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COVID-19: Taking Comfort from the Past
Calling the COVID-19 pandemic the new normal may miss the fact that throughout history, normal is constantly changing.
We should not be quick to call this the new normal. Normal has always been something of an illusion.
The COVID-19 pandemic has altered the world swiftly and profoundly—and will continue to in the weeks and months ahead—but it is valuable to remember the long view.
The urgent challenge is to solve the medical crisis and the now-unfolding impacts to the economy. But as we start to look forward, we should remember that throughout history, the world has found a way through eras of upheaval and even tragedy. Across time, societies have endured terrible hardships that feel novel each time—and sometimes close to unbearable. And each time our resilience is tested, we’ve struggled toward betterment.
Disruptive and terrible moments like this push leaders to think in new ways, mine new sources of information, and change the way they operate—sometimes fundamentally.
As we consider how the COVID-19 outbreak might shape people, organisations, and companies in the years ahead, a look back might offer insight and hopefulness.
Article snapshot: Few decades pass without an event that changes the world. No matter how widespread each event is, its effects are best examined one location at a time.
The Impact of Major Events
Following the Great Depression of the 1930s, people shifted toward frugality. Some adjusted in small ways—by reusing aluminium foil or watching their water usage more closely. Many changed larger habits. By 1940, the savings rate, which had been negative, surpassed 15 percent as people protected themselves against the risk of another contraction. Automakers like GM moved aggressively to accommodate the decrease in household spending, ramping up production and marketing of its low-cost Chevrolet brand. That shift helped lead to a time when nearly every family could afford a car. Still, that change didn’t happen en masse—car-buying habits varied across demographic groups and locations.
During World War II, the military appetite for steel and other metals drove manufacturers to embrace alternate materials for consumer goods. That fed a surge in plastics innovation and production which continued for decades, shaping regional manufacturing economies, inspiring new consumer habits, and altering the environment.
Then in fairly quick succession, major events continued to punctuate what might otherwise have been called normal times: the space race, civil rights struggle, Vietnam War, economic globalisation, and internet-based communications changed society and culture dramatically.
Starting in 2007, the Great Recession severely impacted labour dynamics, driving many middle-skilled workers—in manufacturing, administrative, and similar jobs—out of the workforce. Subsequent studies of location data revealed that US counties with higher levels of income inequality were less able to withstand the economic downturn. The fallout from that disparity continues to influence a patchwork of economic conditions and even voting patterns today.
COVID-19’s effects have been widespread, but by no means universal. Different parts of the world have experienced different rates of infection and impact. In the US, New Jersey had more than 64,000 COVID cases as of April 14, while Maine had fewer than 700. Italy had lost 20,000 citizens to the virus, while in Greece, fewer than 100 had died.
In ordinary and extraordinary times, location shapes what people experience and how they view the world. That reality should be embraced by executives and leaders as they create plans for business recovery in the days and weeks ahead.
In retrospect, the events that make history tend to define our views and societies more emphatically than the “normal” times that pass quietly between them.
What Changes Will Come
At the moment, many business leaders are practising what might be called COVID-19 protectionism—ensuring the well-being of employees, idling non-essential production and services, and planning for recovery when conditions allow.
It has been heartening to see so many of them rally around their employees, customers, and front-line workers. This list of companies taking action is welcome evidence of the business community’s commitment to corporate social responsibility, and a reminder of the resilience that often shines during shared hardship.
As we begin, perhaps warily, to map out recovery plans, it is important to recall the major shifts of decades past, to consider how this pandemic may influence habits and views, and to assess where and how businesses will change as a result. Here are a few examples where this dynamic is already playing out:
Commercial Real Estate and Corporate Offices
Millions of professionals are now working from home, and when COVID-19 shelter-in-place orders recede, some percentage of them will likely become permanent or semi-permanent remote workers. For those who return to the corporate office, things may change, too. Cushman & Wakefield, a top corporate real estate firm, has formed a task force to advise clients on how to set up what it calls “the 6-foot office”—a space that encourages social distancing and better protects employee health.
The push toward more careful space planning is likely to change the CRE industry and corporate offices for years to come. HR planners and corporate leaders have already used indoor location technology to map facilities and understand their asset usage. That same tech will play a central role as they reconfigure offices for a post-COVID reality.
Many companies shifted a large percentage of employees to home-office work in just weeks or months to accommodate coronavirus shutdowns. When executives have more time to assess the long-term options for remote work, they’ll rely on new sources of information, including data on which towns or neighbourhoods have reliable access to broadband service. (see the sidebar for more.) With that location intelligence in hand, some executives might seek creative ways to partner with broadband providers to improve access for people on the wrong side of the digital divide.
Remote Readiness by Location
As the COVID-19 outbreak unfolded, the team at SmartAsset examined occupation data from the Bureau of Labour Statistics to determine which US locations were the most receptive to remote working. The analysis was based on the prevalence of certain occupations in a location, and did not directly account for digital access. Its results are an interesting read—from the finding that Arlington, VA, has the best profile for remote work, to the discovery that Sunrise Manor, NV, is least equipped to make the shift. For data on broadband access across the US, visit this smart map.
A Retail Industry in Flux
Effects of the COVID-19 outbreak on the retail sector have been stunning. Shutdown orders have driven some companies toward the brink, while others have benefited from spikes in online shopping or have found creative forms of contactless delivery to keep customers safe.
Business leaders who embrace new customer expectations during the pandemic are likely to retain many of those customers in the long run. As Gartner’s Amie Song told AdWeek recently, Chinese online retailers JD.com and Tmall grew precipitously in the early 2000s after the SARS outbreak scared many shoppers away from stores and onto computers and phones.
Today, eCommerce is ingrained in our shopping patterns, but it still accounted for just 10 percent of US retail sales at the close of 2019. COVID-19 is changing that dynamic, as evidenced by March’s 74 percent year-over-year increase in online sales. Like social distancing in offices, online shopping habits formed during the COVID-19 pandemic may persist well beyond the crisis. Those preferences will differ in each global location, and businesses that use location data to understand them will find ways to cater to evolving tastes.
In a retail climate where fashions change rapidly, calling something the new normal is a misguided approach. Companies that stay nimble and explore emerging sales techniques may manage to make a positive impression on shoppers long after COVID-19 fades.
Manufacturers Locate Weak Spots
COVID-19 has changed the fortunes of many manufacturers nearly overnight. Late in March, sales of hair clippers rose 166 percent from a year earlier as at-home hair care caught steam. Meanwhile, makers of products as diverse as video game consoles and toilet paper couldn’t keep their offerings in stock at retail outlets. On the flip side, milk producers were dumping excess product as restaurants idled and grocery shoppers opted for less-perishable foods. Automakers reported sharp sales declines, with more likely to come, and some paper mills went on hiatus as shuttered schools and offices undercut demand for paper products.
The pandemic has exposed many truths about manufacturing, but most prominent is the benefit of knowing your supply chain.
When a slowdown or surge like that brought on by COVID-19 hits, manufacturers that use GIS technology know the exposure risk at their tier 2 factories, the status of finished goods in transit, and where demand for products is outside normal levels. Some have built that supply chain awareness over years to cope with natural disasters; more will in the near future.
As they do, they should consider which forms of customer demand will reach beyond the crisis and which may emerge. For instance, following the SARS epidemic of 2003, many Beijing residents bought cars to avoid what they saw as the public health hazards of public transportation. The COVID-19 pandemic could reset transportation attitudes in similar ways. Executives can use GIS to track consumer sentiment in locations worldwide and prepare for consumer changes.
Banks and Financial Services Institutions
Before the COVID-19 outbreak, bank leaders were already becoming savvy students of location information. In the wake of the virus, wise executives will pay greater attention to how location affects their customers.
COVID-19 has exposed glaring inequities across the country and the world. In addition to early indications that the disease disproportionately imperils minority populations, we’re also reminded that many communities lack access to key services, including healthcare, the internet, and banking.
As of early April, the pandemic had produced a 50 percent jump in online banking as home bound citizens turned to mobile devices to manage finances. While some communities have contributed heavily to that surge, others have been left out due to poor digital access, lack of bank accounts, or both.
That may prompt some bank executives to continue rethinking the purpose and format of branches. Consider the innovative Capital One Cafés, designed to resemble coffee shops more than traditional bank branches. Aimed at Millennials who might otherwise shun traditional banking options, the locations debuted in 2017 featuring resources such as community rooms for local nonprofits, free money coaching, and WiFi-equipped meeting spaces.
The COVID-19 experience will likely change banking habits even further. People who had access to mobile services may emerge from the pandemic confident that they can handle finances exclusively online. Others may see ever more clearly the need for in-person options.
Some banks are already experimenting with a middle ground, including the delivery of banking services via customised trucks that visit neighbourhoods on a rotating schedule.
Decisions on whether and where to expand such services will be highly influenced by the needs of individual neighbourhoods, something leading banks have been analysing with GIS technology for years. As pandemic restrictions begin to fade, the demands on banks will continue, but the complexion of their presence in many locations may well change.
Data Analysts Drive Decisions across Commercial Industries
Throughout the COVID-19 crisis, one group of employees has been busy helping executives and colleagues navigate important decisions. Analysts and data scientists have been the news gatherers of this pandemic, using GIS technology to map conditions for many types of business. They’ve used data from inside and outside their companies to deliver intel on the well-being of employees and customers, while making sense of health and business conditions around the world.
At one retailer with a presence in almost every US state, the pandemic immediately raised executives’ interest in smart maps and dashboards. Analysts used GIS technology to map store-level data that had been confined to spreadsheets, creating near real-time maps of store openings, employee availability, and COVID-19 cases in each location’s county.
At a US grocer, the emergency operations centre quickly became the GIS team’s biggest client. Analysts delivered location intelligence on maps and dashboards, creating situational awareness to help executives make key decisions on employee and customer health.
Locating a New Definition of Normal
On the far side of the COVID curve, these teams of location specialists will remain vital, providing insight on how and where businesses can ramp up safely and effectively to meet emerging customer needs.
It may be jarring to think that days of turmoil are closer to normal than we imagine, but it’s also comforting to remember how resilient we can be. And while consumer habits and world views may vary by location, it’s encouraging to know that perseverance is universal.
Additional Resources for COVID-19 Response:
- A podcast on mapping, visualising, and understanding the crisis [listen to the podcast]
- An inventory of some of the ways businesses are protecting employees and customers during the pandemic [read the article]
- A site featuring location technology resources to help with business continuity and recovery [explore the site]
Just Add Ingenuity
Use out-of-the-box ArcGIS tools and a little imagination to help you respond to the challenges of COVID-19.
Use out-of-the-box ArcGIS tools and a little imagination to help you respond to the challenges of COVID-19
Ingenuity is emerging as one of the most powerful tools for combating COVID-19.
Right across the UK, organisations large and small are thinking laterally and coming up with creative ways to use the resources they already have to help improve the nation’s response to this virulent disease. Whisky manufacturers are repurposing their supplies of alcohol to make hand sanitisers; automotive and aerospace manufacturers are using their production lines to make ventilators; and teachers are using equipment in design technology classrooms to make protective face masks for clinicians. Who would have thought this was even possible just a few weeks ago?
The speed at which COVID-19 is spreading throughout communities, countries and continents means that there simply isn’t the time to develop new technologies, specify and procure new materials and learn new skills. Organisations therefore need to be able to take advantage of what they already have, along with readily accessible, out-of-the-box tools that are easy to use and quick to deploy.
Esri’s ArcGIS includes a host of easy-to-use, web-based and mobile software tools and bespoke solutions that can be put into action very quickly, straight out-of-the-box, without the need for custom development. Now free of charge to organisations that want to use ArcGIS software and solutions as part of a COVID-19 response initiative, these highly versatile tools can help organisations address some of the most pressing challenges that this crisis has presented so far. All organisations need is a little imagination – or ingenuity – to see how they can apply this geospatial analysis and visualisation software to the specific challenges they face.
Meet the needs of vulnerable people
Voluntary groups, local authorities and healthcare organisations urgently need to pinpoint the locations of vulnerable people within communities and then match them with the nearest volunteers who are available to help them or support services. One of the world’s largest humanitarian organisations, American Red Cross, uses ArcGIS to identify the locations of people displaced from their homes following storms and floods, on interactive digital maps. It can then direct emergency food and medical supplies to the right locations as quickly as possible. Teams working hard to reduce fatalities from COVID-19 can use ArcGIS in the same way to create an interactive map of vulnerable people and ensure they receive the best possible support to keep them safe.
See the American Red Cross presentation from the Esri UK Annual Conference 2019.
Improve the effectiveness of volunteers
Having had an overwhelming response from people who are prepared to volunteer during this crisis, local authorities and charities now need to ensure everyone makes a really effective and valuable contribution. Much can be learned from the pioneering work of a leading conservation charity, which is currently using ArcGIS mobile solutions in a series of pilot projects to enable its volunteers to submit information to a central portal using their smart phones. Similar ArcGIS apps can be rolled out very quickly, allowing large numbers of volunteers to share information about the specific needs of the shielded and most vulnerable people privately and securely, as well as collect and submit information to help ensure residents get the right support during isolation.
Monitor the rapidly evolving situation
Every day, there are new COVID-19 cases, in different locations, fresh requests for help from the vulnerable and, sadly, additional deaths. ArcGIS provides a way for people to monitor this rapidly evolving situation on interactive maps, so that health advice, volunteer-led support services and emergency care can be directed to the right places, at the right time. Esri ArcGIS Dashboards, like those currently used by large utility companies to respond to emergency call outs, can be quickly set up, providing local authorities, healthcare trusts and voluntary organisations with a real-time overview of the crisis and the insight they need to make rapid, well-informed decisions.
With every day that passes, the challenges relating to COVID-19 are multiplying. The challenges above will not be the only ones that society needs to resolve and no one can truly anticipate what will happen next. However, ArcGIS has the versatility to help all kinds of voluntary groups, public and private sector organisations, the armed forces and government to gain a better understanding of people at risk, the spread of the disease, the locations of support services and the priority need for resources. It’s ready to go, straight from the box, and it’s free in this crisis. So all you need is a little ingenuity to discover how it can help you and others to make the best possible decisions and safeguard lives.
To learn more about the resources available to support your response to COVID 19 please visit out website where you can register for free software. https://www.esriuk.com/en-gb/covid-19/overview
Miles Gabriel - Esri UK
Miles Gabriel is currently leading Esri UK’s COVID-19 Disaster Response Programme. He is a passionate geospatial data specialist who focuses on helping customers realise the benefits that geography and location can bring to all aspects of their business.
How Businesses Are Bringing Clarity to Coronavirus Response
Business leaders can use location-specific data to guide their employees and customers amid coronavirus and COVID-19 uncertainty.
In a time of crisis, accurate data and quick insight are essential for a meaningful business response. As the novel coronavirus disease (COVID-19) spreads, companies are using location technology to help executives, employees, partners, and customers navigate effectively.
Business leaders are seeking clarity in a situation that changes hourly and varies widely across locations. Geographic information system (GIS) technology is helping them—and their employees and customers—understand the coronavirus reality and make decisions quickly.
COVID-19 Response Tactics
In the private sector, GIS professionals are quickly shifting their focus—from traditional projects like analysing customer demographics and assessing prospective store locations—to creating resource sites and applications that guide people through the COVID-19 outbreak.
This site equips GIS professionals with datasets and resources to build effective dashboards for navigating the pandemic. (Editor’s note: A business-focused version of this resource will go live soon. When it does we will update the links here.)
To manage uncertainty caused by coronavirus, GIS teams are using maps, dashboards, and other tactics to support executives, employees, customers, and the public:
- One global manufacturer created GIS-based dashboards that monitor the status of production facilities, distribution centres, and supply chain partners. This information helps decision-makers maneuver around disruptions and keep critical supplies flowing, much as it has in natural disasters.
- A US-based retailer quickly developed a GIS dashboard to guide its COVID-19 response. The dashboard is powered by a smart map and displayed on big screens in the corporate office, allowing executives to quickly view store openings, virus cases, and employee status. Executives use that insight to adjust resources and policies as circumstances change.
- A global bank is finding new ways to help customers access services. Bank analysts are using GIS to assess customer locations and drive times. With that insight, the website and mobile app can direct customers away from areas with higher COVID-19 incidence and toward services in safer locations.
- One of the largest retailers in the world is quickly building GIS apps for customers, the public, and health officials. These smart maps deliver intuitive views of store openings and closings, testing sites, emergency supplies, and more.
- A mid-sized tech firm with a global services division spun up a mobile app that allows its consultants to share their location and working status, creating a map for executives to see where and how many resources they have available to assist clients.
Other data layers an executive might map include state and local shelter-in-place orders, online sales orders and pickup locations, and optimal delivery routes.
Many of the above companies quickly deployed lightweight mobile apps for global facilities and offices. Regional managers use the apps to note the status of production, employee health, and other important metrics. That data is added in real time or near real time to smart maps at headquarters so the company can communicate status reports to customers and the public.
Finding Reliable Data During the Pandemic
Businesses, health officials, and governments are working together to address the public’s medical and everyday needs. That effort relies heavily on accurate data.
GIS acts as an information hub, connecting organisations to authoritative data sources and helping them make sense of their operations on a map. The Johns Hopkins map of COVID-19 cases, for instance, is built on GIS technology, and has been incorporated into business dashboards to bolster COVID-19 awareness.
GIS technology is also a platform for data sharing. At this GIS resource site (the same site mentioned earlier in this article) companies can connect to authoritative data sources, including:
- Healthcare facility locations
- The location and number of hospital beds
- Current count and location of COVID-19 cases
- Population demographics
- Social vulnerability by location
In addition, companies like Walmart have created public dashboards with information on store openings and closings. A GIS team can add these and other datasets to information sites. With that trusted information situated on a map, employees, customers, and the public can quickly find resources to help them through the crisis.
Most companies already use the GIS technology that powers these maps, apps, and resource sites. By asking GIS professionals to contextualise critical information on COVID-19, business leaders are seeing more clearly during these difficult times.
Additional Resources for COVID-19 Response
How Your GIS Department Can Respond to COVID-19 [via Esri]
Rethinking Business Resilience in the Midst of the Coronavirus Outbreak [via Forbes, Esri]
Supply Chain Recovery in Coronavirus Times [via McKinsey]
COVID-19 Learnings for Consumer Goods [via Cognizant]
9 Maps That Show Which Areas Could Be More Vulnerable to the COVID-19 Pandemic [via Fast Company]
2020: Six Predictions for a Shifting Business Climate
Business trends that will dominate 2020 and beyond begin with customer centricity, rely on automation, and produce better business strategies.
Business trend prediction can be notoriously difficult, but corporate leaders who pay close attention see signs of what’s to come. Here, we asked thought leaders to weigh in on the future of business and the role location intelligence will play in tomorrow’s shifts, from urbanization to AI-based automation, climate change to customer power.
Climate Change Stokes Business Change
Grant Mullins,
Vice President of Spatial Intelligence and Analytics,
Regions Financial Corp
Climate change isn’t just on the horizon, it’s affecting us today. And companies need to know how to deal with the changes it brings. The connection between climate change and ESG—environmental, social, and governance risk—will likely be the next major location-based challenge we’ll encounter here at Regions.
Our ability to quantify the risks of climate change—and tell a visual story about how the company is reducing and mitigating those risks—will be a major asset, especially as boards and shareholders become increasingly vocal about expectations for ESG.
Broadly speaking, location intelligence is becoming ingrained in our daily customer centric culture at Regions. Our understanding of consumer habits and patterns will continue to inform how we put our customers first. Location will play a role in everything we do for our customers, from how we market our products and services to how we respond to environmental, social, and governance risk.
Customers Set the Agenda
Marianna Kantor,
Chief Marketing Officer,
Esri
In recent years, customers have come to understand their own deep influence over companies’ strategic agendas. In the years to come, businesses that make customer experience (CX) a top priority will thrive. Influential executives are taking a holistic view of how customers interact with their brand—understanding that it encompasses every type of engagement including marketing, point-of-sale, service, and support.
To better understand customers, industry innovators will leverage new, anonymized data on consumer behaviour. And since the vast majority of that data will be tied to specific locations, savvy executives will use location technology to analyse and understand customer preferences. The most influential CX trend in the next few years will be a focus on what customers want and where they want it.
Predictions Improve
Jay Theodore, Chief Technology Officer,
Enterprise Technology Group,
Esri
If we want to predict the future of business, we should focus on the future of prediction. Every company wants to know what’s ahead, adjust accordingly, and get an edge on the competition. The shrewd ones will take full advantage of predictive artificial intelligence applications, including machine learning and deep learning. This represents the next stage of digital transformation for many companies.
We’ve seen executives across industries embrace AI as a way to understand the state of their operations. In some cases that means analyzing call centre logs to identify which service complaints are common in which locations. In others, it’s using AI to perform image analysis on competitor locations or far-flung company assets. And they’re not just doing it once; they’re automating the process, scaling the operations, and letting the model learn and improve future predictions.
What only a select group of executives grasp—but more soon will—is AI’s ability to analyse this and other data to see what the future holds for a business. One of the most compelling business cases in the next few years will involve predicting how much revenue a new store will generate in a specific location. This convergence of AI and location intelligence will help bricks-and-sticks companies and digital upstarts plan growth strategies more precisely, and minimize risk in the process.
Demand Grows for Sustainable Choices
Lindsey McDougall,
Electric Vehicle Program Manager,
Austin Energy
As sustainability becomes a mainstream concern, interest in electric vehicles will grow. Businesses with a role in filling that demand will create ways to serve new and existing customers.
At Austin Energy, we are working to identify underserved populations for electric vehicle charging stations powered by renewable energy—including low- to moderate-income communities and areas without adequate access to them. Once we identify those areas, we will customize our programs and outreach to those residents by using location-specific demographics and other data.
We will also enhance our demand response programs by analyzing vehicle telematics to better understand the demand for electric vehicle charging. And we will prioritize charging station maintenance and station upgrades based on location and usage analytics.
Adapting to Urban Growth
Cindy Elliott,
Commercial Industry Lead,
Esri
Increasing urbanization will play a substantial role in shaping business strategy. More than half of the world’s population lives in urban areas, and in just three decades that proportion will reach nearly 70 percent. In raw numbers, that’s an additional 2.5 billion people calling cities their home—and nearly 90 percent of this growth will be in Asia and Africa.
We already see smart companies anticipating this trend. Nike, for example, has said that over the coming years, 12 cities—all but two outside the US—will account for 80 percent of the company’s growth.
To understand and leverage this demographic shift, businesses will use location intelligence to tailor strategies for specific cities. For example, rather than a US business plan or even a Southwest regional plan, they’ll adopt a Dallas strategy or an Amsterdam strategy. This kind of local planning will require a detailed understanding of how consumer preferences vary from city to city.
Those same businesses are also facing pressure to compete with Amazon and the “right now” economy and stay mindful of their environmental impact. This means they’ll have to figure out how to get products and services to their customers today—or even within the hour—with fewer emissions. Location intelligence will help companies address these tactical problems and inform larger strategies for an urbanizing world.
Automating Business with AI
Omar Maher,
Director of Artificial Intelligence,
Esri
If we’re predicting the future of business operations and strategy, two terms come to mind: artificial intelligence and automation. Advances in machine learning and deep learning are making it possible for AI to process thousands of variables to make predictions, as well as extract insights from complex data such as imagery, video, and text. And all these processes can be automated.
What companies will discover is that automation, combined with location intelligence, can provide unprecedented levels of insight. For instance, by leveraging the exploding amount of human movement data available, businesses can understand the character of cities and neighbourhoods with new levels of specificity. They can then use that knowledge, along with thousands of variables, to make accurate predictions regarding the best areas to open stores, craft effective marketing campaigns, and even choose the optimal product assortment or promotions for a given area.
Automation will also simplify the analysis companies routinely perform—and help them scale that insight quickly. One utility company that used a location-based AI model to analyse lidar data, as well as automate asset detection and extraction, saved 50,000 hours annually. Oil and gas companies, fast-casual restaurants, agricultural firms, and others are beginning to understand their competition by automating AI-based programs that sift through thousands of satellite images of specific facilities and locations. These pioneers will achieve and enjoy a competitive edge for years to come.
This article was originally published in the global edition of WhereNext.