Isobord's Geographic Information System Solution

This chapter presents a case study of Isobord1, a Canadian manufacturer of high quality particleboard that uses straw instead of wood as the main raw material input. Isobord is facing critical operational problems that threaten its future. Gary Schmeichel, a biotechnology consultant hired by Isobord, must recommend how much straw collection equipment to purchase and what kind of information technology to acquire to help manage equipment dispatch operations. Schmeichel is exploring how geographic information systems (GIS) and relational database management systems (RDBMS) might help manage operations, but budget and time constraints and organizational inexperience seriously threaten these efforts. Decisions must be made immediately if there is to be any hope of implementing a system to manage the first year’s straw harvest. Readers are challenged to put themselves in Schmeichel’s shoes and prepare recommendations for Isobord.

GIS in Agriculture

This chapter introduces the use of geographic information systems (GIS) and global positioning systems (GPS) in agricultural production. Precision agriculture is a catch-all term that describes using GIS and GPS technologies to manage specific areas of fields. Precision agriculture technologies use information from multiple sources to assist farmers in making crop production and management decisions based on the variability of production potential within fields. In this chapter, we describe the technologies used in production agriculture and we review some of the research associated with the use and future trends of these technologies. The purpose of this chapter is to define and explain GIS and GPS technologies used in agriculture and some of the economic benefits, impacts, and challenges of using these technologies.

GIS and Decision-Making in Business

This chapter synthesizes empirical research from multiple disciplines about the use of GIS for decision-making in business settings. Todd & Benbasat’s model (2000) was used as a theoretical framework to identify the variables that have been studied on decision-making at the individual and collaborative level. An extensive literature review in the fields of Information Science, GIS and Decision Science from 1990 to 2002 was conducted with a total of nine studies identified in six journals and two conferences. The scarcity of published research suggests that the impact of GIS on the decision-making process has not been extensively investigated. Moreover, researchers have paid more attention to the study of GIS to support individual decision makers. The effects of variables like desired effort and decision strategy remain unexplored. More empirical work is needed to understand the impact of DSS capabilities, decision maker, task, and decision strategy on decision performance.

The Geographical Edge

This chapter demonstrates important insights gained by adding spatial capabilities to marketing analyses. Four steps are described to produce a geographically enabled data set of the first year’s daily use for a major retailer’s loyalty card program at one store in a mid-western U.S. city. Traditional analysis is contrasted with results from a geographic information system (GIS). Probabilities of adoption were clearly tied to the geographic variables generated by the GIS; for example, over the whole year, the likelihood of someone adopting on a given day decreased 13.4% for each mile they resided away from the store, while each Innovator (adopted in the first two days) located within .6 mile of a prospective adopter increased adoption likelihood by 13.2%. Further, three very distinct spatial diffusion stages are visible showing adoption as a function of distance to the store itself, to the billboards, and to the earliest adopters.

GIS in Marketing

This chapter examines the existing uses and potential uses of GIS in marketing. In examining the interaction of marketing and geography, the variables of demographics, space, and time are used as a framework. Specific applications of GIS in customer relationship management, market segmentation, and competitive analysis are illustrated with hypothetical and real world examples. Additional areas of GIS application include product strategy, price strategy, promotion strategy, and place or distribution strategy. The author hopes that understanding the existing and potential uses of GIS in marketing will spur the interest of marketing practitioners to integrate GIS into marketing strategy to create competitive advantage. Furthermore, it is hoped that this chapter will serve as an outline for the broader consideration of the applications of GIS in marketing.

GIS as Spatial Decision Support Systems

This chapter discusses the use of geographic information systems (GIS) for spatial decision support systems (SDSS). It argues that the increased availability in spatial business data has created new opportunities for the use of GIS in creating decision tools for use in a variety of decisions that involve spatial dimensions. This chapter identifies visualization and analytical capabilities of GIS that make such systems uniquely appropriate as decision aids, and presents a conceptual model for measuring the efficacy of GIS-based SDSS. The discussions on the applications of SDSS and future enhancements using intelligent agents are intended to inform practitioners and researchers of the opportunities for the enhancement and use of such systems.

Techniques and Methods of GIS for Business

This chapter reviews some standard techniques and methods of geographic information systems for business applications. Characteristics of spatial databases are first reviewed and discussed. Methods of displaying spatial data are compared and contrasted and GIS overlay procedures are described. Two case studies showcase many of the techniques introduced. The first case study illustrates the use of GIS for analyzing an urban labor market while the second demonstrates the integration of modeling functions into a GIS with an application of the gravity model.

GIS and the Future in Business IT

The development of mobile location technology, proliferation of web-based mapping applications, mandates by federal agencies, and lower cost of ownership have all spurred new interest in enterprise deployment of spatial information. Decisions taken today are already shaping the future of geographic information systems within corporations worldwide. The result is a greater reliance on spatial information, not just by executive management, but also by an increasingly mobile workforce that is using personal communications that are “location-aware.” In short, cost, components, and connectivity will continue to be key business drivers for geographic information and spatial technology management.

Strategic Positioning of Location Applications for Geo-Business

The chapter presents several conceptual models, each of which can be used to improve our understanding of whether spatially enabled virtual business is appropriate or not. The first model, the Net-Enablement Business Innovation Cycle (NEBIC), modified from Wheeler (2002), consists of the steps of identifying appropriate net technologies, matching them with economic opportunities, executing business innovations internally, and taking the innovation to the external market. The process consumes time and resources, and depends on organizational learning feedback. The second model, modified from Choi et al. (1997), classifies geo-business applications in three dimensions, consisting of virtual products, processes and agents. Each dimension has three categories: physical, digital, and virtual. The chapter discusses examples of spatially enabled applications that fall into certain cells of this model. The model is helpful in seeing both the potential and limitations for net-enabled applications. The final model classifies spatially enabled applications by operational, managerial, and individual levels. Examples are given that demonstrate spatial applications at each level.

Concepts and Theories of GIS in Business

This chapter looks at the concepts and theories underlying the application of GIS in business. It discusses the role of information technology in business generally and how GIS is related to other business systems. Different views of GIS use are introduced and the chapter suggests that decision support applications of GIS are more relevant to most businesses than purely operational applications. Porter’s value chain approach is used to assess the potential of GIS to contribute to management. GIS is seen as an emerging technology that will increase importance in business in the future.