By David Loshin
business value drivers, typical usage scenarios, and some ideas for melding process with application for a synergistic lift.
Location is a critical concept in many industries, yet the importance of a standardized approach to managing location is often unnoticed. For example, for some client scenarios, the business driver is reducing risk. Insurance companies like to see their customer base (and therefore, their exposure to certain types of hazards such as floods or earthquakes) spread across different geographic regions. Financial institutions may be subject to different laws (with different penalties for violations) at different geographic jurisdictional levels for the protection of private information.
Healthcare providers need to ensure that protected health information is not inadvertently exposed by being sent to the wrong address.
In other scenarios, the business drivers are financial, such as focusing on customer acquisition, retention or cost management. In some cases, marketing budgets are allocated to local print and media advertising to grow the customer base. In other cases, reducing transport costs by optimizing the supply chain looks at distances between delivery points.
Either way, the underlying desire is precision and correctness in geolocation.
But note that precision and correctness are very separate ideas, and that difference underlies some of the main problems related to address and location management. Next post: Accuracy vs. Precision.