Spurring Small Business Use of Technology and Driving Benefits
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Transcript of Spurring Small Business Use of Technology and Driving Benefits
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Spurring Small Business Use of Technology
and Driving Benefits
March 10, 2016Blandin Foundation Webinar
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WE ARE a global leader in economic development through broadband
WE MEASURE broadband use and it’s impacts at a mirco-and regional-level for benchmarking and planning WE DELIVER strategies for economic development and community innovation through broadband
Some of our clients:
SNG – we are the Broadband Economists
UK Department of Trade and Industry
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SNG Research StatesThe following findings are based on research from multiple States…
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Economic Growth is Driven by Utilization
Utilization Growth
Availability Adoption Utilization
Broadband Availability is Often the Primary Focus, however …
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Detail potential revenues and cost savings by application
Quantify potential benefits from increased utilization
Source: SNG Digital Economy Database n = 27,200
DEi Impact Calculator- choose e-strategy based on ROI -
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Why Drive Utilization?
For an individual business or organization, increasing utilization by 10% means:
Increasing revenues by 24%
Decreasing costs by 7%
… and SMEs utilizing just ONE additional Internet application can mean:
Increasing revenues by as much as 18%
Driving cost savings as much as 5%.
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Broadband Means Jobs
Internet Enabled New Jobs as Percent of all New Jobs Created by BusinessesBy Size of Employer Group
Broadband enabled 39.7% of all new jobs from 2013-15, up from 25.5% from 2010-12
Source: SNG Digital Economy Database
Impact of Internet on job creation
has accelerated in the last five years
10%
15%
20%
25%
30%
35%
40%
45%
50%
33.1%
21.3%
26.1%24.1%
25.5%
38.2%
31.8%
38.3%
42.9%
39.7%
2010- 12 2013-15
Employees
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Examining Industry Sectors The Small Business Divide is More Significant in Some Sectors
Major Industry Variation
# of Employees 1 to 19 20+Retail Trade 6.50 8.45 1.95Wholesale Trade 6.50 7.96 1.46Real Estate 7.09 8.45 1.36Finance & Insurance 7.18 8.45 1.27Arts, Entertainment & Recreation 6.41 7.58 1.17Information 8.06 9.22 1.16Health Care & Social Assistance 5.92 6.99 1.07Professional & Technical Services 7.09 8.06 0.97Construction 6.02 6.89 0.87Accommodation & Food Services 6.31 7.09 0.78Transportation & Warehousing 6.50 7.18 0.68Manufacturing / Processing 6.60 7.18 0.58
Number of businesses (2012-2015) 6,927 2,277
Median DEi Score
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9 up to 10
8 up to 9
7 up to 8
6 up to 7
5 up to 6
4 up to 5
25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0%
52.3%
45.2%
35.2%
33.2%
31.7%
29.5%
R² = 0.981136783071425
Average Pct. Revenue from Internet UseDE
i Ran
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N = 1,426
Incr
easin
g U
tiliza
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The Digital Economy index (DEI) measures how comprehensively a business or organization uses Internet applications.
Utilization Increases RevenuesThere is a Direct Correspondence to Internet Use and Percentage of Revenues
Attributed to Utilization
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All Internet Applications Are Not Equal
Quick to Adopt ‘Laissez-faire’ approach
Slow to AdoptNeed awareness and support
Business Applications Business Applications
Buying Online Selling Online
Basic Website Online media (video)
Research and accessing information
Teleworking
e-mail Delivering Content and Services
Document transfer Social Networking
BIGGESTBENEFITS
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Bridging the Small Business Digital Divide
Where to go and how to get there?
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The Small Business Growth Program (SBGP) is a program delivered locally and is designed to assist small businesses to
become more competitive and productive through more, and more effective, use of the Internet for online business activities.
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Driving More Effective Internet Utilization
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A DEi Scorecard is delivered to each business and organization
Individualized ‘broadband assessment’ that:‒ benchmarks competitiveness against
peers (by size and industry sector)‒ estimates ROI from increased utilization‒ provides links to local advisors and
support
Data based on the individual’s current broadband utilization against industry average
Shared with local economic development agencies so they can raise awareness, increase adoption, and drive utilization
Personalized Incentives: DEi Scorecard
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Detail potential revenues and cost savings by application
Quantify potential benefits from increased utilization
Source: SNG Digital Economy Database n = 27,200
DEi Impact Calculator- choose e-strategy based on ROI -
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Online Resources Can Help …
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… as well as Save Staff Time
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OutcomesBy participating, small businesses become…
Motivated to take action
Aware and engaged
Empowered to make educated adoption decisions
Strategic through relevant action plans
More competitive and productive
Long term outcome – businesses increase adoption of esolutions and achieve measurable impacts
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Understanding Utilization Goals & MotivatorsBusinesses Utilizing the Internet Builds Their Competitive Advantage
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SNG is Ready to Partner With You…
Do you work directly, hands-on with businesses?
Do you need more effective ways to show businesses how the Internet can help them grow?
Does the number of businesses you work with on an annual basis exceed 25 businesses?
We can help you get this program sponsored and running in your community!
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Support skills and training of Internet applications
Help them understand benefits of getting online – not just ‘nice to have’
Develop a “business case” for each business to take action
Driving Business Growth through Broadband
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Contact:
www.sngroup.com
Michael Curri, President Strategic Networks Group, [email protected]