sng minnesota - motivating broadband utilization
DESCRIPTION
Presented at the 2014 Minnesota Broadband ConferenceTRANSCRIPT
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Motivating Business Broadband Utilization
Border to Border Broadband: A Call to Action February 5, 2014
Saint Paul, Minnesota
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Let’s Start With What We Know…
• There is a relationship between broadband and economic development.
• SNG research in the U.S shows…– 56% of businesses and organizations said broadband is
essential for remaining in current location– 56% of households said they would definitely/likely
relocate if broadband was not available– 32% of households work from home or have a home-
based business
Source: SNG Digital Economy Database n = 19,951 businesses and 9,318 households
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…and Broadband Means Jobs
Percent of New Jobs Related to InternetBy Size of Employer Group
Broadband is responsible for 23.4% of all new jobs
Source: SNG Digital Economy Database n = 6,177
Small businesses create 12x more
Internet jobs relative to large
firms1 - 19
20 - 99
100 - 499
500 or more
Tota
ls
0%
5%
10%
15%
20%
25%
30%
35% 30.9% 29.1%
21.1%19.1%
23.4%
Employees
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Availability Adoption Utilization
Broadband …
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“Crossing the Chasm”
Why “build-it and they will come” does not work?→ Because people buy benefits, not features
… so driving awareness and utilization is the next challengeFor further information, see “No Field of Dreams: Eliminating the Waiting Game and Driving Uptake”
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What’s so hard about utilization?Quick to Adopt ‘Laissez-faire’ approach “Okay”
Slow to AdoptNeed to ‘lead horse to water’
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
Household Applications Household Applications
e-mail Entertainment
Banking Investments and Trading
News and Sports VoIP
Information gathering Home Based Business
BIGGESTBENEFITS
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Increased Utilization Directly Correlates to Revenue Growth
Businesses underutilizing the Internet miss significant revenue opportunities
5 up to 6 6 up to 7 7 up to 8 8 up to 9 9 up to 100%
10%
20%
30%
40%
50%
60%
20.7% 24.4%31.1% 33.7%
54.0%
Contribution of Internet to Revenues / Level of utilization
Level of Broadband Utilization (DEi score)
% o
f Rev
enue
s att
ribu
ted
from
Inte
rnet
usa
ge
N = 2,103
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How Can You Achieve Utilization?
Lead with the BENEFITS of Applications
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The right metrics and data help you:• Understand the local market demand for broadband• Assess potential socio-economic impacts (community ROI)• Develop an action plan for regions and individual
businesses/organizations that will achieve desired results
Active, Actionable Data Is the Key to Capitalizing on the Transformative Economic Benefits of Broadband
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What are Broadband Metrics?
10
Census Data - good to have Active broadband metrics - need to have
Type of connection Measure broadband speed vs. advertised speedBroadband speed Broadband satisfaction by end-usersMaterial resources Utilization of Internet enabled tools and processes Benefits from broadband on daily operations
Barriers to adopt broadband and to use Internet enabled tools and processes
Quantified impacts from broadband on revenues, cost savings Quantified impacts on job creation Skills needed and preferred method of acquisitions
Digital Economy index scoring at an individual level - industry sector level, regional level, etc.
Special use and daily benefits metrics for Community anchors institutions
Industry sector focus studies, comparison and benchmarking Regional focus studies and comparison
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Metrics for:
…. where are we now?
… and how much closer are we to our
goal?
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So What Should You Measure?
UtilizationHow businesses,
organizations, and households are currently using, or planning to use
broadband and e-solutions.
Gaps and Barriers Where the gaps in the
utilization of e-solutions are and which factors inhibit, or
prevent adoption.
Drivers and Needs Understanding the needs
and preferences of end-users in order to raise awareness, to increase adoption, and to
drive effective utilization.
Benefits How things have improved and which e-solutions have
benefitted businesses, organizations, and
households.
ImpactsQuantify benefits in terms of
new revenues, cost efficiencies, new jobs,
quality of life, etc.
Profile Data Internet connection type,
tested speed, length of time using broadband,
organization size, industry sector classification, demographics, etc.
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We uncover Internet use at a micro-level and benchmark against peers
17 e-solutions1 by businesses / organizations30 e-solutions1 by households
Utilization data collected2 by SNG directly from 27,150 businesses / organizations And 12,400 households.
SNG has normative database with deep insights on Internet usage and impacts – over 110 metrics for each record.
Results shown use SNG’s Digital Economy index (DEi), a composite score between 1 and 10 to reflect level of Internet utilization.
1. Internet-enabled applications and processes; 2. Between 2008-2013
How SNG Measures Utilization
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Business Assessment
Survey
DEi Scorecard
Financial Impact Calculator
e-Business Tactics
How is the business using esolutions?• Measure current uses and benefits• Create greater awareness
Where are gaps and opportunities ?• Motivation• Compare to peers• Reveal financial benefits
What guidance does the business need?• Engage and advise• Run financial impact scenarios• Choose esolution priorities
How will businesses take action?• Learning resources• Choose the right tactics• Develop a plan
Take stock
Review options
Evaluate benefits
Take action
Helping Businesses Take Action
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A DEi Scorecard is delivered to each business and organization
Individualized ‘broadband health check’ that:‒ benchmarks competitiveness against
peers ‒ 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
Personalize Results: DEi Scorecard
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DEi Impact Calculator- choose e-strategy based on ROI -
Source: SNG Digital Economy Database n = 27,200
1. Select your organization characteristics
2. Select your actual and needed e-Solutions
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4. Details of potential revenues and cost savings
3. See your 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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North Georgia example
Economic Impact for every 100 businesses trained in North Georgia who adopt eSolutions:
Industries Aggregate additional revenues (annually)
All Industries $7.2 Million
Manufacturing $17.5 Million
Professional and Tech Services $2.7 Million
Tourism $4.8 Million
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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%
For a Region, it means :
Allowing businesses to be more competitive
Creating a demand for high-skilled workers
Adding fiscal revenues
Average multipliers identified by SNG from over 12,000 data records collected in 2009-10.
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Michael Curri, PresidentStrategic Networks Group, Inc.+1 [email protected]
Let’s connect !www.sngroup.com
Thank You