Workshop on Business Analytics run at the University of Edinburgh Business School​​ by Guy McGarva of EDINA on 3rd April 2017

1. Introduction to Location Analysis for
Business
Guy McGarva
guy.mcgarva@ed.ac.uk

2. Contents
• EDINA & Digimap
• Geospatial data
• Geospatial tools and techniques
• Business Use examples
• Example techniques
• Case study: Bonnie Burritos
EDINA Digimap

3. Who is EDINA?
delivers and supports
online services
Based at
Part of Information Services
Significant expertise in Geospatial technology and services
We run the Digimap Service - http://digimap.edina.ac.uk/

4. A quick plug: The Digimap Service -
Overview- An online mapping and data delivery service
- Originally built to provide access to Ordnance
Survey (GB) maps and data - a 'virtual map
library’
- Content now includes:
- Historic OS maps,
- British Geological Survey data
- Marine maps and data (UKHO via Seazone)
- Environment data (from CEH)
- Aerial Imagery (Getmapping Plc)
- Subscription service (free for users) with over
50,000 users at institutions throughout the UK

5. Online access to maps and data
Online mapping:
view, query,
annotate, print
Search for, select,
and download raw
geospatial data
The Digimap Service – Applications

6. Some basics: What is geospatial data?
Data which has a
direct reference
to its position on
the surface of the
earth:
e.g. latitude /
longitude, XY
coordinates
…or has an
indirect reference
– e.g. postcode,
city etc.
direct
Spatial reference
Attributes, including
indirect georeference

7. Visualising geo-spatial data
Spatial references
can be used to draw
a map from data
Point (x, y)
Line ( x1,y1, x2, y2, etc)
Polygon ( x1,y1, x2, y2, etc.., x1, y1)

8. Statistical Account of Scotland
NUMBER XIII.
PARISH OF CULLEN.
(COUNTY OF BANFF, SYNOD OF ABERDEEN,
PRESBYTERY OF FORDYCE.)
By the Rev. Mr. ROBERT GRANT.
Royalty, Extent, Climate, etc.
CULLEN, as appears from old charters, was originally
called Inverculan, because it stands upon the bank of
the Burn of Cullen, which, at the N. end of the town, falls
into the sea: but now it is known by the name of Cullen on-
ly. Cullen is a royal burgh, formerly a constabulary, of
which the Earl of Findlater was hereditary constable. The
set, as it is called, of the council, consists of 19, in which num-
ber are included the Earl of Findlater, hereditary preses, 3
bailies, a treasurer, a dean-of-guild, and 13 counsellors. The
parish extends from the sea fouthward, about 2 English miles
in length.
Directly geo-referenced
Maps of different types
Types of Geographic Information
Indirectly geo-referenced
text that contains geospatial
data

9. Examples
• Postcode/Zip code
• Address
• Country
• City
• Near?
• Next to?
• 325927,672863
• NT 25927 72863
• -3.187510, 55.943080
• 3° 11' 15'' W,
55° 56' 35'' N
• EH8 9JS
• fires.home.bucket
Some examples of location information:
The same location:

10. Geospatial data in research & teaching examples
Air Pollution Refugee camps
Archaeological
Sites
Migration Flows
Resource Maps
Noise Maps
Demographic
Distributions

11. Some fundamentals of GIScience
Tobler’s First Law
“All things are related, but nearby things are
more related than distant things”
–W.R.Tobler, 1970. A computer movie simulating urban growth in
the Detroit region. Economic Geography 46: 234-240
Place matters. It fundamentally influences and
connects our ways of doing business.
“GIS and Location Analytics Drive Business”
http://www.esri.com/library/brochures/pdfs/gis-and-location-
analytics-business.pdf

12. Definitions & Techniques
EDINA Digimap
Spatial Analysis
The process of examining the locations, attributes,
and relationships of features in spatial data through
overlay and other analytical techniques in order to
address a question or gain useful knowledge.
www.esri.com/gisdictionary
Location Analysis
A technique for discovering, assessing and specifying
the optimal placement of an organizations people,
information, activities and materials.
http://www.advstr.com/web/subjects/subject.cfm?name=Business Location Analysis

13. Business Analytics and Location Analysis
EDINA Digimap
Business Analytics and Geography
“There is a growing realization that by adding
geographic location to business data and
mapping it, organizations can dramatically
enhance their insights into tabular data.”
Location Analytics: The Next Big Step in Business Analysis, ArcNews 2012.
http://www.esri.com/news/arcnews/fall12articles/location-analytics-the-next-big-step-in-
business-analysis.html

14. Further Information and Advanced Techniques
Gravity Modelling (or Spatial Interaction
Modelling) - Huff
- Spatial interaction model that calculates gravity-based probabilities of
consumers at each target location.
- It is based on the principle that the probability of a given consumer
visiting or purchasing at a given site is a function of the distance to
that site, its attractiveness, and the distance and attractiveness of
competing sites.
Links and References
• https://link.springer.com/book/10.1007%2F978-1-4419-7572-0
• http://www.directionsmag.com/entry/retail-trade-area-analysis-using-
the-huff-model/123411
• http://gisgeography.com/huff-gravity-model/
• http://desktop.arcgis.com/en/arcmap/10.3/tools/business-analyst-
toolbox/how-original-huff-model-works.htm

15. How is Geography relevant to Business
Geospatial data and analysis can be useful in a
wide number of business, management and
financial disciplines, including:
• Risk analysis
• Finance
• Property
• Supply chain management
• Demographics
• Marketing
• Economy
• Global and International trade

16. Risk areas
http://www.checkmyfloodrisk.co.uk/

17. Finance:
http://www.zillow.com/visuals/negative-equity/#4/38.96/-101.34

18. Property
http://www.zoopla.co.uk/

19. Supply Chain
http://trans.maps.arcgis.com/apps/MapSeries/index.html?appid=23351791377146f39cab17e2253f912b

20. Demographics
http://datashine.org.uk/

21. Marketing

22. Population and Economy - Regional
http://www.neighbourhood.statistics.gov.uk/

23. International - Country

24. International - Global
http://maps.worldbank.org/p2e/mcmap/map.html?code=&level=&indicatorcode=0553&title=Global&org=ibrd

25. Case studies
EDINA Digimap
Esri (ArcGIS)
http://video.esri.com/iframe/3654/000000/width/960/1/03:00:00
http://www.esri.com/industries/retail
Pitney Bowes (MapInfo)
http://www.pitneybowes.com/us/location-intelligence/geographic-information-systems.html

26. Location Analysis Tools
EDINA Digimap
Digimap:
• Online web mapping and data download platform for
UK Geospatial data
• Available to anyone at the University
Esri ArcGIS:
• Online and Desktop GIS software, including specific
Business Analysis application
• Provides access to worldwide demographic data.
• Online available to anyone in the University
• Desktop available through IS Software Services
QGIS:
• Open Source desktop GIS
• Can be downloaded from QGIS website

27. ArcGIS Online
ArcGIS Online is an online, collaborative web GIS
that allows you to use, create, and share maps,
scenes, apps, layers, analytics, and data.
• Cloud based platform for creating and sharing
data
• Upload and publish data layers
• Create and style web maps
• Incorporate Spatial Analysis tools into maps and
custom applications
http://www.esri.com/software/arcgis/arcgisonline
EDINA Digimap

28. ArcGIS Online
EDINA Digimap

29. Business Analyst Online
Location analytics for market planning
and site selection
• Assess where to open, expand or close locations
• Determine which locations are underperforming
• Define and optimise sales and service territories
• Compare and rank sites
• Identify where to market your products and services
• Segment customers and prospects
• Optimise marketing strategies
http://www.esri.com/software/businessanalyst/get-
started/saas
EDINA Digimap

30. Business Analyst Online
EDINA Digimap

31. Examples: Demographic profiling
EDINA Digimap

32. Examples: Drive/walk time analysis
EDINA Digimap

33. Examples: Identify overlap areas
EDINA Digimap

34. Examples: Choropleth visualisation
EDINA Digimap

35. Examples: Density mapping
EDINA Digimap

36. Real Example: Bonnie Burrito
EDINA Digimap
UG dissertation used GIS to plan the location
of a new outlet
Looked at:
• Total Population (within 0.25 miles)
• Purchasing Power per Capita
• Annual Average Food and Beverage Spend per Capita
• Population between 15-29
• Population between 30-45

37. Bonnie Burrito Expansion: Multiple Criteria
EDINA Digimap
Criteria
Existing Burrito
locations
Existing Delivery Areas
Potential new sites Delivery area with expansion
Competitors
From draft: Using Multi-Criteria Decision Making for Optimal Premises Location for a Growing
Food Retail Business in Edinburgh, Stephen Scurr

38. Questions?
EDINA Digimap
Any Questions?
Training: Available from EDINA/IS or online
through Esri website.
Support and Consultancy: Speak to us in
EDINA Geosupport
Contact: edina@ed.ac.uk