Tutorial: Create a territory solution

Available with Business Analyst license.

A territory solution layer is a group that has a minimum of two layers: a base layer (level 0) and a territory layer (level 1). Territories is the default layer name for level 1. The Territories level can be changed to any name that represents your area of business.

This tutorial will walk you through the steps to create a territory solution that contains three levels: the base level, Territories, and Regions.

Create a new territory solution

The data used in this tutorial is a layer of ZIP Codes for the Los Angeles area with population information—for example, total population and total housing. The data can be easily created using the enrich layer tool by enriching a ZIP Code layer with demographic data.

1. In the Geoprocessing pane, click the Toolboxes tab.

   You see a list of toolboxes organized by category.

2. Browse to Territory Design Tools > Territory Solution.
3. In the Territory Solution toolset, click Create Territory Solution.

   The Create Territory Solution tool opens in the Geoprocessing pane. It has several parameters to set. Some are blank; others have default values. Required parameters are marked with a red asterisk.

4. Click the Input Features drop-down list and click <feature layer>.
5. In the Territory Solution Name box, type Los Angeles Sales Territories.

   This will be the name of the group layer in the Contents pane that represents your territory solution.

6. Click the ID Field drop-down list and click ID.
7. Click the Name Field drop-down list and click Name.
8. Use the default values for the Territory Level Name box and the Default Territory Name box.

   Default Territory Name is the default name for the individual territories that will be created in the Territories level. The %Number% value represents the integer that will be automatically generated. It can be placed before the territory name—for example, %Number% Territory—or after, which is the default.

   

9. Click Run.

A new group layer with two layers is created.

Note:

The name of the base level can be changed by changing the input layer name before creating the solution.

Add level variables

The Add Level Variables geoprocessing tool adds any numeric field to any level except the base layer. The numeric field must already be in the base layer. The variables can be helpful to determine how well each territory is created—for example, how many people or total sales are in each territory.

1. Browse to Territory Design Tools > Analysis.
2. In the Analysis toolset, click Add Level Variables.
3. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
4. Click the Level drop-down list and click Territories[1].
5. Click the Base Level drop-down list and click <Base Layer[0]>.

   If you were adding variables for the next level up—for example, Regions—the base level would be Territories[1].

6. For variables, you need to determine the fields that represent the variables and how the variables will be calculated—for example, math operation, when it is aggregated to the next level. The type of information will determine the applicable math operation.
   1. Click the Statistic Field drop-down list and click 2017 Total Population.
   2. Click the Statistic drop-down list and click Sum.
7. Click Run.

Set balance variables

The Set Balance Variables geoprocessing tool allows you to specify the variables you want to use in the balancing process. You do not need to set up all the variables in the level. You only need to set up the variable that you want to use in the balancing process—for example, specify weight. If you have only one variable, set the preference to 100. Variables with a higher preference will have a higher weight during the balancing process.

1. Browse to Territory Design Tools > Analysis and click Set Balance Variables.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. Click the Level drop-down list and click Territories[1].
4. For Balance Variables, set the following:
   1. Click the Variable drop-down list and click 2017 Total Households.
   2. In the Preference (%) box, type 100.
5. Click Run.

Solve territories

The Solve Territories geoprocessing tool is used to automatically create territories or regions, sales areas, and so on. Territories can either be solved so that each territory is balanced—for example, equal population or equal sales—or can be based on the shape of the territories—for example, compact territories or equal shape. If no variables are set, the territories will be based on shape.

1. Browse to Territory Design Tools > Analysis and click Solve Territories.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. Click the Level drop-down list and click Territories[1].
4. In the Number of Territories box, type an integer—for example, 5.
5. Click Run.

Review how well territories are balanced

Once the territory solution is solved, you can determine how well balanced the territories are.

1. In the Content pane, click Solution.

   This enables the Solution tab.

2. Under Territory Design, on the Solution tab, in the Active Level group, click Territories in the drop-down list.
3. In the Visualize group, click the Create Chart button.

   The chart is based on the selected level and the variable you have set with the Set Balance Variable geoprocessing tool.

   

Add a level

Levels can be added to the solution if you want to create a multiple-hierarchy territory solution—for example, territories and regions. The next level, often referred to as a region, is based on the territory level. As a result, the Territories level becomes the base level for Regions. Any variables in the Territories level can be aggregated and rolled up to the Regions level.

1. Browse to Territory Design Tools > Territory Solution and click Add Territory Level.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. In the Level Name box, type Regions.
4. In the Default Territory Name box, type Region.
5. Click Run.

Set the variable for the Regions level

The level variable for the Regions level must be in the Territories level. As result, the base level will be Territories[1].

1. Browse to Territory Design Tools > Analysis and click Add Level Variables.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. Click the Level drop-down list and click Regions[2].
4. Click the Base Level drop-down list and click Territories[1].
5. For Variables, set the following parameters:
   1. Click the Statistic Field drop-down list and click 2017 Total Population.
   2. Click the Statistic drop-down list and click Sum.
6. Click the add button to add another variable.
   1. Click the Statistic Field drop-down list and click 2017 Total Households.
   2. Click the Statistic drop-down list and click Sum.
7. Click Run.

Set balance variables for the Regions level

Since there is only one variable on which to base balanced Regions, the preference will be set to 100.

1. Browse to Territory Design Tools > Analysis and click Set Balance Variables.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. Click the Level drop-down list and click Regions.
4. For Balance Variables, do the following:
   1. Click the Variable drop-down list and click 2017 Total Households.
   2. In the Preference (%) box, type 100.
5. Click Run.

Solve for regions

Running the Solve Territories geoprocessing tool for the Regions level will aggregate the territories from the Territory level—for example, the boundaries for the Regions level will be aligned to the boundaries of the Territories level.

1. Browse to Territory Design Tools > Analysis and click Solve Territories.
2. Click the Input Territory Solution drop-down list and click Los Angeles Sales Territories.
3. Click the Level drop-down list and click Regions.
4. In the Number of Territories box, type 3.
5. Click Run.

Review the territory solution. You should have three levels: the base level, Territories, and Regions. Turn off some of the other layers so that you can clearly see the Territories and Regions layers. The transparency on the layers may obscure the visibility of the territories or regions. The territories are built up from the base layer. The regions are built up from the territory level. You can re-solve or manually adjust any of the levels. If you re-solve for the Territories level, the Region level will automatically be solved.