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 benchmarking 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.

Potential applications

The following are potential applications of territory design:

Application	Description	Examples of data used
Balance services	An elevator company has created a territory solution to divide the work of servicing elevators. They balance the solution to have an equal number of elevator locations, ensuring that each territory contains an equal amount of annual service contracts. Each year, the territories are assessed and adjusted to account for new facilities that contain elevators requiring service.	Point layer of elevator locations
College recruitment	A large university is promoting its undergraduate degree programs at high schools. They design territories that contain a similar number of high schools and high school-age people and use barriers to shape territories that don't cross the interstate highway. To perform this analysis, see the Balance territories for college recruiters tutorial.	Point layer of high school locations Line feature representing interstate Block groups in area of interest Variable: Total Population Age 15-19

Create a territory solution layer

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

2. In the Create Territory Solution window, complete the following parameters:
   • Input Features—Select the base geographies or polygon feature class that will form the territories.
   • Territory Solution Name—Type a name for the territory solution layer.
   • ID Field—Select the field containing identifiers for the base level input features.
   • Name Field—Select the field containing the public-facing name of the base level input features.
   • Territory Level Name—Enter a descriptor for the groupings of base features, such as Territories (the default) or Districts.
   • Default Territory Name—Enter an identifier for the groupings of base features, such as Territory %Number%. This is the default.
   • Boundary Mask—Choose the layer that acts as an outer boundary to limit the growth of point-based layers.
3. Click OK.

   A new group layer with three sublayers—one for levels, one for territories, and one for the base features—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.

Add territory levels

You can add more levels to create a hierarchical solution. The next level groups the territories into larger areas, often called regions. To add a territory level, do the following:

1. Click the territory group layer to select it. On the ribbon, click the Territory Design tab. In the Manage group, click the Add Level button.

   The Add Territory Level window appears.

2. In the Add Territory Level window, complete the following parameters:
   • Input Territory Solution—Choose the territory solution layer that you want to add a level to.
   • Level Name—Type a name for the next level, such as Regions.
   • Default Territory Name—Enter an identifier for the groupings of territories, such as Region %Number%.
   • Primary Feature Class—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.
3. Click OK.

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

Balance a territory solution

A balanced territory solution ensures that each territory contains attributes that are distributed evenly. This allows for more efficient work, and to compare results over time. For example, a territory solution balanced by population ensures that each territory contains an equal amount of people. Each year, the territories can be assessed and adjusted if some areas grow or diminish in population.

To balance a territory solution, add variables in the Add Level Variables window and specify variables' weights in the Set Balance Variables window. Variables can only be added to the territory or region levels, not the base level. Any variables that are added to a level can be rolled up to higher levels.

Note:

• To set balance variables, the variables must be included in the base features. For example, you can enrich a layer using Business Analyst data and use this layer for the base features.
• If no balance variables are set, the territories will be based on geography. The territories that are created are contiguous and based on equal area.

To balance a territory solution, do the following:

1. Click the territory group layer to select it. On the ribbon, click the Territory Design tab. In the Analysis group, click the Add Variables button.

   The Add Level Variables window appears. This tool adds numeric fields, such as demographic variables, to any level. The numeric field must already be in the base feature layer.

2. In the Add Level Variables window, complete the following parameters:
   • Input Territory Solution—Choose the territory solution layer that you want to add variables to.
   • Level—Choose the level where the variables will be added.
   • Base Level—Choose the layer containing the base features, which have been enriched with the variables.
   • Variables—Choose one or more variables in the base layer, then specify the following fields:
     • Once a variable is selected, it automatically populates in the Statistic Field parameter. Variables, such as population or sales information, are the means of determining balance across the territories.
     • For Statistic, choose from the following statistical calculations: Count, Sum, Maximum, Minimum, Average, Median, Standard Deviation, or Percent of Total.
     • For Field Name, set the name of the field.
     • For Field Alias Name, set the display name of the field.
3. Optionally, click the Add another button to add more variables.
4. When you are done adding variables, click OK.
5. In the Analysis group of the Territory Design ribbon, click the Balance Variables button.

   The Set Balance Variables window appears.

6. In the Set Balance Variables window, complete the following parameters:
   • Input Territory Solution—Choose the territory solution layer that you want to balance using the variables.
   • Level—Choose the level where the variables will be added.
   • Balance Variables—Choose one or more variables, then specify the Weight value for each variable. This is the amount of influence each variable has in the analysis. When multiple variables are used, you can set the weight for each on a scale of 100. For example, you could weight three variables at 50%, 25%, and 25%. If you have only one variable, set the weight to 100.
7. Click OK.

   The statistics have been added and the territories will be balanced when the solution is solved.

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. In the Analysis group of the Territory Design ribbon, click the Solve button.

   The Solve Territories window appears.

2. In the Solve Territories window, complete the following parameters:
   • Input Territory Solution—Choose the territory solution layer that you want to solve.
   • Level—Choose the level of the solution to solve.
   • Number of Territories Method—Choose how territories are defined:
     • The User Defined method allows you to set the number of territories to create.
     • The Preferred method allows you to set the number of territories to create, but restricts the territories to those that meet the constraints you have defined.
     • The Optimal method sets the number of territories automatically using constraints you have defined, such as barriers. The optimal number of territories is determined by locating clusters, such as numbers of locations or amounts of a variable.
     • The Optimal Max Coverage method sets the number of territories automatically using the maximum amount of base features possible.
     • The Maximize Territories Count method calculates territories automatically, creating a larger number of territories of smaller size.
     • The Minimize Territories Count method calculates territories automatically, creating a smaller number of territories of larger size.
   • Number of Territories—Enter the number of territories to create. This option is available for the User Defined and Preferred methods.
3. Optionally, expand the Advanced Options menu to refine the territory solution:
   • For Quality, set the percentage value to determine the performance of a solve operation. A lower value provides better performance, but quality may be affected.
   • For Iteration Limit, set the number of times the territory search process is repeated. For larger datasets, increasing the number is recommended to find an optimal solution. The default value is 50.
   • For Algorithm, choose either the default Classic or the newer Genetic algorithm type.
4. Click OK.

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 may require 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.

Tip:

When modifying a territory solution in the Modify Territories pane, you can use the application's Undo and Redo buttons. The functions currently supported for undoing and redoing actions are: assigning, unassigning, renaming, and locking 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. To learn about or locate territories on the map, do any of the following:
   • Click the Open Attribute Table button to open the attribute table for the selected features.
   • 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.
3. To select and interact with territories, do any of the following:
   • Click a base feature on the map to select it, and use the Modify Territories pane to view the forecasted impact of assigning it to, or unassigning it from, a territory.
   • On the Territory Design ribbon, use the Select drop-down menu to set a feature selection method.
   • Click the Open Territory Base Features button to show the selected territory base features in the Modify Territories pane.
   • Click the Open Selected Base Features button to change the map selection to update the selected features list.
   • Click the Filter by Adjacent Features button in the Modify Territories pane to display only territories and features adjacent to the selected features.
   • Click the Lock button to lock a territory, preventing any modification. If a territory is already locked and needs to be modified, click the Unlock button.
4. To modify the base features of a territory, do any of the following:
   • Click the Assign or Unassign button to assign or unassign all selected features from the parent territories.
   • Use drag-and-drop editing to move features from one territory to another. Select one or more features. Right-click the selection and hold the right-click button down, then do any of the following:
     • Drag the selected features to a different territory on the map to reassign them. Available territories on the map are highlighted with a bold outline.
     • Drag the selected features to a different territory record in the Modify Territories pane to reassign them.
     • Drag the selected features from their assigned territory to any area on the map that is not a territory (meaning it contains no features) to unassign them from the territory.
5. To create or delete territories, do the following:
   • 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.
6. Optionally, use charts to visualize territory statistics and indicators that may inform manual territory editing. To view and use charts in the Modify Territories pane, do the following:
   • Click Options , hover over Charting, and check the Show Bar Chart check box.

   • Optionally, check the check boxes for Show Min Line, Show Max Line, Show Ideal Line, and Show Balance Line.

   The bar chart displays the relative size of each territory, as well as the indicator lines you selected. When features are selected on the map, the bar chart displays the forecasted impact of reassigning these features in terms of gain (in green) and loss (in red) to the territories affected. The chart uses similar symbology to display constraints, such as amount above a maximum or the difference from an ideal value.

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.