AtmAil CCiQ QueenslAnd digitAl ReAdiness study · – minimal disruption impacting industries such as manufacturing and mining that have traditionally had lower levels of “total

AtmAil CCiQ QueenslAnd digitAl ReAdiness study1

AtmAil CCiQ QueenslAnd digitAl ReAdiness study


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


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

[email protected]

facebook.com/atmailcom

twitter.com/atmail


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


section 1

WHAt’s sHAPing tHe digitAl eConomy?


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?


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


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


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.


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


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


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


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.


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)?


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


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.


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%


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


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.


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


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%


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%


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%


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


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


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


section 9

digitAl ReAdiness WitHin QueenslAnd – mAKing it HAPPen


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.


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.


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.


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


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

[email protected]

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[email protected]

gOLDCOASTANDHINTERLAND

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RegionalManagerKarenFitzgibbonsPhone0408755727Emailkfitzgibbons@cciq.com.au

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RegionalManagerVictoriaBradshawPhone0410220915Emailvbradshaw@cciq.com.au

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RegionalManagerRogergorrelPhone0429001612Emailrgorrel@cciq.com.au

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RegionalManagerKimberlyLynchPhone0400731522Emailklynch@cciq.com.au

Forgeneralenquiries,pleasecall1300 731 988.

FortheEmployerAssistanceLine,pleasecall1300 731 988.

AtmAil CCiQ QueenslAnd digitAl ReAdiness study · – minimal disruption impacting industries such as manufacturing and mining that have traditionally had lower levels of “total

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