- 53% of enterprises say that Location Intelligence is either critically important or very important to achieving their goals for 2020.
- Leading analytics and platform vendors who offer Location Intelligence include Alteryx, Microsoft, Qlik, SAS, Tableau, and TIBCO Software.
- Location Intelligence vendors providing specialized apps and platforms include CARTO, ESRI, Galigeo, MapLarge, and Pitney Bowes.
- Product Managers need to consider how adding Location Intelligence can improve the contextual accuracy of marketing, sales, and customer service apps and platforms.
- Marketers need to look at how they can capitalize on smartphones’ prolific amounts of location data for improving advertising, buying, and service experiences for customers.
- R&D, Operations, and Executive Management lead all other departments in their adoption and use of Location Intelligence this year.
- Enterprises favor cloud-based Location Intelligence deployments in 2020, with on-premise deployments also seeing new sales this year.
These and many other fascinating insights are from Dresner Advisory Services’ 2020 Location Intelligence Market Study, their 7th annual report that examines enterprise end-users’ requirements and features including geocoding support, location intelligence visualization, analytics capabilities, and third-party GIS integration. The study is noteworthy for its depth of insights into industry adoption of Location Intelligence and how user requirements drive industry capabilities. Dresner Advisory Services defines location intelligence as a form of Business Intelligence (BI), where the dominant dimension used for analysis is location or geography. Most typically, though not exclusively, analyses are conducted by viewing data points overlaid onto an interactive map interface.
“When we began covering Location Intelligence in 2014, we saw the potential for the topic to gain mainstream interest,” said Howard Dresner, founder, and chief research officer at Dresner Advisory Services. “With the growth in visualization and the emergence of the Internet of Things (IoT), incorporating maps and location into business analyses have become increasingly important to many organizations.” Please see page 11 for a description of the methodology and page 13 for an overview of study demographics. Wisdom of Crowds® research is based on data collected on usage and deployment trends, products, and vendors.
Key insights from the study that provides an excellent background on the current state of location intelligence in 2020 include the following:
- R&D, Operations, and Executive Management lead all enterprise areas in adoption with Location Intelligence being considered critical to their ongoing operations. The majority of Marketing & Sales leaders see Location Intelligence as very important to their ongoing operations. The following graphic compares how important Location Intelligence is to each of the seven departments included in the survey:
- 90% of Government organizations consider Location Intelligence to be critical or very important to their ongoing operations. Healthcare providers have the second-highest number of organizations who rate Location Intelligence as critical. The study found that mean importance levels are similar across Business Services, Financial Services, Manufacturing, and Consumer Services organizations and decline further among Technology, Retail/Wholesale, and Higher Education segments.
- Data visualization/mapping dominates all other Location Intelligence use cases in 2020, with over 70% of organizations considering it critical or very important to accomplishing their goals. The study found that the majority of other use cases haven’t achieved the broad adoption data visualization & mapping has. Despite the lower levels of criticality assigned to the nine other use cases, they each show the potential to streamline essential marketing, sales, and operational areas of an enterprise. Site planning/site selection, geomarketing, territory management/optimization, and logistics optimization make up a tier of secondary interest that taken together streamlines supply chains while making an organization easier to buy from. The Dresner research team also defines the third tier of use cases led by fleet routing and citizen services, followed by IoT & smart cities, indoor mapping, and real estate investment/pricing analysis. Despite IoT being over-promoted by vendors, just over 50% of enterprises say the technology is not important to them at this time. The following graphic compares Location Intelligence use cases by the level of criticality as defined by responding organizations:
- R&D leads all departments in data visualization/mapping adoption, reflecting the high level of importance this use case has across entire enterprises as well. Additional departments and functional areas relying on data visualization/mapping include Operations, Business Intelligence Competency Center (BICC), and Executive Management. Geomarketing is seeing the most significant adoption in Marketing & Sales. Operations lead all other functional areas in the adoption of logistics optimization and fleet routing use cases. Dresner’s research team found that R&D’s interest in Location Intelligence, which varies across use cases, may reflect the use of packaged applications as well as select custom development.
- Map-based visualization, dashboard inclusion of maps, and drill-down navigation through map interfaces are the three highest priority features enterprises look for today. These three features are considered very important to between 64% to 67% of leaders interviewed. Layered visualizations, multi-layer support, and custom region definition are the next most important features. The following graphic provides an overview of prioritized Location intelligence visualization features.
- Executive Management, BICC, and Operations have the highest level of interest in map-based visualizations that further accelerate the adoption of Location Intelligence across enterprises. Executive Management also leads all others in their interest in dashboard inclusion of maps and custom map support. Executive Management’s increasing adoption of multiple Location intelligence use cases is a catalyst driving greater enterprise-wide adoption. R&D’s prioritizing the layering of visualizations on top of maps, offline mapping and animation of data on maps are leading indicators of these use cases attaining greater enterprise adoption in future years.
- Four of the top ten Location Intelligence features are considered very important/critical to enterprises, reflecting a maturing market. The most popular (counting, quantifying, or grouping) is critical or very important to 46% of organizations and at least important to nearly 70%. Another indicator of how quickly Location Intelligence is maturing in enterprises is the advanced nature of analytics features being relied on today. Predicting trends and volatility, detecting clusters and outliers, and measuring distances reflect how multiple departments in enterprises are collaborating using Location Intelligence to achieve their shared goals.
- Government dominates the use of data visualization/mapping with a strong interest in site planning/site selection, citizen services, fleet routing, and territory management. Business Services are most interested in using Location Intelligence for Indoor Mapping and IoT & Smart Cities. Geomarketing is the most adopted feature in Higher Education, Financial Services, Healthcare, and Retail/Wholesale. Manufacturing and Retail/Wholesale lead all other industries in their adoption of Logistics Optimization. The following graphic provides insights into Location Intelligence use case by industry:
- Executive Management and Business Intelligence Competency Centers (BICC) most prioritize Location Intelligence applications that have built-in or native geocoding. Enterprises are looking at how built-in or native geocoding can scale across their Location Intelligence use cases and broader BI strategy with Executive Management taking the lead on achieving this goal. Automated geocoding support and street-level geocoding support are also a high priority to Executive Management. Marketing/Sales lead all other departments in their interest in geofencing/reverse geofencing, indicating enterprises are beginning to use these geocoding features to achieve greater accuracy in their marketing and selling strategies. It’s interesting to note that geofencing/reverse geofencing has progressed from R&D in previous studies to Marketing/Sales putting the highest priority on it today. Dresner’s research team interprets the shift to customer-facing strategies being an indicator of broader enterprise adoption for geofencing/reverse geofencing.
- 61% of organizations say Google integration is essential to their Location Intelligence strategies. Google continues to dominate organizations’ roadmaps as the integration of choice for adding more GIS data to Location Intelligence strategies. ESRI is the second choice with 45% of organizations naming it as an integration requirement. Database extensions (30%) are the next most cited, followed by OpenStreetMap (20%). All other choices are requirements at less than 20% of organizations.