GIS on Business

Definitions of Geographic Information Systems (GIS) can be different, but they have certain concepts that are common. As evidenced by Kennedy (2013), GIS are a vast collection of hardware, software, geographic data, people and organizational infrastructure that interact to make the handling, processing, analysis and presentation of geographic information possible to support decision-making. Lantada and Nuñez (2002), maintain that it is important to highlight that GIS have an important theoretical foundation and work based on a methodology combining principles and knowledge of other disciplines.

Bernhardsen (2002), stands that the definition of GIS is focused on the specific application for a particular job. Alcaide, Calero and Hernandez (2012), argue that, from the business point of view, the application of GIS in the study of the socio – economics, provides a powerful tool for geographic analysis that addresses many concerns in the field of property management and services.

Pick (2005) highlights the substantial component of GIS on decision making in a changing and challenging environment as the business world. The use of certain models for a specific business organization, facilitates information concerning logistics and operation, constituting an important tool of business strategy.

Marketing is probably the field where GIS have greater applicability in business. Interest in the potential offered by GIS in marketing, is growing increasingly due to their usefulness to determine aspects such as location of customers and competitors, market segmentation, population characteristics, potential branch locations, promotion, and advertising. (Toppen and Wapenaar, 1994). Alcaide, et al (2012) define the geomarketing as the set of techniques used in the analysis of the socio - economics from a geographic perspective, addressing issues related to decision-making in the operational and administrative aspects of a company.

Longley and Mateos (2005) mention some research work that had as basis geomarketing techniques. For example, the reliable estimate of neighborhood statistics, interaction between macro and micro models of human behavior, clustering techniques based on homogeneous life styles, among others. These techniques made it possible to organize the information and derive the final results of the research, demonstrating the usefulness and importance of the implementation of geomarketing.

Azaz (2011) cites some cases of organizations that successfully apply geomarketing techniques. Within these organizations there are, for example, fast-food restaurants like Burger King and McDonald's that use GIS market analysis, selection and location of franchises and demographic characterization. Similarly, companies such as Texaco, used GIS to explore potential areas for the location of new stations.

For the reasons mentioned above, GIS are a powerful tool for business success.

REFERENCES

Alcaide, J., Calero, M. and Hernández, R. (2012). El Geomarketing y los SIG, en Geomarketing: marketing territorial para vender y fidelizar más. ESIC. Madrid, España. pp. 37 – 81.

Azaz, Lofty. (2011). The use of Geographic Information Systems (GIS) in Business. International Conference on Humanities, Geography and Economics. Pattaya. pp 299 – 303. Accessed on July 13, 2013, in:  http://psrcentre.org/images/extraimages/1211200.pdf

Bernhardsen, Tor. (2002) Geographical Information Systems and Geographical Information, on Geographic Information Systems: An Introduction. 3rd. ed. Wiley. New York, NY., EEUU. pp. 1 – 25.

Kennedy, Michael D. (2013). Some Concepts that Underpin GIS, on Introducing Geographic Information Systems with ArcGIS : A Workbook Approach to Learning GIS. 3ra. ed. Wiley. New Jersey. NJ. EEUU. pp. 3 - 88.

Korte, George. (2001). An Overview of the GIS industry and GIS Software, on The GIS Book: How to Implement, Manage, and Assess the Value of Geographic Information Systems. 5th. ed.  On Word Press, Santa Fe, NM, EEUU. pp. 39 – 46.

Lantada, N. and Nuñez, A. (2002) Introducción a los Sistemas de Información Geográfica, en Sistemas de Información Geográfica. Prácticas con ArcView. UPC. Barcelona, España. pp. 13 - 33.

Longley, P. and Mateos, P. (2005). Un nuevo y prominente papel de los SIG y el Geomarketing en la provisión de servicios públicos. GeoFocus (Editorial), Nº 5. pp. 1-5. Accessed on July 13, in http://geofocus.rediris.es/2005/Editorial_2005.pdf

Toppen, F. and Wapenaar, H. (1994). GIS in Business: Tools for Marketing Analysis. EGIS. Accessed on July 7, 2013, in http://libraries.maine.edu/Spatial/gisweb/spatdb/egis/eg94204.html

Pick, James. (2005). Concepts and Theories of GIS in Business, on Geographical Information Systems in Business. IGI. Hershey, PA, EEUU.