Nearly 70 percent of all business data contains a geographical component, so it’s not surprising that more businesses and government agencies are using location intelligence to reach, serve and grow customer relationships. Last week we looked at the latest trends related to customer-facing initiatives Today we’ll examine the ways geo-spatial data is being used in operations and the public sector.
Crime fighting. While governments have long used geo- technology to support public works decisions, such as highway and sewer planning, a number of specialized applications now incorporate location intelligence in the area of crime mapping. In many municipalities, citizens now have a centralized portal where criminal intelligence and information is shared by law enforcement at the local, state and federal levels—giving law enforcement agencies the insight needed to solve and prevent crimes.
E-Government: In the public sector, location intelligence is used to plan for growth, improve public services and share information with citizens. New government legislation, such as INSPIRE in Europe, is changing the way public organizations manage and share their GIS data. Many agencies have found ways to keep costs down, serve citizens and comply with new government mandates.
Tax management. State and local tax jurisdictions involve complex rules and boundaries that have no relationship to postal codes—and the failure to collect or pay appropriate taxes can result in significant penalties. This need is especially prevalent in certain industries, such as telecommunications, where miles of fiber optic cable may cut across hundreds of distinct tax jurisdictions—each with unique rules and tax rates.
Risk identification. In financial services, predictive analytics based on geo-demographics now provide an early-warning mechanism to detect borrowers who may be at risk of bankruptcy and default. In the insurance industry, companies have integrated spatial analysis into underwriting and claims management systems—instantly calculating the distance between a home and the nearest fire hydrant, flood plain or fault line.
Fraud detection. Due in part to the recent recession, fraud attempts are on the rise and more organizations are integrating customer data quality and location intelligence into their fraud management systems. In the credit card industry, geo-based analytics can instantly assess whether two credit card purchases could have been made by the same person using the same card based on time and distance.
Routing and fleet management. As consumers shift to online shopping, location intelligence is increasing part of the delivery system, as retailers and shippers calculate optimum drive routes and determine where to locate distribution centers—decisions that provide for faster deliveries and lower costs.
Experts predict that the market for business geographics and location intelligence will grow 50% over the next five years. Clearly, new solutions such as those offered by Pitney Bowes Business Insight are making an impact.
Have you started looking at any of these areas this year? Feel free to share any questions or insights here.
