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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.+1 202.558.2128mcurri@sngroup.com

Let’s connect !www.sngroup.com

Thank You