How the Internet has Changed Economic Development
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The document discusses how the internet has transformed economic development, highlighting the shift from capital access to information access as the primary barrier to growth. It emphasizes the importance of data in decision-making for economic development organizations (EDOs) and suggests leveraging online tools and social networks to enhance local business growth and visibility. The document also underscores the necessity for EDOs to innovate and adapt to stay relevant in a changing technological landscape.
How the Internet has Changed Economic Development
- 1. How the Internet has Changed Economic Development and How You Can Benefit Russell Riblett Director of Sales rriblett@gisplanning.com GISplanning.com ZoomProspector.com SizeUp.com
- 2. • Develop and implement economic development website programs using geographic technology • Inventor of first web-GIS ED technology in 1998 (Wall Street Journal) • Offices in CA, AZ, NC and Montreal • 250+ client implementations. 42 states. Majority of 100 largest cities in the USA from NY to CA and AK to FL.
- 3. Fastest growing private companies in the USA 1,922nd fastest growing company in USA 143rd fastest growing software company in USA
- 4. A better model for your online economic development Corporate Real Estate Media & Magazines State Economic Development Social Media You Mobile National Site Selection Advertising Economic Development
- 5. “In the 1980s the barrier to economic development was access to capital. Today, it’s access to information.” Denise Fairchild President/CEO Community Development Technologies Center & Special Advisor for South LA Investments to Mayor Antonio Villaraigosa’s Office
- 6. Moneyball concepts • Traditional wisdom of baseball insiders during the last century is subjective and often flawed. • Stolen bases, RBI, and batting averages are relics of 19th century statistics. • A’s would use better indicators to compete with big $ teams: On-base and slugging %. • 2002 A’s budget = $41M, Yankees = $125. • Staying ahead of the curve requires an outsider’s view and increasingly better data analysis. • Today, the Mets, Yankees, Padres, Cardinals, Red Sox, Nationals, Diamondbacks, Indians, and Blue Jays have have full-time data analysts.
- 7. • All successful sports teams use data to evaluate and project performance. • But that was actually small data: small data sets with basic math – addition, subtraction, multiplication, division. • Yesterday’s advantage is today’s new normal. Today, “Big Data” is the new competitive advantage. • What does today’s Moneyball look like?
- 8. Today’s Moneyball • Measure everything. • Which players match up? • Which play to use in each scenario depending on the time of game, who is in the game, etc. • The computer informs and guides the decisions of coaches and managers. • Pervasive: this will be everywhere in the next few years. Think the rich dads in Silicon Valley aren’t going to make this available for their kid’s soccer team?
- 9. Big Data Moneyball is for more than just sports. It’s for every industry. It’s for economic development. It’s for you. …that is, if you want to win.
- 10. The companies and EDOs that will succeed are those that embrace data. • And not just any data, but the MOST and BEST data. • The more data you have and use, the more you WIN.
- 11. All industries are getting disrupted by the Internet
- 12. How will this change your Economic Development Agency?
- 13. What happened? • Disruptive tech changes how info is accessed • Change to all industries • Business-as-usual = ruin • Adopt tech early = advantage • ED that doesn’t provide info gets bypassed
- 14. Do you get value for what you pay these people? Are they worth it? (page 74) • Car salesmen • Insurance brokers • Head hunters • Advertising agencies • Travel agents • Real estate agents
- 15. According to Jeff Jarvis: • Real estate agents are more distrusted than tabloid writers • “Eliminate advertising. Or at least fire your ad agency.” • “…travel agents (oh, sorry, they’re already nearly extinct.”
- 16. Disintermediation • Old = information middleman • Present = disintermediation + transparency • New = add value + prosper
- 17. Choices • Stay the course = irrelevance • Reinvent = give it away so they come to you
- 18. The new model for EDOs: Role Old New Information Gatekeeper Distributor Relationship Broker Connector Marketing Say it Be it Middleman Leader Chamber Staff © GIS Planning Inc.
- 19. Past > Present > Future
- 20. We don’t all live in the present We don’t present Past Present Future
- 22. Marketing & Communications (Old Way) Advertising Brochures Site selection information Meeting Businesses Direct Mail Familiarization Tours Special Events Newsletters E-mail Media & Public Relations Telemarketing Website Videos (VHS or DVD) Press Releases Trade Shows
- 23. Econ. Dev. Moves from Offline to Online Offline Online Website E-mail Blog Social Media Site selection GIS assistance Videos News Releases Newsletters Media & Public Relations Advertising Meeting Businesses Special Events Telemarketing Familiarization Tours Trade Shows Brochures Direct Mail
- 26. 4 Solutions for EDOs to Leverage the Internet to increase the organization’s value Foster Economic Development Grow Local Businesses 1. Foster economic development Leverage networks 2. Leverage socialSocial Maximize Networks 3. Grow local businesses Your Website Visibility 4. Maximize Your Website Visibility 5. Influence policy 6. Expand members website visibility
- 27. 4 Solutions for EDOs to Leverage the Internet to increase the organization’s value Foster Economic Development 1. 2. 3. 4. 5. Grow Local Businesses Foster economic development Leverage Social Maximize Leverage social networks Networks Your Grow local businesses Website Influence policy Visibility Expand members website visibility
- 28. The way of the dinosaur • “I don’t publicly give out information about my community because businesses need to call me so I can explain it to them.”
- 29. Reality Because they don’t give the information out, they aren’t going to get called at all.
- 31. National Survey of Economic Dev. Marketing Effectiveness Marketing Strategy Website Out-of-Town Meetings with Businesses Site Selection Consultants and Familiarization Tours Public Relations Special Events E-Mail Social Media Targeted Lead Development Databases Trade Shows and Conferences Slogans, Logo and Graphic Identity Online Videos (YouTube, etc.) Online Advertising Company Blog Brochures Direct Mail Print Advertising TV/Radio Advertising Videos (VHS, DVD, etc) Telemarketing Source: Economic Development Marketing. 2013. Ubalde & Simundza. Rating Effective 82% 74% 68% 65% 60% 50% 47% 42% 42% 41% 32% 31% 21% 21% 19% 17% 11% 10% 5%
- 32. EDOs allocate most money to websites Marketing Strategy Website Trade Shows and Conferences Out-of-Town Meetings with Businesses Print Advertising Brochures Special Events Public Relations Site Selection Consultants and Familiarization Tours E-Mail Direct Mail Online Advertising Slogans, Logo and Graphic Identity Targeted Lead Development Databases TV/Radio Advertising Social Media Online Videos (YouTube, etc.) Videos (VHS, DVD, etc) Company Blog Telemarketing Source: Economic Development Marketing. 2013. Ubalde & Simundza. Average Budget Allocation 17% 12% 10% 10% 9% 8% 8% 6% 5% 3% 3% 3% 2% 2% 2% 1% 1% 0% 0% Rating Effective 82% 42% 74% 17% 21% 60% 65% 68% 50% 19% 31% 41% 42% 11% 47% 32% 10% 21% 5%
- 33. Most Valuable Website Features Website Features Source: Economic Development Marketing. 2013. Ubalde & Simundza. ED Rank Important Land/sites and buildings inventory Labor force (availability and wages) Demographic reports Infrastructure (utilities and transportation) Maps Major industries or business/industry clusters Staff directory and contact information Incentives Major employers GIS mapping tools for site selection analysis assistance Business assistance services/how to start a business Quality of life Employment training programs Testimonials and success stories Hyperlinks to other organizations News about community (past or present) Social media integration Comparisons to other areas Business list Formatting option for mobile devices/mobile apps Transactions Videos User-generated content 91% 91% 90% 86% 85% 83% 83% 81% 80% 77% 74% 73% 70% 67% 67% 60% 60% 55% 53% 51% 48% 33% 24%
- 34. Website solution that has all these features Website Features Source: Economic Development Marketing. 2013. Ubalde & Simundza. ED Rank Important Land/sites and buildings inventory Labor force (availability and wages) Demographic reports Infrastructure (utilities and transportation) Maps Major industries or business/industry clusters Staff directory and contact information Incentives Major employers GIS mapping tools for site selection analysis assistance Business assistance services/how to start a business Quality of life Employment training programs Testimonials and success stories Hyperlinks to other organizations News about community (past or present) Social media integration Comparisons to other areas Business list Formatting option for mobile devices/mobile apps Transactions Videos User-generated content 91% 91% 90% 86% 85% 83% 83% 81% 80% 77% 74% 73% 70% 67% 67% 60% 60% 55% 53% 51% 48% 33% 24%
- 36. Contact Made by Site Selectors by Stage Contact an EDO 100% 97% 33% advantage for EDO with required website content 90% Visit EDO website 92% 90% 83% 97% 91% 89% 80% 66% 70% 74% 60% 49% 56% 50% Use an EDO website 40% 32% Contact an EDO staff person 37% 30% 23% 20% Initial site selection search Developing a long-list Evaluation/analysis of a long-list Narrowing options to Analysis of short-list a short-list Confirm information gathered Source: National Survey of Corporate Real Estate Pros and Site Selection Consultants by GIS Planning . © 2012 Client requires EDO contact
- 37. Can my business succeed here? 1. Community Site Selection 2. Property Search 3. People 4. Business
- 38. 1. What is the right community for my business?
- 39. Define Communities based on people, labor force, transportation or incentives
- 40. Community results base upon user defined criteria
- 42. 2. Is there available property for my business?
- 43. User-defined search for sites and property based on location, use & size
- 44. Draw where you want to search on the map
- 45. Matching properties are shown in a comparison list & on the map
- 46. Drill down into individual property report to see the details
- 48. 3. Are the right people available within a reasonable distance?
- 52. Roll over “Chart” to see pie graph of demographics
- 53. 4. What about the other business in the area? • • • • Competitors Partners Customers Suppliers
- 55. Competition & Synergies Identify Industry Clusters
- 56. Pick any category, like Construction
- 57. And only Construction businesses are displayed
- 58. Obtain more information by visiting the provided link
- 59. Geographic Advantages • Zoom, Measure, Street, Terrain, Earth Views • Move the map in any direction • Turn “Layers” of Information on/off – – – – – – Aerials Airports Colleges Flood Zones Golf Courses Hospitals – – – – – Parks Railroads Schools Water Zip Codes
- 61. Compare Results
- 63. Use Google Earth
- 65. Show Colleges
- 66. Show Railroads
- 67. 4 Solutions for EDOs to Leverage the Internet to increase the organization’s value Foster Economic Development 1. 2. 3. 4. 5. Grow Local Businesses Foster economic development Leverage Social Maximize Leverage social networks Networks Your Grow local businesses Website Influence policy Visibility Expand members website visibility
- 69. Do you really understand your network of relationships? The hidden value isn’t the network you know. It’s the network they know.
- 76. Publication Link Tweets Facebook Shares Comments Yahoo News http://yhoo.it/94AF1t 15 40 22 Yahoo Finance http://yhoo.it/cY3V3I 125 2011 706 Ars Technica http://bit.ly/bC6rGo 90 240 61 CNN http://bit.ly/dmDooD 0 1219 186 Engadget http://bit.ly/b1uL7N 459 894 258 Huffington Post http://huff.to/c7HxYU 1326 86 105 GigaOM http://bit.ly/bhfld4 82 16 5 2197 4506 1343 Totals Total Tweet Count Twitter Reach 5,302 Chattanooga tweets 9.8 million impressions (24 hrs)
- 77. 4 Solutions for EDOs to Leverage the Internet to increase the organization’s value Foster Economic Development 1. 2. 3. 4. 5. Grow Local Businesses Foster economic development Leverage Social Maximize Leverage social networks Networks Your Grow local businesses Website Influence policy Visibility Expand members website visibility
- 78. Small & Medium Size Business $250,000,000 / year 0.01% 99.99% Big Biz
- 79. Information & Biz Intelligence Big Biz Small & Medium Sized Biz
- 80. Dept. of Commerce Best Practice for Businesses Source: http://docbusinessapps.challenge.gov/
- 82. Vint Cerf Chief Internet Evangelist Google Vivek Kundra Vice President Salesforce.com Tim O’Reilly Founder and CEO O'Reilly Media John Bryson Secretary of Commerce (Former) Sheryl Sandberg Chief Operating Officer Facebook Steven Van Roekel Federal Chief Information Officer
- 91. Enter your industry and your city
- 92. Quickly summarize how you “size up” against the rest of your industry
- 94. See the best zipcodes in which to See the best zipcodes in which to advertise based on industry advertise based on industry performance in your region performance in your region
- 98. “Market research and analysis is critical for the success of any small business owner or entrepreneur. Tools like SizeUp deliver data right to the fingertips of business owners to help make smart decisions and have the greatest opportunity to start, grow, compete and succeed. In today’s challenging economic environment where small businesses create nearly all net new jobs in the U.S., help for small businesses is more important than ever before.” - Karen Mills, SBA Administrator
- 127. Demographic Reports are available for a place, around an address, or for a custom boundary
- 129. Visualize any variable on the map by clicking on it
- 130. Run a report for a custom region
- 131. Consumer Expenditures report for a custom boundary
- 132. Switch to chart view
- 134. Labor force report by drivetime around an address
- 136. 4 Solutions for EDOs to Leverage the Internet to increase the organization’s value Foster Economic Development 1. 2. 3. 4. 5. Grow Local Businesses Foster economic development Leverage Social Maximize Leverage social networks Networks Your Grow local businesses Website Influence policy Visibility Expand members website visibility
- 139. How EDOs Get Stagnant and What to Do About it.
- 140. Embracing the opportunity of the Internet is about welcoming innovation and challenging orthodoxies… so now it’s time to talk about those things
- 141. Innovation /in-uh-vey-shuhn/ Noun 1. the creation of value for customers that either meets new/undiscovered needs or serves old needs in new ways. 2. something newly introduced, such as a new method or device such as more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. Synonyms: revolution – modernization – improvement- advance
- 146. It’s not about ideas It’s about making ideas happen. It’s the challenge of adoption & implementation
- 147. Orthodoxies /(ôrth-dks)uhn/ Noun 1. Custom, practices, or belief. 2. Adherence to accepted norms, more specifically to creeds, especially in religion. 3. Unstated assumptions that go unquestioned. Entrenched “wisdom” that no one thinks to change. 4. from Greek orthos ("right", "true", "straight") + doxa ("opinion" or "belief", related to dokein, "to think”) Synonyms: unoriginal – conventional – traditional - faith
- 148. What is a bookstore? Describe one.
- 149. “All of us are prisoners, to one degree or another, of our experience.” - CK Prahalad and GaryHamel Competing for the Future
- 150. Different orthodoxies • Internal – Embedded in company culture. – Hardest to change. – Previously defined company success. – Ford Motor: don’t ask for help, only discuss good news • External – What markets and industries believe. – This makes them vulnerable to outside disruption. – Southwest: no hub-and-spoke. Customer service. Concept from: “Flipping Orthodoxies: Overcoming Insidious Obstacles to Innovation by Bansi Nagji and Helen Walters
- 151. How to innovate & challenge orthodoxies 1. Be open minded and intentional about challenging orthodoxies. (New and younger people are best at this) 2. Ask “Why not?” regularly. Don’t just find the problem. Find the solution. 3. Look outside your industry market. 4. Be a credible heretic. Acknowledge why there is an orthodoxy and then challenge it in a positive way. Also, orthodoxies only change from the top down. 5. Recognize innovators. Rewarding them for their work. Reward their effort if they fail. Concept from: “Flipping Orthodoxies: Overcoming Insidious Obstacles to Innovation by Bansi Nagji and Helen Walters
- 152. OK, but really, how do you do it? For each orthodoxy: • Why does it exist? • Why is it hard to eradicate? • What cases or examples (from any industry) show us a different way? • What could it look like if you flipped it?
- 154. Failure is a certainty. “Success is 99% failure.” - Soichiro Honda
- 155. What motivates you? Focusing on failure is the wrong motivation
- 156. The world will continue to innovate and change
- 157. Will your community and organization be better off if you are leaders or followers?
- 158. New Ideas
- 161. The moment when you are ready to quit is usually the moment right before the miracle happens. Don’t give up. Try new things. Make mistakes. Suffer public failures. Emerge on the other side with success.
- 162. • Michael Jordan – Cut from H.S. basketball team locked himself in his room and cried. • The Beatles – rejected by Decca Recording Studios who said “we don’t like their sound” “They have no future in show business.” • Steve Jobs – at 30 was devastated and depressed because he was kicked out of the company he founded. • Walt Disney – fired from newspaper for “lacking imagination” and “having no original ideas” • Oprah Winfrey – demoted from her job as news anchor because she “wasn’t fit for television” • Albert Einstein – couldn’t speak until almost 4, his teachers said he would never amount to much. • Henry Ford – 1-1/2 years after starting first venture to build a motor car the venture was dissolved because stockholders didn’t have confidence. • Richard Branson – student magazine failed after he dropped out of school to start it so he started mail order music which enabled him to open Virgin Music store. • J.K. Rowling – Harry Potter books rejected my numerous publishers for reasons like 'it was far too long for a children's book' or because 'children books never make any money'. BTW: when she started she was a divorced single mum on welfare. If you’ve never failed you’ve never tried anything new
- 164. “Change is not necessary. Survival is optional.” - W. Edwards Deming
- 165. Closing advice Question how hard you are really working at creating innovative change.
- 167. “Only those that risk going too far can possibly find out how far one can go.” - T.S. Elliot
- 169. How the Internet has Changed Economic Development and How You Can Benefit Russell Riblett Director of Sales rriblett@gisplanning.com GISplanning.com ZoomProspector.com SizeUp.com
Editor's Notes
- #30: What these economic developers don’t realize is that because they don’t give the information out, they aren’t going to get called at all. Instead of adding value to companies these economic developers are hindering economic growth in their communities.
- #32: Websites were againrated the most effective marketing strategy in 2011, with 82% rating it as effective. followed by…
- #33: EDOs gave their highest budget allocations to websites. While this position was not a change from the last survey, the actual percentage of the budget given to websites has risen slightly.
- #71: Business is about relationships. Linkedin enables our client to see their relationships with employees at the target company. In the case of General Atomics, I have two connections to individuals at the firm.
- #82: The Dept. of Commerce was looking for online solutions to create jobs, support businesses, and grow the US economy. So this spring, they issued a challenge to developers to build applications that would support American businesses in innovative ways.
- #83: The DOC enlisted the help of some of the foremost experts in the Internet and businesses to find the best solutions. These people included: Vint Cerf, Chief Internet Evangelist at Google. He actually did help invent the Internet. Tim O’Reilly, Founder and CEO of O’Reilly Media, and the person who invented the term Web 2.0Sheryl Sandberg, COO of Facebook, and one of the most powerful women executives in Silicon Valley.Vivek Kundra, VP of emerging markets at Saleforce.com, the company that invented software as a service, John Bryson, Secretary of State, andSteven Van Roekel, Federal Chief Information Officer.
- #84: The first place winner is SizeUp. In the words of the Department of Commerce, SizeUp “provides a comprehensive overview to small- and medium-sized business about their competitiveness and where to find resources to improve. This will improve the success of small businesses so they can prosper and create new jobs.”
- #102: The first place winner is SizeUp. In the words of the Department of Commerce, SizeUp “provides a comprehensive overview to small- and medium-sized business about their competitiveness and where to find resources to improve. This will improve the success of small businesses so they can prosper and create new jobs.”