To better define the role for GIS in business, a framework is proposed which includes the important GIS functions and applications (see Figure 1). This framework defines four distinct GIS functions: spatial imaging (or visualization), database management, decision modeling, and design and planning. In addition to these specific functions, the model also represents specific applications toward which these GIS functions can be applied. These include surveying and mapping, facility management, market analysis, transportation, logistics, strategic planning, decision making, and design and engineering. For each of these application areas, examples are provided which elaborate on how a number of prominent business organizations have capitalized on the power of GIS to improve their competitive position.
While an overview of GIS functionality such as this is instructive, much can also be learned about GIS operational issues, potential problems, and potential benefits by examining in detail the case histories of GIS business users. To this end, a summary is provided of the experiences of two corporate GIS users, Levi Strauss & Co. and the American Isuzu Motors Company. Levi Strauss has built and used a sophisticated GIS that is utilized to support strategic and tactical marketing decisions. GIS has matured in the company to the point where most managers now consider it to be a critical strategic weapon that can be used for tasks such as locating retail stores, developing and allocating sales territories, and monitoring consumer trends and preferences. GIS is also a critical tool for the marketing efforts of American Isuzu. The company has developed a customer-oriented focus which has been enabled by GIS. The GIS is used to track and target customers and manage promotions. In addition, dealers are supplied with information from the GIS about customers in order to help them provide better customer service and to more effectively target customers. Both of these firms are important competitors in their respective markets and each has found that GIS helps them sense, respond to, and, in many cases, anticipate their customers' needs and their competitors' actions.
The paper includes appendices that contain information that someone unfamiliar with or new to GIS can utilize as a guide to implementing and using this technology. In general, four types of resources need to be considered in the implementation process: software, hardware, data, and personnel. Furthermore, the implementation process must also be recognized for what it is: a complex process that must be managed properly in order for success to be realized. Although system implementations can be daunting, a variety of resources such as consultants and vendors are available to help organizations manage their GIS during implementation and thereafter. Information about several of these vendors and other resources are presented in the appendices.