CalGIS: The Future of Spatial Practice

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CalGIS The Future of Spatial Practice

• David Sonnen
• April 4 2007

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Agenda

• Challenges
• SIM Industry Context
• Future Outlook
• Guidance

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Challenges

• Dealing with increasing awareness and higher
  expectations
• Dealing with the Integration Imperative
• Staying relevant as IT changes
• Contributing to enterprise systems
• Building and maintaining sustainable solutions

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Awareness? Expectations?
March 30 2007
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Awareness
April 2, 2007
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Whats the Integration Imperative?

• Users want IT to support their specific business
  objectives and processes
• Right information in the right form at the right
  time
• Data quality counts
• Business drivers are critical
• Cost reduction
• Process improvement
• Respond to market situations
• Systems must be sustainable

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Example California Enterprise IT
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California Enterprise IT Spatial Role

• Objective 3
• Leverage and Secure the States Geospatial
  Information Assets
• California needs to enhance its organizational
  and institutional capacity to develop, share and
  serve an integrated set of digital geospatial
  data resources in a manner that is closely
  aligned with the States business needs. State
  agencies must work together to stand up the
  California Spatial Data Infrastructure framework
  geospatial data sets, systems, standards,
  policies and practices.
• Also see Federal Enterprise Architecture,
  INSPIRE, Chevrons Enterprise Information
  Architecture and a few hundred other enterprise
  architecture plans.

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Example Coastal Risk Assessment

• The most typical scenario for coastal risk
  identification is for companies to create a 1,000
  foot buffer along the coastline.
• Note Example courtesy of Proxix

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Problem With Buffer Approach

• Coastal Risk is not linear, e.g. identified by
  using a simple distance from the shoreline
  metric.
• Coastal Risk is better described as a combination
  of
• Coastal Surge Risk Zones
• Hurricane Propensity (Relative frequency of
  hurricanes striking that part of the coast) and
• Elevation

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Comparison Buffer v. Coastal Surge

• The following 3 slides show
• Figure 1 - A 1,000 foot buffer along the coast.
• Figure 2 - The Proxix Coastal Surge Risk Zones
• 5 Categories of Storm Risk (Extreme to Low)
• These zones represent areas in which storm surge
  can be expected for Category 5 to Category 1
  hurricanes.
• The zones are modeled from both offshore and
  onshore variables.

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1000 Ft. Buffer, Biloxi, MS Area
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Proxix Coastal Risk Zones
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Micro Level Comparison

• The following 2 slides show
• Figure 4 - A 1,000 foot buffer along the coast
  near 154 Brady Dr.
• Figure 5 - The Proxix Coastal Surge Risk Zones
  near 154 Brady Dr.
• .

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1000 Ft. Buffer 154 Brady Dr.
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Proxix Coastal Risk Zones 154 Brady
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Challenge GIS Enterprise Systems

• GIS
• Multiple data layers
• Model storm surge
• Elevation, bathymetry, parcels, wind speed
  direction, roads
• Enterprise system(s)
• 20,000,000 policies
• Property value, location, assets, improvements,
  coverage level
• Customer data
• Billing address(es), payment history, policies
  held, claims history
• Hazard models for all locations
• Hurricane, wind, tornado, hail, flood, mine
  subsidence, natural subsidence, wildfire,
  avalanche, earthquake, toxic waste, terrorist
• Update and evaluate new/existing policy every 1-2
  seconds 24X7, Minimize field evaluations
• Dependencies
• Underwriting, reinsurance, actuary, claims,
  finance, accounting, CRM, agent auditing, sales,
  marketing, corporate strategies, regulatory,
  disaster response

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What Are Sustainable Systems?

• Delivers the technical capabilities needed to
  meet the user's changing information requirements
  over time.
• Delivers a positive return on investment in
  financial and business terms over the system's
  life cycle.
• Fits within the user's information and cultural
  environment.
• Perceived by end users as both easy to use and
  useful over time.
• Evolves with the customer's business through
  continual updating and development of new
  business process applications.
• The net result of sustainability, in an IT
  context, includes continuous, valuable results
  from a system that is ingrained in the way that
  people work.

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• SIM Industry Context

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Spatial Process Categories
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Whats the Big Deal About Processes?

• Processes are how people work. These people
  determine the value of the technology used to
  support a process
• Processes tend to be more stable than the
  supporting technologies
• Example Property tax assessment
• IT must support processes in ways that are
  valuable to the participants.

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SIM Technology Segments
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SIM Market Segments Conflict Zones
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Headlines
Oracle and Metasolv
GE Energy Partners with Oracle
Oracle Acquires Seibel
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Analysts v. Operations
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Enterprise/Spatial Search
Some companies that have or are working on
spatial search
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Spatial Data Sources
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Future Spatial Integration Functions
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• Future Outlook

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IT Timeline
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Broad Change Factors

• Spatial search
• Just beginning to be interesting
• Could be broadly disruptive in a few years
• Good Enough solutions from enterprise players
  may cut off growth into new markets for SIM
  players
• Open Source is changing the relationship between
  vendors and users
• Skilled labor shortage limits uptake of current
  and prospective IT offerings
• Spatial data quality issues may constrain highly
  automated spatial data integration
• Emerging markets require engineering and GIS
  capabilities but are not mature enough to require
  sophisticated IT models

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Key Drivers

• The SIM market is increasingly driven by broad
  process and IT requirements data integration
  support for business processes need for timely
  insights and decisions.
• High-quality spatial data, data
  integration/quality, and targeted,
  highly-integrated applications will become the
  primary differentiators in the enterprise SIM
  arena.
• Additionally the following factors will drive
  demand for enterprise spatial capabilities.
• Increasing awareness of the value of spatial
  information in enterprise systems
• Increasing awareness of potentially simple and
  effective interfaces (Google effect)
• Increasing availability of high-quality spatial
  data
• Increasing market recognition of the need for
  strategic data integration
• Growing demand for predictable data quality
• Information governance projects, including master
  data management
• Continued strong demand for timely business
  intelligence and analytics

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Constraints

• Broad spatial offerings from major IT
  infrastructure players will create both increased
  awareness and competition/confusion.
• Balkanized spatial technology that is loosely
  classified as enterprise
• Balkanized data integration and access
  technologies fragment potential channels
• Lack of standards, particularly spatial data
  quality and metadata
• Current spatial solutions are generally not
  suited for enterprise-level process support
• Vestiges of proprietary technology and data
  lock-in
• Labor shortage (Spatial and spatial/IT
  integration)

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Managed Services

• Managed services appear to be a SIM viable
  channel.
• The following factors will shape broad managed
  services markets over the next 18-36 months
• Major battles for managed service revenue will
  shift from megadeals to midsize business. Oracle
  and SAP will focus on these midsized markets and
  drive increased competition. Hosted applications
  will make enterprise-class capabilities available
  to midsized organizations
• Service productization will gain traction as MS
  firms seek to increase profitability through
  standardization.
• SOA adoption will accelerate MS as companies move
  beyond pilot projects and advance to enterprise
  implementations

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Managed Services (Continued)

• The MS space will see stiff competition from
  traditional domestic carriers, niche managed
  services providers, virtual network operators,
  hosting companies, systems integrators and soon
  to be Web services firms.
• Spatial data integration and data quality
  management services will be best suited to
  specific, high-value processes. Determining the
  nature of these processes and providing a
  highly-differentiated offering will be the
  primary strategic task in the MS space.

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SIMs Evolutionary Path
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• Guidance

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Tactical Considerations

• Be careful with expectations
• Heightened awareness of spatial capabilities can
  lead to unrealistic expectations
• Explore service offerings
• SIM integration requires unique expertise.
• De-skill applications
• Business users do not have nor do they want to
  have geospatial skills.
• Find lower-risk implementation strategies.
• E.g. Managed services, SOA, Web services
• Consider Open Source as part of your IT strategy
  and skills
• Open Source is here to stay and sometimes OS
  solutions are cheaper-better-faster

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Strategic Considerations

• Data will drive business value
• Focus on data quality, data integration and
  spatial MDM.
• Develop spatial master data that may be
  aggregated into larger spatial data
  infrastructures
• Focus on people who use technologies and the ways
  that they use it.
• Avoid hype, Focus on real value for end users.
• Pay attention to standards
• OGC and enterprise architecture standards
• Learn to thrive in an integrated IT environment
• Focus on sustainable solutions

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