• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Telstra Productivity Indicator 2010 - Key Findings
 

Telstra Productivity Indicator 2010 - Key Findings

on

  • 2,773 views

The Telstra Productivity Indicator is a

The Telstra Productivity Indicator is a
comprehensive report on how large
Australian organisations measure,
manage and invest in their productivity
potential.

Statistics

Views

Total Views
2,773
Views on SlideShare
2,760
Embed Views
13

Actions

Likes
0
Downloads
77
Comments
0

1 Embed 13

http://www.slideshare.net 13

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Telstra Productivity Indicator 2010 - Key Findings Telstra Productivity Indicator 2010 - Key Findings Presentation Transcript

    • Telstra Productivity Indicator 2010 Key Findings
    • Contents • The Big Picture • The ‘Productivity Gap’ • Improving Productivity 1
    • Productivity overview
    • The Big Picture “Between 50% and 60% of Australia's economic growth since 1990 can be attributed to productivity improvements”. Australia 2020 Summit - Education, Skills And The Productivity Agenda April 2008 “If we boost productivity growth by 2050 every Australian man, woman and child would be $16,000 better off each year". Building Australia's future: beginning a building decade for a stronger Australia, The Hon Kevin Rudd MP, January 2010 3
    • Productivity trends „Lagging….not leading‟ „Slowing….not growing‟ Australia‟s Relative Productivity Performance Australia's Relative Productivity Performance Australian Productivity Trends 2000-2008 AUSTRALIAN PRODUCTIVITY TRENDS 2000-2008 4% 3 3% Slowdown 2% 2 1% 0% -1% 1 -2% -3% -4% 0 Australia Canada France Germany Ireland Japan New United United -5% Zealand Kingdom States 80-81 84-85 88-89 92-93 96-97 00-01 04-05 08-09 Sources: OECD, Analysis by Telstra Economics group Source: ABS 4
    • Productivity growth is strongest in those industries that are heavy users of communications technology MFP growth & CommunicationsIntensity MFP Growth and Communications Technology Intensity 4% Wholesale Retail Transport 3% Communications Intensity Accommodation Information, Media & Telecoms Recreation 2% Finance Utilities 1% Construction Agriculture Manufacturing Mining 0% -4% -3% -2% -1% 0% 1% 2% 3% MFP growth over decade to 2008-09 Sources: ABS and Analysis by Telstra Economics group 5
    • Telstra’s Productivity Research Macro- Industry- economic level Multi-factor Macro-level productivity Research analysis ICT impact on productivity Case-studies Telstra and Productivity Individual- Firm-level level diagnostics Indicator Work group-level Source: ACIL Tasman 6
    • Telstra Productivity Indicator 2010 Objectives • Discover how enterprise and government organisations approach productivity • Investigate the link between information and communications technology (ICT) and improving productivity. Methodology • Sweeney Research conduct 300 independent confidential interviews annually to build a statistically representative cross-section of Australian organisations with >200 employees • Industries follow ABS ANZSIC classifications • Participants are directors, senior executives and managers who are familiar with the workings of their organisation 7
    • Telstra Productivity Indicator 2010- key findings 1. Australia‟s „productivity gap‟, the difference between productivity expectations and action, is significant and has widened. 2. The research shows a clear link between ICT investment and improved productivity. 3. Those organisations that are actively investing in ICT and aligning with worker needs are driving measurable productivity improvements. 4. To close the gap requires management, measurement and investment. 5. Productivity is a key focus for organisations in 2010. 8
    • The ‘Productivity Gap’
    • The ‘Productivity Gap’ is the difference between ‘what is said’ and ‘what is done’ „What is said….‟ „What is done….‟ Measure, have a target and TPI 2009 TPI 2010 know what it is Don’t measure Improving customer service 78% 78% Improving productivity 78% 76% Decreasing costs 74% 73% Measure but Increasing revenue don’t have a 76% 72% specific target Risk management 71% 65% Attracting and retaining staff 80% 61% Measure and have a target, but don’t know what it is NB: For comparison – where relevant, numbers in (%) are from TPI2009 N.N.B: Due to rounding, the percentages in this chart will not add up to 100 Data source: The Telstra Productivity Indicator 2010 n=300 10
    • The Productivity Gap is significant and widening 29% 34% ∆ Five ∆ percentage points increase in the productivity gap from 2009-2010 11
    • Productivity Gap contributors Lack of Lack of Barriers to ICT Misalignment of ownership measurement investment ICT investment 12
    • Assigning specific ownership enables better management of productivity objectives 13
    • Investment in ICT is the priority investment to realise productivity gains ICT investment is seen as the most important contributor to improving the productivity of organisations 14
    • ICT Investment is not sufficiently aligned with the needs of workers - suggesting significant opportunity However, only 34% believe that Opportunity ICT exists deployment is greatly aligned with the needs of worker groups to maximise their productivity 15
    • Top 5 ICT Investments for Improving Productivity Extremely/Very important to improving In last 12 In next 12 % Difference productivity months months 1. ACCESS - Providing better access to information and 69% 74% 5 resources for all people within your organisation through networked computing 2. WIDE AREA NETWORKING - Using broadband/IP 70% 71% 1 network to deliver your necessary applications such as email or other common applications to other sites including remote sites and users 3. NETWORK COVERAGE AND SPEED - Improved 65% 70% 5 capabilities through higher network speeds and broader network coverage 4. INFORMATION AND RESOURCE SHARING - 64% 69% 5 Creating opportunities for employees to share resources and information electronically across offices in different locations 5. FLEXIBLE/REMOTE NETWORKING - Creating 62% 66% 4 opportunities for employees to remain effective when they are on the road or out of the office by providing remote email, PDAs, mobile phones, SMS, text messaging 16
    • Improving Productivity
    • Improving Productivity – Closing the Gap Manage Ownership Alignment Specific accountability Aligning ICT investments is critical ICT to drive with worker groups needs productivity Measure Invest Technology Investment Measurement Realising the productivity Clear and accurate benefits vs cost of capital measures are required investment 18
    • Telstra Productivity demonstrated Telstra Communication Technicians Telstra Country Wide / Telstra Enterprise & Government • 95% of appointment date and times met • 23% reduction in overall monthly travel expenses • 15% reduction in return visits to customers within compared with 2007 seven days • 10% reduction in domestic flights per month • 43% increase in communication technician productivity • 55% reduction in car hire • $39.5 million of productivity savings per year, • Reduction of over 2.5 million kilometres in including $14 million from fleet vehicle savings distance travelled • 9,500 tonnes of estimated annual CO2 savings • Estimated 1,132 tonnes in annual CO²savings due to driving avoided and fleet reductions 19
    • Customers realising the productivity benefits Ricoh Australia – Rob Livingstone, Chief Information Officer, on how high definition video conferencing solution helped Ricoh enhance productivity and customer relationships, while reducing cost and environmental footprint: “We‟ve achieved a 15% reduction in air travel; approximately 27 tonnes in CO2 emission avoidance; also, a $40,000 direct cash saving by not having to fly and incidental travel expenses. In addition to that, we have gained about 300 hours of direct staff productivity time.” G&S Engineering Services – Mick Crowe, Chief Operating Officer, on how the Telstra Next G ™ network helped G&S Engineering Services to cut costs, maintain growth and deliver on time: “There‟s just no question that it‟s made our executives and our senior staff more efficient. The Next G™ network solution has made those people at least 20% more effective while they travel, helping us realise a productivity benefit of approximately $600,000 per year for the company.” EB Games – Sean Glenn, Store Manager, on how Telstra Internet Direct helped EB Games grow, cut costs and improve customer service in a highly competitive environment: “Telstra Internet Direct helped us by minimising our staff requirements and still giving a maximum possible customer service. This has equated to a saving of $20,000 to $30,000 per year per store.” 20
    • Telstra Productivity Indicator 2010 - summary 1. Australia‟s long term prosperity is dependent on increasing productivity. For business and government organisations the focus is improvements at the individual, work group and organisation level 2. Telstra‟s ongoing research into productivity shows a clear link between ICT investment and improved productivity. Those organisations that are actively investing in ICT, and aligning ICT to individual and worker needs are driving measurable productivity improvements. 3. The Telstra Productivity Indicator 2010 identifies a significant and widening gap between productivity expectations and actions. 4. Closing the gap requires management, measurement and investment. 5. Telstra is focused on providing network based ICT solutions aligned to worker needs to improve the productivity of Australian business and government organisations. 21