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Matthew Mikus

Geospatial Applications Gain Ground on the Web

Written by Matthew Mikus
6/29/2010 9 comments
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Companies specializing in geographic information systems (GIS) are combining location data with analytics to create valuable assets in the online world.

There is plenty of activity pointing to this trend. Yahoo Inc. (Nasdaq: YHOO) recently teamed up with Nokia to integrate Nokia’s Ovi map and navigation services into Yahoo maps.

Autonavi, a digital map, navigation, and location-based data company based in Bejing, and one of many contributors to Bing maps, recently filed an F-1 form with the Securities and Exchange Commission (SEC) to go public on Nasdaq under the symbol AMAP.

According to Reuters, Autonavi hopes to raise up to $100 million and plans on using the proceeds to expand its data processing facilities, build a research-and-development center, fund capital expenditure for aerial photogrammetry business, and for general purposes.

Google (Nasdaq: GOOG), which accounts for about 1 percent of AutoNavi’s business worldwide, has applied for Chinese approval to download maps of its own in that country. However, there is widespread doubt that Google will get the necessary approvals, given its history of conflict with the Chinese authorities.

Why is geospatial information so important that companies are shifting to get a share in the market? For starters, nearly one third of American consumers own some type of navigation system. And with the growth of mobile phones and devices as navigational tools, digital mapping and navigation software are more important than ever.

There are other potential uses of this information. The Geospatial Revolution Project is a documentary series in development by Penn State public broadcasting that chronicles the many uses of geospatial information. The teaser trailer talks about how an individual can create maps, then analyze the information using multiple layers to create accurate predictions. The documentary series, which is still in production, is due to be released online.

There are also a range of potential enterprise uses of geospatial data.

“Done correctly, GIS exposes hidden relationships and helps everyone explore and investigate market conditions and performance,” stated Simon Thompson of GIS software provider ESRI in an article last year.

Insurance companies use geospatial information to analyze and distribute risk. If they can predict the risk of flooding or wildfires for a house, they can gauge the proper price for a policy.

GIS can be used in predicting strong locations to set up renewable energy sources, such as wind, solar, and biomass.

FedEx uses GIS not only to reduce resources needed to deliver shipments; for sensitive shipments, they can use it to regulate temperatures that affect the cargo.

There appears to be a growing perception of value in knowing where things are and relating that information to other kinds of data. GIS technologies will continue to be a focal area of investment for companies worldwide.

— Matthew Mikus is a journalist specializing in technology, business, and environmental issues.

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Carol
IQ Crew
Wednesday June 30, 2010 11:11:03 PM
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depends on GIS information to help meld GPS information and local data.

torriatte
IQ Crew
Tuesday June 29, 2010 9:58:27 PM
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I think that's an understatement Mary :-) I try to be positive but all the information they all ready have is so great it would take something incredible for them to redact that from their databases when they are chasing $'s !

Chuck

torriatte
IQ Crew
Tuesday June 29, 2010 9:55:58 PM
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I agree Matthew. Not paranoid but there are plenty of people with legit reasons to not want "intimate" views of where they live...

taimur_tz
Thinkernetter
Tuesday June 29, 2010 7:42:55 PM
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I think one more area where enterprise needs geographical information and realtime location data is for tracking. There are a number of uses for tracking. It could be divided into asset tracking which would include tracking vehicles and other resources. Another aspect of it would be personnel tracking which would include tracking of salesmen, delivery riders etc. All these application would also make use of GPS Data and combine with any GIS to display location of resources on map. I guess this is going to be a huge area in future.

Matthew Mikus
Thinkernetter
Tuesday June 29, 2010 11:38:34 AM
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I see where your coming from robjvargas. Yes, companies directly benefit from GIS information, and they're really using it to its full potential. I would say that the use by the insurance companies could go both ways, if the GIS service can deem that a house is located in a fairly protected location, the deductables may go down. (Emphasis on may)

But there are many uses for the general consumer. Take Google Maps and Mapquest into consideration. These are offering new resources for consumers to understand geospatial information, such as Google Maps' new feature that helps you choose the best bike paths to locations, or Mapquest's new Route planner, giving you the fastest way to make all your destinations.

A majority of the features I mentioned focus more on the business aspects, but their are options directly available to consumers.

Matthew Mikus
Thinkernetter
Tuesday June 29, 2010 11:24:25 AM
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Great point KMT568. Though there are many advantages, there's also the idea of privacy. Just because people can easily be located using GIS, that doesn't mean everyone wants to be found.

A while back, the Boring family sued Google because of Google's street view, claiming that posting images of their house online was an invasion of privacy, but the courts ruled in favor of Google, since the idea is that every person has the right to drive by the Boring house and take a picture.

http://www.azcentral.com/business/consumer/articles/2008/04/04/20080404biz-GoogleSuit-04.html

But the idea that these companies have a birds-eye view of everything us mere mortals do, is kinda daunting.

Mary Jander
Thinkernetter
Tuesday June 29, 2010 9:33:33 AM
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Once all those ad affiliates know where I live, what I buy, etc., there is no end to the potential to descend on me virtually with ads galore.

That is, if online advertising remains the model of choice for many sites.

I think legislation will be needed to limit the range of information advertisers can use to invade the customer's personal space, online or off. But I'm not optimistic this will happen until people really start seeing the baleful results. That may take awhile.

robjvargas
IQ Crew
Tuesday June 29, 2010 9:16:08 AM
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I recall conversations on several Web sites when GPS capability was first being tested on cell phones.  There were ideas like sending coupons to customers' phones as they approached a business that subscribed to a certain service, and ads that would get sent.  I think I recall proponents of Near-Field-Communications and of Bluetooth speaking of this same kind of... interaction... with the customer.

Therein lies the question I used as a post title.  Are these applications going to be something FOR the customer, or are they going to be something done TO the customer?  The ideas above sound TERRIBLE to me.  Intrusive.  Jarring.  I might even go one step further to describe them as invasive.

For companies where reliable location data is important, even vital, to operations, this makes a lot of sense.  UPS, FedEx, etc, they will make good use of this, and that's good for all of us.  But the insurance example you cite, that's good for the direct customer of geospatial services: insurance companies.  What does it do to the customer?

Maybe it'll be good.  Maybe not.  But we should be asking this question now, and deciding... now... if this is really about the consumer, or about the business.  The two are not necessarily in conflict.  But sometimes, they are.  We've been lacking in honest answers to that for quite some time.

KMT568
IQ Crew
Tuesday June 29, 2010 9:11:48 AM
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I find the uses that you discuss in this article interesting, particuarly the use of GIS for insurance companies and as a way to find resources. I hope that GIS will be used for good purposes like these (although the insurance one is a little questionable as premiums will rise for people in potential disaster areas), and not for negative purposes. I can see the many advantages that you point out, but I still wonder if GIS can lead people too far, giving away too much information. It's a good question to ponder as the technology continues to expand and find its grounding in different areas.

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