and this opportunity.
06:12So what do I want you to do?
06:14You're all expert puzzle solvers.
06:18Go find those executives that don't sleep at night, tell them how we can puzzle through their problems and end their nightmare.
06:27I guarantee you they'll never think about their problems in the same way ever again.
Mapping the Bottom Line
Simon Thompson, Esri commercial business industry manager, tells you how GIS can be used to solve business problems and add ROI.
- Recorded: Mar 6th, 2011
- Runtime: 06:34
- Views: 11065
- Published: Mar 29th, 2011
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