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

ge

N = 1,426

Incr

easin

g U

tiliza

tion

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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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

18

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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]

spurring small business use of technology and driving benefits

Economy & Finance