Create a territory solution

Available with Business Analyst license.

ArcGIS Business Analyst Pro allows you to create, balance, and maintain territories through territory solutions. Territories can represent areas such as sales regions, service areas, franchise zones, or voting districts. A territory solution is a group layer that contains a base (or alignment) layer and a territory layer as its foundation. You can also add levels to create a hierarchical multilevel territory solution. For example, you can add a regions (groups of territories) level to the territory solution. Once you have created the territory solution, you can balance it, which is ideal for bench-marking and establishing an equally incentivized market. The territories can be balanced based on one or more attributes, such as population or sales. You can also make the compactness of the territory shapes one of the factors in the balancing process.

The main steps of creating a territory solution include creating a hierarchy of levels, setting parameters, solving the solution, making adjustments, and sharing the results.

Create a territory solution

The first part of creating a territory solution is to create a territory solution group layer, and, optionally, add levels to create a multiple-hierarchy territory solution.

To create a territory solution, do the following:

1. On the Analysis tab, click Business Analysis to open the gallery, and click New Territory Design Solution.

   The Create Territory Solution tool opens in the Geoprocessing pane.

2. Use the Territory Solution Name field to set the name of the territory solution to be created.
3. Enter information for the layer representing levels by doing the following:
   1. On the Input Features drop-down menu, choose the geometry or data features that will be used as the base level of the created solution.

      The level will have the same name as the input features layer.

   2. On the ID Field drop-down menu, choose the field in the dataset that contains ID values for objects in the field.
   3. On the Name Field drop-down menu, choose the field in the dataset that contains name values for objects in the level.
4. Enter information for the layer representing territories by doing the following:
   1. Use the Territory Level Name parameter to set the name of the lowest territory level.

      For example, you could call this level Territories or Districts.

   2. Use the Default Territory Name parameter to set the prefix for the names of the new territories that will be created, for example, Territory 1, Territory 2, and Territory 3, or District 1, District 2, and District 3.
5. If you are creating a point-based territory solution, use the Boundary Mask drop-down menu to choose the layer that acts as an outer boundary to limit the growth of point-based layers.
6. Click Run.

   A new group layer with three layers, one for levels, one for territories, and one for the base level is created. It is added to the map and the Contents pane. The levels layer stores internal settings and does not draw on the map.

7. Optionally, add one more level to the solution if you want to create a multi-level solution.

   The next level is often referred to as a region and is based on the territory level.

8. To add a region, click the Add Level button on the Territory Design ribbon.

   The Add Territory Level tool opens in the Geoprocessing pane.

9. On the Input Territory Solution drop-down menu, choose the territory solution group that you want to add a level to.
10. Use the Level Name field to set the name of the new territory level.
11. Use the Default Territory Name field to set the name that is used as a prefix for new territories that are created.
12. On the Primary Feature Class drop-down menu, specify the level that is used for storing level attributes. Select from one of the following:
    • Choose Territory Boundaries to make polygon features that represent the territory boundaries.
    • Choose Territory Centers to make point features that represent the territory centers.
    • Choose Base Boundaries to make polygon features that represent the base-level feature boundaries.
    • Choose Base Centers to make point features that represent the base-level feature centers.
13. Click Run.

    The new level is added to the map and the Contents pane.

Balance a territory solution

Once you have created the territory solution, you can balance it, which is ideal for bench-marking and establishing an equally incentivized market. Balancing a territory solution distributes work evenly. To balance a territory solution, add variables using the Add Level Variables geoprocessing tool and specify the variable importance for balancing using the Set Balance Variables geoprocessing tool. Variables can only be added to the territory or region levels, not the base level. Any variables that are added to the level can be rolled up to a region.

Note:

If no balance variables are set, the Solve Territories geoprocessing tool creates territories based on geography. The territories that are created are contiguous and based on equal area.

To balance a territory solution, do the following:

1. To proceed with the analysis, open the Territory Design ribbon by selecting any of the new territory design layers. Click the ribbon to view the workflow options.
2. Use the Active Level drop-down menu to select the level that will be modified as a balanced territory solution.
3. Click the Add Variables button.

   The Add Level Variables tool opens in the Geoprocessing pane. This tool adds any numeric field to any level except the base layer. The numeric field must already be in the base layer.

4. Select a level to add variables by doing the following:
   1. Use the Input Territory Solution drop-down menu to choose the input territory solution.
   2. Use the Level drop-down menu to choose the level where the territory solution's calculated field will be added.
   3. Use the Base Level drop-down menu to choose the level below the territory level from which the attribute value will be added.
5. Add variables by doing the following:
   1. Click the Variables menu button to choose a variable in the dataset.

      Once selected, the name automatically populates in the Statistic Field parameter option. 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.

   2. Alternately, use the Statistic Field drop-down menu to choose the field in the dataset for statistical calculation.
   3. Use the Statistic drop-down menu to choose the type of statistical calculation.
   4. Use the Field Name parameter to set the valid name of the field on the level where calculated data will be stored.
   5. Use the Field Alias Name parameter to set the readable and understandable name of the calculated field.
   6. Optionally, click the Add another button to add additional variables.
6. Click Run.
7. Click the Balance Variables button.

   The Set Balance Variables tool opens in the Geoprocessing pane.

8. On the Input Territory Solution drop-down menu, choose the input territory solution.
9. On the Level drop-down menu, choose the level to which the balanced variable calculated field will be added.
10. Set Balance Variables by doing the following:
    1. Click the Variables Add Many menu button to choose one or more variables in the dataset, and click Add.
    2. If there is more than one variable, enter a value for Weight.

       This is the amount of influence a given variable has in the analysis.

       Note:

       If you have only one variable, set the weight to 100.

11. Click Run.

Solve territories

Once you have set the parameters for the territory solution, solve the solution by specifying the number of territories to be created. If the location of the territory centers is already known (such as for store locations), use the Load Territory Records geoprocessing tool to determine the center of each territory instead of randomly determining the centers. To solve the territory solution, use the Solve Territories geoprocessing tool.

Territories can either be solved so that each territory is balanced (such as equal population or equal sales) or based on the shape of the territories (such as equal shape). If no variables are set, the territories are based on shape. The creation of territory boundaries starts by determining the centers of territories. The centers can be the geographic centers of territories or optimal locations that can dynamically move as the territory grows. Seed points can be used as fixed starting points (such as franchise addresses, sales offices, or distribution centers) that territories grow around.

To solve territories, do the following:

1. Click the Solve button on the Territory Design ribbon.

   The Solve Territories tool opens in the Geoprocessing pane.

2. On the Input Territory Solution drop-down menu, choose the territory solution that will be used to solve territories.
3. On the Level drop-down menu, choose the level that will be used to solve territories.
4. On the Number of Territories Method drop-down menu, choose a method that will be used when calculating the number of territories. Choose either option:
   • The User Defined option means that the number of territories will be provided by the user. This is the default. It requires you to set the number of territories to be specified.
   • If constraints are set up, the Optimal option can be used. It means that the number of territories will be calculated automatically. Optimal locations are determined by finding clusters. Clusters can be based on spatial locations only (such as clusters of base layer geometry centers) or combined with an attribute.
5. Enter a value in the Number of Territories parameter to set the number of territories to be specified.
6. Optionally, click the Advanced Options menu to use additional options to refine the territory solution. To use the additional options, do the following:
   1. Use the Quality parameter to set the percentage value to determine the performance of a solve operation.

      A lower value will provide better performance, but quality may be affected.

   2. Use the Iteration Limit parameter to set the number of times the territory search process will be repeated.

      For larger datasets, increasing the number is recommended to find an optimal solution. The default value is 50.

   3. On the Algorithm drop-down menu, choose either the default Classic or the newer Genetic algorithm type.
7. Click Run.

Optionally, use the Territory Level Settings to store current settings, such as variable information, feature class metadata, distance and attributes constraints, and options for territory shape. Re-solve the territory solution directly from the Territory Level Settings to apply all of the settings.

Modify a territory solution

An automatically balanced territory solution requires some manual adjustment. Modifying a territory solution allows you to analyze and interact with the territories and levels. For instance, you can open selected or territory base features to view their demographic statistics, create a territory using selected features, reassign features, or lock and unlock territories.

To modify a territory solution, do the following:

1. Click the Modify Territories button on the Territory Design ribbon.

   The Modify Territories pane appears.

2. Modify the territory solution by doing any of the following:
   • Click the Open Attribute Table button to open the attribute table for the selected features.
   • Click the Open Selected Base Features button to change the map selection to update the selected features list.
   • Click the Zoom button to zoom in to and center the selected territory on the map.
   • Click the Pan To Territory button to pan to the selected territory on the map.
   • Click the Flash Territory button to flash the shape of the selected territory on the map.
   • Click the Open Territory Base Features button to show the selected territory base features on the Modify Territories pane.
   • Click the Assign or Unassign buttons to assign or unassign all selected features from the parent territories.
   • Click the Create button to create a territory from selected features on the map or create an empty territory.
   • Click the Delete button to delete the selected territory.
3. Optionally, click the Lock button to lock a territory to prevent any modification to the territory.

   If a territory is already locked and needs to be modified, click the Unlock button.

Geoprocessing tools

The Territory Design toolbox contains tools to create a territory solution, add constraints, balance territories, and manually edit territories. The Territory Design toolbox is organized into toolsets that define the scope of the tasks accomplished by the tools they contain (for example, creating and managing territory solutions and analysis).

The territory solution workflow uses the Analysis and Territory Solution toolsets.

The Analysis toolset includes the following tools: Add Level Variables Add Territory Barriers Add Territory Seed Points Set Balance Variables Set Territory Attribute Constraints Set Territory Distance Parameters Set Territory Level Options Solve Territories Validate Territories

The Territory Solution toolset includes the following tools: Add Territory Level Copy Territory Solution Create Territory Level Feature Classes Create Territory Solution Import Territory Solution Load Territory Records Make Territory Solution Layer Rebuild Territory Solution

You can also use these geoprocessing tools to automate workflows using a Python script or a model. Before starting the territory design workflow, set the Business Analyst data source. You can run the territory solution using either a local or online dataset.

Reports

You can create a Territory Summary Report, summarizing the work you have done to create and balance the territories. The report displays information about the territories and breaks down key information about the territory variables.