Advantages And Disadvantages Of GIS

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GIS has been improved its functionalities to respond the market requirements. It means that GIS industry has modified GIS capabilities to accept by businesses. One example of these improvements is the “address matching” techniques which is very useful for spatial analysis and mapping in addition a large amount of attribute data linked to customer sales records can be handled by this method. Another example of GIS improvement is the inclusion in software packages which were used to solve the location based problems (Longley & Clarke, 1995); (Birkin, Clarke, Clark, & Wilson, 1996). Digital spatial data growth is another reason for increasing in usage of GIS in business applications (Huff, 1963); (Applebaum, 1965). Undoubtedly the integration…show more content…
Banks start to use GIS initially on the graphical display and mapping of spatial data (for example customers’ addresses) (Tavakoli, 1993); (Less & Gericke, 1994). In the second phase, pioneer banks and financial institutions began to use GIS technology to visualize market situations and analyze data to build models to predict the effect of strategy changes on their business performance (Harder, 1997). The integration of financial data with spatial data in a GIS based system has a lot of advantages for corporations. These advantages are recognized by banks and other corporations. They use GIS as a driver to provide immediate business benefits such as expanding the business area, getting new business, customer caring in customer relationship management systems, and increasing the profit. This transition from functional information to management information is a relatively recent innovation in the retail banking sector (Less & Gericke,…show more content…
(1998) have discussed that companies which provide financial service use the demographic composition of commercial areas as a proxy for socio-economic status and the potential value this has for companies in terms of revenue and profitability (Zhao, 2002). Variables such as population density, income level, age, gender, occupation are important determining factors of market potential (Leyshon, Thrift, & Patt, 1998). In addition, because a large number of customers use the ATMs which are installed near their work places instead of their home, and small firm desire more to do their banking at a branch near their offices so in demand estimation we should consider employment opportunities and the number of businesses in the commercial area of a particular ATM or

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