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Spatial analytics and data science are fueling a transformation in the connected age.
Today, more than 2.5 exabytes (2.5 billion gigabytes) of data are generated daily. That is the equivalent of 250,000 times all the reference material available in the US Library of Congress.
Location-based data, which has always been critical to business for uncovering opportunities and increasing productivity, has become exponentially enriched by the variety, breadth, and velocity of data available today.
In an era where we are connecting billions of data-producing devices, products, assets and buildings to the Internet, location intelligence—the where factor—is crucial for problem-solving and decision-making capabilities. Spatial analytics brings indispensable context to everything from customer buying habits to supply chain management to market planning to competitive tracking to operational optimization. It reveals patterns, connections, opportunities, and risks difficult to decipher otherwise. A McKinsey study suggests that the acceleration of location-based sensor proliferation, which is enabling the Internet of Things, may have an economic impact of more than $11 trillion per year by 2025.
Because of the massive amount of data available online, any location may have dozens of datasets related to it. This data can include information about human activities (construction, transportation, education, and crime) in addition to the location’s natural features (water quality, soil type, and vegetation). Juxtaposing these datasets can provide unique insight into a location, allowing you to analyze and map patterns and relationships to better understand its potential. With geocoding—tying an address to a set of coordinates—you can link this insight to a specific place.
Other datasets encompassing vast areas can be applied locally, such as weather forecasts, crop reports, and the movement of cargo ships around the world. As our world grows more interrelated, the resulting impact of an event—whether natural or man-made—in one part of the world can manifest itself in an entirely different manner in another region. For example, a typhoon in the South China Sea can disrupt shipments bound for the United States and subsequently impact the related supply chain and potential retail sales. However, the increased availability of extensive real-time data empowers decision-makers to act quickly and decisively to minimize (or maximize) the impact of these occurrences.
The daily collection of location-based data comes from a wide variety of sources and is used in a multitude of ways. For example, cargo is tracked from its origin to its destination to make sure it is adhering to its expected delivery schedule. If this cargo is a shipment of produce, sensors can be installed that monitor temperatures to make sure the fruit and vegetables are fresh when they are ultimately stocked on grocery store shelves. In New Zealand, the entire supply chain of a major dairy farm collective is managed with locational data. This extends from the care of the cattle herds in the field to the production of dairy products and their distribution.
Vast amounts of data are also collected with each credit card transaction and social media post. Analyzing and mapping this information can allow retailers to accurately predict shoppers' habits, from their choice of toothpaste to the make and model of their automobile, as well as the frequency at which the vehicle is repaired or replaced. Marketing campaigns targeting specific consumer groups can be created using this data and pushed to consumers through their mobile device when it is determined that a purchase may be imminent. Companies that collect and analyze social media content can accurately predict patterns, trends and connections between individuals, particularly because there is a temporal element in the data. Combining this information with locational intelligence can help companies develop cost-effective regional campaigns.
For one large US retailer operating in almost all 50 states, converting spatial analytics into interactive maps and visualizations provides insight into current and potential customers in each local market. Presenting data spatially helps its stakeholders understand not only what happened but also where and in what context.
Indoor mapping is another area expanding within the retail environment. Traditional static diagrams of different floors or levels within a shopping center are being replaced with dynamic, interactive smart maps that deliver precise directions to the smartphones of shoppers who are looking for a specific store, product, or sale. Even our movements within a building can be tracked and analyzed to determine foot traffic flow. This data can help to optimize the use of a building or provide a retailer with information about product positioning and purchasing trends.
More broadly, real-time location-based mapping creates a framework for the connectivity of our increasingly instrumented planet. This connectivity and the resulting insight can endow us with great opportunities to improve people’s quality of life and increase the scientific knowledge about our planet and beyond.
Examples of the profound impact of decision-making based on spatial analytics are everywhere:
- In Madagascar, the analysis and mapping of location data is used to improve footpath routes for emergency food distribution.
- Using earth-based models, data scientists are optimizing vehicular tracks for future Mars exploration and habitation.
- Location-based mapping is being used to improve transportation routes, which reduces costs and decreases pollution, resulting in a positive impact on climate change.
Everything happens somewhere. It’s an obvious, if not always fully understood, truth in business that takes on even greater significance at a time when mapping technology and data science are providing new analytic capabilities that can reveal hidden patterns and relationships, create new efficiencies, and increase productivity and potential.
Today’s interactive maps, driven by spatial analytics and real-time awareness, are the language of where. Where, increasingly, is the language of commerce and much more.
