Introduction new GI product into Slovene forest service

Slovene forest service

Branko GlavanLjubljana 3. februar 2000

Director meeting - Study for the project

Current situationMany activities are driven by Slovene forest service :

• public forestry service on all forests

• some tasks as public authority (forest act)

• other services

- NO standardized forest value estimation

Q: Is it possible to launch new product among potential users ?

….... owners, bank and insurance services need forest land valuation for decision about:

- mortgage, buying/ selling, court administration, management of forest,..

Product ideaBasic :

• forest stands value, logging cost, roads/sledges, soils potential, recognized functions valuation

Extended :

• infrastructure corridors, pollution hazard, natural and cultural heritage, planned activities

Product form:

• maps and written report

(missing) Resources

Data:

different resources (new fees for data acquisition, updates control, missing data,..)

Organization:

new workflow procedure (new process owner, appraiser licenses, money collection, valuation model, procedure automation-application..)

Cost-Benefit (analysis)Benefits :

• Customer gets standardized product, cost 500 DEM per average lot of 5 ha

• Forest service improves data quality for regular use,..

Costs:

• New valuation model and new application (200 K), appraiser licenses (100 K), missing data acquisition and additional work (400 DEM per lot)

Additional problems

• Regular workflow interruption, additional work is difficult to award, questions about “public” and “objectiveness”

ANALYSIS:

Income -> 3 M DEM - (6000 customers per year - 2% of total)

Cost -> 2,7 K DEM - (fixed 300 K + production 2,4 M)

Return of investment - within first year

Suggestions

Create standardized valuation model and offer service

Redesign (extend) product :

• WWW- general valuation maps with simple parcel locator (free thematic maps for easy public use to strength organizations public role)