ICT adoption amongst South East SMEs

1
ICT adoption amongst South East SMEs

• South East England Development Agency

2
Background
3
Introduction (1)

• 3501 interviews with SMEs (up to 250 members of
  staff across all sites). Private-sector
  businesses only.
• Interviews conducted via CATI.
• Basic quota of 3000 by SIC and size, with larger
  businesses over-sampled for analysis purposes.
• Equal numbers of interviews by Business Link
  Area.
• Contacts supplied by Experian.

4
Introduction (2)

• Requirement to identify a number of industries of
  interest (boost sectors). Boost sectors
  identified through mix of SIC and respondent
  self-identification.
• 500 interviews set aside to undertake interviews
  within boost sectors with known low population
  counts. No size or BL area quotas applied to the
  supplementary sample.
• Final combined data weighted to be representative
  of the profile of businesses in the region (area,
  and size industry within area). Population
  counts based on
• APS counts (zero-size businesses)
• IDBR counts (businesses with 1-249 employees)

5
Profile (1)
Base all respondents (3501/3501)
6
Profile (2)
Base all respondents (3501/3501)
7
Profile (3)
Base all respondents (3501/3501) denotes a
result of less than 0.5
8
Profile (4)
Base all respondents (3501/3501) denotes a
result of less than 0.5
9
Overall business performance indicators
10
Customer base (1)
Base all respondents (3501/3501)
11
Customer base (2)
Base all respondents (3501/3501)
12
Customer base (3)
Base all respondents (3501/3501)
13
Where in the supply chain of a large organisation
(1)
Base all respondents (3501/3501)
14
Where in the supply chain of a large organisation
(2)
Base all respondents (3501/3501)
15
Where in the supply chain of a large organisation
(3)
Base all respondents (3501/3501)
16
Turnover
Base all respondents (3501/3501)
17
Productivity
Base all respondents (3501/3501)
18
Profitability
Base all respondents (3501/3501)
19
Business growth over next 12 months (1)
Base all respondents (3501/3501)
20
Business growth over next 12 months (2)
Base all respondents (3501/3501)
21
Business growth over next 12 months (3)
Base all respondents (3501/3501)
22
ICT adoption
23
ICT adoption overview
Base all respondents (3501/3501) denotes a
result of less than 0.5
24
Basic computer adoption (1)
Base all respondents (3501/3501) denotes a
result of less than 0.5
25
Basic computer adoption (2)
Note size bands quoted in slides are enterprise
size not size at site
Base all respondents (3501/3501) denotes a
result of less than 0.5
26
Basic computer adoption (3)
Base all respondents (3501/3501) denotes a
result of less than 0.5
27
Barriers to computer adoption

• Lack of relevance particular issue within
  (minimum base 30)
• Automotive (72)
• Business services (67)
• Retail (61)

Base non-IT adopters (732/1173) multiple
response unprompted
28
Future computer adoption

• Limited scope amongst non-ICT adopters to
  introduce computers in future (max. 12 current
  non-adopters). Potential adoption likely to be
  driven by customer requirements
• Customer demand (3)
• New market opportunities (3)
• To attract new customers (1)
• Business expansion (1)

Base non-IT adopters (732/1173) multiple
response unprompted
29
Internet broadband
30
Broadband adoption (1)
Note further 3 of current/future ICT adopters
have a dial-up connection only .
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
31
Broadband adoption (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
32
Broadband adoption (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
33
Current broadband connection
Base current broadband adopters (2490/2082)
34
Internet application
Base current internet dial-up or
broadband(2574/2164) multiple response prompted
35
Broadband connection problems (1)
Base current broadband adopters (2490/2082)
multiple response prompted denotes a result
of less than 0.5
36
Broadband connection problems (2)
In all, 51 of those experiencing problems with
their broadband connection indicate that the
issue is having a negative impact on their
business
Base current broadband adopters experiencing
problems with the connection (672/605) denotes
a result of less than 0.5
37
Increased connection speeds

• Although 42 highlight applications that would
  benefit from increased connection speed, only 13
  anticipate installation of a faster connection in
  next 12 months. Demand for faster connections
  highest amongst min. sample of 30
• Automotive (26)
• Surrey (17)
• 50-249 employees (17)

Base current internet broadband dial-up
adopters (2574/2164) multiple response prompted
38
Websites
39
Website operation (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
40
Website operation (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
41
Website operation (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
42
Website development
66 of those with website have internal
capability to update website. 53 use only an
internal resource.
Base current website operators (2052/1444)
43
Website functionality
Base current website operators (2052/1444)
multiple response prompted
44
Website importance (1)
Importance of the company website in sourcing new
customers in specified locations
Base current website operators (2052/1444)
45
Website importance (2)
Where the company website has a high level of
importance in sourcing new customers in specified
locations
Base current website operators (2052/1444)
46
Website importance (3)
Where the company website has a high level of
importance in sourcing new customers in specified
locations
Base current website operators (2052/1444)
47
Website importance (4)
Where the company website has a high level of
importance in sourcing new customers in specified
locations
Base current website operators (2052/1444)
48
Website development over next 12 months (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
49
Website development over next 12 months (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
50
Website development over next 12 months (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
51
Website development over next 12 months (4)
Base where planning to develop new or existing
website in next 12 months (1153/878) multiple
response prompted
52
Website development over next 12 months (5)
Base where planning to develop new or existing
website in next 12 months (1153/878) multiple
response prompted
53
Networking
54
Network implementation (1)
45 of multiple site businesses have networked
workstations. Only 27 have a network
connection between sites.
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
55
Network implementation (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
56
Network implementation (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
57
Network development over next 12 months (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
denotes a result of less than 0.5
58
Network development over next 12 months (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
59
Network development over next 12 months (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
denotes a result of less than 0.5
60
Network development over next 12 months (4)
Base where planning to develop new or existing
network in next 12 months (221/106) multiple
response prompted
61
CRMs
62
CRM implementation (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
63
CRM implementation (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
64
CRM implementation (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
65
CRM implementation (4)
Base where introduced CRM (648/356) multiple
response unprompted
66
Stock control
67
Electronic stock control implementation (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
68
Electronic stock control implementation (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
69
Electronic stock control implementation (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
70
Effect of stock control system on stock levels
Base where has electronic stock control
system(616/269)
71
Online sales
72
Where has facility to sell online to customers (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
73
Where has facility to sell online to customers (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
74
Where has facility to sell online to customers (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
75
Online sales (1)
Base where has facility to sell online (708/576)
76
Online sales (2)
Base where has facility to sell online (708/576)
denotes a result of less than 0.5
77
Online sales (3)
Base where has facility to sell online (708/576)
78
Flexible remote working
79
Flexible working options
Flexible working options available to staff
within the business

• Of those providing remote working options
• 20 state that this has helped those with
  childcare responsibilities
• 8 other care responsibilities
• 6 staff with a disability
• 4 staff with particular cultural requirements

Base all respondents (3501/3501)
80
Perceptions of flexible working (1)
Base Base where provides remote working options
to staff (1839/1478) multiple response
prompted denotes a result of less than 0.5
81
Perceptions of flexible working (2)
Base all respondents (3,501/3,501) multiple
response prompted denotes a result of less
than 0.5
82
Future perspectives for flexible working
Base non-ICT adopters (732/1173) multiple
response prompted
83
Role of ICT in facilitating remote working
Base where provides remote working options to
staff (1575/1092) denotes a result of less
than 0.5
84
Other aspects of remote working

• 22 have provided financial assistance to staff
  who work from home (e.g. help with electricity
  bills)
• 4 of current future ICT adopters feel that the
  amount of ICT-enabled remote working within their
  business will increase over the next 12 months.
  Less than 0.5 anticipate a decline.

85
ICT support and advice
86
Where sourced external ICT advice/support in past
12 months (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
87
Where sourced external ICT advice/support in past
12 months (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
88
Where sourced external ICT advice/support in past
12 months (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
89
Type of external ICT advice/support
Of those who sourced external advice or support,
89 felt that there was sufficient support
options available.
Base where sourced external ICT advice/support
in past 12 months (1032/717) multiple response
prompted
90
Sources of external ICT advice/support
Base where sourced external ICT advice/support
in past 12 months (1032/717) multiple response
prompted
91
Future external ICT advice/support
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
92
Business activity performance
93
Business objectives (1)
Extent to which specified objectives are
important to business
Base all respondents (3501/3501)
94
Business objectives (2)
Extent to which ICT has enabled specified
objectives to be met
Base current IT adopters (2769/2328)
95
Business objectives (3)
96
Business objectives (4)
Extent to which specified objectives are
important in driving future ICT adoption
Base where planning to adopt computers in next
12 months (135/139)
97
Role of ICT in delivering performance
improvements (1)

Extent to which ICT has allowed performance
improvements in specified areas - 1
Base where planning to adopt computers in next
12 months (135/139)
98
Role of ICT in delivering performance
improvements (2)

Extent to which ICT has allowed performance
improvements in specified areas - 2
Base where planning to adopt computers in next
12 months (135/139)
99
Role of ICT in developing new products/services

• 45 of ICT adopters specify a role that ICT has
  had in developing existing/new products or
  services within the business.
• 40 ICT has allowed improvements to existing
  products/services to be made
• 23 ICT has allowed new products/services to be
  developed
• 16 ICT has allowed products/services that are
  new to the company to be developed
• 10 ICT has allowed products/services that are
  new to the market to be developed

Base where planning to adopt computers in next
12 months (135/139)
100
Where ICT investment over past 3 years has not
covered its cost (1)
Base current IT adopters (2769/2328)
101
Where ICT investment over past 3 years has not
covered its cost (2)
Base current IT adopters (2769/2328)
102
Where ICT investment over past 3 years has not
covered its cost (3)
Base current IT adopters (2769/2328)
103
ICT staff training planning
104
Where has a specialised internal ICT staff
resource (1)

• 31 of adopters have specialised internal ICT
  resource
• 26 single ICT member of staff
• 5 ICT department
• Further 27 of adopters have an enthusiast in
  mixed ICT/non-ICT role in charge of ICT
  implementation
• 35 of adopters have no internal ICT staff
  resource
• 4 of current/future adopters have experienced
  ICT recruitment difficulties in past 12 months

Base current IT adopters (2769/2328)
105
Where has a specialised internal ICT staff
resource (2)
Base current IT adopters (2769/2328)
106
Where has a specialised internal ICT staff
resource (3)
Base current IT adopters (2769/2328)
107
ICT training and planning implementation (1)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
108
ICT training and planning implementation (2)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
109
ICT training and planning implementation (3)
Base current IT adopters or where planning to
adopt computers in next 12 months (2904/2467)
110
Summary
111
Summing up (1)

• Computer adoption levels similar at BL area
  level. Pattern extends to broadband website
  implementation. No serious geographic weakness in
  lack of basic broadband availability identified.
• Broadband problems concentrated around
  connections dropping out (broadband adopters), or
  lack of need/relevance (non-adopters)
• Increasing computer website adoption levels in
  line with company size increases. However,
  broadband access similar across all company size
  bands.
• High adoption levels for key technologies within
  aerospace and creative design sectors.

112
Summing up (2)

• Website function mainly revolves around product
  information provision rather than providing
  interactive user services or sales function.
  Future website development planning involves same
  type of functionality.
• Website updates mainly undertaken on ad-hoc
  basis.
• Despite limited role of websites in increasing
  sales, there are industries that have embraced
  the potential of ICT to sell online to a greater
  degree aerospace and logistics freight
  currently, with tourism leisure and creative
  design industries seeking to increase activity in
  near future.

113
Summing up (3)

• Flexible working options currently limited to
  around ¼ of businesses. Increasing activity
  levels here may prove difficult due to a lack of
  understanding within the overall business
  community, and amongst those that currently allow
  flexible working, of the overall benefits of
  remote/flexible working.
• Where remote working options available, ICT has
  played an important role for 54, and 60 do
  provide some means of electronic media
  (computers/storage etc) to assist their staff.
• External ICT advice primarily sourced from ICT
  consultants or friends/family. These are also the
  sources that users have found most helpful to
  them.

114
Summing up (4)

• Amongst adopters, ICT has had the most positive
  role in improving the quality of goods/services
  and improving/maintaining competitiveness.
• However, potential future adopters are more
  likely to demand that ICT helps them to improve
  their turnover levels.