How LI Work. LI can be created by integrating postal codes, maps, and other geographic data within an EDW. Locations are probably already in existing data stores, but not in a format needed for analytics. By using a geocoding process, postal addresses can be converted into geospatial data for LI. Decision makers can use this geospatial context to make data-driven and fact-based decisions, and respond to opportunities. The following are several scenarions:
- By merging location data with demographic and other business data, companies can create interactive maps that let users drill down to details to details about specific locations.
- Analysts can investigate new relationships to pinpoint the average income in areas where the highest-performing stores are located.
- Retailers can determine how store sales vary by population level or proximity to competitors.
Sources: compiled from krivda (2010) and Zeiss (2011)