The CustomNet service offered in Australia by Telstra is one where a customer can reach the outlet of a business closest to them by dialling a single national number. This service is used extensively by franchise organisations such as pizza delivery, real estate agents, car rental agencies and travel agencies just to name a few. The service operates by each outlet being allocated a list of phone numbers of households in their local area that may place a call to their business. Traditionally these numbers were allocated at an exchange or wire centre level. This created some difficulties as these boundaries, designed to encompass cable runs, rarely reflect the boundary aspirations of the business.
This paper describes how Telstra Spatial Decision Systems is assisting CustomNet clients by giving them total flexibility in the allocation of call catchment boundaries using a GIS approach. The paper explains how the necessary boundary definition, customer location geocoding and reference file generation have all been automated using ArcInfo.
Spatial Decision Systems (SDS) was formed in August 1991 in the National Directory Services arm of Telstra. Telstra through its Research Laboratories, had been experimenting with GIS technology for six years prior to this, and the realisation that Telstra databases held a wealth of commercially valuable geographic data was instrumental in the formation of SDS.
Being within National Directory Services, the provider of the White Pages and Yellow Pages directories, SDS is able to take advantage of the directory data held to produce the paper products. Telstra also provides a strong backing to the SDS consultancy business being one of Australia's largest companies with an annual turnover of $12 billion and a yearly capital investment of $3 billion. Ventures such as SDS demonstrate that Telstra is not just an information carrier but is also a substantial information and IT services provider.
SDS has a mission of providing clients information, analysis and software tools to empower them to make better spatial business decisions. We aim to make GIS technology available to those businesses who have the desire to improve their business through the power of spatial analysis, but who do not want to invest the resources to do it solely "in-house".
SDS' greatest strength lies not in the advanced technology we employ, nor in our extensive databases and computing capabilities, but in the skills of our consulting staff. The staff within SDS bring the following skills into the team; - GIS analysis - Cartographics and map production - Town Planning and Urban Analysis - Linear Programming & Operational Research - Systems Analysis - Database and SQL - Statistical Analysis - Market and Social Research - Demographics - Telecommunications modelling.
One obvious application of utilising directories information through the use of GIS is in the area of Intelligent Network (IN) service provisioning. In telecommunications jargon, IN services are telephone services that take advantage of the computerisation of telephone exchanges to apply various forms of logic to handle call switching. One rapidly developing service is Telstra's CustomNet One3 service.
CustomNet One3 utilises a dedicated national number range (131000 - 132999) and a series of databases to provide a customised and flexible incoming call management service. These capabilities enable organisations to better manage their incoming telephone calls and improve the level of service offered to their customers. Basically, One3 is a number translation service. It terminates calls on specific PSTN or Freecall 1800 numbers, based on the origin of the caller. The most prolific users of the service are the franchised organisations such as Pizza delivery stores, travel outlets and newsagents. It is also used by government instrumentalities such as emergency services and transport authorities. The largest growth market may be association groups such as optometrists, plumbers, doctors and so on, who are beginning to see the value of group marketing.
Traditionally this diversion has been done at the exchange (cable run) level where each exchange is assigned to a particular outlet and when a call is made Call Line Identification (CLI) looks at the first 5 numbers of the callers phone number, knows which exchange the call is coming from and diverts the call to the appropriate outlet.
A typical example of a One3 service presently in use is Pizza Hut's number '131166'. Any Metropolitan resident within Australia can reach the appropriate store by calling this single number. Upon calling the One3 number, the service will identify the store catchment area within which the caller resides. The call is then diverted to the appropriate store.
The One3 service provides many benefits for Pizza Hut: - A single number can be advertised nationally, whilst calls are received locally; - Store boundaries can be designed to meet delivery/distribution needs; - Telephone catchments can precisely reflect historically determined legal franchise boundaries - Pizza Hut gains a competitive advantage over smaller chains and independent stores. - Pizza Hut can control the size of each store's catchment area.
To many organisations, having calls diverted at the exchange level is sub-optimal as the boundaries represent where the cables are located and have no real significance to their business. Therefore catchments made from exchange boundaries may be too large (more than one store in an exchange) or the wrong shape to reflect business needs. This is particularly important if a store guarantees delivery within 30 minutes or its free, for example. The solution to these difficulties is building a diversion file not based around exchanges but around each store's actual catchment area. This requires being able to assign the appropriate phone numbers to each catchment and this is where GIS comes in.
SDS have developed a product called StreetNet to provide this service. As the name suggests, the service builds a diversion file based upon street level catchment creation. Assigning the correct telephone numbers to each outlet catchment is done through the geocoding of the national White Pages database, which contains approximately 8.5 million records.
StreetNet is a service offered by Telstra that allows organisations to have calls diverted to stores based upon their defined business requirements. By allowing diversion at any level, no boundary is too big or too small and if an organisation has a high density of outlets, this can be catered for. These boundaries can be based on metropolitan streets, not just exchange or Postcode areas. StreetNet can even segment streets by house number ranges and street sides if required.
StreetNet is underpinned by a suite of tools developed in ArcInfo which streamlines the provisioning of CustomNet One3 services.
SDS uses the spatial analysis and large data handling of ArcInfo in a number of ways when provisioning the StreetNet service. ArcInfo also plays a major role in the value added services available to customers of the service.
To explain the use of the software in the process, each step will be explained.
The client provides a map with their boundaries drawn on with a marker. If they are unsure whether the boundaries that they currently use are the most appropriate or require boundaries to be created, SDS can assist in their determination and this is discussed later. To convert the boundaries into a digital format, the screen based digitising tool provided as part of ArcTools was modified to suit the requirements of following roads and being able to flip between edit coverages and backcoverages. Each area is labelled and built for polygons and a map provided back to the client for their approval and sign off.
The following instructions are given to clients who are marking up paper plans: - Boundaries are drawn with a black marker; - Each boundary is closed. ie. there are no loose ends; - There should be no discontinuity in the boundaries especially at the map edges; - Each boundary should have a unique number to identify the answer point for that territory. A list of all answer points and the relevant codes should be sent. - If a boundary runs down the middle of a road, this will be taken to mean that the two sides of the road are served by different answer points. If both sides are to be served by the one answer point, then this should be indicated on the map by the use of arrows.
Every three months, the White Pages directory database is geocoded using GeoMatch, a geocoding engine. Geomatch is an engine whereby SDS can do bulk geocoding of customer databases, with cleansing against the White Pages if required. Geomatch is a service that is currently available from SDS and is a result of two years research and development into geocoding technology. It was discovered that a probabilistic approach to matching was required, so SDS and Esri (US) jointly developed a geocoding engine that runs under ArcInfo and significantly improves the "hit rate" that is offered by commercially available software. This has been very successful and we are currently achieving match rates of greater than 90% quality address databases, such as the directories databases. This is 20 - 30% higher than normally expected with Australian base data, a significant improvement when geocoding over 8 million records.
GeoMatch has the capability to geocode large databases, such as the White Pages database. It is geocoded on a quarterly basis due to the fact that there are 1.1 million additions and deletions to the database per annum (275,000 per quarter), and an accurate assignation of phone numbers is required for the service to work optimally, which is why some organisations get complete quarterly updates for their diversion files.
After each record in the database has a location it is ready to be combined with boundary file. The geocoded file contains address, locality, postcode (zip code) phone number and X&Y coordinates.
The location of each record from the directory database is overlayed with the client boundaries to assign each telephone number to an answerpoint (the identifier within the catchment). The result is a file of telephone numbers and answerpoint numbers. All other information is dropped from the file because it is unnecessary for this particular application. This file is then loaded into a computer that identifies the telephone number of the origin of the call, matches it to the diversion file and diverts it to the appropriate answerpoint.
StreetNet is an excellent example of how organisations can use GIS and spatial information as part of the way many are striving to improve the processes of service delivery. Being able to provide a street level diversion service without the utilisation of GIS technology would be a very manual, time consuming process. It would require manually flagging answerpoint numbers to each phone number nationally, which would be close to impossible. Most diversion systems before the advent of StreetNet have been exchange based as the diversion can then be based on number ranges, removing the need for this long process.
Another important aspect of using GIS technology is to assist with development of the diversion file is the value adds that Telstra are able to provide customers.
Through the use of the improved spatial modelling tools available within ArcInfo Revision 7, Telstra, through SDS, can provide leading edge solutions to questions often raised about equitable territory splits, especially relevant to franchise organisations. To be able to provide this service as a seamless value add to the IN diversion places Telstra in a powerful market position in the ever increasing competitive Australian telecommunications market as it offers a point of significant differentiation. The One3 diversion market is particularly hard fought as it provides customers with a service that directly improves their market position, providing levels of usage and goodwill difficult to achieve in this environment.
Boundaries can be developed through consultation with Telstra which consider factors such as an equitable split of population/target market and travelling time for distribution networks.
Store boundaries and catchment areas are critical to the effectiveness of a franchise network. As such, careful planning is required to ensure an equitable split of population or target market per store. Without this equity, or a thorough understanding of the differences between catchment areas, comparison of store performance becomes impossible.
As leading consultants in Business Geographics, Spatial Decision Systems can create boundaries to meet franchise needs without the restriction of set geographical areas. Boundaries can be determined considering: - Drive time for delivery and distribution networks; - Optimised sales networks - Population volume; - Number of households; - Population demographics and lifestyles.
Once Telstra has created store boundaries, SDS can help customers to analyse their catchment areas. A thorough understanding of the variation between catchment areas allows store comparison, the allocation of effective sales targets and highlights new site opportunities.
SDS combines GIS technology and business modelling experience to analyse existing operations and franchise opportunities. This analysis usually describes the entire metropolitan region or an individual site location. This type of analysis is assisted through the use of the digitised store boundaries which have already been developed by StreetNet.
The federation wished to establish a One3 service for its 4000 members. Catchment areas had to be developed, identifying which specific residents should be diverted to each store.
Exchange, postcode and locality based boundaries could not be used as: - Many postcode and exchange areas contained more than one store; - Each store had an existing, permanent territory.
One3 boundaries had to be developed, ensuring that inbound calls originate from each store's existing territory.
The federation provided Telstra with a series of street level paper maps with each boundary highlighted. This was all that was required from the customer. From there, StreetNet took over and implemented the customer's ideal boundaries.
StreetNet used these ordinary paper maps as the starting point. These boundaries were then digitised into the GIS and attributed with an answerpoint number and overlayed with the geocoded directory information. This assigned each address record within the boundary with the correct answer point code. Each answer point code represents the desired destination of any One3 call made from that particular street.
The result was an extremely smooth implementation with minimal work required by either Telstra in the implementation of the diversion service or the Customer.
The federation can now also use their digitised boundaries for further analysis of each catchment area or the entire metropolitan area and the coordination of regular updates of the diversion service.
- Smooth implementation; - Protection of existing store territories; - Ability to undergo sophisticated analysis using digitised boundaries; - Reduced store disruption; - The ability to advertise nationally and receive calls locally.
The customer seeks to create entirely new franchise boundaries, or wishes to restructure existing boundaries. The customer also intends to manage incoming calls utilising the CustomNet One3 Service.
The customer has set criteria that will affect the size and shape of each store boundary, such as: - The driving time and distance for delivery vans to reach customers; - The population volume per catchment area; - The location of competition; - The concentration of the population with particular demographics or lifestyles; - The number of households within a catchment area; - Major landmarks or regulatory restrictions that will restrict expansion.
All, or a combination of these factors, must be considered in order to effectively manage demand and provide an equitable target market split per store.
The customer requires assistance in the development of these boundaries and further integration to a One3 service.
SDS has vast experience in the determination of store locations and catchment areas. Through StreetNet, SDS can easily translate a customer's ideal boundaries into a coverage required for One3 diversion. SDS uses the power of ArcInfo, especially the Network module to perform these tasks.
Spatial Decision Systems can advise the customer of ideal site locations and boundary choices based upon: - The drive time required for delivery vans to reach the customer; - The concentration and location of the store's target market; - The population size in a particular area; - Competitive locations; - Other major landmarks such as rivers, major roads etc.
- With boundaries in a digital format, the One3 service can simply account for major boundary changes; - Each store receives an measurable split of the target market; - The customer can account for future growth and franchise expansion; - The franchisor has a basis for effective store comparison.
SDS can tailor this type of analysis to suit a particular franchise and can track competitive shifts and link key performance indicators to target market volumes etc. In combination with demographic segmentation, lifestyle, income level, ethnicity and whole range of other drivers that affect the outlet's trading area can be analysed and used to target communication methods devised to most efficiently reach the market.
The future of using GIS software such as ArcInfo in the use of providing an improved telecommunications network service appears bright as the technology allows previously difficult tasks to be incorporated at a corporate level in offerings to the market.
Telecommunications companies need to be able to provide a wide range of services to add value to the network services to differentiate themselves from the competition in an ever increasing competitive environment. This is more important as IN become more commonplace, allowing greater flexibility in telephony based offerings to be back ended by high technology value added services.
Telstra recognises that GIS is a technology that can be utilised in many different areas of the telephony market, and as telecommunications company move more into delivery of IT into the future, the role of GIS will continue to expand. The work SDS has undertaken, particularly in using GIS technology to assist its customers in contacting each other, has placed Telstra in a position where it can apply the skills and resources in delivering future product offerings, including the information Superhighway.
SDS has used ArcInfo as its major GIS tool as it provides the flexibility to carry out a range of analysis for various telecommunication and business related situations. Through the development of GIS based products and services, such as StreetNet, SDS are already undertaking work in this area. This will assist Telstra in remaining the market leader in Australia and grow in the Asia Pacific rim in the coming years.
- Spatial Decision Systems and GeoMatch are registered trademarks of Telstra Corporation Limited.
Mr Keith Loutit, Product Manager StreetNet for providing technical and product related input to this paper.
Stephen Owens
Manager, Telstra Spatial Decision Systems
Telstra Corporation (Telecom Australia)
4th floor, 37 Prospect Street
(Locked Bag 27 PO)
Box Hill, Victoria 3128
Australia
Telephone: (+613) 892 9275 (or 9892 9275)
Facsimile: (+613) 892 9266 (or 9892 9266)
E-mail: sowens@ventnds1.telecom.com.au
Adam Game
Manager, Telstra GIS Portfolio Review
Telstra Corporation (Telecom Australia)
4th floor, 37 Prospect Street
(Locked Bag 27 PO)
Box Hill, Victoria 3128
Australia
Telephone: (+613) 892 9267 (or 9892 9267)(
Facsimile: (+613) 892 9266 (or 9892 9266)
E-mail: agame@ventnds1.telecom.com.au