Connect Ohio
2008 Business Technology
       Assessment

       June 2008
Presentation Outline
•   2008 Survey of Businesses
     – Summary of Key Findings                                3
     – ...
Key Findings: March 2008

Key Technology Benchmarks, March 2008:
• Businesses that use a computer:                        ...
Ohio’s Business
 Environment
Growth in Business
                                                     Establishments
                                   ...
Size Distribution of Ohio
                                                 Businesses

                                   ...
Industry Breakdown of Ohio
                                                                       Businesses
             ...
Ohio Business and
                                                           Employment Trends
                           ...
Computer Ownership
and Internet Adoption
   Among Ohio’s
     Businesses
Use of Computer Technology

                                                                    Percent of all Ohio busine...
Computer Use
                                                                     by Company Size
                        ...
Computer Use
                                                                      by Industry Sector
                    ...
Use of the Internet for Business


                     Percent of all Ohio businesses:
   Business uses                  ...
Internet Use
                                                               by Company Size
                              ...
Use of the Internet
                                                              Among All Ohio Businesses
              ...
Internet Use
                                                                    by Industry Sector
                      ...
Use of the Internet
                                                              Among All Ohio Businesses
              ...
Years of Internet Use

                              How long businesses have been using the Internet:

                  ...
Average Number of Years Businesses
                                                Have Been Using the Internet
          ...
Monthly Internet Access Fees
                                                           Among Ohio businesses with Interne...
Median Monthly Fees
                                                     by Type of Internet Connection
                  ...
Internet Use Within the Company
                                                 Percent of employees who use the Internet...
Barriers to Internet Adoption

                      Percent of Ohio businesses that do not subscribe to the Internet:*

 ...
Broadband Adoption
   Among Ohio
    Businesses
Broadband Adoption Among
                                                                Ohio Businesses
                 ...
Methods of Broadband Access

                                                                  Percent of broadband-connec...
Broadband Adoption
                                                                       by Company Size
                ...
Broadband Adoption
                                                                       by Company Size

               ...
Broadband Adoption
                                                                       by Industry Sector
             ...
Broadband Adoption
                                                                       by Industry Sector
             ...
Satisfaction With Broadband

                                                        Percent of broadband-connected Ohio b...
Current Download Speeds
                                                                     Current estimated download sp...
Average Broadband Download Speeds
                                                  by Size and Industry Sector
          ...
Actual Broadband Speeds
                                                        Compared to Advertised Speeds
            ...
Broadband Speeds (Bandwidth)
                                                     and Current Business Needs

      Among ...
Businesses That Say Need
                                                               More Bandwidth
                   ...
Years of Broadband Use
                                     On average, Ohio businesses with broadband service have
      ...
Average Number of Years Businesses Have
                                                      Been Using Broadband
       ...
New Broadband Subscribers
                                                         by Size and Industry Sector
           ...
Businesses That Do Not
                                                               Subscribe to Broadband
             ...
Barriers to Broadband Adoption
                                                                        Percent of Ohio bus...
Technology’s Impact
On Competition and
     Success
The Internet’s Impact on Success

                         Forty-six percent of Ohio businesses “Completely Agree” that th...
The Internet’s Impact on Success
                                                 (Broadband Adopters Compared to
        ...
The Internet’s Impact on Success
                                                 (Broadband Adopters Compared to
        ...
Broadband’s Impact on
                                                                       Competition
                 ...
Broadband’s Impact on Competition
                                                 (Broadband Adopters Compared to
       ...
The Internet’s Impact on Success
                                                    by Business Size and Sector
         ...
The Internet’s Impact on Success
                                                    by Business Size and Sector
         ...
Broadband’s Impact on Competition
                                                  by Business Size and Sector
          ...
Uses for the Internet
Internet Applications
                                                                     Percent of Internet-connected b...
Internet Applications
                                                               (Broadband Adopters Compared to
     ...
Internet Applications
                                                               (Broadband Adopters Compared to
     ...
Online Purchasing or Ordering

                               Businesses in the Manufacturing industry sector are the most...
Researching or Booking Business
                                                         Travel Arrangements Online
      ...
Online Banking

                              Businesses in the Healthcare industry sector are significantly less likely t...
Online Shipment Tracking and
                                                                   Control
                  ...
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
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Ohio Business Technology Survey
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Ohio Business Technology Survey
Ohio Business Technology Survey
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Ohio Business Technology Survey
Ohio Business Technology Survey
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Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
Ohio Business Technology Survey
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Ohio Business Technology Survey

  1. 1. Connect Ohio 2008 Business Technology Assessment June 2008
  2. 2. Presentation Outline • 2008 Survey of Businesses – Summary of Key Findings 3 – Ohio Business Environment 4 – Computer Ownership and Internet Adoption Among Ohio Businesses 9 – Broadband Adoption Among Ohio Businesses 24 – Technology’s Impact on Competition and Success 42 – Uses for the Internet 51 – Technology’s Impact on the Workplace 73 – Presence of a Website 83 – E-Government Services 88 – Voice over Internet Protocol (VoIP) Subscribers 97 • Research Methodology 103 • Contact Information 109 2
  3. 3. Key Findings: March 2008 Key Technology Benchmarks, March 2008: • Businesses that use a computer: 82% • Businesses with broadband service: 59% Other Key Findings: • Across Ohio, 97% of broadband users say they are satisfied with their current broadband service, and 85% say that their current broadband speeds meet all their business needs. • Nearly 70% of broadband-connected businesses feel certain that the Internet will be important to their success in the near future. • One-third of all broadband-connected businesses in Ohio have employees who telework on a regular basis. • More than three-fourths of broadband-connected Ohio businesses visit Ohio state government websites for business purposes. • Broadband-connected businesses have average annual revenues that are double those of businesses that do not subscribe to broadband. • Broadband-connected businesses are more likely to use almost every online application than Internet-connected businesses without broadband service. 3 © Do Not Copy Without Written Permission
  4. 4. Ohio’s Business Environment
  5. 5. Growth in Business Establishments Ohio Business Establishments 275,000 1993-2005 271,181 271,733 According to 2005 U.S. Census 270,540 270,766 County Business Patterns data 270,000 (the most recent data available), 270,343 270,509 270,255 270,968 269,944 there were 270,968 business 266,927 establishments in Ohio, down 265,000 0.3% from 271,733 in 2004. 263,739 These businesses employed 260,775 260,000 over 4.7 million individuals in 2005. 256,644 The average establishment 255,000 employs 17.6 workers, well above the national average. Conversely, average real wages 250,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 in Ohio ($35,348) fall below the national average. 5 Source: U.S. Bureau of the Census, 2005 County Business Patterns © Do Not Copy Without Written Permission
  6. 6. Size Distribution of Ohio Businesses 55% 49% Ohio Almost one-half of all Ohio businesses employ fewer than five employees, U.S. while only three percent of businesses employ more than 100 employees. 35% 31% The Connect Ohio business survey has intentionally over-sampled large businesses to achieve a minimum sample for analysis and comparisons relative to smaller firms. 13% 11% The survey data are weighted to ensure the total picture is representative of 3% 2% Ohio establishments as a whole (see methodology section for specific 1 to 4 5 to 19 20 to 99 100+ information about sampling). Number of Employees 6 Source: U.S. Bureau of the Census, 2005 County Business Patterns © Do Not Copy Without Written Permission
  7. 7. Industry Breakdown of Ohio Businesses Industry Sectors:* Agriculture/Mining/ 10% Construction/Utilities 11% Relative to the national distribution of Manufacturing 6% 4% businesses by sector, Ohio has a lower Transportation/ 3% concentration of professional service Warehousing 3% providers and slightly more businesses in the manufacturing sector. Wholesale trade 6% 6% Retail trade 15% The 2008 Connect Ohio Business 15% Survey data are also weighted with Professional services 27% respect to industry sector to ensure the 30% survey sample picture is representative Healthcare/ 11% Education 11% of Ohio establishments. Food & lodging/ Ohio 10% Entertainment 10% U.S. *Industry sectors are categorized by North American Industry Other services/ Classification System (NAICS) codes. “Professional 12% Unclassified 10% services” includes NAICS codes 51-59 (information, financial, real estate, professional, technical, management 7 Source: U.S. Bureau of the Census, 2005 County Business Patterns and administrative services.) © Do Not Copy Without Written Permission
  8. 8. Ohio Business and Employment Trends OH U.S. Percent Change in Employment OH Private Sector Employment (Mil.) (1999 Base) 5.00 6% 5.0% 5.05 3.9% 4.0% 4.93 4% 3.0% 2.5% 4.95 4.87 1.6% 2% 2.8% 1.3% 4.85 4.77 4.76 4.76 0% 4.74 0.0% 4.75 -2% -2.6% -2.0% -2.2% -2.2% -4% 4.65 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Avg. # of Employees per Establishment Average Annual Real Wages $38,539 20 $39,000 18 18.5 18.3 $35,000 18.0 17.5 17.7 17.5 17.6 $35,348 16 $31,000 16.1 16.2 15.8 15.6 15.6 15.6 15.5 14 $27,000 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 8 Source: 1999-2005 County Business Patterns, U.S. Bureau of the Census © Do Not Copy Without Written Permission
  9. 9. Computer Ownership and Internet Adoption Among Ohio’s Businesses
  10. 10. Use of Computer Technology Percent of all Ohio businesses: Business Business does not uses a use a computer Eighty-two percent of all computer 82% Ohio businesses use 17% computer technology for their business functions. Don't know 1% Q: Does your company use any type computer technology to handle some or all of its business functions (for example: sales, cash receipts, accounting, inventory control or management reporting)? Source: 2008 Connect Ohio Business Technology Assessment 10 (n=807 Ohio businesses) © Do Not Copy Without Written Permission
  11. 11. Computer Use by Company Size Percent of all Ohio businesses: 96% 93% 82% 85% The statewide rate of 76% computer technology adoption varies significantly by company size, rising from 76% of the smallest establishments, to more than 96% of medium size companies and 93% of the largest companies in Ohio. Q: Does your company use any type computer technology to State Avg 1 to 4 5 to 19 20 to 99 100 + handle some or all of its business functions (for example: sales, Number of employees at the location cash receipts, accounting, inventory control or management reporting)? 11 (n=807 Ohio businesses) Source: 2008 Connect Ohio Business Technology Assessment © Do Not Copy Without Written Permission
  12. 12. Computer Use by Industry Sector Percent of all Ohio businesses: There is very little variance in State Avg 82% computer use across industry sectors, and there are no High Tech 86% significant differences between Ag/Mining/ any of the industry sectors and Construction/Utility 86% the state average.* Manufacturing 87% Wholesale Trade/ The Other Services sector Transport/Warehousing 84% shows the lowest percentage of Retail/Recreation/ businesses that use a computer Food/Lodging 79% (78%), while the Professional/Finance 86% Manufacturing sector shows the highest percentage (87%). Healthcare 80% *Significance measured at a 95% confidence level. Q: Does your company use any type computer technology to Other Services 78% handle some or all of its business functions (for example: sales, cash receipts, accounting, inventory control or management reporting)? 12 Source: 2008 Connect Ohio Business Technology Assessment (n=807 Ohio businesses) © Do Not Copy Without Written Permission
  13. 13. Use of the Internet for Business Percent of all Ohio businesses: Business uses Business has a the Internet computer, but 66% does not use Two out of three the Internet 16% (66%) of all Ohio businesses use the Internet for their business functions. Business does not use the Internet and does not have a computer 18% Q: Does your company use the Internet to handle any of your business functions? (n = 807 Ohio businesses) 13 Source: 2008 Connect Ohio Business Technology Assessment © Do Not Copy Without Written Permission
  14. 14. Internet Use by Company Size Percent of all Ohio businesses: 82% 81% 66% 69% 59% The rate of Internet adoption varies with company size, ranging from 59% of the smallest businesses to more than 80% of the largest businesses. State Avg 1 to 4 5 to 19 20 to 99 100 + Number of employees at the location Source: 2008 Connect Ohio Business Technology Assessment Q: Does your company use the Internet to handle any of your 14 business functions? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  15. 15. Use of the Internet Among All Ohio Businesses (by Company Size) Percent of all Ohio Two-thirds (66%) of 29% businesses that use the all Ohio businesses Internet rely on the Internet 24% Percent of all Ohio for their work businesses that do not use functions. 17% the Internet Only 5% of Ohio 12% 11% businesses with 20 or more employees do not use the Internet 3% for their business 2% 2% functions. 1 to 4 5 to 19 20 to 99 100+ Number of Employees Q: Does your company use the Internet to handle any of your 15 Source: 2008 Connect Ohio Business Technology Assessment business functions? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  16. 16. Internet Use by Industry Sector Percent of all Ohio businesses: State Avg 66% Businesses in the High Tech and the Manufacturing High Tech 77% industry sector have the Ag/Mining/ Construction/Utility 55% highest rates of Internet adoption among Ohio Manufacturing 73% businesses. Wholesale Trade/ Transport/Warehousing 66% Businesses in the Retail/Recreation/ Food/Lodging 64% Ag/Mining/Construction/ Utility and the Healthcare Professional/Finance 75% industry sectors are the least Healthcare 61% likely to use the Internet for their business functions. Other Services 63% Q: Does your company use the Internet to handle any of your 16 Source: 2008 Connect Ohio Business Technology Assessment business functions? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  17. 17. Use of the Internet Among All Ohio Businesses (by Industry Sector) Percent of all Ohio businesses: Among all Ohio Percent of all Ohio businesses that use the Internet businesses, 66% use the Percent of all Ohio businesses that do not use the Internet Internet for business 6% High Tech functions. 1% Ag/Mining/ 6% Construction/Utility 7% The Ag/Mining/ 4% Manufacturing Construction/Utility 1% industry sector is the Wholesale Trade/ 5% Transport/Warehousing 3% only one in which Retail/Recreation/ 16% Internet-connected Food/Lodging 8% businesses are 12% Professional/Finance outnumbered by 4% businesses that do not Healthcare 6% 4% have Internet service. Other Services 11% 6% Q: Does your company use the Internet to handle any of your 17 Source: 2008 Connect Ohio Business Technology Assessment business functions? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  18. 18. Years of Internet Use How long businesses have been using the Internet: Less than 6+ years one year 59% 2% 1 - 2 years 8% Most broadband- connected Ohio 3 - 5 years businesses have 31% been using the Internet for more than six years. Percent of all Internet-connected Ohio businesses Q: How many years has your organization been using the Internet? 18 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that have Internet service) © Do Not Copy Without Written Permission
  19. 19. Average Number of Years Businesses Have Been Using the Internet by Size and Industry Sector Average number of years that businesses have used the Internet for their work: 10.2 8.9 8.6 8.9 8.3 8.2 7.8 7.8 7.8 7.5 7.7 6.6 6.1 State High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Avg Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: How many years has your organization been using the Internet? 19 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that have Internet service) © Do Not Copy Without Written Permission
  20. 20. Monthly Internet Access Fees Among Ohio businesses with Internet service: 38% More than one-third of 26% Ohio businesses pay less 22% than $50 for their monthly access fee, and over half pay less than $100. 9% The median monthly fee for Internet service is $50, 1% 1% while the mean price is $111 per month. Less than Between Between Between More than Don't $50 $50 and $100 and $500 and $1,000 Know $100 $500 $1,000 Q: How much per month does your organization pay for its Internet connection? 20 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  21. 21. Median Monthly Fees by Type of Internet Connection The median monthly cost for broadband service is $54 per month, with lower costs reported among businesses using DSL. The median cost of dedicated service is closer to $200 per month. Median Monthly Access Fees: $195 $89 $54 $59 $61 $62 $46 $31 Dial-Up DSL Any Type of Satellite Fixed Cable Fiber Dedicated Without Broadband Wireless Modem Service Broadband Q: How much per month does your organization pay for its Internet connection? 21 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  22. 22. Internet Use Within the Company Percent of employees who use the Internet for work (among all Ohio businesses): Don't know 2% No 100% of employees In one-third of Ohio employees (business businesses, every employee 33% does not relies on the Internet for use the their business functions. Internet) 34% On average, 70% of the 75-99% of employees at each business employees 1 - 25% of rely on the Internet for their 2% employees work functions. 50-75% of 10% 25 - 50% of employees employees Q: How many employees at this business location use 9% 10% the Internet for business purposes? 22 Source: 2008 Connect Ohio Business Technology Assessment (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  23. 23. Barriers to Internet Adoption Percent of Ohio businesses that do not subscribe to the Internet:* We don't need the Internet, or don't know 70% why we don't subscribe Internet service poses a security risk 17% Internet service is too expensive 10% A perceived lack of Internet service is too complicated 3% need is cited by the vast majority of Broadband service is not available in our area 3% businesses that do not subscribe to Internet service. We don't have a computer 1% *Percentages do not add up to 100% because Other 3% businesses could give multiple responses. Q: Why doesn’t your organization use the Internet? 23 Source: 2008 Connect Ohio Business Technology Assessment (n = 122 OH businesses that do not use the Internet) © Do Not Copy Without Written Permission
  24. 24. Broadband Adoption Among Ohio Businesses
  25. 25. Broadband Adoption Among Ohio Businesses Percent of all Ohio businesses that have: Broadband Dial-up service service only 59% 4% No Internet service Nearly 60% of all Ohio 34% businesses subscribe to broadband service. Don't know 3% Q: Which of the following describe the type of Internet access your company has? 25 Source: 2008 Connect Ohio Business Technology Assessment (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  26. 26. Methods of Broadband Access Percent of broadband-connected Ohio businesses:* DSL 48% DSL lines serve nearly one-half (48%) of businesses with high- speed connections. Cable modem 26% More than one-fourth (26%) of Fixed wireless 14% broadband-connected businesses have cable modem connections, and 14% of broadband-connected Dedicated services 7% businesses rely on fixed wireless connections for their broadband Satellite 4% service. Only 4% of online businesses rely Fiber 3% exclusively on dial-up Internet access. Other 2% *Percentages do not add up to 100% because businesses could give multiple responses. Q: Which of the following describe the type of Internet access your company has? 26 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 broadband-connected Ohio businesses) © Do Not Copy Without Written Permission
  27. 27. Broadband Adoption by Company Size Percent of all Ohio businesses: Broadband adoption among Ohio 78% businesses varies significantly by 74% company size, rising from about one- 63% half (51%) of the smallest 59% establishments, to more than three- 51% fourths (78%) of medium-size companies and 74% of the largest companies in Ohio. Ohio businesses that employ more than twenty workers are significantly more likely to have a broadband connection than small businesses with fewer than four employees. State Avg 1 to 4 5 to 19 20 to 99 100 + Number of employees at the location Q: Which of the following describe the type of Internet access your 27 Source: 2008 Connect Ohio Business Technology Assessment company has? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  28. 28. Broadband Adoption by Company Size Type of Internet Access: DSL Cable Modem Fiber Dedicated services Satellite Any Broadband 78% 74% 63% 59% 51% 30% 33% 29% 27% 25% 15% 15% 17% 17% 14% 14% 14% 11% 2% 4% 3% 2% 4% 3% 4% 3% 5% 0% 1% 2% State Avg 1 to 4 5 to 19 20 to 99 100+ Number of Employees at Location Q: Which of the following describe the type of Internet access your 28 Source: 2008 Connect Ohio Business Technology Assessment company has? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  29. 29. Broadband Adoption by Industry Sector Percent of all Ohio businesses: Statewide 59% Businesses in the High Tech 69% Professional/Finance Ag/Mining/ industry sector are the most Construction/Utility 47% likely to adopt broadband, followed closely by the High Manufacturing 68% Tech and Manufacturing Wholesale Trade/ 59% industry sectors. Transport/Warehousing Retail/Recreation/ 54% Businesses in the Food/Lodging Agriculture/Mining/ Professional/Finance 71% Construction/Utility sector are the least likely to use Healthcare 58% broadband service. Other Services 58% Q: Which of the following describe the type of Internet access your 29 Source: 2008 Connect Ohio Business Technology Assessment company has? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  30. 30. Broadband Adoption by Industry Sector Statewide 59% 4% 3% 34% High Tech 69% 5% 3% 23% Ag/Mining/Construction/Utility 47% 5% 3% 45% Manufacturing 68% 1% 4% 27% Wholesale Trade/ 59% 5% 2% 34% Transport/Warehousing Retail/Recreation/ 54% 7% 3% 36% Food/Lodging Professional/Finance 71% 3% 1% 25% Healthcare 58% 3% 39% Other Services 58% 4% 1% 37% Any broadband service Only access is dial-up Don't know if service is broadband or dial-up No Internet service Q: Which of the following describe the type of Internet access your 30 Source: 2008 Connect Ohio Business Technology Assessment company has? (n = 807 Ohio businesses) © Do Not Copy Without Written Permission
  31. 31. Satisfaction With Broadband Percent of broadband-connected Ohio businesses: Nearly seven out of ten Not Don't know businesses that have satisfied broadband say they are very 2% 2% satisfied with their service. Somewhat satisfied An additional 27% of 27% businesses say they are somewhat satisfied with their broadband service. Only 2% of broadband- Very connected businesses satisfied reported being dissatisfied 69% with their service. Q: How satisfied are you with your broadband service? 31 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  32. 32. Current Download Speeds Current estimated download speeds (among broadband-connected Ohio businesses that know their current bandwidth): Less than 384Kbps 9% More than one-half of broadband- connected Ohio businesses do not know About 384Kbps 17% their current download speed or bandwidth. About 768Kbps 20% Among those businesses that have broadband service and know their About 1.5Mbps 23% download speeds, 26% report download speeds below 768Kbps (the FCC’s About 3.0Mbps definition of “basic broadband”). 9% Statewide, broadband-connected Ohio About 6.0Mbps 5% businesses report an average download speed of 2.8Mbps. Over 6.0Mbps 16% Q: To the best of your knowledge, what is the approximate download speed or bandwidth provided by your Internet service provider? (n = 265 OH businesses that use broadband service and know their 32 Source: 2008 Connect Ohio Business Technology Assessment approximate download speed) © Do Not Copy Without Written Permission
  33. 33. Average Broadband Download Speeds by Size and Industry Sector Average download speed (Mbps): State Avg 2.8 1 to 4 2.5 Businesses in the Healthcare Size 5 to 19 2.8 industry have the lowest (# of Employees) 20 to 99 3.0 average download speed 100+ 4.3 among broadband- High Tech 2.1 connected Ohio businesses. Ag, Mining, Const. and Util. 2.7 Manufacturing 2.4 Larger businesses have Wholesale & Trans. 3.2 higher average download Industry Retail & Hosp. 2.8 speeds than smaller ones. Sector Prof. & Fin. Svcs 3.3 Healthcare 1.3 Q: To the best of your knowledge, what is the approximate Other Services download speed or bandwidth provided by your Internet service 3.4 provider? 33 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  34. 34. Actual Broadband Speeds Compared to Advertised Speeds How actual broadband speeds compare to advertised speeds (among broadband-connected Ohio businesses): Slower than About the same advertised as advertised 15% 66% Faster than Nearly three-fourths of all advertised broadband-connected 6% businesses say their actual broadband speeds Don't know are about as fast or faster 13% than advertised. Q: To what extent would you say the actual speeds your business receives compares to the speeds advertised by the Internet provider you use? 34 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  35. 35. Broadband Speeds (Bandwidth) and Current Business Needs Among all broadband-connected Among businesses that say Ohio businesses: they need more bandwidth: Current Can obtain Don't know Could use additional why they bandwidth more is quot;about bandwidth, have not bandwidth but have not invested in rightquot; for 11% current chosen to additional needs invest in it bandwidth 74% yet 7% Have more 36% bandwidth Other than they 5% currently need Do not Cannot 11% know if obtain Don't know more additional 4% bandwidth bandwidth is available in their area Q: How well does your current bandwidth meet your needs? and Q: Which of the following apply to your company's need for in their area 22% additional bandwidth? 30% (n = 537 OH businesses that use broadband service and 35 Source: 2008 Connect Ohio Business Technology Assessment 61 OH businesses that say they could use more bandwidth) © Do Not Copy Without Written Permission
  36. 36. Businesses That Say Need More Bandwidth by Size and Industry Sector Percent of broadband-connected businesses that say they need more bandwidth: 16% 14% 14% 12% 12% 12% 12% 11% 10% 10% 7% 5% 3% State High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Avg Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: How many years has your organization been using the Internet? 36 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  37. 37. Years of Broadband Use On average, Ohio businesses with broadband service have subscribed for 4.7 years. How long businesses have subscribed to broadband: Number of Ohio businesses with broadband (est.): Less 161,000 Don't than 146,000 know one year 2% 7% 1-2 117,000 121,000 years 6+ years 18% 30% 3-5 48,000 years 43% 2002 2003 2006 2007 2008 Percent of broadband-connected Ohio businesses Q: How many years has your organization been using broadband service? 37 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  38. 38. Average Number of Years Businesses Have Been Using Broadband by Size and Industry Sector Average number of years businesses have been using broadband for their work: 6.2 5.6 5.7 5.2 5.3 5.0 4.7 4.5 4.3 4.4 4.4 3.8 3.6 State High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Avg Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: How many years has your organization been using the Internet? 38 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  39. 39. New Broadband Subscribers by Size and Industry Sector Nearly one-fourth of broadband-connected businesses in the Healthcare sector subscribed less than one year ago. Percent of broadband-connected businesses that first subscribed less than a year ago: 23% 10% 10% 8% 7% 7% 7% 5% 5% 5% 4% 2% 1% State High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Avg Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: How many years has your organization been using the Internet? 39 Source: 2008 Connect Ohio Business Technology Assessment (n = 537 OH businesses that have broadband service) © Do Not Copy Without Written Permission
  40. 40. Businesses That Do Not Subscribe to Broadband Percent of Ohio businesses that do not subscribe to broadband service: Have no computer Do not subscribe to Nearly nine out of ten 46% any Internet service businesses with no 43% broadband service do not have any Internet service at all, or they do not use a computer for their business. Subscribe to dial- Subscribe to dial- up service because up even though broadband service broadband service is not available is available 5% 6% Q: Why doesn’t your organization subscribe to broadband service? 40 Source: 2008 Connect Ohio Business Technology Assessment (n = 241 OH businesses that do not subscribe to broadband) © Do Not Copy Without Written Permission
  41. 41. Barriers to Broadband Adoption Percent of Ohio businesses that do not subscribe to broadband:* Business does not use a computer 46% Nearly one-half of Ohio businesses that do not use The business does not need broadband service do not broadband or the Internet 31% use a computer. Concerns about security risks from the Internet or broadband 7% Another 31% believe they do not need broadband service for their business. Broadband is too expensive 6% In contrast, only 6% believe Broadband service is not that broadband service is available in our area 5% too expensive. *Percentages do not add up to 100% because Too complicated 2% businesses could give multiple responses. Q: Why doesn’t your organization subscribe to broadband service? 41 Source: 2008 Connect Ohio Business Technology Assessment (n = 241 OH businesses that do not subscribe to broadband) © Do Not Copy Without Written Permission
  42. 42. Technology’s Impact On Competition and Success
  43. 43. The Internet’s Impact on Success Forty-six percent of Ohio businesses “Completely Agree” that the Internet has already improved the success of their business. That number increases to 67% when businesses consider how important the Internet will be to their success three years from now. On a scale from 1 to 5, with 5 being “Completely Agree” and 1 being “Completely Disagree”: The Internet has improved the success of my business 67% The Internet will be important to the success of my business three years from now 46% 19% 19% 15% 11% 7% 8% 3% 3% Completely Agree 4 3 2 Completely Disagree Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 43 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  44. 44. The Internet’s Impact on Success (Broadband Adopters Compared to Internet Subscribers Without Broadband) Forty-seven percent of all broadband-connected businesses “Completely Agree” that the Internet has helped them succeed, compared to just 36% of Internet users without broadband who feel the same way. On a scale from 1 to 5, with 5 being “Completely Agree” and 1 being “Completely Disagree”: “The Internet has improved the success of my business” Broadband users Internet users without broadband 47% 36% 31% 19% 19% 18% 7% 8% 9% 4% Completely Agree 4 3 2 Completely Disagree Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 44 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  45. 45. The Internet’s Impact on Success (Broadband Adopters Compared to Internet Subscribers Without Broadband) Nearly 70% of broadband-connected businesses “Completely Agree” that the Internet will be important to their success in the near future. On the other hand, more than twice as many Internet subscribers who do not have broadband “Completely Disagree” with this statement. On a scale from 1 to 5, with 5 being “Completely Agree” and 1 being “Completely Disagree”: “The Internet will be important to the success of my business three years from now” 69% Broadband users Internet subscribers without broadband 52% 31% 12% 13% 7% 8% 3% 2% 3% Completely Agree 4 3 2 Completely Disagree Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 45 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  46. 46. Broadband’s Impact on Competition More than one-half of all Internet-connected businesses “Completely Agree” that they need broadband to compete in today’s global economy. On a scale from 1 to 5, with 5 being “Completely Agree” and 1 being “Completely Disagree”: “Businesses need broadband in order to compete in today’s economy” 57% 18% 16% 5% 4% Completely Agree 4 3 2 Completely Disagree Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 46 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  47. 47. Broadband’s Impact on Competition (Broadband Adopters Compared to Internet Subscribers Without Broadband) Nearly three times as many broadband-connected businesses “Completely Agree” with this statement. Conversely, four times as many Internet-connected businesses with no broadband service “Completely Disagree.” On a scale from 1 to 5, with 5 being “Completely Agree” and 1 being “Completely Disagree”: “Businesses need broadband in order to compete in today’s economy” 61% Broadband users Internet users without broadband 33% 22% 16% 16% 14% 12% 12% 4% 3% Completely Agree 4 3 2 Completely Disagree Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 47 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  48. 48. The Internet’s Impact on Success by Business Size and Sector Businesses in the Professional/Finance sector are significantly more likely to appreciate the Internet’s positive impact on business success than the state average. There is very little variance in attitude among businesses of different sizes. Percent of businesses that use the Internet and “Completely Agree” with the statement: “The Internet has improved the success of my business” 61% 51% 50% 50% 48% 46% 45% 41% 40% 42% 38% 34% 34% Statewide High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1-4 5-19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the 48 Source: 2008 Connect Ohio Business Technology Assessment following statement? (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  49. 49. The Internet’s Impact on Success by Business Size and Sector Businesses in the Ag/Mining/Construction/Utility sector are significantly less likely to believe that the Internet will be important to success in the near future. The largest businesses in Ohio (those with 100 employees or more) are the most likely to have a positive outlook regarding the Internet’s impact on future business. Percent of businesses that use the Internet and “Completely Agree” with the statement: “The Internet will be important to the success of my business three years from now” 78% 80% 74% 71% 71% 67% 66% 65% 64% 63% 64% 66% 45% Statewide High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1-4 5-19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the following statement? 49 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  50. 50. Broadband’s Impact on Competition by Business Size and Sector The percentage of businesses in the Manufacturing sector that agree that businesses need broadband is significantly higher than the state average. Business size is also positively correlated with the belief that businesses need broadband to compete. Percent of businesses that use the Internet and “Completely Agree” with the statement: “Businesses need broadband in order to compete in today’s economy” 76% 69% 68% 63% 60% 61% 57% 57% 53% 54% 57% 46% 44% Statewide High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1-4 5-19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: On a scale of 1 to 5, with 5 being completely agree and 1 being completely disagree, how much do you agree with the 50 Source: 2008 Connect Ohio Business Technology Assessment following statement? (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  51. 51. Uses for the Internet
  52. 52. Internet Applications Percent of Internet-connected businesses: Online purchasing 75% Researching or booking business travel 69% Online banking 60% Online shipment tracking and control 59% Online marketing and advertising 57% Online selling or accepting orders 44% Online billing or bill payment 43% Online healthcare or insurance administration 38% Online customer support 35% Online training 30% Online employee benefits information 28% Bidding on contracts online 25% Accepting real-time credit or debit card payments 24% Online accounting and internal auditing 19% Online inventory tracking and control 14% Video conferencing 13% Blogging 10% Online manufacturing process control 4% Q: Which of the following does your business currently use? 52 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  53. 53. Internet Applications (Broadband Adopters Compared to Other Internet Subscribers, Slide 1 of 2) Online purchasing 77% 61% Researching or booking business travel 71% 50% Online banking 63% 37% Online shipment tracking and control 62% 31% Online marketing and advertising 57% 51% Online selling or accepting orders 43% 49% Online billing or bill payment 45% 21% Online healthcare or insurance administration 39% 28% Online customer support 38% 9% Broadband subscribers Internet subscribers without broadband Q: Which of the following does your business currently use? 53 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  54. 54. Internet Applications (Broadband Adopters Compared to Other Internet Subscribers, Slide 2 of 2) 31% Online training 16% 28% Online employee benefits information 23% 26% Bidding on contracts online 17% Accepting real-time credit or debit card 24% payments 24% 21% Online accounting and internal auditing 1% 15% Online inventory tracking and control 5% 14% Video conferencing 4% 11% Blogging 1% 4% Online manufacturing process control 0% Broadband subscribers Internet subscribers without broadband Q: Which of the following does your business currently use? 54 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  55. 55. Online Purchasing or Ordering Businesses in the Manufacturing industry sector are the most likely to use the Internet to buy or order goods. Larger businesses are more likely than smaller companies to purchase or order goods online. Current Adoption by Size and Industry Sector 83% 87% 86% 75% 75% 77% 78% 76% 74% 73% 70% 70% 67% State Avg High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: Which of the following does your business currently use? 55 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  56. 56. Researching or Booking Business Travel Arrangements Online Businesses in the Wholesale Trade/Transportation and the Agriculture/Mining/ Construction/Utility industry sectors are the most likely to use the Internet to research or book business travel, while the Healthcare industry sector is the least likely to do so. Larger businesses are more likely to research or book business travel. Current Adoption by Size and Industry Sector 81% 81% 82% 77% 75% 74% 69% 67% 69% 71% 63% 60% 49% State Avg High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: Which of the following does your business currently use? 56 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  57. 57. Online Banking Businesses in the Healthcare industry sector are significantly less likely to use the Internet to do online banking. More than one-half of businesses in every size category bank online. Current Adoption by Size and Industry Sector 67% 67% 66% 64% 60% 58% 61% 62% 59% 59% 57% 57% 35% State Avg High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: Which of the following does your business currently use? 57 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission
  58. 58. Online Shipment Tracking and Control Businesses in the Manufacturing and Wholesale Trade/Transportation industry sectors are the most likely to go online to track and control shipping. Larger businesses are more likely to track shipping online. Current Adoption by Size and Industry Sector 78% 69% 73% 67% 64% 59% 56% 59% 58% 56% 53% 54% 54% State Avg High AMCU Mfg. Whole- Retail & Prof. & Health- Other 1 to 4 5 to 19 20-99 100+ Tech sale & Hosp. Fin. Svcs care Services Trans. Industry Sector Size (# Employees) Q: Which of the following does your business currently use? 58 Source: 2008 Connect Ohio Business Technology Assessment (n = 588 OH businesses that use the Internet) © Do Not Copy Without Written Permission

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