Invitro uses predictive geo-analysis to assess the potential of new medical offices

Objective

To select the best locations for labs, eliminate cannibalisation of points and regularly review the capacity of the chain and single locations.

Context

One of the key challenges for medical retail businesses is finding the right location and unlocking its maximum potential. Here is a look at how data can help you do that.

Solution

Invitro, one of Russia's leading medical companies, uses the Geonet platform based on the Atlas geo-information system to assess the potential for new medical office openings. The system is also used for additional analysis of the efficiency of existing medical offices and their possible relocation.

How is each location evaluated? The system analyses up to 1,000 different parameters and characteristics for the chain's 1,400+ medical offices in Russia, including such aspects as types of traffic, competitive environment density and a number of economic and demographic indicators. The algorithms of the geo-information platform analyse over a thousand layers of data and estimate the potential of the locations. Different types of traffic (pedestrian, automobile, public transport passenger traffic), traffic routes, competitive environment density, and economic and demographic indicators of the districts, such as the number of residents, wealth, real estate value, and infrastructure, are taken into account. Based on the analysis of all factors and their influence on one another, the areas receive a rating score and are displayed within a heat map interface. For convenience and accuracy of analysis, the whole area is split into squares of 100 x 100 metres, and a different score is calculated for each of them.

Geo-evaluation is linked to an analytical module to calculate financial indicators, including the revenues of each medical office. The model is trained on a set of depersonalised data on operating and relocated points, including medical offices operating under the franchise programme. The service assesses the popularity of various types of medical services, analyses the significance of geo-parameters and reveals their correlation with the economic performance of the offices.

"As one of the largest franchisors in Russia managing a vast network, we see this as a new experience that we have taken a keen interest in. We are used to relying on our own expertise and more than 15 years of experience in franchise network management. Based on the results of the pilot project, we see that the Geonet platform is providing us with additional, quite useful data, which, given our rather aggressive network growth scale, comes in very handy. We are confident that this, in combination with internal expertise, will produce a good synergy effect, which will help Invitro achieve its ambitious goals set for the near future.” Philipp Sapronov, Sales Director, Invitro Group

"We are very pleased with the cooperation and proud of the project with Invitro. Obviously, the scale of the network, the specific nature of the activity, and the number of parameters the project has to take into account require maximum effort and top-of-the-line solutions. The extensive franchise programme means additional features that the analytical module of the Geonet platform has to take into account, and we have fine-tuned the system so that projections are generated with maximum precision, irrespective of the type of medical office to be opened. We are sure that such a serious and considerate approach that the Invitro team has taken to modern geo-analytical possibilities will even further strengthen the company's leading position in the market and give it additional momentum for development.” Dmitry Galkin, Managing Partner, Marketing Logic, on the implementation of the new technology

Result

As a result, the medical organisation is provided with recommendations from the system on opening and relocating its offices and data on a district's or a city's potential attractiveness for opening their own offices and franchised offices. The most attractive locations in terms of business indicators are displayed on a heat map accurate to a specific building. All locations are accompanied by indicators of the analysed parameters.

The network assessment and office management project involving geo-analytical expertise is designed for continuous implementation. As the data accumulates, the system improves the accuracy of the projections and increases the economic impact of the use.