ESRI to shift more to private sector

Corporate March 26, 2014 00:00

By Asina Pornwasin
The Nation

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ESRI (Thailand) will focus on the commercial market this year, especially fast-growing consumer goods, to boost Geographic Information System (GIS) revenue by 20 per cent to Bt1.7 billion, of which Bt100 million will come from the FMCG segment.

“We have been expanding to the private market for a while, but this year is the first for us to focus on it. We started, grew and became strong in the government market for many years. Now we emphasise the private market’s FMCG,” general manager Krairop Luangithai said yesterday.
FMCG is the big opportunity among vertical sectors in the commercial market.
This year, it aims to increase the ratio of private to government revenue from 30:70 last year to 35:65. Its strategy is to provide GIS solutions including maps and software to FMCG firms. 
Its map consists of several layers of GIS information from the more than 100 layers available, such as base, demographic, street, satellite, spending power, market potential and density. 
Its private customers are in the telecom, oil and gas, real estate, banking and FMCG industries.
“Not only maps, we also provide total solutions of maps and GIS information and analysis software to help customers be capable of making decisions on business development and expansion,” Krairop said. 
“Initially, we are concentrating on three business modules – sales, marketing and logistics. Our software can work well with other business software platforms including business intelligence, sales and distribution management.” 
It has more than 10 million addresses out of the total of 18 million and more than a million points of interest that cover all roads in Thailand. 
Simon Thompson, director of commercial business for ESRI Inc, said its commercial business worldwide grew 25 per cent annually through the past five years. In the Asia-Pacific region, the business leaped 35 per cent annually in the last two years. Thailand’s market growth runs around 25 per cent. 
“Thailand is the No 1 market in Southeast Asia for us, in terms of market size, market growth and revenue. Within Asia, Japan, Korea, Singapore and Malaysia are the fastest-growing markets,” he said.
GIS is more than a map. It comes with much more data as well as analysis software to help a company make decisions on its businesses, he said. 
“We provide maps and GIS information for every layer. But we also allow our business partners as well as customers to put their own private data on to the GIS map layer.” 
About 70 per cent of MFCG firms worldwide use GIS solutions in their operations, such as in their management, production facility and planning for product distribution. They can improve business efficiency by about 70 per cent on average. 
Leonard Jayamohan, general manager of ESRI Asia-Pacific, said ERSI (Thailand) was also primed as the springboard for Asean markets for ESRI. The company has set up an office in Vietnam and has been collecting GIS information on that country and Myanmar. It is also going to collect and develop GIS information for Laos and Cambodia. 

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