GIS for SMEs

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• 4/25 @ Redlands on Marketing and Logistics• 4/26 @ Ontario/RC on Marketing and Logistics• 5/01 @ High Desert on Strategy• 5/10 @ Temecula on Marketing and Logistics

• 5/17 @ Ontario: SBDC Conference Workshop

• 5/23 @ Ontario/RC on Strategy• 5/30 @ Riverside on Marketing Non-Profits

SBA 2007 Grant Workshops:9:00-Noon

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Workshop Format

• Topic A – An Introduction and Overview– Jerry Platt

• Topic B – A GIS Tutorial and Tour– Rich Greene or Jim Pick

• Topic C – Marketing and Logistics– Monica Perry, Johannes Moenius or Avijit Sarkar

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SBA Grant #SBAHQ-06-I-0046

Period 9/1/06 to 8/31/08

$987,228.00

SBASchool

ofBusiness

Universityof

Redlands

RedlandsInstitute

InlandEmpireSMEs 4

University of Redlands SBA Grant

1.Develop Center to

provide GIS Assistance to Small Businesses

2.~8 Case Studies of

GIS Technology Transferto I.E. Small Businesses

3.Develop/Conduct SB/GIS

Training Workshops@ I.E., SoCal, US level

4.Intern’l Conference

on Managing with GISfor SB, SBA, B-Schools

5.Develop Internet-basedKnowledge Repositoryof Case Studies, etc.

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What is GIS?

Business / GIS Success Stories

Threats to IE SMEsBuilding Spatial Thinkinginto Your Business Model

GIS Data Sources

GIS Computing Choices

GIS Assessment Measures

Putting it All Together: The University of Redlands SBA Grant

Workshop Overview

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1. What is GIS?

1

8

7

6

5

43

2

http://csur.t.u-tokyo.ac.jp/jpn/activities/education/2005/SUR-B_Sadahiro.pdf7

2. Business GIS Success Stories

• Maps

• Business Maps

• Business GIS

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A Great Map

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http://www.csiss.org/classics/content/8

First GIS Map:1854 London

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Business Data …

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http://popvssoda.com:2998/countystats/total-county.html

… to Business Maps

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A Google Earth Business Map

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A MSN Virtual Earth Business Map

http://local.live.com 14

Business GIS

• Marketing

• Logistics

• Strategy

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http://www.esri.com/library/brochures/pdfs/arcgis-busanalyst.pdf16

http://www.esri.com/library/brochures/pdfs/arcgis-busanalyst.pdf17

3. Threats to I.E./CA SMEs

http://www.smallbiztrends.com/2005/07/business-failure-rates-highest-in.html

http://www.sba.gov/advo/stats/bh_sbe03.pdf

After 4 years

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Questions for You

1) Is the Small Business Survival Rate in CA:a) HIGHER than the US Averageb) EQUAL to the US Averagec) LOWER than the US Average

2) What Accounts for Your Answer to 1) ?

3) What Advantage Does CA Have, Compared to most other States?

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SME_Business_Turnover_RateCA Ranking (50 States + DC)

• Fifth worst:

West Virginia 0.68

North Dakota 0.73

Washington 0.73

Minnesota 0.74

California 0.78

Florida 1.41

Idaho 1.44

New Mexico 1.64

Colorado 1.76

Nevada 2.62

U.S. Total 1.15

18% of Business BIRTHS10% of BANKRUPTCIES28% of Business TERMINATIONS 20

SME Birth2DeathTurnover Rate

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SME_Risk to Survival IndexCA Rankings (50 States + DC)

• Top Personal Income Tax Rate 51• Top Capital Gains Tax Rate 51• Top Corporate Income Tax Rate 40• State and Local Property Taxes 17• Number Health Insurance Mandates 44• Electric Utility Costs 44• Workers’ Compensation Benefits 49• State Gasoline Taxes 50• 5-yr Government Spending Growth Rate51• Per Capita Government Expenditures 46

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State_Innovation_IndexCA Rankings (50 States + DC)

CONCLUSION: Technological Innovationpartially offsets the hostile environment tosoften its impact on SME failures, BUT …

CA SMEs must continue to INNOVATE,and spatial thinking about your businessprovides a set of opportunities to do so.23

Process Innovation IncreasesSME Survival Rates

http://icc.oxfordjournals.org/cgi/content/abstract/14/6/1167

Process Innovators > Product Innovators > Non-Innovators

N = 3,275 SMEs

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4. Your Spatial Business Model

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• Free Public Sources:

• Commercial Sources

• Your OWN Data (on Customers, Schedules, …)

5. Data Sources

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6. Computing ChoicesCommercial Freeware

• Stand-alone– Comprehensive ArcGIS GRASS

– Specialized Bus. Analyst GeoDa

*** Earth

• Web-server– Comprehensive ArcGIS Server Mapserver

– Specialized Bus. A. Online Landserf27

Benefits: Costs:

Improved Productivity Purchases & Training

Improved Efficiency Data Collection

Expansion of Revenues Database Design

Value of Assets Communications

Customer SatisfactionCustomer Expectations

Other Other

GIS Incremental Benefit-Cost Enumeration

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• INSTRUCTIONS:Slide, stretch and shrink bar until your best guess is equally likely inside as outside bar

• Considering all GIS net benefits and costs, estimate net value as a percent of sales:First Year: 0% 100%

Later Years: 0% 100%

• Estimate the firm’s survival probability for one year:Current Year: 0% 100%

7. Assessing GIS Impact

BestEstimate

Value-Added =$447,382

LikelihoodValue-Added

Positive = 82%29

8. Putting it All Together

SME

BusinessModel

GISApp(s)

Value-Added

SpatialThinking

InlandEmpire

SustainSpread

1

23

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