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Industrial managers may be called upon to determine location strategy, marketing plans, asset management, environmental compliance, and a host of additional tasks that require location data. Here's a look at how far geographic information systems have come and how readily they can serve managers in any industry.

Where should we locate that new warehouse? What are the zoning ordinances we must consider if we decide to build a new plant? Where is our best unexplored market? lf we build a new retail store, where will our competition be? How can we maintain accountability for our truck fleet assets? Does our eastern region consume more than its share of financial resources? Are we in compliance with local, national, and international environmental restrictions? And what do we do with that old production facility across town: refurbish, relocate, refocus, re-position, or close it down?

In our management roles, we are often asked to use, provide, or verify information that does not exist in our typical information systems. We must learn to use and understand other information systems, too. When answering questions such as those asked above, companies often query their geographic information system. Now that reliable GIS products exist for less than $100, every company will soon have one. What do industrial managers need to know about GIS?

What is a GIS?

ESRI, recognized as the world leader in GIS software, states that "A geographic information system is a computer based tool for mapping and analyzing things that exist and events that happen on Earth." A GIS combines the art of geography with the science of information systems. Attached to the maps in a GIS are millions of data elements that can be queried and analyzed to answer thousands of business questions. Generally, the more data attached to the maps, the more the GIS software costs. Current systems range from less than $100 to more than $50,000. Businesses can determine their needs and then shop for products. ESRI's ArcGIS software products, for example, can be scaled to any system--from one person to an entire enterprise network. Desktop, server, mobile, and Web-based systems are available. Extensions such as Business Analyst and Tracking Analyst also exist, and special tools such as ArcCAD and Production Line Tool Set can be purchased. Other leading manufacturers of GIS business software include Cadcorp, Caliper, Geokinetic Systems Inc., and Integraph Corp. It is estimated that sales of GIS software exceed $1 billion annually

GISs are used by businesses to analyze spatial problems. One common example of a spatial problem is site evaluation. In evaluating an existing or potential site, managers must evaluate the quality of the site, which is affected by four elements:

* GIS software may include thousands of demographic variables. Management must decide which ones are important for each site quality evaluation. For a new manufacturing plant site, the skills makeup of the local labor force (measured in terms of income or education) may be important. For deciding where to locate a new bookstore, management may want to be sure that at least 30 percent of residents within 10 miles of the store have a college degree. Such data have long existed in U.S. Census files; a GIS will bring these data to managers at the...

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