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Issue Date: Nov/Dec 2001

Spatial information matures to become an indispensable business component

1 December 2001

In today's fast-paced business environment, much emphasis is placed on the speedy delivery of goods and services. This can only be done if suppliers know exactly where their clients are located. Enter spatial information, otherwise known as the Geographical Information System (GIS), which, owing to its visual nature, can instantly provide users with large volumes of information critical to their successful business operations.
"In the past, GIS was seen as an exact science - a function carried out by experts sitting in a back office, producing maps and performing research-oriented tasks," explains Magnus Rademeyer, MD of GIS solution provider AfriGIS. "Designed to work with data referenced by spatial or geographic co-ordinates GIS has, over the years, become an invaluable source of business information and market intelligence. Consequently, it has moved out of the specialised science category and into the business mainstream."
Today, GIS is used in a growing number of applications. Scientists use GIS to research changes in the environment, engineers use it to design road systems, electrical companies can manage their complex networks or power lines, government can track the uses of land, and fire and police departments can plan emergency routes using GIS.
"Previously, corporate companies had different GIS requirements for each of their various departments and contracted different GIS experts to carry out these respective functions," Rademeyer continues. "As GIS became more essential to the business, management extracted the GIS function from the individual departments and consolidated it into one division, usually incorporated into the IT department."
As GIS becomes more indispensable to organisations, Rademeyer predicts that it will soon develop into a fully-fledged department in its own right, either in-house for larger organisations or as an outsourced function for smaller ones. "Most South African companies still regard GIS as an IT function, but with the arrival of e-commerce, are fast beginning to see the need for a separate GIS department."
E-commerce has not only changed the nature of supply chains and delivery mechanisms, but also the medium of demand, as customers now communicate their needs electronically.
Rademeyer cites the old method of delivering milk as an example. "Years ago, consumers had to place milk coupons in bottles outside their front door if they wanted milk delivered," he explains. "This system was eventually replaced with the self-service supermarket. The Internet, however, has made it possible for milk, or any other goods for that matter, to once again be delivered to the customer's doorstep."
Rademeyer points out that while placing the order over the Internet is easy, many supply companies are still streamlining their delivery process.
"The Internet has revolutionised communication between suppliers and their customers. Additionally, it has made a whole new range of GIS applications possible. When used together, GIS and the Internet become a powerful management tool that is changing the way companies do business. Those that fail to make use of it will soon find themselves out in the cold," Rademeyer concludes.
AfriGIS, (012) 362 3114


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