Spurring Small Business Use of Technology and Driving Benefits

©StrategicNetworksGroup,Inc.2015
Spurring Small Business
Use of Technology
and Driving Benefits
March 10, 2016
Blandin 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 States
The 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
Businesses
By 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 years33.1%
21.3%
26.1%
24.1%
25.5%
38.2%
31.8%
38.3%
42.9%
39.7%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Employees
2010- 12 2013-15

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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 1.95
Wholesale Trade 6.50 7.96 1.46
Real Estate 7.09 8.45 1.36
Finance & Insurance 7.18 8.45 1.27
Arts, Entertainment & Recreation 6.41 7.58 1.17
Information 8.06 9.22 1.16
Health Care & Social Assistance 5.92 6.99 1.07
Professional & Technical Services 7.09 8.06 0.97
Construction 6.02 6.89 0.87
Accommodation & Food Services 6.31 7.09 0.78
Transportation & Warehousing 6.50 7.18 0.68
Manufacturing / Processing 6.60 7.18 0.58
Number of businesses (2012-2015) 6,927 2,277
Median DEi Score

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52.3%
45.2%
35.2%
33.2%
31.7%
29.5%
R² = 0.9811
25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0%
9 up to 10
8 up to 9
7 up to 8
6 up to 7
5 up to 6
4 up to 5
DEiRange
Average Pct. Revenue from Internet Use
N = 1,426
IncreasingUtilization
The Digital Economy index (DEI) measures how comprehensively a business or organization uses Internet applications.
Utilization Increases Revenues
There 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 Adopt
Need 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
BIGGEST
BENEFITS

Bridging the
Small Business Digital Divide
Where to go and how to get there?

The Small Business Growth Program
(SBGP) is a program delivered locally and
is designed to assist small businesses to
become more competitive and productive
through more, and more effective, use of
the Internet for online business activities.

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Driving More Effective Internet Utilization

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A DEi Scorecard is delivered to each
business and organization
Individualized ‘broadband assessment’
that:
‒ benchmarks competitiveness against
peers (by size and industry sector)
‒ estimates ROI from increased utilization
‒ provides links to local advisors and
support
Data based on the individual’s current
broadband utilization against industry
average
Shared with local economic development
agencies so they can raise awareness,
increase adoption, and drive utilization
Personalized Incentives: DEi Scorecard

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Detail potential revenues and cost savings by application
Quantify potential benefits from increased utilization
Source: SNG Digital Economy Database n = 27,200
DEi Impact Calculator
- choose e-strategy based on ROI -

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Online Resources Can Help …

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… as well as Save Staff Time

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Outcomes
By participating, small businesses become…
Motivated to take action
Aware and engaged
Empowered to make educated adoption decisions
Strategic through relevant action plans
More competitive and productive
Long term outcome – businesses increase adoption of
esolutions and achieve measurable impacts
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Understanding Utilization Goals & Motivators
Businesses 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, Inc.
202.558.2128
mcurri@sngroup.com

Spurring Small Business Use of Technology and Driving Benefits

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