SBA 2007 Grant Workshops:9:00-Noon • 4/25 @ Redlands on Marketing and Logistics • 4/26 @ Ontario/RC on Marketing and Logistics • 5/01 @ High Desert on Strategy • 5/10 @ Temecula on Marketing and Logistics • 5/17 @ Ontario: SBDC Conference Workshop • 5/23 @ Ontario/RC on Strategy • 5/30 @ Riverside on Marketing Non-Profits
Workshop Format • Topic A – An Introduction and Overview • Jerry Platt • Topic B – A GIS Tutorial and Tour • Rich Greene or Jim Pick • Topic C – Marketing and Logistics • Monica Perry, Johannes Moenius or Avijit Sarkar
SBA Grant #SBAHQ-06-I-0046 Period 9/1/06 to 8/31/08 $987,228.00 University of Redlands Redlands Institute School of Business SBA Inland Empire SMEs
University of RedlandsSBA Grant 3. Develop/Conduct SB/GIS Training Workshops @ I.E., SoCal, US level 2. ~8Case Studies of GIS Technology Transfer to I.E. Small Businesses 1. Develop Center to provide GIS Assistance to Small Businesses 4. Intern’l Conference on Managing with GIS for SB, SBA, B-Schools 5. Develop Internet-based Knowledge Repository of Case Studies, etc.
Workshop Overview What is GIS? Business / GIS Success Stories Threats to IE SMEs Building Spatial Thinking into Your Business Model GIS Data Sources GIS Computing Choices GIS Assessment Measures Putting it All Together: The University of Redlands SBA Grant
1. What is GIS? 2 4 3 5 1 8 6 7 http://csur.t.u-tokyo.ac.jp/jpn/activities/education/2005/SUR-B_Sadahiro.pdf
Business GIS Success Stories • Maps • Business Maps • Business GIS
First GIS Map:1854 London http://www.csiss.org/classics/content/8
… to Business Maps http://popvssoda.com:2998/countystats/total-county.html
A MSN Virtual Earth Business Map http://local.live.com
Business GIS • Marketing • Logistics • Strategy
3. Threats to I.E./CA SMEs After 4 years http://www.sba.gov/advo/stats/bh_sbe03.pdf http://www.smallbiztrends.com/2005/07/business-failure-rates-highest-in.html
Questions for You • Is the Small Business Survival Rate in CA: • HIGHER than the US Average • EQUAL to the US Average • LOWER than the US Average • What Accounts for Your Answer to 1) ? 3) What Advantage Does CA Have, Compared to most other States?
SME_Business_Turnover_RateCA Ranking (50 States + DC) • Fifth worst: U.S. Total 1.15 18% of Business BIRTHS 10% of BANKRUPTCIES 28% of Business TERMINATIONS
SME_Risk to Survival IndexCA Rankings (50 States + DC) • Top Personal Income Tax Rate 51 • Top Capital Gains Tax Rate 51 • Top Corporate Income Tax Rate 40 • State and Local Property Taxes 17 • Number Health Insurance Mandates 44 • Electric Utility Costs 44 • Workers’ Compensation Benefits 49 • State Gasoline Taxes 50 • 5-yr Government Spending Growth Rate 51 • Per Capita Government Expenditures 46
State_Innovation_IndexCA Rankings (50 States + DC) CONCLUSION: Technological Innovation partially offsets the hostile environment to soften its impact on SME failures, BUT … CA SMEs must continue to INNOVATE, and spatial thinking about your business provides a set of opportunities to do so.
Process Innovation IncreasesSME Survival Rates N = 3,275 SMEs Process Innovators > Product Innovators > Non-Innovators http://icc.oxfordjournals.org/cgi/content/abstract/14/6/1167
5. Data Sources • Free Public Sources: • Commercial Sources • Your OWN Data (on Customers, Schedules, …)
6. Computing Choices Commercial Freeware • Stand-alone • Comprehensive ArcGIS GRASS • Specialized Bus. Analyst GeoDa *** Earth • Web-server • Comprehensive ArcGIS Server Mapserver • Specialized Bus. A. Online Landserf
GIS Incremental Benefit-Cost Enumeration • Benefits:DCosts: Improved Productivity Purchases & Training Improved Efficiency Data Collection Expansion of Revenues Database Design Value of Assets Communications Customer Satisfaction Customer Expectations Other Other
7. Assessing GIS Impact • INSTRUCTIONS: Slide, stretch and shrink bar until your best guess is equally likely inside as outside bar • Considering all GIS net benefits and costs, estimate net value as a percent of sales: First Year: 0% 100% Later Years: 0% 100% • Estimate the firm’s survival probability for one year: Current Year: 0% 100% Best Estimate Value- Added = $447,382 Likelihood Value-Added Positive = 82%
8. Putting it All Together Inland Empire SME Spatial Thinking Business Model 1 GIS App(s) Value- Added 3 Spread 2 Sustain