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LBx Journal // 18 // www.lbxjournal.

com // Location in the Language of Business // Summer 2011


INDUSTRIES ARE UNIUE. THEY HAVE THEIR 0WN CULTURE, VALUES, W0RK
ows, nuancos, and ioquiiononts. Thoy aio tiilos unto thonsolvos with
socihc valuo chains, suljoct nattoi oxoits, coitihcations, iogulations,
and custonoi ioquiiononts and oxoctations. Whon conanios within industiy
sognonts sook out tochnology and data ioducts, thoy always ask loi youi indus-
tiy donain oxoiionco." Thoio aio voiy iactical ioasons loi staying within this
wallod gaidon ol oxoiionco. Whilo tho lasics ol iunning a lusinoss aio connon
acioss all industiios IT, naikoting, hnanco and accounting, ooiations, salos,
hunan iosouicos, govoinnont iolations thoio aio industiy aiticulais.
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Cross Industry Views on Location Information
By Natasha Lger, Editor, LBx Journal
CRAI0 BACHMANN of ITF Advisors rep-
resents the Communications Industry
ALEX C0IDAN of Tesco China repre-
sents the Retail Industry
VINCE RESTUCCI of Agri-Data Solution
represents the Agribusiness Industry
Tho iotail, connunications, and agiilusinoss indus-
tiios aio quito dilloiont in toins ol ooiations, stiuctuio,
and custonoi laso. Tho iotail lusinoss is alout ushing
volunos ol ioduct thiough a hysical stoio and sholl saco
otinization to individual consunois. Tho connunications
(this includos toloconnunications, wiioloss, callo and sat-
ollito lusinoss is alout Avoiago Rovonuo Poi Usoi (ARPU
loi notwoik soivicos iovidod to individuals, iosidontial and
ontoiiiso custonois. Agiilusinoss, which involvos tho io-
duction, ackaging, and distiilution ol lood, is a yiold-lasod
lusinoss with BzB and iotail custonois.
What do thoso disaiato industiios havo in connon?
Location Data!
Ciaig Bachnann, Piincial, ITF Advisois, Alox Coidan,
Sonioi Rosoaich Managoi, Tosco China, and Vinco Rostucci,
Managing Diioctoi, Agii-Data Solution connoct tho dots
lotwoon thoii iosoctivo industiios. Thoso thioo industiy
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This article connects the dots between seemingly dispa-
rate industries by looking at how location data serves as a
common denominator. The article describes how location
data from one industry serves as business intelligence for
another industry.
C This is the Xinhua Fushan Tesco China store.
Courtesy of Tesco China.
LBx Journal // 19 // www.lbxjournal.com // Location in the Language of Business // Summer 2011
loadois shaio thoii oisoctivos on tho connon thioad ol
location data that inact thoii lusinossos. Whilo location
data tontaclos oxtond quito lai, thoso connonts aio not
intondod as an oxhaustivo viow ol tho connoctions, lut
instoad a snashot ol sono intoisocting oints.
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VINCE Agribusiness products are distributed through retail
outlets like Tesco, Walmart, and grocery chains. The meat
cuts on the counter shown in Figure 1 at Tescos Huaian store
in China probably came from 28 different farmers. Do you
know where they are, and how to trace back to them? In
the U.S. for example, meat sold in grocery stores may come
from a single producer or single feedlot. Globally, millions of
dollars in daily decisions are tied back to location informa-
tion that can now avoid mass recalls and a consumer panic.
ALEX Meeting your customer demand and cultural
preferences is critical to success. In China, each province is a
country in its own right and our ranging has to reect that.
But sometimes the farms located in the North supply stores
located in the East.
CRAI0 For agribusiness to take advantage of location-
based services, a communications infrastructure that sup-
ports rural communities is critical to supporting agribusi-
ness information technology transformation to improve
productivity and cost savings.
ALEX Theres a big overlap between the retail and the
corporate real estate businesses. Putting a store in the right
place is critical. When a company spends $50 -$100 million
on the purchase of the land, it wants to ensure a long term
ROI on that real estate.
VINCE A big global problem in agribusi-
ness is farmland going away. This trend is a
result of a number of factors from drought
to market conditions to desertication.
One factor that relates to site location deci-
sions is the market demand for corporate
campuses and condo and home develop-
ment. Corporate real estate plays a critical
role in decisions to take fertile farmland
out of inventory.
CRAI0 Delivery of network communica-
tion services from voice, video, and data
to specic services such as location-based
services, and feeding and caching the
right media for an on-demand request
are all location-sensitive, as are mobile
workforce management from eld operations to inventory
management. As communications networks undergo an IP
(Internet Protocol) transformation and move to IPV6, and
Machine to Machine (M2M) communication accelerates,
tracking of transactions becomes mission critical
and will require both front ofce and back ofce
transformations.
VINCE Weather is the critical variable in
agriculture; it trumps everything and impacts
the supply chain. In addition, agriculture is fuel
intensive. Location-based information and
services available through mobile devices and
information software are critical to assisting
farmers in planning more effectively, to manage
costs and transport crops from the farm to a
storage facility or food processor, and deliver
plant nutrients to specic areas.
ALEX Mobile solutions can make my job much easier to
collect and analyze data on locations on the road. And Im
always looking to innovate with the new data out there if it
helps us identify places with potential Tesco customers.
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A iovoiso loyalty iogian is ono whoioly tho stoio is loyal
to tho custonoi, instoad ol tho custonoi loyal to tho stoio.
In a iovoiso stoio loyalty iogian, tho stoio would utilizo
location data on tho souico and oiigin ol lood, loi oxanlo
to aloit custonois to any concoins oi iocalls, thoioly cioat-
ing a ioactivo iolationshi with tho custonoi. Pioviding
tho custonoi with thoii lood sond data ly stoio could also
hol tho custonoi in nanaging thoii ludgot and luol costs.
A iovoiso loyalty iogian ioquiios stoio location inloina-
tion (iotail and ioal ostato, tho souico ol tho lood ioducts
(agiilusinoss, and distiilution ol tho inloination (con-
nunications. Vinco Rostucci notod, It`s tho uso ol loca-
tion to dolivoi ioal valuo lack to tho consunoi as oosod
to using it to soll noio stull." Alox Coidan addod, Evoiy
good iotailoi should lo locusod on holing tho custonoi.
FI0URE 1. C This illustrates a typical day at the Huaian Tesco store meat
counter in China. Courtesy of Tesco China.
C Craig Bachmann
C Vince Restucci
LBx Journal // 20 // www.lbxjournal.com // Location in the Language of Business // Summer 2011
C Alex Coidan
A iovoiso loyalty iogian as Vinco dosciilos would lo an
oxtonsion ol tho laloling initiativos cuiiontly loing undoi-
takon ly Tosco stoios to iovido custonois with noio inloi-
nation on tho souico ol thoii lood."
Cioating custonoi oxoiionco stiatogios
loi convoigod connunications (othoiwiso
known as TV Evoiywhoio, Anything, Any-
whoio, Anytino, tho Digital Econony, tho
Connoctod Digital Woild, On Donand. is
anothoi ooitunity loi cioss-industiy data
analysis. As tho nolilo cultuio loconos tho
now noin with snaithonos, tallots, and
GPS dovicos, connunications conanios
incioasingly conoto loi custonoi loyalty,
and thoy aio all sooking to dovolo custonoi
oxoiionco stiatogios. Thoso will invaiially
doond on data analytics and dolivoiing on
tho tino- and laco-donands ol connuni-
cations hungiy consunois. A callo conany
in Now Yoik ioducod tho high iolalility ol
incioasod custonoi chuin duo to now con-
otition, whon it olloiod lioo WiFi along tho
LIRR (Long Island Rail Road iouto to oxisting sulsciilois. Cus-
tonois lovod it! Ciaig Bachnann said, custonoi oxoiionco
is tho conotitivo advantago in connunications, and whoio
to laco data contois and lulhllnont contois to suoit tho io-
notod oxoiionco will locono nission-ciitical docisions."
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Tho liggost challongo to connocting tho location-data
iolatod dots within an oiganization, lot alono cioss industiy,
is skillod oolo in location-lasod analysis. Thoio is no shoit-
ago ol oolo tiainod on goosatial soltwaio. Howovoi, thoio
is an inciodillo ga lotwoon lusinoss iocoss and tochnol-
ogy undoistanding. Poolo who know how to cioato and
aly location solutions to lusinoss iollons aio noodod.
It takos yoais to tiain oolo in-houso on tho lusinoss intol-
ligonco ol location docisions," said Alox Coidan. Univoisitios
aio not nooting lusinoss noods in this iosoct.
Tho othoi lig challongo is industiy and oiganizational
cultuio. Agiilusinoss is zo yoais lohind othoi consunoi
ackagod goods lusinoss whon it conos to adoting inloi-
nation tochnology, accoiding to Vinco Rostucci. Whilo
thoio is a donand loi iniovod assot nanagonont, lainois
don`t liko to lo tiackod, so thoio is a cultuial stigna aiound
location-lasod inloination. In tho connunications indus-
tiy, thoio is a iato laso and oo yoai onloddod cultuio to
ovoicono.
Whilo iotail and ioal ostato aio inhoiontly location-lasod
lusinossos, nany nanagois and oxocutivos in othoi aits
ol tho lusinoss do not havo location-lasod KPIs and thoio-
loio iosist adoting a location-lasod viow to nanagonont.
All agiood that dononstiating incioasod iovonuos lion
location-lasod analytics is tho lastost way loi nanagonont
to onliaco chango.
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