Information Systems for Managers
Professor Smithson
University of New York in Belgrade
Belgrade, April 2009.
Geographic Information Systems
Applications in Municipalities and Utilities
Miloš Došen, BSc in Economics
Global context
It is not that simple to provide a sole definition of Geographic Information Systems (further on
GIS). Most generally, GIS is defined as a system compiled of hardware and software which is
used for capturing, storage, analyzing, modeling, managing, manipulating and presenting the
data that has a spatial component, meaning that is linked to geographic location (geo
referenced data). Some other stand points in defining the GIS include operating personnel and
the data itself in broader definition. Most commonly used definition is one created by the
National Centre of Geographic Information and Analysis which puts GIS in context of complex
problem solving and resource management.
Although GIS started as technology mainly to be used in government agencies, natural
resources planning and management and engineering fields, over the last few decades of 20th
century, it evolved according some of the main trends in information technology, hence
becoming more user friendly, adaptable to suit customer requirements and providing more
values for even broader audience.
First, information technologies are becoming a commodity. Both, hardware and software that
are the basis of GIS are gradually getting cheaper and more accessible. Starting from somewhat
elitist projects limited on specific institutions (CGIS or GRASS), GIS has had a specific and narrow
functions and applications. Today we are witnessing the presence of various vendors, with
great number of GIS software applications, which have functions raging from simple thematic
mapping to complex spatial and business analysis. Most of vendors are offering entire suites of
specific tools, and are competing by widening the GIS concepts, integrating it with Computer
Aided Design, Information Modeling Platforms etc. Scalability and interoperability are becoming
more important than in earlier stages of GIS evolution.
1|Page
Second, new technologies emerged. For a long time GIS was organization enclosed, used for
maintaining internal records and most of GIS software were stand-alone products. With
advancement of web bases technology and solutions, and with ever increasing accessibility to
the Internet and other networks, the need for distributed GIS grew, so the entire new outlook
to the delivery of data via networks was introduced. From real-time fieldwork data entry to
interactive on-line maps and analysis, we are witnessing various web based solution and
applications.
Third, accessibility of data is increasing and data sources are getting more abundant. When we
discuss GIS, it’s important to stress the importance of data. Spatial data is the raw material for
every GIS on which depends the quality and meaning of every output. Non spatial data such as
statistical, customer or any other form of numerical data can be obtained from various
institutional or informal frameworks. A vast array of data is more accessible than in late 20th
century. Other related technologies and scientific fields are developing very fast providing
propelling inputs. Breakthrough techs such as GPS, LIDAR, INSAR are widely being used in
geodesy and survey industries and are providing precious spatial data for GIS projects. While
just in the 1990’s satellite imagery and data was scarce, expansive and commercially
unavailable, today there are lots of companies offering high quality satellite imagery on
extremely appropriate commercial conditions. For example, IKONOS and LANDSAT are offering
multicolor imagery up to 0,5 m resolution, which was unimaginable just 10 yrs ago. Data
providers are offering a variety of specific sensor data raging from electromagnetic spectrum
sensing to radar. Another direction from where the complementary information technologies
are bringing benefits to GIS development is data digitalization. Appropriate hardware and
software solutions can facilitate wide range organizational change by transforming old paper
maps, project documentations, plans, infrastructure design etc., in digitalized form, even
allowing raster to vector transformations.
The information technology trends impacts on GIS evolution are important because, they
facilitate the widening of GIS users community, both commercial and private; growing number
of applications and functions which can be realized. Web based solutions are bringing new
possibilities for GIS usage and development organization-wide and are fostering global
accessibility. Abundant and reliable data are the main pillar of GIS projects development and
are the main source of ideas for practical (conventional and non-conventional) applications -
foreign direct investment attraction, business analysis (marketing, logistics, customer relations),
local economic development opportunity management, infrastructure asset management,
e-government, resource planning and management, environment, urban planning, disaster
management etc.
2|Page
Local context
Information technologies applications, and the potential of GIS use or development in Serbian
society and economy, are still marked by heritage of past times and are influenced by an
economic and social transition. Most potentials for GIS application can be found in fields of
utilities (water, waste water, electricity, gas, heating) and municipal governments (land
management, urban planning, cadastre, customer services).
Two spheres which are the subject of this paper – utilities (infrastructure) and local
governments are still lacking business efficiency, good practices, leadership, human resources
and vision. Utilities are still public/state enterprises, while local/municipal governments are too
bureaucratic, non effective. Both sides are unable to provide basic services and value to
customers and citizens, and also almost all mentioned subjects cannot deliver regarding
developmental functions which they should or are obliged to bring to the society.
Regarding utilities, depending of type and services there are broad set of unfavorable examples
which can illustrate the overall situation. For example, water utilities are not using
contemporary information technology and software tools for infrastructure design and asset
management, in gas distribution infrastructure networks are so neglected and mismanaged
that even just a few years after new network development, generally, most of data is lost, and
in some part of distributive network the looses in gas are reaching incredible 30%; and in
electricity providing they still are using analog technology, paper plans etc.
Regarding municipal governments it must be stated that services are poor, they are lacking
skilled personnel, the bureaucracy has a bad influence on performance and makes
administrative procedures unbearably slow and painful. There is lot of petty politics involved,
which has a devastating influence on few skilled and IT enabled employees.
One interesting topic is that in most of utilities or municipalities there is enormous quantities of
tacit knowledge embedded. That knowledge will most probably disappear because of big
generation gap that persists in such organizations. Also, the heritage of the late 20th century left
its impact and most of skilled engineers lost the pace with technology due to underfunding and
isolation. Now days there are old school engineers who resist the technology but has a great
deal of knowledge and new school engineers, who are familiar with contemporary IT (CAD,
asset management etc.) but are lacking the knowledge and tools of trade.
However the situation described above is pessimistic; it is obvious the trends are positive and
that there are more than a few good examples and even couple lighthouse projects and
institutions that are oasis-like. In those places we can find good practices and effective usage of
geographic information systems.
3|Page
Through some international aid projects intended to increase the level of local economic
development, FDI attraction, customer services, resource planning, land management/cadastre
and utility enterprises practices; a lot have been done in regard of various GIS solutions
implementation, built mainly upon major global vendor platforms.
Brief descriptions of GIS in Serbian utilities and municipalities
Most of municipal GIS projects have outputs in fields of land management and thematic
mapping. Generally, ESRI or Autodesk software platforms such as ArcGIS or AutoCAD Map 3D
are used as client solutions, and data base solutions most commonly in use are MySQL, MS
Access and in some cases Oracle. As a way to increase a number of users in organization, in cost
effective way, web solutions are implemented, according the IT infrastructure capacities. It is
important to stress the fact that most of implemented solutions do not undergo major
customization and development, because they ought to satisfy only the essential needs of
thematic mapping and presentation of spatial data.
In order to populate municipal GIS, various types of numerical and/or spatial data is needed, so
almost all local technology providers are doing business in field of data providing, too. Couple
of data providing specialists also occurred lately. As raster basis for municipal GIS either aero-
photo or satellite imagery is used. This raster data is then geo-referenced in accordance with
domestic standards, just to be used as basic layer for GIS. Built upon existing numerical data
other layers are created – survey industry is providing data for linear and polygonal layers used
in land management, cadastre etc; rare available data from other fields, like infrastructure
networks, forestry, soils or roads is then being added as further layers. Data bases containing
data regarding the objects and other features are used for labeling the content of future
thematic maps.
Described municipal GIS projects are still stand alone and out of broader context of customer
services, decision making support, resource management, efficiency increase, environmental
protection and system integration, which is a topic to be discussed further on in this paper.
Utility enterprises information systems and GIS projects are also organization enclosed and they
most commonly lack the vision and expertise on way of reaching hi performance and full
functional use. System integration in utilities is hard to reach, and great organizational and
technological challenges lie ahead, before reaching that goal. In some utilities the data is in
analog or in old digital data formats. Generally, utilities have more professionals and hence they
use the software platforms in more advanced way. Functions of design, management and
maintenance of infrastructure networks, are kept separately and different software tools are
4|Page
used for those functions; if any is used at all for management and maintenance. In regard of
infrastructure design CAD platforms are the most used ones. GIS platforms are mainly used for
presenting, viewing and mapping the assets. Very common point is complete separation of
different types of data, and usage of incompatible software platforms – CAD tools for design,
DBs for customers or other numerical data, infrastructure equipment embedded software for
tracking and maintenance, office tools for reporting. Such situations mainly bring efficiency
loss, increasing costs, double work, miscommunication, poor services etc.
Discussion
The ‘’nature’’ of GIS1
GIS is very complex topic, with many distinct appearances. As mentioned above, most of
uninformed stakeholders think of GIS as a way/tool to automate map creation. For more
informed public, this approach is to mundane compared to very complex and demanding
capabilities of geographic problem solving and decision making support. There’s also broad set
of functions in spatial analysis, business applications and creating new insights and discovery.
It’s possible to look at GIS as a tool for complex inventories maintaining; way to add spatial
context to conventional IS; or as tool that allows geographically distributed resources and
assets of, for example, utility company to be traced and managed. Sum of these perspectives is
too much for one software to handle, so the GIS has grown gradually to a complex of software,
hardware, people, institutions, networks, data formats and activities, that can be very
confusing.
GIS research community discussed for some time if the GIS is just another IS or whether it has
unique characteristics that separate it from other systems. One known review of GIS
definitions, suggests that GIS can be seen as a form of IS, with a distinctive orientation towards
spatial data and processing. That review identifies three views of GIS, with each view focusing
on one functional aspect of GIS. There are map view, database view and spatial analysis view.
First sees GIS as a map processing or display system. Main GIS operations in this sense are map
creation and map presentation, and comparable conventional IS operations are data
processing, MIS and Business Graphics, respectively. Second view, is concerned with simple
analysis (overlaying, buffering) and visualization as GIS operations, while most comparable type
1
We are fully aware that GIS is most probably not the topic and an issues of IS for managers Course for
which this paper is being made, but there are obvious connections and topics which tends to include GIS
in more conventional IS science and practice.
5|Page
of IS are Executive information systems (EIS), that provide executive management with an
overview of business activity within the organization and of competitive forces on the outside.
Third view, the spatial analysis view, focuses on specialized and more complex analytical
functions such as modeling and decision making. Described view tells about the similarities with
conventional IS, but it also depicts the differences, and one of most obvious is the usage of
raster operations in map production.
Spatial is special
What we know is what we need to manage. Information systems help us do that by making it
easier to organize and store, access and retrieve, manipulate and synthesize, and apply that
knowledge in order to solve problems. Some of the terms that describe what we know are data,
information, evidence, knowledge and wisdom. The data refers to most mundane and the
wisdom to the most substantive kind of info. In GIS arena most frequently are used are data
and information. Data consists of numbers, text and symbols which are neutral and almost
context free. Information can be interpreted narrowly or widely. In narrow sense information is
almost synonymous with data, while in wide sense information is data serving some purpose,
or a data that has been given some degree of interpretation.
In GIS sense, one possible contextualization of data→information→evidence→
knowledge→wisdom flow can be described as follows (respectively): raw geographic facts→
context of database assembled from raw data→ results of GIS analysis of many datasets and
scenarios→ personal knowledge about places and issues→ policies developed and accepted by
stakeholders.
Geographic data is most commonly referred as spatial data, and there is more than one reason
why spatial data is special: (i) It is multidimensional, because it is determined by two
coordinates – whether x and y or latitude and longitude, third dimension referring as z or
elevation also can be found; (ii) spatial data is voluminous, and can reach terabytes in size; (iii)
it can be represented in different levels of spatial resolution – 1:1000000, 1:50000, 1:2500…;
(iv) inside the computer it can be represented in different ways – raster or vector, described by
attributes, defined as discrete object or continuous field; (v) it must be often projected on flat
surface because of Earth’s geographic projections (UTM, Gauss Kruger, ); (vi) it requires many
special and time consuming methods for analysis; (vii) although much of spatial data is static it
is highly complex and expansive to update it; (viii) display of spatial data in form of map
requires the retrieval of large amounts of data.
Also, spatial data can have a distinctive spatiotemporal component, and a lot of organization
comes to GIS because they want to find descriptive and prescriptive answers to space and time
6|Page
problems. Considering the use of GIS, descriptive answers are provided through analysis of
sampling data, but also prescriptive methodologies are applied for decision making support. An
entire field of statistical analysis, called geostatistics, exists in order guide and improve the
quality of statistical analysis on spatial data.
When we add the arguments, regarding the costs and possible difficulties on which one can
stumble upon, in acquiring the spatial data, we definitively can argue that the spatial data is
special.
Decision making support and GIS
For both local governments and utilities it should be of prime importance to reach optimal
levels of efficiency and productivity, in order to meet accountability and performance demand
from the public. That’s why it’s important for such entities to try developing GIS which includes
broader set of tools and functionalities, than it is case in above mentioned description of GIS
situation in Serbia. That set of values have to refer to improved effectiveness and efficiency of
operations, processes and urban planning, speeding up the administrative procedures, strategic
modeling of infrastructure growth and community development, effective usage of resources
(natural, human), cheaper maintenance, effective decision making etc. In other words, GIS in
local governments and utilities should always be put in much broader context than it is now in
Serbia, and should long to integrate the multiple organization GIS and IS.
Regarding the GIS in local governments, one of the most important application, outside of
classical administrative boundaries (permissions in land management/cadastre, customer
services) should be the decision making support. Establishment should use GIS for purposes of
FDI attraction and communication with investors, spatial distribution of businesses and
planning of business development zones, transportation, infrastructure, real estate etc.
Decision making in local governments can be improved even more if some of decision making
models are implemented in GIS, which leads to creation of Spatial Decision Support Systems
(SDSS).
Current situation in computized support for decision making is oriented toward decision-
relevant computations of important information, organizing and displaying the results; is based
on queries, ‘’what if’’ analysis and user-friendly approach. Traditional tools that are used are
financial models, spreadsheets, trend exploration, decision support systems and in GIS sphere
tools are spatial decision support systems. Trends in field of decision making support reflects
the need for more and more complex and fuzzy decision making, for collaborative decision
making and machine learning – so, more complex tools are applied, for example group support
systems, neural computing, knowledge management, fuzzy logics and intelligent agents. In GIS
7|Page
sphere, tools such as intelligent spatial interfaces, evolutionary techniques for spatial problems
and geolibraries are applied.
There is a big gallery of applications in government agencies and municipalities. As mentioned
above, main concerns are efficiency and effectiveness of services. For example, some cities
across the world are using distributed GIS solutions for better planning, improved maintenance
and customer services. Most advanced solutions are including Web GIS and Mobile GIS
solutions. Taiwan’s capital, Taipei uses all of the above in such way that its residents can report
needed repair and maintenance of public facilities and infrastructure via Internet and allows
workers to receive and close work orders via mobile devices. Similar situation is in Augsburg,
Germany (city of some 350000), where the independent utility company Stadtwerke Augsburg,
which handles gas, electricity, water and district heating, uses Autodesk GIS and asset
management solutions based on centralization of asset data in single data base (Oracle), and
with use of few other software as client and web solutions Stadtwerke managed to overcome
problems of managing large and multiple infrastructure networks and assets. Now they
instantly completes the task that once took from 30 minutes to few hours, they deliver timely
asset data to field technicians, eliminating the need to maintain duplicate data sets, and
bringing overall increase in customer services quality, integrity of data and efficiency gains.
Strategic planning is also important topic for municipal governments and many solutions exists
from water-demand models which support decision making; modeling and simulating urban
growth and spatial distribution of people, communities and businesses; planning how existing
resources can support residents and businesses in future; simulating dispatch models for event
and disaster management; flood plain modeling; pest control etc. Various other complex
problems are reported to be addressed across the globe, for example in transportation, and are
based on vehicle routing, signalization cadastres and optimal routes calculations.
The synthesis of GIS based SDSS with other technologies that can support decision making has
been recognized. So, in some cases GIS is integrated with online analytical processing (OLAP),
for the accurate evaluations of lands for development.
It is clear that existing practices in the world are disclosing the trend of system integration,
scalability and interoperability. It is practically senseless and impossible to have a GIS which is
stand-alone and out of broader context of effectiveness and efficiency gains, and cost
reductions. Local governments cannot do their business according to the best practices and
public expectations if not integrating with utilities, and vice versa.
8|Page
Measuring the benefits of GIS2
In today’s business environment one of the main ratios for measuring the success of projects is
return on investment (ROI). Many organizations are realizing ROI by integrating GIS into their
existing IS, and by incorporating it in their daily business routines and flows.
Most commonly referred benefits of GIS are: 1. saving time, 2. increasing
efficiency/productivity, 3. saving money/avoiding costs, 4. generating revenue, 5. providing
decision support, 6. automating workflows .
Time is money. Jobs and tasks can be done much quicker. Organization has new time lots for
tasks that would otherwise be shifted to overtime, delayed or left undone. GIS allows saving
work hours and increasing turnaround time on tasks and projects.
When users increase efficiency they realize improvements in delivery, enhancements and more
effective use of services. A good approach to increasing efficiency with GIS is to list all task that
needs reengineering and then to identify their geographic components.
Increases in productivity of IT stuff means the reduction of operating costs, but also it means
freeing the time for stuff to implement new initiatives more rapidly, which helps in creating the
competitive edge. GIS influence user productivity in three ways – automation, integration and
performance.
When income slows in business, management must act promptly to control expenditures and
find ways to save money and avoid costs. GIS helps through direct cost saving and cost
avoidance. GIS that supports decision making and increase productivity, directly saves money,
and GIS can avoid costs when it offers efficient alternatives to meet goals or reduces labor
costs.
Conventional financial management tools and software has a good performance in audit and
analysis, but GIS can enhance the analysis by answering spatially related questions. Answers
can help identify revenues that might slip through. GIS is becoming a precious tool for financial
planning, sales management, customer relations, finding new customers, marketing and
collecting. GIS can be used for creating new commercial services.
Decision making support has been elaborated earlier.
2
Most of the benefits surveys and studies are conducted by the major vendors in the field, so the lack of critics are
more or less obvious. That’s why we will only briefly cover this area.
9|Page
Managers can rely on automation provided by GIS, via system integration in enterprise resource
planning (ERP), mobile workforce automation, e-business and client relationship management
(CRM). Also, GIS can automate routine analysis, map production, data creation, maintenance,
reporting and statistics. In utility enterprises, a great deal of time consuming activities can be
automated and hence timely done – infrastructure network tracing, reporting, working orders
creation, dispatching etc. Vendors are even developing entire data models that correspond to
certain infrastructures rules, regulations and standard working practices.
Developing and managing sustainable GIS3
Obtaining and running GIS, may seem to be simple, routine and mechanical process, but it
surely not that easy, or to put it right – it should not be taken as simple task. Implementations
involve software, hardware, people, training, consultancy and it is never cheap. So, in order not
to make a runaway project it has to go according to accepted methodology. The consequences
of failure can be rather catastrophic and demoralizing. Success involves constant information
and knowledge sharing, keeping good records and making numerous complex judgments.
GIS projects are similar to many other IT projects and can be broken in four life-cycle phases:
business planning (strategic analysis and gathering of requirements); system acquisition
(choosing and purchasing); system implementation (assembling various components and
creating a functional solution); and operation and maintenance (keep it running). These phases
are iterative.
Most common methodology suggests that there are four stages in choosing GIS: analysis of
requirements; specification of requirements; evaluation of alternatives; and implementation
system. Stages and their steps are given, along with brief comments in Table 1 (Appendix).
GIS vendors business models
Numbers are increasing in GIS. More and more functional fields are covered, increasing
numbers of vendors offer more applications, and the GIS is spreading through businesses and
organizations. While some major vendors have a business model that includes proprietary
formats, technologies and expansive middleware and are not open to independent developers
(case of ESRI), other major vendors are inclusive. Autodesk, for example, is developing the
business model based on open source (open, developer friendly API’s) and full compatibility. It
3
Only the problems of choosing GIS will be covered in more details, while the problems of implementing a GIS and
managing a sustainable operational GIS are left aside
10 | P a g e
is participating and supporting the work of Open Source Geospatial Foundation (OSGeo), thus
allowing great number of independent developers to participate in specific application
development for major software solution. It also develops Feature Data Object Technology
(FDO) which allows broadest possible interoperability and compatibility. Probably, the most
important detail about the Autodesk approach is that its platforms are being marketed as CAD-
GIS tools, because all of its products are built upon CAD platforms (AutoCAD and AutoCAD
Map3D) – the fact which brings multiple possibilities for competitive struggle.
Conclusion
GIS has extensive capabilities in regard of system integration, so when some local government
or utility company is searching for GIS solution, they must pay attention on synergetic effects,
that can be achieved if the plans and implementation concepts are mutually agreed amongst
various stakeholders. The overview of situation in Serbian municipal and utility GIS market,
clearly shows that it is not the case, and if stakeholders wish to end the cycle of making failures
and runaway projects, GIS planning processes will have to be redefined and more scientifically
based. That is the ultimate precondition for success in this field.
Capabilities of GIS in decision making processes are elaborated, and the value of GIS in that
sense leaves no doubt. It is important that GIS projects in Serbia adopt those values, and also,
for people – from users to decision makers, to start thinking of GIS as valuable decision making
support tool. Broad context of GIS which includes services in field of land management and
cadastre, urban planning, infrastructure asset management (transportation, gas, water, waste
water), and other relevant fields, must be adopted.
In the end, in order to develop GIS projects that are delivering values to organizations and
citizens, it is important to approach the GIS education in proper way.
11 | P a g e
Literature:
1. Geographic Information Systems and Science; Paul Longley, Michael Goodchild et al.;
Second Edition; John Wiley & Sons, Ltd.; 2005.
2. Geographic Information Systems in Business; James B. Pick; Idea Group Publishing;
2005.
3. GIS Manual for Municipalities in Serbia; group of authors; GTZ and Permanent
Conference of Cities and Municipalities; 2008.
4. Measuring Up – The business case for GIS; Christopher Thomas, Milton Ospina; ESRI
Press, 2004.
5. Best Practices for Managing Geospatial Data; Autodesk Geospatial, 2nd Edition, 2008.
6. StadtWerke Augsburg Case Study; Autodesk 2008.
Milos Dosen
[email protected]
skype: brainwsh
+381 63 680 460
12 | P a g e
