Information Systems in Organizations

GM Uses GIS to Increase Sales

http://techpageone.dell.com/business/how-gm-uses-big-data-to-generate-sales/

General Motors (GM) is using big data analytics, specifically Geographic Information Systems (GIS), to assist in making business decisions. Geographic information systems create, store and analyze data that pertains to geographic information. For example, GM uses the ArcGIS system by ESRI which tells GM where their customers live, how far they are willing to drive to purchase a vehicle, and if two dealerships are overlapping geographically regarding their customer bases. GM knows who buys their luxury brands and where they live which allows GM to figure out where to put dealerships that can fulfill those specific wants and needs. The ArcGIS also helps GM to better market its brand through ads. “By feeding detailed demographic and spatial data to marketing, the automaker can then direct its ad spend to the right areas.” General Motors uses GIS to better fulfill their customers’ needs, to cut down on wasted spending, and ultimately to increase sales.

 Discussion Questions:

 1: Do you think that the use of GIS is an invasion of consumers privacy?

2: Do you think GIS benefits just GM, or do you think there are benefits to the consumer as well?

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