The Power of Good Business Maps

In this post, we explore an increasingly popular tool used by investors and businesses: maps that provide visual representations of business and economic data and trends. While these “business maps” focus on a range of different inputs and locations, they all try to say something about the world around us. And this is what separates good business maps from those that fall short of the mark: some maps simply convey more interesting, and even compelling information, than others. Recent maps posted in Time and Forbes provide a good point of comparison.

Two Views of the US Economy -- Time vs. Forbes maps

In a February 2014 edition,Time magazine featured a map in its business section that showed how entire countries (including some large ones like Mexico and Australia) compared to US States in terms of GDP. The map, shown here , shows that Chile and Colorado, Venezuela and Washington, and Mexico and New York -- just to name a few comparisons of interest to Expansion Insights -- are roughly equivalent.

Beyond displaying the sheer size of the US economy, Time's map fails to convey an important message for businesses and probably raises more questions than it answers. For one thing, the map paints a lagging picture since it relies on past (2012) GDP measures rather than future projections. The map also provides no data on which to make conclusions about the health of any specific US state or region (nor its foreign counterparts). Colorado may be as big as Chile, but what does that mean for business? Is Colorado doing well or poorly (is Chile?) and in what business segments? Finally, the map focuses on US states as if they were self contained business subdivisions, undervaluing the role of interstate and regional commerce that is such a dominant force in the US economy.

The combination of these factors leaves the viewer with only one major conclusion to draw from the Time map -- that the US is huge compared to other countries -- but provides practically no insights into trends that are driving the massive US economy or how and where the economy will grow in the future.

By comparison, Forbes last year published "America's Next Decade", a remarkable map that provides a wealth of insights for anyone interested in how the US economy stands to grow into the future. Relying on analysis of business trends, the map re-dimensions the US into nine regions, each with unique characteristics that are projected to drive industry, investment, and jobs in very different ways. The result is a highly interactive and well thought out view of business trends that are transforming the US economy and opening business opportunities along the way.

Heat Maps: Where business is headed

Not all maps need to be as ambitious or detailed as "America's Next Decade" to provide good value to expanding businesses. Relatively simple "hotspot" or "heat" maps that show areas of current and projected growth spots provide useful visual tools that help viewers understand where business is headed. This map, for example, shows that the fastest growing economies based on next year's projections are outside the US and heavily concentrated in Asia, Africa, and Latin America.

Source: Target Maps

See this recent post on GDP hotspots in the Americas.

Other maps that plot economic hotspots along industry-specific and consumption trends can also be quite useful for companies seeking to expand into new regions. Below is an excellent example of a simple, industry-specific heat map on mobile phone use that says a lot about where mobility products and related tools and services are likely to be sold and marketed in the next few years.

A link to the mobile phone map is here .

Look for more useful maps in future posts in this thread!

For a printable PDF version of this document, see here

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Andres Snaider is a founding partner of Nextant, a consulting firm specializing in assisting companies expand their businesses in international markets, with a strong focus on Latin America. With a degree in law and experience working as an international attorney and businessman, Andres has advised clients on a range of commercial matters and investments in almost every country in the Americas, including the US, Mexico, Colombia, Brazil, Ecuador, Argentina, Chile, and Canada, just to name a few. He is a graduate of the Harvard Law School and currently lives and works in Boulder, Colorado.

Email Andres at asnaider@nextant.com

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Nextant has extensive experience in assisting leading clients through its Market Expansion and Business Optimization services. For more information on how Nextant can assist your company in socializing a market entry and initiating sales, please visit our website at http://www.nextant.com

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