Category: 2007 May

Why Do Retail Stores Want My Zip Code?

May 27th, 2007 by Kim Albritton

We are all familiar with stores that ask for zip codes or even phone numbers, but do you know why? Since you are reading this blog you can probably guess it has something to do with GIS and you are correct. Retailers realized it is beneficial tosee where their customers come from. The simple and easiest way to determine the location without asking a lot of questions is to ask for the customer’’s zip code.

At the end of the day or week, the retailer can take the zip code data and calculate how many customers came from each zip code. Now the retailer has an idea how many customers come from each part of town.

Seems simple enough, just count how many customers from each area.

An easier way to see the results would be to take the same zip code data and place it on a map. The map would show, by color, which area has a higher concentration of customers. In a matter of seconds the retailer could see her customers. The map shows the retailer which customers may not know about her store, where to send circulars or coupons and possibly where to build a new store. Wal-Mart and McDonald’’s have used GIS for years to determine the best location for their next establishment. It is not luck that they have some of the most convenient locations.

Now the next time the retailer asks for your zip code, you will know what they want to do with it!

Is It Over Yet?

May 18th, 2007 by Steve Gordon

It’s been a tough 18 months for residential real estate and it’s not over yet. There has been much speculation about how we came to be in the current market slump. If you listen to the media it’s easy to believe that capitalism is broken and the end is near.

I don’t agree. As I see it this is Economics 101—short supply and high demand for developed real estate drove prices to a crescendo that began in 2004 and continued through the first half of 2005. Prices overshot the market causing demand to all but disappear. As demand waned, supply (still drunk from the party and always slow to react) continued to build in an attempt to capture yesterday’s demand.

As a result, we’re now in an over-supply situation. None of this is particularly surprising to anyone who has taken 9th-grade economics.

What is interesting is the root cause for this latest market swing and it’s implications for real estate and other asset markets.

The cause of the 2004-2005 hyper-inflation in real estate is the glut of cash in the world economy. Economics and human nature demand that the cash be put to productive use. As a result it has flowed from one asset type to another for the last decade.

The cash glut is responsible for hyper-inflation in the equity markets during the mid to late 1990s. During that period the Dow Jones Industrial Average rose at an annualized rate of 41%. The NASDAQ rose at an incredible 44% annualized rate and the S & P 500 Index rose at a rate of 41%.

In 2001 the Dot Com bubble burst, values declined and cash looked for another vehicle for investment.

By 2004 it found real estate. Now that real estate has temporarily stopped producing large returns, where will the world’s cash be put to work? That’s the next opportunity.

As for Florida real estate, it has enjoyed a tremendous 100-year ride and it will be back—soon. But not until we finish the price correction we’re in now.

Home Prices

The charts above show the annual median home price for 1994-2006 in six markets:

  1. Ft. Lauderdale
  2. West Palm Beach
  3. Orlando
  4. Jacksonville
  5. Tallahassee
  6. Fort Walton Beach

The blue bars indicate median home prices while the red line represents the long-term national average for home appreciation of 7 percent. With the exception of Ft. Lauderdale, which grew at an annual rate of about 7 percent, all of the markets grew at a slower pace than the national average during the period from 1994-2002.

The south and central Florida markets of Ft. Lauderdale, West Palm Beach and Orlando jumped far above the average growth line in 2004-2005 and remained high despite some signs of declining prices in 2006. In these markets, there’s more pain to come in 2007.

By contrast, the north Florida markets did not see the type of price spikes experienced in the southern markets. As a result those markets will see modest price adjustments as opposed to the 20 to 30 percent drops already experienced in Ft. Lauderdale and West Palm Beach. I expect the north Florida markets to return to growth before south and central Florida.

It’s not over yet, but we’re getting closer every day.

My Presentation from the Florida Geospatial Conference

May 10th, 2007 by Steve Gordon

Yesterday, I had the pleasure of giving one of the plenary presentations at the 2007 Florida Geospatial Conference at Cape Canaveral. The theme of the conference and the title of my presentation is Integrating Geospatial Data.

Following are the slides and some of the commentary. I ran the presentation as more of a workshop as opposed to a speech so some of the ideas expressed below are attributable to the group as a whole.

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What does integrating geospatial data mean?

I believe it means different things to different people. Its meaning is dependent upon context—the context of the data being integrated, the question to be answered by the melding of data and the people doing the integration.

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Google says there are about 905,000 web pages that talk about integrating geospatial data. Therefore it must be important!

It is important if it leads us to greater understanding of our business, organization and the world. Geographic visualization often has a transformational effect on our understanding of information. It allows us to perceive patterns that could not be seen in the same data if only viewed as records in data table.

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In the 1980’s and 1990’s the focus of our discussions on integrating geospatial data revolved around the technical problems of integrating different map layers into a single map.

We talked about map accuracy, scale and source lineage. While these issues still exist, I believe they are well understood and no longer represent a significant barrier.

During this time the related problem of data interoperability was a high priority in the geospatial community. Data interoperability is the idea that information in one software package can be read by another (often competing) software package. Data interoperability is no longer a significant issue either.

Today our integrations should be focused on bringing business data into geospatial systems for analysis and visualization to support decision making. After all, this is the unfulfilled promise of the geographic information system.

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Are we well integrated now? Yes and no.

We’re much better than we were a decade ago, but we are at the beginning of a new type of integration with non-geographic information. We’re at a tipping point and I think we’re going to see highly creative integrations of data from many sources. The information will be pulled together by its geography and will be visualized on a map.

In doing so we will understand patterns that we did not understand and find solutions that we could not find before. Where we are going will be transformational.

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Who’s in charge? You are! Why? Because integrations are context driven.

Gone are the days of standards committees that met for months and years to try to get 10 or 20 or 50 organizations to agree to use the same data model to represent real world objects inside the geographic information system. I was involved in some of these efforts and, looking back, they were mis-guided.

What we really need is data semantics. Semantics are definitions of sorts, where I can create my own model for, say, a road. In my model the road has attributes like “name” and “lanes.” You also have a model for roads in your GIS, but your road’s attributes are called “rdname” and “numlanes.” Semantics help our systems talk to each other by acting as a translator. In this case telling the two systems that “name” and “rdname” both store the name of the road.

The beauty of this is that now neither one of us needs to agree on a data model. I can use the model that makes sense for me and you can use the model that makes sense for you, but we can still share information because we have an easy way to translate between models.

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Unfortunately, we are usually the obstacle to data integration. People and politics are the most commonly cited barriers to successful integrations. We’ve tackled most of the big technical problems—they were easy to solve. Now we’re left with the people problem. It stems from the false premise that information is power. Information hoarded is not power, information shared is power.

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There are a number of new technologies that are making the integration of geospatial data much simpler. The most important new technology for data integration is web services.

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Google Earth is fueling a geographic awakening in society. People that would never know that GIS existed have used Google Earth or seen it on CNN. It’s given geographic visualization to the masses. It has more effectively communicated events such as the crisis in Darfur, Sudan than textual reports could.

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Mashups are great examples of the integration of geospatial and non-geospatial data. They are simple to implement, accessible by non-technical people and don’t require bulky client applications to view them.

Mashups are driven by a technology called web services. Web services are used to publish both data and computing functions over the web for others to use in their own applications. For GIS this is driving us away from redundant mapping where each organization often mapped base layers like roads, land parcels, topography and aerial imagery. It is driving us towards the concept of federated or distributed GIS. In this new concept an organization will focus on delivering the data and or analysis functions for areas where they are the experts. The organization will pull in the other basic data they need from web services created by other organizations.

Web services are also used in back office business systems. This means that we can use one technology to integrate geospatial and non-geospatial data in a mashup.

Some web services will be offered for free, while others will be for-pay services. That’s one of the beauties of the web service concept—it supports different business models. While we’d all like to get things for free, the idea of you get what you pay for still holds true on the web.

Some great examples of mashups can be found at:

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Geo-social networking builds on the social networking concept used on sites like myspace, facebook and flikr by adding a location to the information posted on those sites. Some of the tools for geo-social networking include:

These tools are changing the way we find things and I think they will make small businesses as easy to find as large national brands.

There are big societal trends that are beginning here. Small is overtaking big. Grassroots is becoming more powerful than the institution.

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GeoRSS is an emerging standard for adding location tags to RSS feeds. This has the potential to make is vastly easier to find information about what’s around you. It also has the potential to be the pipe that connects different GIS systems to one another and keep them updated as data changes. It’s just being formulated now, but has the potential to huge!

Read more at www.georss.org.

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So is all of this stuff just for college kids with a myspace account? Not by a long shot! The idea of geo-social networking is already being talked about for disaster response as evidenced by the LoSoNet Conference last year. When you think about it, it’s the perfect way to gather information from many different sources and visualize it on a map. It should make the task of gaining situational awareness much easier.

I can see the local fire station or police precinct or mobile response unit reporting on the conditions at their location. All of it will be done with simple web based tools (no expensive desktop mapping software). Then the crisis managers will see it all in one unified, map centric view. They’ll get the whole picture instead of just bits and pieces of information.

What a great way to use these “social” tools!

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Integrating geospatial data is personal—it depends on your context. So how will you do it?

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Why Aren’t Small and Medium Businesses Using Geography to Make Money?

May 7th, 2007 by Steve Gordon

Google Earth Screen Image

By now nearly everyone with a TV or a computer knows about Google Earth. It has brought a previously unknown technology—geographic information systems (GIS)—to the mainstream. It is helping fuel a geographic awakening in society where it is becoming easier to find things by their location in the world. So why aren’t small and medium businesses using geography to make better decisions and more money?

The technology and knowledge exist to help the local lawn care company or pest control outfit route it’s 5 or 10 or 15 car fleet. FedEx and UPS do it every day. The problem is that all of the tools are designed for FedEx and UPS and none are designed for Joe’s Lawn Care, Inc. But Joe could cut his fleet costs by 10%-15% if he used a routing tool.

Why doesn’t Joe have access to a simple tool that he can use to find the largest properties in town so he can target them for his next promotion? Or a map of medium to high-income family homes that he can use to plan where he should do business (because doing business all over town means a big gas bill)?

Even in today’s global and virtual economy, location is critically important to the operational success of 99% of all businesses. So, why aren’t small and medium businesses using geography to make money?

IT’S TOO HARD!

The problem is that the big guys in GIS technology—ESRI, Microsoft, Google and MapInfo—have built enterprise class systems (and great ones at that). But what small business need are focused, task specific tools that are dead simple to use and inexpensive (read no new computer or software to buy, install and maintain). Over the next 60 days we’ll be rolling out simple tools to help the Joe’s and Jane’s running the world’s small businesses leverage geography. We’d love to hear how you think location affects your business. Please leave us a comment below.

The First Post or Why We’re Geography Geeks

May 3rd, 2007 by Steve Gordon

Darfur Maps in Google Earth

With that imaginative title we begin our journey on this blog. If you’re reading this, you’re probably wondering who and what is GlobalMind. We’re a small group of people working in the rapidly growing geospatial information industry. The industry was born in the 1960’s (before everyone on our team) with the invention of the geographic information system it remained an infant through the 70’s and 80’s. In the 90’s the technology began to mature and today it is driving a geographic awakening in society.

We believe that the ability to view information from the perspective of geography or location is trans formative. Think of impact that the election night image of red states and blue states on the CNN election map has had on your perception of Nebraska or my home state, Florida, for example.

Google Earth’s mapping of the crisis in Darfur is another great example of the power of geographic visualization. It conveys the scale of the crisis in a way that numbers and statistics cannot.

It’s this ability to visualize information in a new way and in doing so create understanding that did not exist before that really gets us juiced. We see endless opportunities to apply geographic understanding to the way we as humans view our world.

Our business is focused on building simple tools to help other small and medium companies use geography to improve their operations. Our background is in running small companies so we’ve lived the daily test that is small business. Our goal in this new venture is to apply our business experience and our passion for geography to help others succeed.

Joining me on this blog will be my partners, Kim Albritton and Stephen Clancy. We hope you join us and become part of the conversation about how geography can be used in business and society.