Turning the Tables: 5 Reasons why Geoanalytics is Indispensable to the On-Demand Economy
The storm around startups has finally settled. The skeptics are now retreating from their early opinions, and finally, the world is embracing the on-demand economy culture. What started as an experiment in San Francisco has now become the driving force for enterprises across the globe. Uber was the first disruption in the series of countless path-breaking business innovations. The valuations have arrived, so have the investors, and even the conventional corporate giants are lining up for the cake everyone calls ‘Uber for X’, but is that it? As President Bartlet would command, What’s Next?
The next big disruption in the On-Demand Economy is already here. It’s not an invention, but more of a rediscovery. From the earliest days of humanity, mankind has had a tendency to settle in areas which have been geographically favourable with ample resources. Why should it be any different for the On-Demand culture, especially when geographical distance and cultural distinctiveness have been effectively bridged by technology? Turns out, Geoanalytics, or location-based services, or geospatial analysis, is already bringing a change to the business operations of the On-Demand Economy.
Is Geoanalytics the next pinnacle of innovation in On-Demand economy? Yes, given how it has oversimplified matters for some of the biggest companies like Instacart, Airbnb, Uber, and many more, it is being embraced by more and more enterprises.
The question is, what makes Geoanalytics indispensable?
- Operational Efficiency: Where do we begin? Which area is favorable for operations? Where should the operations be ceased to cut costs? All these questions are answered through geoanalytics as the data garnered helps the enterprise calculate its customer strength in any given area. This can also help in the relocation of warehouses in order to facilitate quicker last-mile deliveries.
- Dynamic Pricing: The surge model from Uber hasn’t gone down well in its market of a potential billion users back in India, so what’s next for enterprises? Well, geoanalytics does make room for dynamic pricing as it helps establish an economic equilibrium between the supply and demand. Unlike Uber’s surge model, the costs don’t only go up from level zero, but can also be reduced instantaneously, thus creating a dynamic pricing structure.
- Force Management: For a greater part of 2016, multiple on-demand startups saw their dusk as they couldn’t manage their ground force effectively. With geoanalytics and a better understanding of customer trends, enterprises can manage their service providers and divert them as and when required. This leads to better allocation of resources which eventually leads to efficient utilization, thus offering better ROI for the company.
- Supply-Demand Conundrum: This could be the biggest takeaway from geoanalytics. On-Demand economy thrives on instantaneous supply and demand. However, as the geography being catered to increases, most enterprises mess up their supply for the appropriate demand. For enterprises dealing in entities like grocery and other utility items, geoanalytics helps in creating the ideal buffer stock for items.
- Going back to the Clientele: With the data garnered through geoanalytics, enterprises can go back to their customers with specific marketing gimmicks. This can vary from season to season, day to weekends, and can help them target a particular geography, demographic, or local area. Retargeting has become an essential aspect of the on-demand economy, and one can expect more and more companies to embrace geoanalytics for the same reason.