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Exercise: Business, Geography, and The Location Advantage
Exercise: Business, Geography, and The Location Advantage
Exercise: Business, Geography, and The Location Advantage
Exercise
Business, Geography, and the
Location Advantage
Section 1 Exercise 1
April 14, 2021
The Location Advantage MOOC
Instructions
Use this guide and ArcGIS Online to reproduce the results of the exercise on your own.
Note: ArcGIS Online is a dynamic mapping platform. The screen captures that you see in
course materials may differ slightly from the version of ArcGIS Online that you will use.
Time to complete
Approximately 45-55 minutes
Technical note
To take advantage of the web-based technologies available in ArcGIS Online, you need to
use a fairly new version of a standard web browser, such as Google Chrome, Mozilla
Firefox, or Microsoft Edge. Older web browsers may not display your maps correctly.
Introduction
In this week's lesson, you learned about the relevance of geography to business. You learned
how industries, companies, and departments can leverage location information in decision-
making to gain a competitive advantage. Now, you will be introduced to tools and techniques
used for analyzing location data in a business scenario.
This exercise presents an approach to using ArcGIS to map bank branches, along with the
characteristics of populations near those branches. The information will help management
decide how to best promote new bank services to customers and potential customers. For
example, people in densely populated areas might be more interested in the security and
convenience of online banking. People with more income might be more interested in
investments or home loans.
The purpose of this exercise is to give you experience using geospatial tools as part of a
geographic information system, or GIS, to help answer business questions and make informed
decisions based on analysis. GIS allows you to create visualizations and analyze spatial
relationships between objects or areas on the earth to reveal insights into data. The data,
scenario, analysis, and resulting decisions are hypothetical.
Exercise scenario
In this scenario, you are an analyst for Sixth Consolidated Bank, a fictitious bank chain in
Toronto, Canada. Your manager will be attending a meeting to discuss the promotion of new
bank services and has asked for your assistance showing areas where Toronto bank branches
are located, along with some basic demographic data about the people who live in those
areas.
You realize that the best way to quickly and easily show this information is visually, so an
ArcGIS StoryMaps story is ideal.
In this exercise, you will use ArcGIS Business Analyst Web App and the ArcGIS Online
mapping platform to perform these tasks:
Note: ArcGIS Business Analyst Web App and the analysis tools in ArcGIS Online require a
subscription. While you are enrolled in this course, you have access to both Business Analyst
Web App and an ArcGIS Online subscription at no cost.
If you would like to continue using these tools after the course ends, you will need to
purchase a subscription. For more information, visit https://arcgis.com.
Approach
Throughout the exercises in this course, you will use a four-step question-model-analyze-
interpret workflow for decision-making. You can use this approach in any situation, whether it
involves location data or any other business information.
In this exercise, you will analyze bank locations in relationship to characteristics of the
populations located near each branch. As you examine these spatial relationships, you will see
how mapping and visualization can facilitate decision-making. In this case, you can use
information about the income characteristics and household sizes in areas near bank branches
to decide which services should be promoted in particular areas.
Formulate the Question
Using location information when approaching business decisions can help inform and support
your decision-making efforts. For this exercise, bank management needs to decide where to
promote new bank services. A map that shows the bank branch locations and demographic
characteristics of their surrounding populations would aid decision-making. Formulating the
question, or questions, you must answer to make decisions is your first task.
You can frame the primary business question as follows:
Where are bank branches located, and what are the characteristics of the populations in those
areas?
Model the Solution
Your next task is to model the solution, or identify the information and methods needed to
answer the business question. This task includes gathering the data, including the locational
component you need, and identifying the techniques you will use to provide the information
the business can use to make decisions.
What is the locational component?
Several locational components are associated with the business question in this exercise. For
example, you must identify where the bank branches are located—a map can be used to
show where things are located. You must also identify the characteristics of the populations
living in the areas near these bank branches—a map can also determine what is located within
an area. This determination involves assessing the types of people who live there, their
median income, and so on.
What data do I need for my map?
To create a map that shows the locations of Sixth Consolidated Bank branches and the
characteristics of the populations living nearby, you will use several types of data:
As you learned in the lecture, location data exists in many forms within an organization. Your
bank maintains street address information for its branches. This type of location information
can be displayed on a map to show relationships that were not visible before, such as how far
objects are from one another or how objects are dispersed across a city or other area.
Location information is often stored in spreadsheets, or in an organization's ERP (enterprise
resource planning) or CRM (customer relationship management) systems. When searching for
location information in these sources, look for columns or key fields such as x/y, longitude/
latitude, mailing address, or postal code.
Geocoding is a technique that locates an object on a map using location information, such as
a street address, postal code, or longitude and latitude coordinates. Geocoding can be used
to create a feature layer, which is a group of similar geographic features. Your coworker used
geocoding to create a feature layer containing the point locations of the banks. Your coworker
then published the feature layer to ArcGIS Online so that you and other employees can
access bank location information for mapping and analysis.
ArcGIS Online includes population characteristics and demographic information for many
different countries, as well as satellite imagery.
ArcGIS Living Atlas of the World is also a robust source of data from around the world that
you can use to map and analyze data from categories such as people, infrastructure, the
environment, imagery, and more.
Which techniques will I use?
Geospatial techniques are a way to understand information that has a location component.
Using geospatial techniques, you can understand, explore, and analyze information with a
location component to help inform your business decisions.
For this exercise, you will use a technique called visualization to show the locations of bank
branches on the map. Another technique you will use is overlay, which refers to placing map
layers on top of one another to gain insight into geospatial relationships.
Perform the Analysis
Recall from the lecture that GIS is a system of tools and techniques that provide you with
information through analysis to help you answer business questions and make decisions.
Spatial analysis is the process of analyzing spatial relationships using a GIS. For this exercise,
you will use spatial analysis to examine, or analyze, the location of bank branches and
population characteristics to determine how and where to promote new bank services.
Interpret the Findings
After you perform the analysis and examine the findings, you may discover that you have
more questions. You can use the four-step decision-making workflow as an iterative process to
help you review and interpret information and inform decision-making.
Using ArcGIS Online, you can create a map with the information needed for your analysis.
a On the black navigation bar in the MOOC platform, click the Lessons tab to locate your
credentials.
If you registered within the past few hours, your credentials may not be ready. You will see a
message asking you to check back later.
Note: You will need to refresh the web page to check whether your credentials are available.
We will do our best to provide your credentials within one business day after you register.
After you locate your course ArcGIS credentials on the Lessons tab, you may sign in to ArcGIS
Business Analyst Web App for the first time.
e Under ArcGIS Login, copy and paste or type your course ArcGIS user name and
password.
The user name and password are the same for both ArcGIS Online and Business Analyst Web
App. Although Business Analyst Web App has its own web address, you will access it as an
extension of ArcGIS Online.
Note: ArcGIS Online is a dynamic mapping platform, so the organization's home page may
look slightly different than the graphic.
You will leave the private or incognito browser window open for the rest of the exercise.
However, if you plan to finish the exercise later, you may close the browser window now.
Use a private or incognito browser window.
Each exercise will instruct you to open a new private or incognito browser window and sign in
to Business Analyst Web App (or another website) with your course ArcGIS credentials. Using
a private or incognito browser window will ensure that you access Business Analyst Web App
and ArcGIS Online with the correct account.
Sign in to ArcGIS Online and ArcGIS Business Analyst Web App with correct credentials.
You will use your course ArcGIS credentials to access ArcGIS Online and ArcGIS Business
Analyst Web App only. If you or your computer accidentally uses your course ArcGIS
credentials to sign in to an Esri.com website, you may see the following message: "Your active
ArcGIS organization account <user name>_locadv is not enabled for esri.com websites."
If you see this message, choose the Sign Out Of This Account option, go to the website that
you are trying to reach, and choose Sign In. Be sure to use the correct user name and
password (that is, not your course ArcGIS credentials) when signing in.
Note: The setting that shows your course ArcGIS account "is not enabled for esri.com
websites" is correct. The account administrator is not able to change this setting.
Now that you are familiar with your ArcGIS course credentials, you will create a new web map
in Business Analyst Web App.
a In the upper right, on the ribbon for The Location Advantage MOOC homepage, Click
the app launcher button .
Note: The app icons may appear in a different order than what is shown in the graphic.
f In the Create Project dialog box, type Sixth Consolidated Expansion_<First Name Last
Name> and click Create.
Note: Adding your first and last name to the project will ensure that you can find your project
later.
Creating a project in Business Analyst Web App automatically creates a group with the same
name in your ArcGIS Online organization. Your account must be assigned a role with
publishing privileges, such as the Publisher role.
After you create a project, you can share it with your organization or with individual users in
your organization who may or may not have publishing privileges.
A Guided Tours dialog box opens to display your progress. You have completed the first tour
by creating a project. If you want to explore more, you can complete additional tours later.
A streets basemap can show a road network, a topographic basemap can show the land, and
a light or dark canvas background basemap can highlight certain operational layers.
When you place operational layers on top of a basemap, they become the foreground of the
map. You can think of operational layers as laying on top of a basemap, as in the following
example.
In this exercise, operational layers contain the location information for the bank branches and
the demographic characteristics, such as income and average family size.
a Click the Add Data tab and choose Web Maps And Layers.
The Web Maps And Layers window opens. In this window, you can search various categories
of content, such as content you own, content shared with your groups, content shared with
your organization, or content shared with ArcGIS Online.
When you perform a search, all content shared to ArcGIS Online will be searched.
d Point to the Section1_Toronto_Banks_Data icon and click Add to add the Toronto bank
data to the map.
On the left-side pane, Section1_Toronto_Banks_Data should be listed under Web Maps And
Layers.
The map display updates to show the Toronto, Canada, metropolitan area, with the locations
of the bank branches indicated by small colored point symbols, which represent point
features. Other feature types include line features, such as streets or rivers; and polygon
features that show area, such as states, countries, street parcels, or lakes.
Since the banks data is located in Canada, the country should be set to Canada.
f In the upper right, click the drop-down next to USA, then locate and choose Canada.
a Under Web Maps And Layers, to the right of the Section1_Toronto_Banks web map, click
the More Options button and choose Zoom To Web Map.
Previously, the map showed a much larger area of the world. How close in or far out the map
is zoomed is similar to map scale on a traditional map. The map appears zoomed in to the
area of Canada that includes the city of Toronto.
b In the upper-right corner of the map display, point to the zoom slider and observe the
pop-ups indicating levels of zoom.
You can choose from Dissemination Areas, Aggregated Disseminated Areas, Forward
Sortation Areas, Census Subdivisions, Census Divisions, and Provinces Or Territories. Clicking
any of these will zoom the map display to the respective map scale level.
c Click the different scale levels to observe the changes in the map scale.
The tool palette on the right side also contains tools to navigate the web map. The hand icon
can be used to pan, and the magnifying glasses can be used to zoom in and out of the map,
changing the extent—or what is displayed within the web map.
When you zoom in on a map, objects in the map look larger, but you can see less of the
world. An example of large map scale would be a map that shows a neighborhood- or city-
level view. Large-scale maps show greater detail, because you are zoomed in closer to the
objects on the map.
When you zoom out, objects look smaller; you see less detail, but you can see more of the
world. A small-scale map could show states and provinces or even countries.
e Pan, or move, the map by clicking and dragging the map up, down, left, or right.
f After you are finished exploring the map, zoom to the extent of the Toronto banks.
Hint: Section1_Toronto_Banks_Data web map > More Options button > Zoom To Web
Map
Now that you are familiar with changing the map scale and extent, you will choose a different
basemap to provide more context for your analysis.
a In the upper-right corner of the map display, click the Basemaps button and choose the
Imagery basemap.
c Zoom in to the bank locations in the south (toward the bottom of the map), near the
water.
Note: You may need to zoom in several times and pan the map to find the Toronto city center.
d Note the multiple-story buildings in the city center, near the bank headquarters.
Does there seem to be a spatial relationship between bank locations and the city center? Do
you think that banks might often be located near other businesses or other corporate
headquarters?
These findings allow you to gain knowledge about the branches and their customers and to
then make recommendations to your managers for use in decision-making.
The Legend pop-up window shows the Section1_Toronto_Banks_Data web map, with the
Section1_Toronto_Banks_Data layer nested underneath.
b To the right of the web map name, click the More Options button and choose Edit
Labels.
d To the right of the layer name, click the More Options button and choose Edit Labels.
c Expand 2020 Households by Income (Current Year) and click 2020 Household Median
Income (Current Year $) to add the layer to the map.
You should see the Household Median Income layer added to the map.
d On the right side of the map, in the tool palette, click the Map Legend button .
e To the right of the HH Inc: Median Curr$ By Dissemination Areas, click the More Options
button and choose Edit Labels.
The legend shows the Toronto Branches symbols. The legend also displays the color ramp
used to show the different levels, or classifications, of median household income in the map
region.
In Business Analyst Web App, as you zoom out from the map, the 2020 Median Household
Income layer automatically updates to display the information at smaller map scale levels.
When you are zoomed out to larger geographical area, such as the extent of Canada, the
information is displayed by Provinces or Territories. The display changes because showing too
much detail at smaller scales or when displaying a larger geographical area would make the
information too difficult to see and would also take longer to display.
Next, you will zoom to the extent of the Toronto Branches layer.
k To the right of Section1_Toronto_Banks_Data, click the More Options button map and
choose Zoom To Web Map.
Note: To ensure that you are viewing all of the Toronto Branches in the map, you may need to
use the pan button to adjust the extent of your map.
On the left, under Web Maps And Layers, you will see that all the layers in your map are
listed.
You can see the full extent of the Toronto bank branches on top of the 2020 Canada Median
Household Income layer.
l In the map, click any area near a bank branch to view an information pop-up window, and
then click Infographics.
Note: Information will vary and may not have the same information in the graphic above.
o After reviewing, in the upper-right corner of Business Analyst Web App, click the Export
Infographic button.
q Click Create Image, then save the Key Facts.png file to a location on your computer that
you will remember.
This infographic will be used later to provide additional analysis in an ArcGIS StoryMaps app
for the bank manager.
s In the map, click other areas near bank branches and explore additional infographics.
As part of a larger discussion about promoting new bank services, management is interested
in understanding the characteristics of the populations in the areas where bank branches are
located. As you explore the areas near bank branches, do you see any spatial patterns or
relationships between branch locations and population income, or between other variables?
For example, another useful characteristic for management to consider is the average size of
families living in areas near bank branches. Where are smaller or larger households located in
this area? How will this spatial information affect the marketing of targeted bank services? This
information can be used to make decisions about which services to promote in the different
areas.
a To change the symbology for 2020 Median Household Income, click Create Maps and
choose Color-Coded Maps.
c Next to Colors, click the drop-down next to the color palette and choose the orange to
purple.
d Click the reversing arrows to change the color slider from purple to orange, with orange
indicating a higher annual household median income.
You want to ensure that the imagery basemap will be visible beneath the data layers in your
map. To do this, you will adjust the layer transparency.
e On the Color-Coded Maps pane, next to Transparency, click and drag the slider to 75%.
Next, you will add the map that you just created to an ArcGIS StoryMaps story that illustrates
your analysis results for the bank manager.
b In the Share Map window, for Title, type Sixth Consolidated Expansion_<First Name
Last Name>.
d Under Share Map With Selected Groups, check the box next to Entire Organization (The
Location Advantage) and My Groups.
f After the map has been created, click Click Here To Access The Map.
communicating analytical results to an audience. You can share your story with your
organization so that anyone else employed with Sixth Consolidated Bank can see it.
You will use the ArcGIS StoryMaps platform to build your app.
i In the Title area of the template, type Toronto Area Analysis_<First Name Last Name>.
j In the subtitle line, type This web app allows users to visualize median household
income and a variety of demographic data to promote new bank services in the
Toronto area.
k To add a content block, scroll down and click the plus sign next to Tell Your Story.
The map layers from your web map are added to the ArcGIS StoryMaps web app. However,
the names reflected need to be changed again for a reader-friendly appearance.
n On the left-side pane, click the Section1_Toronto_Banks_Data layer name and type
Toronto Branches.
o Click the 2020 HH Inc: Median Curr$ By Dissemination Areas layer name and type 2020
Household Median Income.
p In the upper-right corner, type Toronto into the search bar and choose Toronto, Ontario.
q Zoom in to Toronto so that the map looks similar to the graphic below.
r On the left-side pane, click the Options button to access the map settings.
Enabling the legend ensures that whoever views your story can see the legend and use it to
interpret the layers included in your map.
u Beneath the map, highlight the default text and type 2020 Canada Household Median
Income.
v Point to the recently added web map to observe the Add Content Block button.
z Click Add.
ab Click the preview for each device and explore the results.
ac After reviewing how the story will look when it is published, click Edit Story to return to
your draft.
The default is for items to be unpublished and shared privately, so that only the creator can
see them. You can also share items with select groups within your organization (such as
project teams), with the entire organization, or with anyone in the general public.
In this case, you will share your web app with your organization.
d After your story has published, in the upper-right corner, click the account button and
choose your name.
Your content items have been updated to include the story that you just created. You may
also notice additional content items generated by Business Analyst Web App.
b To find the web map that you created in Business Analyst Web App, click the BA - My
Maps folder.
c For the Sixth Consolidated Expansion web map, click the More Options button and
choose View Item Details.
On the item details page, you can see settings and metadata about the map, including
sources of the map layers you added, with URLs, properties, and comments people have
made about your item (if comments have been enabled by your ArcGIS Online administrator).
a In the upper-right corner, click your name and choose Sign Out.
Conclusion
After reviewing the work that you have done, your manager is happy with the story and feels
that it provides a good foundation for discussing how to promote new bank services. You
could continue developing your story by adding more demographic data for additional
locations.
In this exercise, you looked at how you can incorporate visual analysis using mapping software
to learn about locations. You also learned how location can help decision-making. In this
scenario, you used geospatial techniques to gain insight into branch locations and population
characteristics in those areas. Based on the findings, decisions can be made regarding the
promotion of new bank services. You can apply the techniques used in this activity whenever
your data has a location component—and most data does have a location component. For
any industry, using geospatial techniques in your data analysis can improve your toolset and
help you make more informed decisions.
In future sections, you will perform more complex analyses that will yield more business-
specific information. You will combine data to produce information that can increase your
competitive advantage.