The 2002 National Technology Readiness Survey: Technology Readiness and Key Trends Presented to: Center for eService Partnership Forum February 28, 2003.

The 2002 National The 2002 National Technology Readiness Technology Readiness Survey:Survey:Technology Readiness and Key Technology Readiness and Key TrendsTrends

Presented to:Presented to:

Center for eService Partnership ForumCenter for eService Partnership Forum

February 28, 2003February 28, 2003

Presented by:Presented by:

Charles L. ColbyCharles L. Colby

PresidentPresident

Rockbridge Associates, Inc.Rockbridge Associates, Inc.

703-757-5213 – [email protected] – [email protected]

Major Points…Major Points…

E-Service resources in the household are increasing

E-Government use is growing, but there is room for improvement in quality

There really are “technology ownership gaps” in America

Our Research ProgramOur Research Program

National Technology Readiness Survey Authored by Parasuraman and Colby Replicated in 1999, 2000, 2001 and 2002 Nationally representative telephone survey Sponsored by the University of Maryland

Center for e-Service and Rockbridge Associates, Inc.

Household ResourcesHousehold Resources

How Consumers are Enabling How Consumers are Enabling themselves to use E-Servicethemselves to use E-Service

Technology

Company

Employees Customers

In the 2000s, e-Service In the 2000s, e-Service will grow, powered by the will grow, powered by the

useruser

1990s

2000s

Enabling users to access e-service in their homes

TechnologiesInstant Internet Access

CustomizationBroadband

Home networksWireless networks

FirewallsE-Wallets

Home Videoconferencing

Voice over Internet

BenefitsConvenience

SpeedSecurity

Time savings

Important TechnologiesImportant Technologies

Home Sweet (Wired) Home Sweet (Wired) HomeHome

High Speed Connection19% of US

HHs

Personal/family web site (21%)

Personal/family Internet Identity (13%)

Home Network(18%)

Home Compute

r(70%)

InternetAccess(62%)

More Depth, less ReachMore Depth, less ReachThe Growth last year was in The Growth last year was in BroadbandBroadband

Computer Penetration dropped from 72% in ’01 to 70% in ‘02

Computer use at work dropped from 49% to 44% (tech collapse?)

Home Internet Penetration grew from 58% to 62%

Work Penetration dropped from 43% to 41%

High speed access grew from 21% to 31% of Internet households

Cable modems are driving the boom

20% in 2002 (from 12% in 2001)

DSL is 9% (from 8% in 2001)

58% without it think it is available in their neighborhood

Flat Growing

Growth e-Services Growth e-Services (commercial)(commercial)

1613

15 15

5 5 4 3

23 2220 19

9 96 5

0

5

10

15

20

25

Bill P

ayin

g

Checki

ng util

ity a

ccount

Payin

g cre

dit ca

rd b

ill

Man

agin

g cre

dit ca

rd

Signi

ng up

for t

elec

om

Signi

ng up

for u

tility

Applyin

g for m

ortgag

e

Signi

ng up

for i

nsura

nce

2001

2002

Flat or Declining e-Flat or Declining e-ServicesServices(2001 to 2002)(2001 to 2002)

While all of these have grown since 1999, the incidence was flat or dropped in the past year for… Online travel Purchasing (all size categories, especially <$10) Online banking Applying for credit cards Stock trading

9/11 and the economy were no doubt factors

Online VenuesOnline Venues Many take the job home, and personal

business to work 5.9 hours per week on internet at home for work

purposes* 3.7 hours per week on internet at work for

personal purposes* 38% of of the public have used the internet

at a location away from home or work, usually a friend’s home or library

M-Commerce is not yet taking off: 5% of adults accessed the internet from a portable device in 2001 and 2002

*Among those with access in both places.

E-GovernmentE-Government

Trends and SatisfactionTrends and Satisfaction

Online Activities (12 month period, based on online population)

50

16

33

1121

39

19

36

1824

0

20

40

60

Visitedlocal/state

site

Didbusiness

withlocal/state

gov't

Visitedfederalgov't

website

Didbusiness

withfederalgov't

Didbusinesswith any

gov'tonline

%

2001

2002

Business with e-Gov is Business with e-Gov is Growing (but less Growing (but less “shopping”)“shopping”)

E-Government E-Government ActivitiesActivities

Local/State Taxes (19%) Motor vehicle

(17%) Employment

(14%) General research

(11%)

Federal Taxes (41%) General

research (12%) Downloading

forms (9%)

Satisfaction with e-Satisfaction with e-GovernmentGovernmentCommercial Sites do a Little BetterCommercial Sites do a Little Better

Satisfaction with Online Activities

6474

88 87 8776

134 0

5 16

0

20

40

60

80

100

Local/StateGov't

FederalGov't

Buyingthings <$10

Buyingthings $10-

$100

Buyingthings>$100

Payingcredit card

bill

%

SatisfiedDissatisfied

Gaps: Gaps: Technology “Have Technology “Have Nots”Nots”

Size of the gap, who the Size of the gap, who the have nots are, why they lack have nots are, why they lack

technologytechnology

Framing the IssueFraming the Issue Online access is a prerequisite to

special advantages, such as… Discounts (e.g., special air fares) E-Government 24 x 7 service

Many Americans want technology at home, but lack it

Other Americans don’t want the technology (many seniors), but need access anyway

Who are the “Have Who are the “Have Nots”Nots”

Older Less educated Lower income Less white More rural and inner city

Should the Government Should the Government Step in?Step in?

It depends on which side of the divide you are on… 38% of the public believe “the

government should provide subsidies to people who cannot afford computers”

64% of those who lack computers because of affordability believe the gov’t should intervene

Why the Gap at Home?Why the Gap at Home? Reasons for not having a computer:

Affordability (43%) Lack of interest (34%) Can use computers somewhere else (22%) Lack of knowledge (20%)

Reasons for not having Internet access: Lack of interest (32%) Affordability (31%) Can use it elsewhere (20%) Lack of knowledge (12%)

Training and Training and Experience IssuesExperience Issues

Only 17% of those who lack computers at home and work have “moderate” or “a lot of experience” using them

54% of the “have nots” need at least moderate or extensive training

While 38% prefer a classroom setting, many prefer a more interpersonal style of training (visiting home, neighborhood center)

Future DirectionsFuture Directions

Where we go next with NTRSWhere we go next with NTRS

Future Research Future Research DirectionsDirections

Cultural influences on techno-readiness

A general theory of innovation (e.g., biotech, entertainment)

Organizational techno-readiness

Future InitiativesFuture Initiatives

African American/Hispanic NTRS, with Terri Albert, University of Hartford (March 2003)

Continuing studies in other countries (Austria, Sweden)

Possibility of a business executive NTRS in U.S. and Latin America (need a sponsor)