AtmAil CCiQ QueenslAnd digitAl ReAdiness study1
AtmAil CCiQ QueenslAnd digitAl ReAdiness study
AtmAil CCiQ QueenslAnd digitAl ReAdiness study2
Foreword 01
ExecutiveSummary 02
1. What’sshapingtheDigitalEconomy? 03
2. TheDigitalEconomy–Howitimpactsourlives? 05
3. The2013QueenslandDigitalReadinessStudy 07
4. OverviewonRespondentProfiles 10
5. TechnologyAdoption 12
6. SocialMediaPresence 17
7. DigitalBusinessStrategy 20
8. DigitalReadiness 24
9. DigitalReadinesswithinQueensland–Makingithappen 27
10.Conclusion 30
References 31
AtmAil CCiQ QueenslAnd digitAl ReAdiness study1
understanding the technological needs and wills of Queensland’s businesses is essential for companies like Atmail that provide software and services to businesses in the state, across the country and throughout the world.
the digital Readiness survey will aid in our understanding of the key drivers for improving the adoption of technology in Queensland. the insights from this study will inform what we as a company can do to help Queensland’s businesses grow and increase their efficiency and profitability.
the use of digital tools and services cannot be ignored or dismissed in today’s economy. to build our competitiveness and ensure efficiency, it is essential that companies in our state are up to date with current technologies. Worldwide customers, remote teams, increasing demand for reaching customers through the channels and devices of their choosing and expectations of decreased reaction times are all challenges that companies must address. A significant part of the solution is correctly using information and communication technologies both to run the business as well as to engage with customers.
At Atmail we believe that, when used appropriately, technology can not only reduce costs for companies, but also help increase and retain their customer base. From providing messaging solutions to large internet and Hosting service Providers across Australia and the world to powering the email running business in over 120 countries, we have a successful track record of helping our clients succeed. Atmail has also led actions to empower our local community to embrace digital technologies such as providing free Wi-Fi for local shops and restaurants supporting the idea that technology can help any type of business to build a better relationship with their customers.
Zach Johnson coo atmail
www.atmail.com
facebook.com/atmailcom
twitter.com/atmail
AtmAil CCiQ QueenslAnd digitAl ReAdiness study2
1.Businessesareincreasinglyreachingcustomersthroughtheirmobiledevices.35%ofQueenslandbusinessesnowoffermobileversionsoftheirwebsite,andanadditional10%willbelaunchingmobileversionsoftheirwebsitesoon.
2.Businessesneedtodrivetheirvisibilityonmobile-basedplatformsfurther-amajorityofQueenslandbusinesses(81.4%)areyettocreatemobilephoneappstoeducatecustomersontheirproductsandservices.
3.Companieshavewidescopeforenhancingtheironlineretailande-commercecapabilities.60%ofQueenslandbusinessesreceivelessthan10%oftheirrevenuesthroughonlinesales.
4. InformationsecurityanddataintegrityareveryimportanttoQueenslandbusinesses.77%ofbusinesseshavenowimplementedsecuritymeasurestoprotecttheircommunicationandschedulingsystems.Almostthreequartersofbusinessesfeelconfidentthattheymaintainclean,up-to-dateandqualitydata.
5.QueenslandbusinesseshavesignificantlyexpandedtheirpresenceonsocialmediaplatformssuchasFacebook(86.5%)andLinkedIn(63.6%).Agrowingcommunityofbusinesses(18.5%)arealsoactivelybuildingtheirvisibilitythroughbusinessblogs.
6.DigitaladvertisingbyQueenslandbusinessesislargelychannelledthroughSearchEngineOptimisation(SEO)advertising(74.2%).
7. Nearlyallcompanies(94%)areoptimisticthatthedigitaleconomywillopennewopportunitiesfortheirbusinessandarewillingtotakethenecessarystepstopursuethem.
8. Businessesareincreasinglycomfortablewithflexibleworkingpractices.71%ofthecompaniessurveyednowallowtheiremployeestoconnecttotheworkplacefromhome.
9.Businesseslackdedicatedspecialiststomanagetheirdigitalandsocialmediapresence.Overhalfofthecompanies(58.4%)relyonexternalresourcesspecialiststomanagetheirdigitalbusinessesonsocialmedia,andworryoverpotentialskillshortagesinthedigitaleconomy.
Businessesachievedigitalreadinessbyallowingtheirdataanddeliverysystems,socialpresenceandfuturebusinessgoalstointersectattherightplaces,andbystayingnimbleenoughtoadapttocurrentandemergentindustrytrends.Thisenablesthemtowidencapabilityandincreasecollaboration,innovationandcustomerengagementtodeliverbetterdesignedsolutions.
FollowingtheDigitalReadinessStudythatitconductedin2012,CCIQnowexploresthedigitalneedsofQueenslandbusinesses,theirchallengesandsuccessesaswellasthestrategiesthattheyembracetoworkinthedigitaleconomy.
EXECUTIVESUMMARYthe Chamber of Commerce and industry Queensland’s (CCiQ) 2013 digital Readiness study reviews how businesses are preparing for their transition into the digital economy. Almost 500 companies participated in this study, sharing insights on how they utilise information technology (it) services, social networks and digital technologies to shape their business for the future.
Key findings from the study point to increased adoption of technology solutions within Queensland businesses, although there are barriers including lack of awareness of technology choices and inadequate investment in technology infrastructure which keep them from fully participating in the digital economy.
KEYFINDINgS
AtmAil CCiQ QueenslAnd digitAl ReAdiness study3
section 1
WHAt’s sHAPing tHe digitAl eConomy?
AtmAil CCiQ QueenslAnd digitAl ReAdiness study4
Building the digital economy will continue to remain a key mandate across both government and private enterprise sectors for the foreseeable future. Both sectors are rapidly investing in technologies and systems, to ensure their survival in highly competitive and digitally driven markets. this calls for not just understanding and preparedness, but also a degree of curiosity and willingness to explore new technology frontiers.
InitspaperBuilding the lucky country – Business imperatives for a Prosperous australia,Deloittedefinestheprospectsfordigitaldisruptioninacountry.Itexplainshowdigitaltechnologiesexplodethestatusquoandpresentunprecedentedchallenges,alongwiththecreationofa“rangeofopportunitiesfortheinnovative”.
Further,theyaddthatdigitaldisruptioninAustraliawillimpactindustryinthefollowingways:
Short fuse, big bang–significantandimminentdigitaldisruptionwillbeexperiencedbyfirmsinfinance,retailtrade,information,media,telecommunicationsandprofessionalservicesindustries.
Long fuse, big bang–significantdisruptionthatoccursoveraprolongedtimeframewillbeexperiencedbygovernmentservicesandlargebusinessincludinghealth,transportandeducation.
Long fuse, smaller bang–minimaldisruptionimpactingindustriessuchasmanufacturingandminingthathavetraditionallyhadlowerlevelsof“totaldigitalpotential”.
giamSwiegers,CEODeloitteAustralia,emphasisesthatmasteringdigitaldisruptionisvitaltoAustralia’sfutureprosperity.Whiletherearesomerisksandthreats,digitaldisruptionwillhelpbusinessestoenhancetheirdigitalpotential,bettercompeteanddefinenewrevenuestreams.Whentheyworkwithsuchopportunities,theyemergeas“digitalsurvivors”.
Businessesarebroadlyadvisedtoadoptthefollowingsurvivalstrategies:
1. Recalibrate cost structuresincludingpeople,supplychainandoverheads.Thisdrivescostreductionsandbuildscompetitiveness.
2. Replenish revenue streamsbyexploringnewsourcesofrevenueacrossgeographies,segments,andbusinessmodels.
3. Reshape corporate strategiesbyreviewingrisksandassets.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY5
section 2
tHe digitAl eConomy– HoW does it imPACt ouR lives?
AtmAil CCiQ QueenslAnd digitAl ReAdiness study6
the national Broadband network (nBn) project is designed to bring digital leadership into Australia. once the rollout is complete, it will enable businesses and households to enjoy unprecedented internet speeds, as well as bolstering Australia’s position as one of the leading digital economies in the world by 2020.
DRIVINgTHEECONOMYFORWARDAustraliansareincreasinglychannellingtheireverydayactivitiesintotheinternetandsocialmedia.AccordingtotheAustralianBureauofStatistics(ABS)businesseshavewitnessedsignificantincreaseintheironlinesalesinrecentyears.Forinstance,in2010-11,onlinesalesinAustraliagrewto$189billion–a32%jumpoverhe$143billiongeneratedin2009-10.
Further,datafromNationalAustraliaBank(NAB)OnlineindicatesthatinNovember2013alone,Australiansspent$14.6billionbuyingproductsonlinewhichroughlyconstitutesabout6.4%ofallsalesintraditionalretailoutlets.Further,anupwardgrowthtrendinonlineretailsaleswasobservedacrossallsectors-whileelectronicgamesgrewbyamodest13%andgroceriesandliquorby16%,themediasectorgrewsignificantlyat28%.
Positivechangeintheeconomyisspurredbytechnologyinvestment.Forinstance,theincreasingtrendinonlineretailsalesisadirectresultofincreasedconnectivityinAustralianhouseholds-householdsubscriptionsgrewby5%in2013,andnowconstitute78%ofthe12,358,000subscriptionsinthecountry.
Consumersarealsogainingbetterqualityaccesstotheinternet-98%ofinternetsubscribersinAustralianowusebroadbandconnection.Thissuggeststhatconsumersnowspendmoretimestayingconnectedandmanagemoreoftheireverydayactivitiessuchasmaintainingfriendships,learningskills,payingbillsandbuyingonline.
INCREASEDCONVENIENCETOHELPUSMANAgEMOREInadditiontothebroadbandservicesthattheyuseathome,consumersalsostayconnectedthroughtheirmobilephones.Asthemostprevalenttechnologyinthecountry,mobilewirelessbroadbandnowaccountsforhalfofallconnections,indicatingagrowingappetiteforseekingandmanaginginformationon-the-go.
Besidesaidingconvenience,digitaltechnologiesalsohelpcreateintuitivelydesignedservices.Forinstance,inconjunctionwiththeg20summitinAprilthisyear,BrisbaneCityCouncilwilllaunchanintegratedwi-fisystemtoenablefreeinternetaccessacrosstheSouthBank,VictoriaBridgeandtheQueenStreetMall.Thiswillbeparticularlybeneficialtovisitorstohelpthemstayconnected,checkandmanageemailsetc.
Inaddition,Brisbanecitizensarealreadyabletoenjoyfreewi-fiinternetaccessin22outdoorlocations,acrossall33councillibraries,andalsowhentheytravelwiththeCityCatfleet.Manybusinessesinthecityarealsobeingencouragedtoofferfreewi-fitocitizens,andover250ofthemarenowlistedonBrisbane’sdigitalmap.
AsobservedbyLordMayorgrahamQuirk-“Providingfreewi-fibringsbenefitstooperatorsbyencouragingfoottraffic,enticingcustomerstostaylongerandspendmore,andpromotingcustomerloyalty.”“Beingadigitalleaderallowsustobe
moreproductivethroughcloudsolutions.Itgivesustheopportunitytocollaboratemorewithourremote(Australianbased)team.Itdoesrequireastrongerfocusoncommunicationtocompensateforlackofoneononecontact.”-SustainableMarketingServices
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY7
tHe 2013 QueenslAnd digitAl ReAdiness study
section 3
StRongLy agRee
CompanieS SuRveyed
StRongLy diSagRee
agRee neutRaL
QueStion 3 QueStion 4
QueStion 79 QueStion 80
diSagRee
yeS no
498
AtmAil CCiQ QueenslAnd digitAl ReAdiness study8
the 2013 Queensland digital Readiness study explores in detail, varied issues that businesses face in transitioning into a digital economy. technology measures and work practices that have been adopted thus far, in preparation for the digital economy, are examined. the survey also seeks information on the constraints and technology support requirements needed to transcend into a truly digital environment.
RESEARCHMETHODANDDESIgNThesurveyhasbeendesignedtoelicitindustryresponsesonarangeofissuesrelatingtodigitaladoptionincludingtechnologyadoption,digitalbusinessstrategy,socialmediapresenceanddigitalreadiness.
RESEARCHMETHODOLOgYTheresearchwasmanagedacrossfourkeystages,including:
• Designofsurveyquestionnaire
• Surveyadministration
• Analysisofsurveyresults
• Findingsandconclusion
DESIgNOFSURVEYQUESTIONNAIREThesurveyquestionnairesoughttounderstandgenericinformationsuchascompanydetails,industryrepresented,natureofbusiness,sizeandlocation(s)ofoperation,aswellasspecificdetailsrelatingtoquantumofITinvestment,extentofwebpresence,viewsondataintegrity,mobilityetc.Thesehelpedtocreateabetterunderstandingoftherespondentprofile,andtheirspecificITinvestments,digitalbusinessstrategiesetc.
Questionswerestructuredtogatherdataforthefollowinginformationsegments:
• Generic Data–genericinformationontheorganisationsandtheindustriestheyrepresented,includingotherdetailssuchasorganisationsizeandscaleofoperations.Questions–75,76,77,79and80.
• technology adoption–measurethenatureandextentoftechnologyadoptionwithintheorganisationsbyexaminingkeyparameterssuchasuseandmanagementofbusinesswebsite,digitaldevices,ITequipmentandresources.Questions–1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,31,32,33,34,35,36,37,38,3940,44,45,46,47,48,49,51and52.
• social media Presence–usageofsocialmediatoolssuchasFacebook,TwitterandLinkedIntocreateasocialsavvybusinessandcommunicatewithpresentandpotentialcustomers.Questions–16,17,18,19,20and21.
• Digital Business strategy–explorespresentorevolvingdigitalbusinessstrategiescentredoncommunicationwithcustomers,managingcustomerdata,buildinggreateraccesstothemarketandenhancingorganisationvisibility.Questions–22,23,24,25,26,27,28,29,30,41,42,43,50,54,55,56and60.
• Digital Readiness-examineskeyenablersandbarrierstodigitalreadinesswithinbusinesses,presenceofdigitalbusinesssolutionsanddedicatedresources.Alsoexaminestheextentofemployersponsorshipincreatingawarenessandaccesstodigitalresourcessuchastheinternetandsocialmediaintheworkenvironment.Questions–50,53,57,58,59,61,62,63,64,65,66,67,68,69,70,71,72,73,74and78.
AtmAil CCiQ QueenslAnd digitAl ReAdiness study9
ThesurveyquestionnaireincludesdifferentquestionformatssuchastheLikertScale,rankorder,dichotomous(yes/no)andopen-endedquestions,tohelpelicitawiderangeofresponses.
QuestionsbasedonLikertScaleresponse,rankedresponseanddichotomousresponse,generatenumericalresponsesthatcanbequantifiedandmeasured.Open-endedquestionsofferdescriptiveresponses,whichareidealforrichqualitativeinterpretation.
LikertScalequestionsaredesignedtoelicittheextentofagreementwithastatement.Forinstance,respondentswillevaluateanysubjectiveorobjectivecriteriastatedinaquestionandindicatetheextentofagreementordisagreement,usingfiveorderedresponselevelssuchas:
1.Stronglydisagree
2.Disagree
3.Neitheragreenordisagree
4.Agree
5.Stronglyagree
Inrankorderquestions,respondentsindicatetheirmostpreferredoptionfromalistofalternatives.Also,theyprovideinformationonthesequenceofpreferenceshownfortheremainingalternatives,andthishelpsinmeasuringtherelationshipandextentofimportancebetweenthealternatives.
Dichotomousquestionsorpolarquestionshelpeliciteitheroftwopossibleresponsessuchas“yes/no”,“agree/disagree”and“true/false”fromthesurveyrespondent.
OpenEndedquestionsareunstructuredinnature,andunlikestructuredmultiplechoicequestions,helprespondentstoansweraquestionintheirownwords,enablingrichqualitativeinformation.
SURVEYADMINISTRATIONThesurveywasadministeredtorespondentsfrom498companies,representingawidecross-sectionoftheQueenslandbusinesscommunity.Respondentsparticipatedinthesurveybyansweringanonlinequestionnairethatcomprised80questions.Thesurveypresentedrespondentswithanoptiontoskipquestionsandalsosupplementtheirresponseswithadditionaltextwhereneeded.
Followingtheclosureofthesurvey,responsesgeneratedtoeachquestionwereanalysed,andinferencesdrawn.Qualitativeandquantitativeinformationwasevaluatedintandemtogenerateadditionalinsightsandinterpretation.Juxtaposingthequalitativeandquantitativedataenabledbetterdepthandqualityofunderstandingofthekeyelementsexploredinthisstudy.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY
section 4
oveRvieW on ResPondent PRoFiles
10
10
AtmAil CCiQ QueenslAnd digitAl ReAdiness study11
INDUSTRYREPRESENTATION
agriculture, Forestry and Fishing 6.0%
mining 5.7%
manufacturing 16.4%
electricity, Gas, Water and Waste services 2.0%
construction 9.8%
Wholesale trade 6.3%
Retail trade 11.5%
accommodation and Food services 6.0%
transport, Postal and Warehousing 5.7%
information media and telecommunications 7.2%
Financial and insurance services 3.2%
Rental, hiring and Real estate services 0.9%
Professional, scientific & technical services 15.5%
administrative and support services 6.3%
Public administration and safety 0.9%
education and training 7.8%
health care and social assistance 8.6%
arts and Recreation services 3.2%
other services 21.3%
Themajorityofthecompaniesthatparticipatedinthesurveyweresmallbusinesses,employingfewerthan50employees,andoperatingthrough1to5officesacrossQueensland.Around19%ofthecompanieshadaworkforceof100employeesorover.Largebusinesseswith501–1000employeesconstitutedaround9%oftherespondents.Whilesmallbusinessesdominatedthesurvey,asizeableproportionofthesecompanies(43.4%)maintainednationwideoperations.
Manyofthecompanies(62.9%)alsomaintainedanactivelocalandregionalpresence.CompaniesthatwereinvolvedininternationalbusinesseswerelargelyactiveacrosstheAsiaPacific(16.1%),NewZealand(14.1%),Europe(11.2%),ChinaandJapan,andNorthAmerica(both9.5%)regions.
WHEREDOESYOURBUSINESSTRADE?
locally: Within 10km 20.1%
Regionally: Within local region (e.g.WideBay,SunshineCoast) 42.8%
state-wide: across all of Queensland 26.4%
nationally: throughout australia 43.4%
internationally: new Zealand 14.1%
internationally: china, Japan, Korea 9.5%
internationally: asia Pacific 16.1%
internationally: north america 9.5%
internationally: africa 5.7%
internationally: europe 11.2%
internationally: south america 4.3%
the survey was administered to respondents from across 498 companies.
Respondents were largely represented by the manufacturing (16.4%), Professional, scientific and technical services (15.5%), Retail trade (11.5%) and Construction (9.8%) sectors. Health Care and social Assistance (8.6%) education and training (7.8%), information media and telecommunications (7.2%) sectors also had significant representation.
CompanieS SuRveyed
498
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY12
section 5
teCHnology AdoPtion
“We invested in business management software as a service (saas) considered to be the gold standard, even though it’s designed for much bigger businesses. it has led to a 30% drop in lost admin time - worth every cent.”- new Word order
“...since may last year we moved to Google apps for Business. our costs have been reduced from $70,000 to $10,000 a year with third party backups. access to data is significantly improved. the Google apps suite is outstanding for collaboration and employees can now work from any device, anywhere, at any time.” - nQ Dry tropics nRm
AtmAil CCiQ QueenslAnd digitAl ReAdiness study13
BRIEFOVERVIEWOF2012STUDYRESULTS• Mostbusinessesmaintainedarunningwebsite
andhadadequateknowledgeandresourcestomanagetheirwebsiteinternally.
• Theyweremorefocussedonusingnewandupdatedpersonalworkdevicesratherthancomputerserversandcloud-basedservices.
• Businesseslackedastrategytodrivesalesandrevenuethroughtheirwebpresence.
HIgHLIgHTSFROM2013STUDYRESULTS• Companiescontinuetowidentheirwebpresence.
• Increasedtechnologyadoptiontoworkwithgreaterconvenience,enablesecuredataenvironmentsanddrivebetterperformance.
• Reachingcustomersmoredirectlythroughmobile-basedplatforms.
WEBPRESENCEWebpresenceamongcompaniesisalmostuniversal.94%ofthecompaniesrespondedthattheymaintainabusinesswebsitetosharecompanyinformationandalsoeducatevisitorsontheirservicecapabilities.
Websitesareviewedasanessentialstepinthestart-upandrunningofabusiness,andamajority(79.1%)ofthecompanieshavemaintainedawebsiteforatleastthreeyears.61%ofthecompaniesreportedowningandmaintainingawebsiteforfiveyearsandlonger.Thepresenceofacompanywebsitehashelpedbusinessesstrengthentheirmarketing,communication,trainingandeducationactivities.
Overtheyears,companieshaveinvestedinbuildingcompetenceinternallytomanagetheirwebsites,andamajority(70%)nowmaintainadedicatedteamorastaffmembertosupporttheirwebpresence.Thepresenceofinternalresourcesensuresfrequentinformationupdates(nearlyhalfofthecompaniesupdatetheirwebsitesatleastmonthly),andbetterqualityinteractionwithcustomers.
How long have you had a website?
5+ years
3-5 Years
1-3 Years
6 months to 1 year
Less than 6 months
61%
19%
15%
1%
5%
“WeinvestedinbusinessmanagementSoftwareasaService(SaaS)consideredtobethegoldstandard,eventhoughit’sdesignedformuchbiggerbusinesses.Ithasledtoa30%dropinlostadmintime-wortheverycent.”-NewWordOrder
“Digitizedallourpatientrecords,hugeproject,butstunningresultsinproductivityandefficiency.Moreprofessionalresults,hasimprovedourabilitytocommunicatepatientinformationtoothermedicalprofessionals.”-gladstoneVision
technology adoption is being defined by the quantum of it investments that have been made/are being planned within businesses. these include the extent of online presence, website deployment for internal and external communication and use of mobile-based technologies to connect with customers. investments in it infrastructure and work tools such as laptops, tablets and smart phones are also reviewed.
AtmAil CCiQ QueenslAnd digitAl ReAdiness study14
Despitetheeasewithwhichcompaniesnowmanagetheirbusinesswebsites,somestillstrugglewithbasicissuessuchasset-upandhosting,besideslackingabudgetforwebsitemaintenance.Nearlythree-quartersofthecompaniesthatdon’tmaintainawebsiteindicatetheylackaccesstotheresources,educationandtimeneededtobuildandmaintainawebsite.Also,somecompaniesprefernottohaveawebsite,astheyfeelsocialmediachannelsenablemarketingandcustomersupportactivitiesatreducedcosts.
MOREMOBILEVERSIONSOFWEBSITESBusinessesareincreasinglyawareoftheneedtooffermobileversionsoftheirwebsitestocustomers.35%ofcompaniesmaintainamobileversionoftheirwebsite,andafurther10%areactivelylookingtolaunchamobileversionshortly.
Despitetheirgrowingpresenceononlineandmobile-basedplatforms,companiesarenotsufficientlyinvestedincreatingmobilephoneappsonAppstoreorongooglePlay.Mostcompanies(81.4%)areyettocreatemobilephoneappstoeducatecustomersontheirbusinessesandtheproductsandservicestheyoffer.Forthemoment,asmallgroupofcompanies(10%)dooffermobilephoneappsandanotherminority(9.1%)islookingtointroducesuchoptions,indicatingagrowingappetiteformobilephoneappswithintheQueenslandbusinesscommunity.
POTENTIALFORE-COMMERCEUNDERUTILISEDFormostcompanies,anactivewebpresencehasnottranslatedintoadequatee-commerceopportunities.Presently,justoverafifth(20.6%)ofthecompaniesusestheirwebsitetoadvertiseandselltheirproductsandservicesonline.
Asaconsequenceofbeingunderinvestedine-commerce,revenuethroughonlinesaleshasbeenfairlyminimalforcompanies.Mostcompanies(60.2%)receivefewerthan10%oftheirrevenuesthroughonlinesales,andonlyasmallgroupofcompanies(3.4%)makesignificantrevenues,exceeding80%oftotalrevenue.
INCREASEDE-MAILSECURITY,INFORMATIONPRIVACYANDUSEOFDEVICESE-mailremainsthekeychannelforallinternalandexternalcommunicationwithinbusinesses,andcompaniesarealsoinvestingintechnologiestobettermanageintranetaccess,mailcommunicationandenhanceproductivity.Thishasenabledemployeestoworkawayfromtheofficeandenjoyaccesstoe-mails,individualandsharedcalendarsaswellasworkingdocuments.
Businessesareincreasinglyreliantondevicestomanageworkschedules.Inmostcompaniestoday,meetingsanddiscussionappointmentsarebeingmanagedthroughpersonaldevices.giventheincreasedemphasisonsecurity,amajority(77%)ofQueenslandbusinesseshavenowimplementedsecuritymeasurestoprotecttheire-mails/contacts/calendars.
Do you have a mobile version of your website? (%)
Yes
No
Wish we could
35%
55%
10%
60.2%
14.5%
8.7%
3.2%
7.1%
3.7%
3.5%
1-10%
10-20%
20-30%
30-40%
40-60%
60-80%
80-100%
What percentage of revenue do you receive from online (internet) sales (best estimate)?
AtmAil CCiQ QueenslAnd digitAl ReAdiness study15
Companiesalsocontinuetoinvestininformationsecurityanddataprivacy.Nearlyhalfthecompaniessurveyedarenowhostingandmanagingtheire-mailserviceontheirown,andasmallnumber(10.4%)areusingbusiness-gradee-mailsolutionsbasedinthecloud.
Securee-mailmanagementhelpscompaniesfeelprotectedfromspamandcomputervirusinfections.Virusinfectionsandspame-mailsinparticularareviewedasaseriousthreatandcompaniesreportfeelingsomewhat,orveryconcernedovervirusesbeingspreadthroughemailattachments,astheycansignificantlydamagetheirreputationwithexternalpartners.
Companiesareinvestedinbusinesscontinuitytechnologiestoo.Amajority(58.6%)ofcompaniesreporthavingbusinesscontinuityplansinplacetosupportcontinuedoperationsinadverseconditions.Despitesuchmeasuresbeingimplemented,businessesstillremainvulnerabletoITrisks-10%ofthecompaniesreportbeingdirectlyimpactedbyamajorITdisasterinthepast12months.
ACCESSTOTECHNOLOgIESMakingtherighttechnologychoiceshelpscompaniesdeliverbetterservicesandstayaheadofthegame.Competenceinaccessingrelevanttechnologiesisenabledthroughawarenessandunderstandingofoptionsavailableinthemarket.
Overall,companiesfeelquitecompetenttosupporttheircurrentbusinesstechnologyneeds,andseektoinvestinimprovingtheircommunicationanddataprocessingcapabilities,inadditiontobetterpromotionoftheirgoodsandservices.Whileafifthofthecompaniesreportedhavingaccesstotheskillsandknowledgeneededtosupporttheirbusinesstechnologyrequirements,overhalfrelyonacombinationofin-houseandexternalserviceprovidersupportservices.
ApplesmartphonesandtabletsarethedominantworkdevicesusedinQueenslandbusinesses.Forworkapplications,amajorityofthecompaniesuseMicrosoftOfficeapplicationsandspecialisedaccountingsoftware,however,theuptakeforintegratedapplicationssuchasEnterpriseResourcePlanning(ERP)isratherlow.
Incontrastto2012,whencompaniesmostlyusedcloud-basedservicestomanagetheire-mails(65.1%)andstorage(53%),theyarenowusingsuchsolutionstoaccessSoftwareasaService(SaaS).googleApps,MicrosoftOffice365andQuickBooksOnlinearesomeoftheprominentsolutionsusedforSaaS.
Manycompanies(40%)maintainITequipmentthatisatleast2yearsorolder,andamajority(70%)alsomaintainacomputerserverattheoffice.Companiesthatdidnotmanagetheirserverwithintheofficetypicallymaintainedthemina3rdpartyhostingfacilitysuchasAmazon,Rackspace,iSeek,AAPT,OptusandTelstra.
“Lackofbusinessinput-softwareimplementationisdonebyITpeoplewithnobusinessknowledgeresultinginaproductpartiallysuitedtothebusiness.”-Process,Systems,Training&Development
“WearenotdigitalleadersbutconsciouslysoughtassistancefromITsavvypeopletohelpusestablishourwebsiteanddigital
advertising…Establishmentofourwebsitegaveusaccesstoclientswewouldotherwise
havemissed.Increasedsalesresulted,notonlylocallybutinterstatetoo.Costsof
websiteestablishmentandcontinuitywerequitequicklycoveredandamoderatelevelof
profitabilityhasresulted...”-AmbiréEnterprises
AtmAil CCiQ QueenslAnd digitAl ReAdiness study16
Aquarterofthecompanieshowever,outsourcesorreliesentirelyonexternalserviceproviderstomanagetheirbusinesstechnologyneeds.Also,whilethemajorityofcompanies(68.7%)feeltheycaneasilyaccessrelevanttechnologies,athird(31.3%)ofthecompaniesreportfindingitdifficult,indicatingtheneedforadditionaleducationandsupport.
INVESTINgINITINFRASTRUCTURETechnologychoicesarealsodrivenbyotherfactorssuchasprice,vendorreputationandaftersalesservicesupport.Inaddition,manycompaniesassertthattheypreferworkingwithproviderswhocloselyunderstandthenatureoftheirbusiness.
Overall,companiesarecautiouswhenplanningtheirtechnologyimplementationsastheyfearcostoverrunsandpotentialfailuresinintegration.ManyworrythatITimplementationsinvolve:
• highcostswithloworunknownreturnoninvestment
• unexpectedrecurringexpense
• reducedcostsavingsasproductsfailtodeliveroncustomerexpectations.
Companiesalsoreportconcernsaboundoverinternalchallengessuchas:
• Ineffectiveplanningwhichleadstodisconnectsbetweentechnologyandbusinessstrategies
• challengesinlinkingwithoutsourcingpartners
• insufficientlystaffedITteamswhoareunabletomanageITimplementationexercise.
WhilesomecompaniesareundecidedonhowtheywoulddirecttheirITinvestmentsintheshortterm,amajorityofthecompanieswilllikelyincreasetheirITinvestmentsoverthenexttwelvemonths.Particularly,theyarelookingtoselectivelyincreasetheirinvestmentontechnologiesthatwillenhancebusinessvalue,throughimprovedproductivity,businessintelligenceandcustomerservice.
DISCUSSIONBusinessesunderstandthattechnologyinvestmentspavethewayforbettercustomerengagement,resultinginincreasedrevenuegeneration.Anactivewebpresence,alongwithincreasedaccesstocustomersthroughmobile-basedplatformshasensuredbettervisibilityforproductsandbrandbuildingopportunities.Companiesarealsoinvestingintechnologiestoimproveperformance-forinstance,theyareensuringemployeesworkwithupgradedtechnologydevices,andhavecontinuedaccesstotheworkenvironment,evenintheirhomes.MostQueenslandbusinessesareincreasinglysensitivetoinformationsecurityanddataprivacy,andtheadoptionoftechnologiesthatsupporthighstandardsofdataintegrity.
Despitetheinvestmentsbeingmade,businessesmayfallshortofresultsiftheycontinuetoignoretheneedtobuildover/capitaliseonexistingtechnologycapabilities.Forinstance,abroadsectionofbusinesseshavestayedawayfrommobile-basedapplicationsaswellase-commerce.Ascustomersincreasinglyshifttheirconsumptiononline,thesearemisstepsthatbusinessescan
illafford.DatafromtheAustralianBureauofStatistics(ABS)revealsthatAustraliancustomersareincreasinglybuyingonline.Onlineordershaveincreasedfrom13%in2009-10,to28%in2010-11,andthetrendisonlyexpectedtoincreaseinthecomingyears.
Additionally,businessesneedtobetterunderstandtheirtechnologydirectionsandseekinformationwherenecessary.Presently,mostbusinessesarequiteundecidedonhowtheywoulddirecttheirITinvestmentsoverthecomingyears–thismayleadtoexpensivemistakesandworse,holdthembackfrominvestingintechnologiesthatareessentialtotheirsurvival.
AREASFORACTION1.Investingine-commercetoolsandmobile-based
applicationswillhelpbusinessesbroadentheirreachaswellasdriverevenuegrowth.
2.Companiescanachievesignificantcostsavingswhentheydevelopin-housecapabilitytosupporttheirbusinesstechnologyneeds.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY17
section 6
soCiAl mediA PResenCe
How do you uSe SoCiaL media in youR buSineSS?
CommunCation witH CLientS
pR
CommuniCate inteRnaLLy
maRketing
ReSeaRCH/infoRmation gatHeRing
CommuniCation witH SuppLieRS
wHiCH SoCiaL media CHanneLS do you uSe to pRomote youR buSineSS and CommuniCate witH CuStomeRS and potentiaL CuStomeRS?
sAlesFoRCe CHAtteR
tumBlR
75.0%
20.0%
35.9%
78.2%
61.5%
19.5%
AtmAil CCiQ QueenslAnd digitAl ReAdiness study18
over the past few years, businesses everywhere have aggressively built their social media presence to support their marketing and brand building activities. social media channels have helped companies gain unprecedented access to wide groups of customers, better understand their needs and preferences, and closely observe their consumption behaviour. social media is now among the key drivers of improved customer reach, brand recall and visibility within many companies.
BRIEFOVERVIEWOF2012STUDYRESULTS• Mostcompanieshaveadoptedsocialmediain
theirbusiness.
• Facebook,TwitterandLinkedInweresomeofthepopularsocialmediatoolsbeingused.
HIgHLIgHTSFROM2013STUDYRESULTS• Companiesareincreasinglyfocussedon
developingbettersocialmediaskillstohelpdrivebrandvisibilityandensuretheystayconnectedwithcustomers.
• BusinessescontinuetoseeFacebookandLinkedInasdominantsocialmediaplatforms.
SOCIALPRESENCECONTINUESTORISEAmajorityofQueenslandbusinesses(75%)areaggressivelyinvestinginwideningtheirsocialmediapresence,topromotevisibilityontheirbrandandcommunicatewithexistingandpotentialcustomers.Besidesenablingmarketing,publicrelationsandclientcommunicationexercises,socialmediahasalsoenabledcompaniestosupporttheirresearchandinformationgatheringexercises.
CompaniesmainlyconnectwiththecommunitythroughchannelssuchFacebook(86.5%)andLinkedIn(63.6%),aswellasTwitter(42.2%)andgoogle+(29%).Besidessocialnetworkingsites,agrowingcommunityofQueenslandbusinesses(18.5%)arealsoactivelybuildingtheirvisibilityfortheirbusinessesthroughblogs.
Ascompaniesgrowcognisantoftherisinginfluenceofsocialmediapresenceindevelopingtheir
75.0%
20.0%
Communication with clients
Communication with suppliers
Research/information gathering
Marketing
PR
Communicate internally
How do you use social media in your business?
35.9%
78.2%
61.5%
15%
42.2%Twitter
3.2%Flickr
Which social media channels do you use to promote your business and communicate with customers and potential customers?
Google+ 29.0%
SalesforceChatter 2.1%
Blogs 18.5%
Facebook 86.5%
LinkedIn 63.6%
Tumblr 1.8%
Pinterest 9.1%
Yammer 3.8%
“Iwouldn’tcallmyselfadigitalleaderbutI’vemanagedsocialmediaforbusinessesincludingmycurrentbusinessandit’saneffectivemarketingtoolforus.I’vebuiltagoodpresenceonLinkedIn,FacebookandTwitter.IalsoproactivelymanageourSEOforcertainkeywordsandhavebeensuccessfulinestablishingourbusinesshighintherankings.”-ITOC
AtmAil CCiQ QueenslAnd digitAl ReAdiness study19
27.0%
38.5%
See little value
Not relevant to my customers
Time and resources
Don’t understand social media
Fear of negative exposure and feedback
Why do you not use social media in your business?
41.0%
22.6%
19.5%
“Uppermanagementseeitastoorisky”-RHealth
“WhenIgetbusymyfocusonsocialmediafalls.”-SustainableMarketingServices
“Notcertainhowthiscouldhelpmybusiness”-WorkInjurySolutions
businessopportunities,theyareactivelyinvestingingainingthenecessaryskillsandresourcestobettermanagetheirbusinessonsocialnetworkingplatforms.Theyarealsoencouragingemployeestousethemediumtopromoteproductsandservices.
Interestingly,whilecompaniesunderstandtheincreasingvalueofsocialmediapresence,40%ofthemalsocontinuetorelyontraditionaltoolstomanagetheirmarketingandoutreachinitiatives.
WHYDOSOMECOMPANIESSTAYAWAYFROMSOCIALMEDIA?Overall,companiesindicatethatgivenmoretimeandresourcestohelpwithbetterunderstandingofsocialnetworks,theywillgetmoreinvolvedinbuildingandmaintainingtheirsocialpresence.However,somecompanieshavestayedoffthemediumastheyareconcernedabouttheescalatedpotentialforthreatstobusinessreputationandnegativepublicity,whenthingsgowrong.
Overaquarterofthecompanieswerealsodoubtfulwhethermaintainingasocialpresenceofferedadequatevalueandreturnsforthetimeandmonetaryinvestmentmade.Somebusinesseswerealsostayingawayfromsocialmediaastheylackedthetimeandresourcestomanageit,andfeltthatitmaynotbeentirelyrelevanttotheircustomers.
DISCUSSIONSocialmediahelpsbusinessesbuildtheirbrandvisibilityandgainaccesstoawidemarket,spanningwellbeyondtheirgeographiclocation.Italsohelpsthembuildimmenseproximitywiththeircustomers,drawinginformationandinsightsofgreatdepthandgranularity.Inrecentyears,mostbusinesseshaveexpandedtheirsocialpresence,butcontinuetorelyontraditionalchannelstodrivetheircoremarketinginitiatives.Bydoingso,businessesfailtoreapthepossiblegainsoutoftheirexistingsocialpresence,andalsodistancethemselvesfromyoungcustomers,whoarefastemergingaskeypurchaseinfluencers.
Companieslikelywanttodomorewiththeirsocialpresence,butachievelittle,astheyhavenotadequatelyinvestedinbuildingrelevantskillswithintheirworkforce.Buildingthetechnicalskills,educatingtheirworkforceandcustomersonhowtheycanconnectbetteraswellasmanageasecurerelationship,willhelpdriveincreasedgainsincomingyears.
AREASFORACTION1.Awelldesignedsocialmediastrategythat
encouragesuniformandconsistentpresenceacrossvariedsocialmediachannels(Facebook,google+,LinkedInetc.)willdriveimprovedbrandbuilding.
2.Inmostcompanies,socialpresenceliesattheperipheryoftheirmediaandcommunicationsstrategy.Bringingittothecentre,andintegratingitacrossallrelationshiplines,willhelpbusinessescommunicate,collaborateanddeliverbetter.
3.Understandingthe“what,whyandhow”andinvestinginsocialmediaeducationwillhelpcompaniesleveragetheirsocialpresencefarmoreeffectively.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY20
section 7
digitAl Business stRAtegy
“IseeDigitalTechnologyasasupportforbusinessnotaprimedriverofproductivityorprofitability.”-grouyTech(Aust)PtyLtd
of buSineSSeS don't Have a digitaL maRketing pLan
do you uSe any of tHe foLLowing digitaL adveRtiSing SoLutionS?
74.2% seARCH engine oPtimisAtion
48.1% google AdWoRds
39.2% FACeBooK AdveRtising
2.7% tWitteR PAid PRomotions
17.7% PAy PeR CliCK WeBsite AdveRtising
8.1% PAy PeR imPRessions WeBsite AdveRtising
of buSineSSeS aRe Confident tHeiR data iS SeCuRe
onLy 1 in 4 uSe CRm to manage tHeiR CuStomeR infoRmation
AtmAil CCiQ QueenslAnd digitAl ReAdiness study21
A well defined digital business strategy enables companies to integrate their technology choices along future business directions, and drive increased capability in delivering better quality products and services. it also helps connect varied it investments in the operational environment including technology devices, enterprise software, social presence etc.
BRIEFOVERVIEWOF2012STUDYRESULTS• Opportunitiesindigitalbusinesseswerebeing
builtaroundelectronicdatamanagement.
• Companieswereyettoaggressivelyadopttechnologyasameanstomanagetheirbusiness,andmainlyusedittodriveexternalrelationships.
• Uncertaintiesovercostsandperformancekeptcompaniesawayfromexploringdigitalbusinesses.
HIgHLIgHTSFROM2013STUDYRESULTS• Digitalbusinessplanscontinuetobesuperficially
entrenchedwithinmostQueenslandcompanies.
• Mostcompanieslackaconcretedigitalmarketingplanandthosewhodohaveonearestillintheearlystagesofdevelopingit.
• Companiesareconsiderablyactiveinmaintainingtheirsocialpresence,butunabletocomplementitwithaneffectivestrategytodrivedigitalpresence.
PURSUINgDIgITALBUSINESSESAmajorityofthecompaniesinQueensland(61%)reportnothavingaconcretedigitalmarketingplan.Whilecompaniesunanimouslyviewdigitalbusinesssolutionsasbeinghighlyuseful,many(56.3%)shyawayfromdigitalbusinessventuresbecausetheylackrelevantknowledgeandunderstanding,andfinditdifficulttoaccesshighinternetspeeds.Further,manybusinessesalsolackanaccurateunderstandingoftheresourcesoftimeandmoney,aswellasthebenefitsinvolvedinadoptingadigitalbusinessmodel.
Nearlyallcompanies(94%)feelconsiderablyoptimisticaboutthebenefitsthattheywillgainthroughdigitalbusinessopportunitiesandarewillingtotakethenecessarystepstopursuethem.Digitalbusinesssolutionswillhelpcompaniesdriveimprovedaccesstothemarket,increasingproductivityandcompetitiveness,andhelpbuildaprofitablebusinessinthelongrun.Mostcompanieshoweverarelookingforonlineresources,informationandtrainingsessionstolearnmoreonpotentialbenefitsfromdigitalbusinessopportunities.
DIgITALTECHNOLOgYSOLUTIONSDigitaltechnologysolutionsthatarecurrentlyinusesupportsales,billingandbasiccustomerdatamanagement,andarenotbeingadequatelydeployedtomanagemorecomplexinformation.Forinstance,only11%ofthecompaniesreportmanagingtheirtransactiondataelectronically.
TheuseofCustomerRelationshipManagement(CRM)isalsosomewhatminimal.Justoveraquarterofthecompaniessurveyed(29%)use
Does your business have a digital marketing plan?
Yes
No
39%
61%
74.2%
48.1%
Search engine optimisation
Google Adwords
Facebook advertising
Twitter paid promotions
Pay per click website advertising
Do you use any of the following digital advertising solutions?
39.2%
2.7%
17.7%
Pay per impressions website advertising
8.1%
AtmAil CCiQ QueenslAnd digitAl ReAdiness study22
CRMtoolssuchasSalesforcetomanagetheircustomerandbusinesstransactioninformation.Mostcompaniesgeneratecustomerdatatomanagebasiccommunicationinitiativessuchasnewslettersdistribution.WhilesomecompaniesuseCRMgenerateddatatomanagevalueaddedactivitiessuchascustomisedinitiativesandspecialoffers,orproductandservicelaunches,theyareyettousethedatatodevelopinsightsintowhatcustomersreallywant.Presentlyonlyasmallgroupofbusinesses(15.6%)areusingcustomerdatatocreatemobileortabletapplications.
DIgITALADVERTISINgBECOMESPOPULARCompaniesareincreasinglylookingtomanagetheircustomeroutreachactivitiesonline.Theyfindthatcustomersrespondbettertodigitaladvertisementroutes,andareincreasinglyfocussedonpromotingtheirproductsandservicestocustomersviatheinternet.
Amajorityofcompanies(74.2%)arenowusingsearchengineoptimisationtosupporttheirdigitaladvertisingneeds.TheyarealsoexploringotherpopulardigitaladvertisingsolutionssuchasgoogleAdwordsandFacebookadvertising.WhilecompaniescommonlyadvertiseonFacebook,useofotherchannelssuchasTwitterpaidpromotionsisveryminimal(2.7%).
EMPHASISONPROTECTINgCUSTOMERDATACompaniesunderstandtheresponsibilitythatcomeswithelectroniccustomerdatamanagementandareextremelysensitivetomaintainingdataprotectionstandards.
Amajorityofthecompanies(76%)havetakenstringentmeasurestomeetgovernmentrequirementsondataprotection,spamact,andprivacylegislation,andhaveconsequentlymadesignificantinvestmentstoprotecttheircustomerdata.Theincreasedinvestmentininformationsecurityispayingoff,andmanycompanies(85%)nowfeelconfidentthattheircustomerdataissafeandsecure.
Theincreasedfocusondataprotectionhasalsohelpedimprovedataintegrity.MostcompaniesinQueenslandarehighlyattentivetothequalityofdatatheymaintain.Almostthreequarters(73%)alsoreportfeelingconfidentthatthedatatheymaintainisclean,up-to-dateandofgoodquality.
However,dataprotectioncontinuestobeachallengeforsomecompanies.Asmallgroup(21.8%)ofcompaniesreportstrugglingwiththeirdataprotectionsystems,andalsoworrythattheirinformationsystemsarenotadequatelycompliantwithgovernmentstipulatedstandards.
How confident are you that your customer data is safe and secure?
Not at all confident
Lacking confidence
Unsure
Confident
Very confident
0%
1%
14%
52%
33%
How confident are you that your business complies with data protection, spam act, and privacy legislation?
Not at all confident
Lacking confidence
Unsure
Confident
Very confident30%
46%
22%
1%
1%
AtmAil CCiQ QueenslAnd digitAl ReAdiness study23
BARRIERSTODIgITALBUSINESSDespitethepositivesentimentthataccompaniesthedigitalbusinessmovementinQueensland,businessesworrythattherearetoomanybarrierspreventingtheirentryintodigitalbusiness.Inadditiontoalackofrelevantknowledgeandunderstanding(56.3%),businessesarenotconfidentthattheyhavetheadequateinternetspeed(47.2%)orclarityoncostvs.benefits(42.1%)toforayintodigitalbusiness.
DISCUSSIONNearlyallbusinessesinQueenslandrecognisetheimportanceofhavingadigitalbusinessstrategy,butcontendthatitssuccessridesupontwocriticalfactors-internetspeedandknowledgeonhowtoworkthedigitalenvironment.Atthemoment,mostbusinesseslackaconcretedigitalmarketingplan.
Asacontinuedtrendfromthe2012study,itisapparentthatbusinesseshavetakenafragmentedapproachinbuildingtheirdigitalstrategy.Forinstance,mostcompaniesindicatetheyvaluedataandhavedirectedseveralmeasuresatensuringdataintegrity;butveryfewareadequatelyinvestedinharnessingvaluefromit.ThisisevidentfromtheminimaladoptionofCRMandEnterpriseResourcePlanning(ERP)technologies.29%ofthecompaniessurveyeduseCRMtoolssuchasSalesforceandmostusecustomerdatatomanagesimplisticinitiatives.Presently,veryfewbusinessesapplythedatatheyhavetodrivevalueaddedinitiatives,developspecificinsightsonwhattheircustomerswantorcreatemobileandtabletapplications.
Companiesarealsocautiousindrivingtheirdigitalmarketingplans,becauseofuncertaintyovertheirdigitalmandatesandtheresultstheywant.Notsurprisingly,thishasledtoa“chickenandegg”scenario-wherebusinessesareunsureastowhichdigitaltechnologiestheyneedtoadopt,astheydon’tknowwhattheyreallywant.
Despitethislackofclarityonsomeaspectsrelatedtodigitalmarketing,manyQueenslandbusinessesseeconsiderablevalueindigitaladvertisingandreachtheircustomersthroughFacebookadvertising,googleAdwordsandSEOchannels.
AREASFORACTION1.Theneedforexecutinganoptimaldigital
businessstrategyremains;andbusinesseswillneedtocontinueworkingonplanning/drivingtheirtechnologyinvestmentsfromvariedstandpointsincludingdata,onlinepresenceandsocialmediaintegration.
2.Educationiskeytodrivingeffectivedigitaltechnologychoices.Businessesundoubtedlymakebettertechnologychoiceswhentheyhaveaccesstoinformationsuchascosting,rangeoffunctionsandperformance.
3.Businessesareincreasinglyincludingdigitaladvertisingintheirmediastrategy-companiescangainmorebyexploringthesechannelsfurther.
“Peopledonotknowwhattheydon’tknow-what’savailableandhowtheycanuseitfortheirbusiness.”-NorthwindApartments
“Lackoftake-upinterestamongclients/suppliers.Theypreferfacetofacecommunication.”-FAQI
56.3%
42.1%
Lack of knowledge/understanding
Cost v Benefits
Lack of time
Internet coverage
Internet speed
What are the barriers to digital business (including the internet)?
40.3%
22.9%
47.2%
Information security concerns
30.1%
It’s a low (business development) priority
12.3%
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY24
section 8
digitAl ReAdiness
of CompanieS aLLow empLoyeeS to woRk fRom Home
woRRy about a digitaL SkiLLS SHoRtage
How doeS youR buSineSS CuRRentLy ConneCt to tHe digitaL eConomy?
18% wiReLeSS/ mobiLe
inteRnet
16%CabLe
bRoadband
1%SateLLite
17%adSL
48%adSL+2
0%diaL up
AtmAil CCiQ QueenslAnd digitAl ReAdiness study25
digital readiness defines the extent to which businesses are integrating their future business goals with emerging digital technologies. Particularly, it helps businesses align their technology goals with future market directions.
BRIEFOVERVIEWOF2012SURVEYRESULTS• Mostbusinesseswereoptimisticaboutexploring
digitalbusinessopportunities,andbelieveditwouldhelpdriveimprovedmarketreachandproductivity.
• Concernsexistedaboutthemovetoanintegrateddigitalbusinessmodelinseveralareas,includinglackofadequateunderstanding,thecostsinvolvedandtheactualimpactonprofitability
HIgHLIgHTSFROM2013SURVEYRESULTS• TheNBNrolloutisviewedasakeyenabler
inthesuccessofadigitaleconomy.
• Companiesneedtobuildskilledresourcesin-housetobettersupporttheirdigitalbusinessplans.
NATIONALBROADBANDROLLOUTTheNBNrolloutsignificantlyimpactsthecreationofadigitaleconomyinAustralia.QueenslandcompaniesareeagertoleveragethedigitalbusinessopportunitiesthattheNBNwillenable.QueenslandcompaniesperceivetheNBNtobeavaluableinvestment,andseeitasagoodinvestmentinbuildingAustralia'scommercialfuture.BusinessesfeelthattheNBNwilldeliverfasterinternetspeedaccessandbetterconnectivity,helpingthemimproveontheirservicesandrelationshipswithcustomers.
WhilemanybelievethattheNBNrolloutwillhelpAustralianbusinessescompetebetterglobally,theycontinuetoworrythattherolloutmaynotoccurontimeandonbudget,orworse,notcovertheirregion.Thiscoulddetermanybusinessesfromplanningandefficientlyrespondingtoimprovedtechnologywhenitbecomesavailable.
ConnectivityinQueenslandcompaniesismainlysustainedthroughADSL2+connections,inadditiontootheroptionssuchaswireless/mobileinternet,cablebroadbandandADSL.Businessesarelargelysatisfied(60.4%)withthequality,cost,andspeedoftheinternetconnectionstheyreceive,howeveraquarterofthembelievethatalotneedstoimprovearoundconnectivityinQueensland.
“Asystematicmigrationtocloudcomputingisunderwayatmybusiness.Insixmonthswehavebeenabletoturnofffouroffiveserversintheoffice-reducingpowerbothusedbytheserversandtocoolthem.Wehavealsoreducedourmonthlyserviceagreementbillbyaround40%andwewillavoidcapitalexpenditureintothecomingyearonreplacingageingserversandavoidtheneedtoupgradetonewerserversoftwareversions.Asaresultofacommitmenttocloudcomputingandan“apps”basedapproachtobusinesssystems,wehavebeenabletoimproveproductivity,collaborationandreducepaperuse.”-NQDryTropics
AtmAil CCiQ QueenslAnd digitAl ReAdiness study26
CHALLENgESINTRANSITIONINgINTOADIgITALECONOMYEffectivetransitioningintoadigitaleconomyispossiblewhenbusinessesfeeladequatelypreparedtoreapthebenefitsfromadigitisedbusinessenvironment.AsmallgroupofQueenslandbusinesses(10%)feelconsiderablypreparedtotakeonthedigitaleconomy,whilemostindicatefeelingonlypartiallypreparedtomakethetransition.
Businessesarehoweverencouragingemployeestoprepareforthechangesthatadigitaleconomywillbring.Forinstance,internetaccessiscommonlyprovidedintoday’sworkplacesandagrowingnumberofcompanies(55%)havealsoimplementedsocialmediaguidelinesfortheiremployees.Morethanathirdofthecompaniesallowhalf(ormore)oftheiremployeestoworkfromhome,andjustunderafifthofcompanies(16.6%)nowallowtheirworkforcetoconnecttotheworkplacefromhome.
Yetbusinessesmayonlybetakingminimalstepstopreparetheirworkforceforadigitisedbusinessenvironment.Whilebusinessesareencouraginganinternetsavvyworkforce,theyhavenotyetinvestedinhelpingstaffbuildspecialistskills–forinstance,mostcompanies(58.4%)donotemploydedicatedspecialiststomanagedigitalbusinessesthroughtheirwebsiteandsocialmedia.Asaconsequenceofthelimitedskillbuilding,overhalfthecompanies(51%)worryoverpotentialskillshortagesinthedigitaleconomy.
Thiscallsformoreinitiativeonthepartofcompaniesinlearningabouttrendsandtechnologiesthatwillbecomerelevanttotheirbusinessinthefuture,andbuildskillsaccordingly.Theyarebroadlygainingthesethroughreadingrelevantarticles,publicationsandattendingindustryevents.Theywillhoweverneedtodrivefocussedunderstandingonwhichdigitaldevelopmentswillimpacttheirbusinessmostandplanskillbuildingaccordingly.
DISCUSSIONDigitalreadinesscontinuestobeakeyfactorindeterminingthesuccessofadigitaleconomy.BusinessesinQueenslandarekeentogainfromtheopportunitiesthatadigitaleconomywillbring.TheyviewtheNBNrolloutasasignificantstepinbringingthemclosertoadigitalbusinesslandscape,butworrythatitmaynotarrivesoonenough.
Businessesarepreparingtheiremployeesingainingrelevantdigitalskills,andalsohelpingthemnavigatesocialmediaplatformsinasafeandresponsiblemanner.However,thefactthatbusinessesareonlyadoptingthebasicmeasuresineducatingtheirworkforcecontinuestobeacauseforconcern.Forinstance,whilebusinessesencouragetheirstafftobeinternetandsocialmediasavvy,theyhavenotadequatelyinvestedinhelpingtheirstaffbuildspecialistskills.Thelackoffocuscouldindicatethatbusinessesarenotfullyawareoftheevolutionarymilestonesleadingtodigitalreadiness–inotherwords,theymaybecaughtunpreparedtomeetthedemandsofadigitalbusinessenvironment.
AREASFORACTION1.Businessesneedtobementoredonthe
technologiesthatwilllikelyhavethemostimpactontheirtransitionintoadigitaleconomy,andbeguidedtodevelopingrelatedskills.
2.Connectivityandspeedareimportantdriversofadigitaleconomy-thedigitisedproductsandservicesthatbusinessesofferwillonlymakesenseifthereremainsadequateandefficientbandwidthtosupportthem.
How does your business currently connect to the digital economy?
Dial-up
Satelite
ADSL2+
ADSL
Cable broadband
Wireless/mobile internet18%
16%
17%
48%
1%
0%
“Improvedproductivity,simplybecauseoftheincreasedspeedoftheinternet.”-AussiePoolCues
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY27
section 9
digitAl ReAdiness WitHin QueenslAnd – mAKing it HAPPen
AtmAil CCiQ QueenslAnd digitAl ReAdiness study28
simply put, digital readiness defines the extent of preparedness that businesses have in responding to a digitally driven market environment. Businesses that use digital technologies are geared to perform better, besides being better equipped to handle shifts in customer demands.
Yet,formostbusinesses,ittakesmorethanjustinvestingindigitaltechnologiestoensurethattheysucceed/surviveinadigitalenvironment.Findingsfromthe2012DigitalReadinessstudyhighlighttheimportanceoffosteringadigitalecosystem,andidentifyseveralenablingfactorsincludingthepresenceofadigitalcultureandpartnershipwithvariedstakeholders.Theyalsostresstheneedforincreasedcapabilitybuildingthroughtechnologyintegrationwithinbusiness,rigourinimplementationandmanagingcustomerexpectations.
Resultsgatheredfromthe2013studyindicatethatQueenslandbusinessesareaddressingsomeoftheseactionareas.Forinstance,over50%ofbusinessesarenowusingmobileversionsoftheirwebsitesorSEOtoreachcustomersdirect,andshareinformationontheirproductsandservices.Inaddition,digitaladvertisinghasgainedmomentumandbusinessesarechannellingtheirbrandbuildingandproductadvertisingontosocialmediaplatformssuchasFacebook,google+andLinkedIn.Despitesomeoftheseencouragingtrends,areasforconsiderableactionandimprovementremain.
AtmAil CCiQ QueenslAnd digitAl ReAdiness study29
INCREASEDEDUCATIONONTECHNOLOgYCHOICESBusinessesneedtoexecutetheirdigitalstrategieswithgreaterconfidenceanddecisiveness.Andtheycandosothroughbetterguidance/awarenessonhowbesttoplantheirtechnologyinvestments.Only20%ofthecompaniesfeeltheyhaveaccesstotheskillsandknowledgeneededtosupporttheirbusinesstechnologyinvestments,whileoverhalfrelyonacombinationofin-houseandexternalserviceprovidersupportservices.Inaddition,almostathird(31.3%)ofthecompaniesfindsitdifficulttoinitiateindependenttechnologychoices.
Businessesstrugglewiththeirtechnologychoicesastheyareunsureonthequantumofbenefitstheydeliver.Theyarealsoconcernedabouttheneedforidealconditionswithintheenvironmenttosupportsuchinvestments–forinstancemostcompaniesdonotoptfornewertechnologiesbecausetheyworrythatITimplementationsareexpensivetolaunchandmaintain.
Theyarealsoconcernedthatsometechnologychoicesmayleadtoineffectiveplanningandcreatedisconnectswithinbusinessstrategiesand/ordisruptsupplier/outsourcingpartnerrelationships.
SYNCHRONISEDTECHNOLOgYINVESTMENTSWhentechnologyadoptionissynchronised,itoptimisesdeliverymechanisms.Forinstance,whilenearlyallcompanies(94%)hadinvestedinbuildingtheirwebpresence,only35%hadinitiatedrelatedtechnologyinvestmentssuchasmobileversionsoftheirwebsite.Similarly,whilecompaniesinvestindigitaladvertisementsonsocialmediaplatforms,theyneedtosystematicallyevaluateotherchannelssuchasmobile-basedapplicationstoensuretheyhavemaximumreachwithintheirtargetcustomergroups.
Further,whilemanybusinessesaresignificantlyinvestedinbuildinginformationsecurityanddataintegrity,mostdidnotexploreintegratingthedataintoCRM/ERPsystems.Doingsowouldhelpthemdevelopkeyinsightsoncustomerneedsaswellaschannelsforbetterreach.
Whenbusinessesbasetheirtechnologychoicesalongawell-structuredroadmap,theyareabletosetoffsystemsthatworkintandem,drivingbetterservicedeliveryaswellasincreasedfinancialefficiencies.
INVESTINgINSKILLSISKEYTechnologyskillsserveasakeydifferentiatorindigitalenvironments.Businesseswilllikelygainmorefromtheirdigitaltransformationiftheyareadequatelyinvestedinhelpingemployeesdeveloptherightskillsets.Whilegovernmentsplanforlarge-scaletechnologyinterventionssuchastheNBN,industrycangainfromitonlyifareadequatelypreparedandhaveequippedtheirworkforcewithrelevantskills.
Presently,businesseshavetakenminimalstepstopreparetheirworkforceforadigitisedbusinessenvironment.Socialmediaskillswithinbusinessesarefairlybasic,andamajorityofbusinessesrelyonexternalsourcesforspecialistskills.giventhepoorinvestmentinskillsdevelopment,only10%feelconsiderablypreparedtoadapttotheirdigitaltransformation.
Skillshortagescanberiskyandespeciallywhenoccurringoveraprolongedperiodoftime,significantlycompromiseservicedeliveryaswellasperformancequality.
3.2.1.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY30
section 10
ConClusion
challenge:
how do you market a small business on a $60 budget?
solution:
Used Google apps for website, blog, email, and office apps, used social media to build awareness, engage customers, provide leads, undertake research, used Google Forms for more detailed market research, used nimble Personal for cRm, used Google analytics for website and blog, as well as tracking social media posts.
Results:
costs include domain $10, Google apps $50, and my time. 5000+ engaged customer database and growing, plus more leads than we can handle.
- Bainbridge consulting Pty ltd
Atthecoreofadigitaleconomyisthedesiretopropelbusinessesintoahigherplaneofperformance,whereincreasedmarketreach,speedandeconomyareharmonisedtodelivervaluableresultstocustomersandinvestorsalike.
Tosucceedintheirdigitaltransformation,businesseswillhavetoexploreevolvingtechnologies,preparetotakeafewcalculatedrisks,andinvestineducatingtheiremployeesandcustomersonthepossibilitieswithinadigitalenvironment.Thiswilldrivebettercollaborationandinnovationresultinginvaluedriven,personalised,andeasytouseproductsandservices.
ATMAILCCIQQUEENSLANDDIgITALREADINESSSTUDY31
ReFeRenCes
1.http://www.accenture.com/Microsites/it-technology-trends-2014/Pages/home.aspx
2.http://www.deloitte.com/view/en_AU/au/services/deloitte-private/thoughtleadership/privatemattersd095639670a3a310VgnVCM2000003356f70aRCRD.htm
3.http://business.nab.com.au/online-retail-sales-index-indepth-special-report-november-2013-5445/
4.http://www.acma.gov.au/theACMA/engage-blogs/engage-blogs/researchacma/SMEs-key-drivers-of-the-digital-economy
5.http://www.digitalbrisbane.com.au/News
6.http://www.abs.gov.au/ausstats/[email protected]/Products/8153.0~June+2013~Chapter~Type+of+access+connection?OpenDocument
7.http://www.abs.gov.au/ausstats/[email protected]/Products/8153.0~June+2013~Chapter~Number+of+Internet+Service+Providers+(ISPs)?OpenDocument
AtmAil CCiQ QueenslAnd digitAl ReAdiness study32
chamber of commerce & industry Queensland375WickhamTce,SpringHillQLD4000Telephone1300731988
CCIQOFFICESWe have regional representatives in offices throughout Queensland, and are affiliated with more than 100 chambers of commerce throughout the state.
BRISBANE
CAIRNSANDFARNORTHQUEENSLAND
gOLDCOASTANDHINTERLAND
MACKAYANDCENTRALCOAST
RegionalManagerKarenFitzgibbonsPhone0408755727Emailkfitzgibbons@cciq.com.au
NORTHQUEENSLAND
RegionalManagerKarenFitzgibbonsPhone0408755727Emailkfitzgibbons@cciq.com.au
ROCKHAMPTONANDgLADSTONE
RegionalManagerVictoriaBradshawPhone0410220915Emailvbradshaw@cciq.com.au
SOUTHWESTQUEENSLAND
RegionalManagerRogergorrelPhone0429001612Emailrgorrel@cciq.com.au
SUNSHINECOASTANDWIDEBAY
RegionalManagerKimberlyLynchPhone0400731522Emailklynch@cciq.com.au
Forgeneralenquiries,pleasecall1300 731 988.
FortheEmployerAssistanceLine,pleasecall1300 731 988.
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