wi counties ass'c education seminar on broadband 8.17.15
TRANSCRIPT
BROADBAND DEVELOPMENT &
THE ROLE OF COUNTY GOVERNMENT Monday, August 17, 2015
Broadband & E-Commerce Education Center http://broadband.uwex.edu | [email protected] | @WI_Broadband | 608-890-4255
Setting the Stage: Key Players and Trends
Maria Alvarez StroudCenter Director [email protected] 608-263-9295
Next Thirty Minutes:
Talk about our Increased Reliance on the Internet
Broadband Technology Possibilities:
Speed Matters…
Dial-up+ (56 Kbps): 1 day, 10 hrs, 44 min
T1/DSL (1.54 Mbps): 1 Hour, 15 min
Cable (10 Mbps ): 11 min, 44 sec
Fiber (1 Gbps): 7 sec
NOT EITHER/OR BUT AND
Virtually all communications systems depend on (wired) fiber. That includes mobile broadband.
The way we work is changing
8
The way we learn is changing
9
The way we stay connected is changing
Some aren’t convinced its for the best
What we know is the change is here to stay
• Research in the U.S. shows…
• 56% of businesses and organizations say broadband is essential for remaining in current location
• 56% of households say they would definitely/likely relocate if broadband was not available
• 32% of households work from home or have a home-based business
The Internet has become the highway for technology
Source: SNG Digital Economy Database n = 19,951 businesses and 9,318 households
What we know is DEMAND will continue to increase
E-Commerce, E- Learning
Informed & Connected Consumers
Usage has increased eightfold within the last five years and is predicted to increase threefold again by 2016
Page 72, http://bbcmag.epubxp.com/title/13001
Semi-Connected Consumers Most often in rural areas Becoming engaged & learning
Informed Businesses Businesses using broadband
report median annual revenues approximately $200,000 higher than businesses that do not.
www.sngroup.com
Uninformed Businesses Most often small & rural Becoming engaged & learning
A Mixed Bag
Recognizing Pressure Points & Emerging Niches
Pressure Points
• Telemedicine & Health Information Exchange• Workforce Development: retooling to work• Flipped Classrooms & Distance Learning• Online Banking• Telecommuting• Cottage Industry & Small Business Growth• Adoption by those hard to reach (low income,
rural, elderly…)• Public Safety
The Economic impact of declining populations & loss of skills
Brain Drain
A trend that went unnoticed by some
Bottom line: To most of the younger generation, if your business or organization is not on the web, it doesn’t exist!
Seeing it before it’s too late
Why aren’t people connected?
http://www.governing.com/topics/transportation-infrastructure/gov-broadband-rural-expansion.html: 11/2014
Broadband AdoptionWhy “build-it and they will come” does not work
http://commons.wikimedia.org/wiki/File:Technology-Adoption-Lifecycle.png#/media/File:Technology-Adoption-Lifecycle.png
Access + Adoption=Utilization
How can we develop people and communities with technology?
In order for people to gain the most benefit from the technology available today, they need to
Have it Know how to use it Create with it
Infrastructure: Access
Adoption of technology Application
Getting a Handle on Broadband in Your County
Key Players State Broadband Office at the PSC UWEX Broadband & E-Commerce Ed.
Center WSTA WEDC
Your local telco. providers: Public-Private Partnerships
County Broadband Infrastructure and Access
• LinkWISCONSIN Access Maps
• Provider Lists and Technology Types
• Tower Locations for Partnerships
County Broadband Subscribership and Demand
Bandwidth Assessment Tool
Provider Portal
Powerful tools that are underutilized: begin collecting data to make wise expansion and adoption decisions
A County Broadband Economic ProfileYour County Data:• Top Businesses and
Industries
• Cottage Industries
• Age Migration Aging Populations
• Education Attainment and Income
• Jobs and Business Establishments
• Anchor Institutions and Industrial Parks
Broadband Programming in the Chequamegon Bay Region
Ashland & Bayfield Counties UW-Extension CNRED Educators UW-Extension Family Living Educators County Economic Development teams
Check out your county at: http://wi.linkamericadata.org/
Ashland County, in far Northern WI, “enjoys” some of the fewest options for Broadband in the state.
August 2012
Summer 2015
Aug 2012: WIN-LS Conference Panel of Internet-based business
Broadband Expansion Grant Planning (round 2)
March: WEDC, EDC, UWEX meeting
May: WEDC, EDC, UWEX, providers meeting
Feb 2015: Superior Days Broadband Outreach
Oct: UWEX E-Commerce Trainings
Fall 2014: PSC Broadband Expansion Grant
May: Broadband Expo
Apr: PSC Focus Group Follow Up
Feb 2014: Business Broadband Presentation
Dec: Digital Leaders Grant Application Approved (UWEX)
Nov: UWEX Broadband Boot Camp
Summer 2013 Broadband Demand Survey
July: Business broadband community discussion
June: Broadband Presentation by Three Lakes, WI
May: UWEX Listening Session
Nov: PSC Focus Group
2013
2014
2015
Where is Your County on Kotter’s Framework of Change?
Availability
Adoption or Utilization
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
6. Create short-term wins
5. Enable action
7. Don’t let up
8. Make it stick
OR
Community DevelopmentCommunity development is a process where community members come together to take collective action and generate solutions to common problems. Community wellbeing (economic, social, environmental and cultural) often evolves from this type of collective action being taken at a grassroots level.
Wikipedia; United Nations
Part of the confusion rests with the fact that community development is both process and product. 1
1-Greg Wise, Extension Community Development Agent and Associate Professor, University of Wisconsin-Extension – Sauk County specifically for the EPA/USDA Partnership project. Contributor: Elaine Andrews, Extension Environmental Education Specialist, Environmental Resources Center, University of Wisconsin-Extension. 1998
We depend upon measuring the product in order to decide if progress is made.
Community Development
Economic development is the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy.
…and we think we have found ways to measure it!Wikipedia
Challenges To Measuring The Value Of Broadband
• Discerning cause vs. correlation
• Technology moving faster than data can be collected and analyzed
• Finding differentiated comparables
Across the world
Changes in county populations
Broadband Communities Magazine, Nov/Dec 2014
Median Household Income Growth: High BB Adoption Vs. Otherwise Similar
Whitacare, Galardo, Stover for the National Agricultural and Rural Development and Policy Center
Costs of Exclusion
45
The cost of internet exclusion to individuals
46
The cost of internet exclusion to organizations
photo credit: HA! Designs - Artbyheather
47
The cost of exclusion to communities
Disruptive Innovation
recreation
business
work
school
health
Interaction between factors affecting broadband development
Internet service
provider activity
Availability of infrastructure
Consumer demand / adoption
Consumer confidence
Potential government
role?
Affordability
Consumer savvy
How are people effectingsystemic change?
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Broadband Policies and Regulations for Wisconsin
Stakeholders
http://broadband.uwex.edu/resources/policy/
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Framework for Change
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
Addressing the Online Training Needs of Rural WI Business
Jennifer SmithCommunications & Online Training [email protected] 608-890-4255
Let’s Start with What We Know:There is a relationship between Broadband & Economic Development
Research in the U.S. shows…
-56% of businesses and organizations say broadband isessential for remaining in current location
-56% of households say they would definitely/likely relocate if broadband was not available
-32% of households work from home or have a home-based business
-60% of all new jobs created comes from small businessesSBA’s Office of Advocacy 2013
Broadband…
Availability Adoption Utilization
Why drive utilization?
For an individual business or organization, increasing utilization by 10% means:
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
The Biggest Barrier is Not Knowing Fear and concern overrides slow Internet as a barrier
Security concerns
Time it takes to fix problems
Lack of Expertise
Cost of Maintaining the site
Response time from external Tech. support company
Breaks in service
0% 10% 20% 30% 40% 50%
Source: NSBA 2013 Small Business Technology Survey
42%
41%
36%
22.1%
18.1%
26%
Rural E-Commerce Project
Lessons Learned: Wide range of knowledge Topics are relevant Pitch is accurate Trainers are good Hands-on is important Basic barriers to entry Group training + Individual
Consultation Training is Needed!
2: Pilots6: Counties15+: Industries 83: Businesses 92: Trained3: Partners
Strategic Networks Group
Telecommunications Providers
Chambers of Commerce Community Foundation Economic Development Associations City Government
UW-Extension Economic/Community Development Educators
Public Service Commission-Wisconsin/ UW-Extension
Collaborative Approach
Increased Utilization = Revenue Growth
33.7%
54.0%
Contribution of Internet to Revenues / Level of utilization
Businesses underutilizing the Internet miss significant revenue opportunities
31.1%24.4%
20.7%
60%
50%
40%
30%
20%
10%
0%5 up to 6 6 up to 7 7 up to 8 8 up to 9 9 up to 10
Level of Broadband Utilization (DEI score)
N = 2,103
The Digital Economy Index Scorecard
Annual Revenue
Annual Operating Expenses
Revenue Impacts Cost Savings Total Benefit Avg. per eSolution
No. eSolutions
Total $29,132,000 $16,583,000 $3,468,141 $177,064 $3,645,205 $23,218 157
11.9% 1.1% 13.0%
Top 1st $1,676,324 $61,087 $1,737,411 55
Top 2nd $1,030,199 $61,733 $1,091,931 52
Top 3rd $761,618 $54,245 $815,863 50
$3,468,141 $177,064 $3,645,205 157
Averages $529,673 $301,509 $63,057 $3,219 $66,276 $23,218 157
Top 1st $30,479 $1,111 $31,589 55
Top 2nd $19,812 $1,187 $20,999 52
Top 3rd $15,232 $1,085 $16,317 50
By the Numbers/DEi:
If you take the total benefit from all of the top 3 opportunities across the 55 businesses the total is $3.6M, which averages to about $66K per business. This is an estimate of annual benefit per year. The average benefit per e-solution is about $23K per year.
Our Process
You are here
Self Assessment: DEI Scorecard
Financial Impact Calculator
Bandwidth Assessment Tool
Training
What We TaughtBandwidth Assessment Tool Search Engine OptimizationSearch Engine MarketingFacebook for BusinessLinkedIn for BusinessWebsite AssessmentsE-commerce Online AdvertisingSocial Media for Business …and more
MORE IMPORTANTLY: WHAT WE LEARNED
Some Results from WI
WI average DEi Score 5.3
77 businesses competed assessments - Ashland, Bayfield, Clark, Oneida, Vilas, Wood• 84% under 10 employees - 21% in Retail Trade• Average DEi 5.3 – typical rural average is 6.4 (AR/KS/NC/NE; under
50 employees)• Expertise issues are critical barriers for 30% and challenging for
another 30-40%
Utilization
Have websit
e
Emarketing
Online Custo
mer Support
Online Colla
boration
Social M
edia0
10
20
30
40
50
60
70
80
90
WisconsinOther States
Barriers to Adoption
Lack Exper-
tise
Security Concerns
Privacy Concerns
Dev'p Cost
Products not
suited
Internet too slow
0
5
10
15
20
25
30
35
40
45
Wisconsin Other States
Continued Impact
“What surprised me most was how our online posts strengthened our local networks and referrals. But generally, If you don’t know what’s out there beyond your brick and mortar store, you don’t even know what business you could have.” --Katie Gellaty, Solstice Outdoors
“I attended the ecommerce training and was impressed with the knowledge of the presenters and the depth of the material. The audience was engaged and interested. This is a very valuable topic and is just what we need in rural Wisconsin.”
Going Forward…?
Broadband & E-Commerce Education Center [email protected] Twitter @WI_Broadband 608-890-4255
Maria Alvarez Stroud, Director [email protected] 608-263-9295
Mary Kluz, Community Development, [email protected] 608-890-4254
Jennifer Smith, Communications & Online Training [email protected] 608-890-4255
Find this presentation online: http://www.slideshare.net/WI_Broadband