GIS IN BUSINESS

VENKATESAN.C
II SEM M.TECH(REMOTE SENSING)
RS9122 – GIS APPLICATIONS
 Case study 1
An Integrated approach for Banking
GIS
 
Mohammad Jafrullah
Infotech Enterprises Ltd. Hyderabad
 Outline

• Business Objectives of Banks

• How GIS can Help Banks
– Market Analysis
– Business Expansion Planning
– Bank Asset Management
– Retail banking services
• Integrated Approach for GIS
 Business Objectives of a Bank
• Expansion of Customer base
• Improvement in Quality of the Services
• Increased Customer Satisfaction
• Consistent Business Growth
• Increase in Profitability
• Retaining the Customers
 Market Analysis
• Customer Analysis
– where are our customers located?
– What are their characteristics (market segmentation,
classification of residential areas)?
– which are the areas not served ?
– Analyze Market Trends
• Competitor Analysis
– where are our competitors located?
– Where are their customers ?
– Reason for existing performance ?
• Focused Marketing
– What are the products and the areas they are well received ?
 Analyse Retail Market trends

Analyse Retail
market trends
across various
branch's – Does
Land use/ Income
groups
matters ???
 Business Expansion Planning
• New Branch / New ATM Location
• Cost-effective site analysis to select a new bank branch/ATM
location
• Key elements-Concentration of commercial areas, traffic
patterns, workplaces or homes of customers
• Branch Performance Monitoring
• Defining a trade area around the branch,
• measuring the market potential within that trade area,
• identifying the nearby competitors.
• Decision support for Strategic Planning
• What if scenarios provide the means to determine the effects of
– branch closures
– relocations
 Bank Asset Management
• To operate, maintain, and upgrade Bank's
physical assets cost-effectively.
• Regular inspection for condition assessment
• infrastructure asset condition
• Return of Investment and Asset Performance
 Retail banking services
• Online tracking of Cash status in ATM’s
– Real Time solution for the replenishment and
management of ATMs provides highly effective
approach to the cash management cycle
– Auto detect” component provides real time data in
order to optimize the servicing of ATMs, “
– GIS based solution displays the ATMs on the map
along with the cash status to help in better
visualization and better optimization in Cash
distribution
Branch Performance
Monitoring

This Branch
performance is going
down quarter by
quarter, Any Spatial
Implications ???
 Branch Performance
Monitoring
• Relocate
Under Served
Branch Area
 Cash van Fleet management
•Cash Van Fleet management for Cash
distribution
• Scheduling and planning of routes for cash vans and at
the same time ensuring that the Cash vans run as per the
schedule and disburses the cash at ATMs in time.
• More Security for Cash vans by linking to Central offices
using Fleet management systems
Customer care / help Lines
• Customer calls to Help Line
asking where is the Nearest
ATM
(Very common when we are new places)

• Person at Help desk can

identify customer location
based nearest landmarks and
can guide him to nearest ATM
Location
 Integrated Approach
Expansion
Customer
planning
Relation ship
system Management
Fleet
Management
system
ATM Cash
Distribution
Integrated GIS System
Database
Banking
System

Marketing ERP
Analysis
system
 Case study
GIS for Rural Marketing
Author: Suruchi Raina/Vijay Amanna
Suruchi.raina@igenesys.com
Vijay.amanna@igenesys.com
Genesys International Corporation Limited,
SEEPZ, Mumbai –96
 Requirement Analysis
• Planning for maximum coverage of area.
• Identifying uncovered markets and locating them,
• Designing route plans, based on available road
information and demographics on these markets,
• Planning optimum routes for delivery to whole
sale/retail outlets and product promotional
campaigns.
• Addressing congregation like haat, mela, mandi
along with normal route plan.
 LinCompass
LinCompass is designed as a modular
application. Modules are based on three
broad requirements
 MARKET ANALYSIS
• Identification of potential market -
Prioritization of district
• Drilling down to the places of visit -
Analysis by query
• Composite query
• Buffer query
Map showing Villages within 1 km from a
State Highway identified by using buffer
query
 ROUTE PLANNING
• Example of a typical route plan:
• The required route should cover villages of population less
than 4000, and each day it should visit three villages that
should have either a haat day or a primary school or
primary health center. The total travel distance should not
exceed 60 Km and the distance between two villages
should be less than 15 Km.
• Duration of route cycle = 25 days
• District to be covered = Lucknow
• Tahsil to be covered = Malihabad& Lucknow
Features of Route Design Module
• a) Route plan calculator
• b) Route Plans
i) Stockist option
ii) Linear & Circular Route option
iii) Continuous and with break Plan selection
iv) Automatic & Manual Route options
v) Night-halt selection
vi) Route plan for covering Mela Mandi
vii) Route plan along Highway
viii) Combination of any of the above
 Flag function
• User here can insert any remark associated
with the place such as largest sale in
particular village
• Experiences in the village such as villagers
were non-cooperative
 Run time attachment and
detachment of data
• Relational Database Management
System(RDBMS) has been used for
database maintained
• The application attaches and detaches data
automatically on run time as per the user
selections, which reduces time consumption
while performing queries.
 Reports generation
• “LinCompass” automatically generates
reports of all route details along with the
other required information.
• This is created in the .dbf format
• The application provides the option to
export to excel.
Map displaying circular route plan along
with the generated detailed report
 DATABASE FOR LINCOMPASS
APPLICATION
• Map data
• Tabular data
– Census data from International Institute of Population Science
(IIPS),
– Census Department of respective states,
– Land Record Department,
– Road Department, etc.
– Congregation data giving information on the various melas and
mandis held at various places.
– The entire database has been linked to the relevant map features
through unique identification numbers.
– Database creation and development of application took about
6 months of time with a team of 35.
 CONCLUSION
• Application is fast and simple to use
• Implementation of this made identification
of potential markets in the targeted
population is much easier.
 Case study 2
Identifying the Relationship Between Area
Characteristics by Social Class and Bank
Branches Distribution using GIS
Case Study of Tokyo 23 Wards
YoungJoo Lee, Hiromichi Fukui
Keio University, Japan
Endo5322, Fujisawa, Kanagawa, 252-8520, Japan
yjlee@sfc.keio.ac.jp , hfukui@sfc.keio.ac.jp
 Methodology
first stage
• market segmentation by factor analysis & cluster analysis
using socioeconomic variables related to social level.
• used 2000 census data, NSC2001& high-income taxpayer list for
socioeconomic data.
second stage
• distribution characteristic of existing branches -overlay analysis with
result of segmentation.
• used point data of branches of five major banks made by address
matching process
• base map of Tokyo 23 wards divided into 3058 towns.
• used SPSS11.5 and JMP5.0 for statistical analysis
• ArcGIS8.0 for spatial analysis to identify the relationship between area
characteristics by social class and distribution characteristic of existing
bank branches in Tokyo23 wards.
 Factor Analysis

• population density, age(20’s, 30’s, 40’s,

50’s, 60’s), gender, households,
• residence types (aged-households, married
couple, have a children, single)
• ownership (home ownership, rent a house)
• education, job, employment,
• income, high-tax payer, consumer
purchasing power
 38 variables attributing to 9 factors

• Factor1(purchasing power),
• Factor2 (social position),
• Factor3 (residence type),
• Factor 4 (the rich),
• Factor 5 (the elderly),
• Factor 6 (thirty-something),
• Factor 7 (the fifties vs. the twenties),
• Factor 8(employment and ownership),
• Factor 9 (the forties)
 Cluster Analysis

• Hierarchical cluster analysis using the Ward method

• Group1 (the elderly & life style stability),
• Group4 (30’s & life style stability),
• Group5 (the noble class),
• Group6 (instability of life),
• Group7 (lifestyle stability),
• Group8 (spending power),
• Group9 (wealth).
• Groups 2 and 3 are removed from this result because of
outliers.
Result of Segmentation
• Fig shows the number of towns contained
by each clusters of 23 wards.
• Setagayaku, which is located in the west of
Tokyo (Fig 1.)is the wealthiest area in
Tokyo because, 65.8% of the towns in
Setagayaku contained to Group 5(High
Class).
Result of Bank Branches
Distributions
The graph of the relationship between area
characteristic and branch distribution
 Conclusions and Discussions

• A lot of branches of five major banks are

located in Group5 (high class). And,
although the order is different, most of
branches in five major banks are located in
• Group1 (the elderly & life style stability),
• Group8 (spending power), and
• Group6(instability of life ).