how to measure the intangible value of location
DESCRIPTION
Overcoming the myth that the value of geospatial can’t be measuredTRANSCRIPT
Overcoming the myth that
the value of geospatial
can’t be measured
Keith Wishart,
Public Sector Strategist
ESRI (UK)
• Measuring the benefits
Overview
About me
Keith Wishart
Business Strategist
ESRI (UK)
@keith_wishart
My presentation
Extend the business case:
• Intangibles
• Extended ROI
• Case studies
My message to you:
“measuring intangibles is not so much a
problem to be overcome as an
opportunity to be seized”
• Measuring the benefits
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Budgetary constraints
Difficulty in building a business case due to a lack of demonstrable financial benefits
Lack of awareness and support from senior decision makers
Benefits of using more GIS don't seem to outweigh the cash costs
Benefits of using more GIS don't seem to outweigh the operational costs
Limited scalability of existing technology
Lack of internal demand for making greater use of GIS
Cash costs of procuring external data
Difficulty in building a business case due to a lack of demonstrable non-financial …
Lack of GIS champions
Your organisation's IT is not evolving to make greater use of enterprise systems
Internal operating costs of generating and maintaining your own spatial data
Your organisation's IT is not evolving to make greater use of web services and …
Strong negative influence Some negative influence No influence
ROI of the beholder
• Measuring the benefits“businesses that place a high
importance on managing the
economic value of their intangible
assets consistently outperform basic
economic measures”
“they are the sources of competitive
advantages and above normal
financial returns".
Intangibles
Intangible benefits of GI:
• Better decision making
• Improved customer service
• Easier access to data
• Improved data quality
Intangible Describable Detectable Measurable “Costable”
Intangible Benefit Expected Outcomes Possible Metrics
Better decision making Fewer wrong decisions Number of appeals
Speed of process
Improved customer
service
Less complaints Volume of contacts
in CRM system
Revenue/customer
Easier access to data Quicker compilation of
reports
Staff time spend
compiling reports
Improved data quality Less errors in data Data audit
Measurement
Extended ROI
Measures of Social ROI Measures of Political ROI
• Improved education
• Lower unemployment
• Reduced crime
• Better health outcomes
• Improved public trust
• Positive media
coverage
• Political capital
• Improved CPA/CAA
rating
Green IT
Carbon accounting, ROI & payback
Innovative use of GIS
• Measuring the benefits
Benefits “Spectrum”
Lower
Costs
Raise
Revenues
Increase
Satisfaction
Improve
Quality
Increase
Efficiency
Decrease
Risk
Increase
Capacity
Increase
Productivity
Geographic
Information
Customer complaints
System usage
Defects reported
Rework avoided
Less waste
Time saved
Decrease in process appealsVolume of information served
Amount of reuse
of input information
Data consolidation
Income generated
• Measuring the benefits
Intangibles “Target”
Structural Capital
Processes
Systems
Data
Geographic
Information
• Measuring the benefits
Extended ROI “Prism”
Environmental
Emissions Waste Pollution Conservation
Geographic
Information
• Measuring the benefits
Improve Quality
Decrease Risk
Lower Costs
Strategic
Objectives
Better decision
making
Accurate
Felling
Faster Planning
Business
Metrics
Business
Visualisation
Contract Maps
Design Plans
Business
Projects
Data
Visualisation
Tools
Map Production
System
Data Capture
&
Database
Technology
Projects
How?
Why?
The value of GI to UKplc
Improving customer service
• Customer Access
Strategy developed
through geographic
analysis and resident
profiling
• New services will
precisely meet the
needs and
preferences of
residents
• £4m pa savings
16
Mapping Consolidated Demand Index
arising from drugs misuse:
1) DAAT Needle Exchange volumes
2) NHS Business Authority - Opiate
Dependence prescriptions spend
3) Police Data – drug possession
offenders
4) Probation Service OASys – drug
offenders with Criminogenic Need
5) Demographic Propensity - derived
from ACORN profile of drug
offenders
6) The team identified:
1) £53m in savings to the NHS
2) £42m to Criminal Justice
3) £5m to benefits
Birmingham
Total Place pilot
The value of GI to UKplc
Times up!
Intangibles are the real value drivers
Extend your business case
Thanks!