Archive for March, 2015

Business participation in the digital economy

Tuesday, March 31st, 2015

Smart.Digital.Connected investigates how Australian organisations participate and benefit in the digital economy, and how they are preparing to engage in the future.

On behalf of Alcatel-Lucent Australia, Nielsen surveyed, in 2012, 275 medium (20-200 staff) to large organisations (200 staff and greater) from a range of sectors including retail, manufacturing, transport/logistics, property, finance and government.

The report reveals a strong acknowledgement of business benefit, including productivity gains and positive growth. It highlights a near unanimous view that active digital economy participation is important to future business success, despite a diversity of adoption, planning and sophistication across the business community.

Businesses see national broadband infrastructure as a key digital enabler and believe their executive and board leadership should more seriously consider how to maximise the benefits.

Several key insights emerged:

  • 93% of organisations believe that participation in the digital economy is important to their ongoing business strategy.
  • 76% believe that digital participation has already been positive for their productivity and efficiency, while 65% say it boosts profitability and growth.
  • Almost a quarter of businesses consider themselves ‘enthusiastic leaders’ in the digital economy, while 69% say they are prepared to benefit in the future.
  • The vast majority of businesses are already broadband-enabled, but three quarters of respondents recognise emerging national broadband infrastructure, incorporating the National Broadband Network and future mobile networks, as an essential driver for future digital participation.
  • An overwhelming 80% of respondents believe that business digital economy participation should be integrated into executive and board all-of business strategic planning.
  • The majority of respondents (62%) outlined customer demand and expectation as primary factors encouraging their participation in the digital economy.
  • Digital economy participation is changing business operating models, with greatest influence on customer relationship management (54%), followed by cost management and scalability (36%).
  • Almost 80% agreed that telecommunications service providers are valued advisors for the creation of their future digital business models, highlighting an emerging opportunity for networked service development and delivery.
  • Affordability and accessibility of digital services, including high-speed broadband, is an important element to enabling future digital participation.
  • Different organisations are at different stages of digital investment and sophistication, but there is a positive common denominator of intent.
  • Taken as a whole, the research shows that Australian organisations understand the importance and opportunity presented by digital economy participation but must continue to innovate in order to extract its full potential.

Taken as a whole, the research shows that Australian organisations understand the importance of the digital economy but must continue to innovate in order to extract its full potential.

93% of Australian businesses believe that participation in the digital economy is important to their ongoing business strategy.

75% say national broadband infrastructure will increase their ability to engage in the digital economy.

We invite your comments: Comments Off on Business participation in the digital economy

Lack of trust is undermining the digital economy

Tuesday, March 31st, 2015

Perhaps one of the biggest threats to our current society is the erosion of trust. It is happening in government, politics and in business. Once people feel their political and business leaders can no longer be trusted they will react in very negative ways. The way that people now talk about politics, social media, copyright, video piracy, and the increasing level of social and economic inequality points to the fact that trust is being severely undermined.

In a world that is becoming increasingly digital trust is rapidly becoming a dominant economic factor.

Trust is more than currency – it cannot be bought. It is a highly prized commodity that must be earned. It is hard to earn and easy to loose. Some key questions that companies and politicians will have to consider are:

  • Do I tell/present the truth?
  • Is what I offer fair to all concerned?
  • Will it build goodwill and better friendships?
  • Will it be beneficial to all concerned?

Recent research in the USA has indicated that 90% of the users don’t trust the companies that are using these big data analytics. Also, interestingly, on the other hand 70% of companies involved in big data analytics are disappointed with the results. So a better system could be a win-win situation for both the demand and the supply side.

Statistics shows customers don’t trust B2B companies

  • 91% agree that consumers have lost control over how personal info is collected and used by companies
  • 55% lie or hide to keep from being known by name online
  • 92% worry about their privacy

Ad & tracking blocking stood at 22.5% in August

Apparently trust levels in Australia are on par with these findings and are even a bit more negative.(Various sources quoted by Doc Searls)

See: Australia – Digital Economy – Privacy and Security issues

We invite your comments: Comments Off on Lack of trust is undermining the digital economy

Digital marketing spend

Monday, March 30th, 2015

According to research conducted by the CMO Council in partnership with Adobe, Australian marketers are outspending their Asian counterparts in both volume and sophistication when it comes to digital media.

The Digital Marketing Performance Dashboard 2012 research found that 41% of participating Australian marketers spend 25% or more of their total marketing budgets on digital media. This figure puts Australia in front of other countries in the Asia-Pacific region, see for Table 2 for a snapshot of the other regional results.

Country 2012
Amount spending above 25%

on digital media marketing

Australia 41%
Hong Kong 25%
Singapore 24%
China 24%
Korea 20%
India 20%

(Source: BuddeComm based on Digital Marketing Performance Dashboard)

Australia leads in sophistication for digital marketing, as compared to other countries in the Asia-Pacific region, see for Table 3 for a snapshot of the other regional results.

Country 2012
Marketing adoption percentage
Australia 84.5%
Korea 84%
Singapore 75%
India 63%
Hong Kong 61.5%
China 33%

(Source: BuddeComm based on Digital Marketing Performance Dashboard)

Optimism is high about the business benefits of digital marketing with 93% of marketers surveyed believing digital marketing could create competitive advantage for their company, while 52% felt digital marketing was crucial in helping create a customer-centric, responsive organisation.

The survey also showed that the majority of the investment in digital is still web-based, with 83% of budgets going to website content development and optimisation, followed by 66% for search engine optimisation, and 54% on email campaigns.

The predominant metrics for gauging digital marketing success likewise centres on using web based data and these are shown in Table 4

Web based method 2012
Metric
Website traffic 84.5%
Click thru rate (CTR) 84%
Response rate 72%
Conversion rate 64%

(Source: BuddeComm based on Digital Marketing Performance Dashboard)

We invite your comments: Comments Off on Digital marketing spend

Forecast from Telsyte

Monday, March 30th, 2015

The market for M2M services is expected to grow from $100.6 million in 2011 to $277 million in 2015. The market is set to grow from 1.3 million connections in 2013 to more than 3 million in 2017.

Telstra’s market share in 2013 has around 71% of services in operation, followed by Optus with 21% and Vodafone with 7%. It is likely that Telstra will continue to lead the way because of its better network coverage and because it has already formed partnerships with developers and others in the eco-system. The research house expects the value of carrier services revenue from the M2M mobile services market to grow at 14% CAGR from 2013 until 2017.

Optus is well-placed to grow its share of the market, particularly among its strong base of SMB customers and in metropolitan centres where it has good network coverage. Vodafone could use its global presence to draw business, but it is expected to still suffer from poor perceptions of its network coverage following last-year’s outages.

The number of organisations using M2M technologies will similarly increase throughout the forecast period. The study found that the “largely untapped M2M opportunity” is driven by vertical industries rather than by the size of the business or location.

Industries such as healthcare, engineering and the services sectors are expected to be the fastest adopters of M2M solutions during the 2014-2015 period.

As the M2M technology infrastructure is built into more devices, and more solutions become available, customers will have a lot less of a barrier to M2M and the telcos are well positioned to take advantage of this trend.

M2M applications such as telemetry, mobile device management and POS systems are key growth areas; demand for cloud services and big data applications will also enhance the growth of M2M applications.

We invite your comments: Comments Off on Forecast from Telsyte

IoT Moving mainstream

Monday, March 30th, 2015

Research released in late 2013 by ISACA show that in Australia and New Zealand, the ‘internet of things’ was moving from a future concept to a commercial reality The research shows that 52% of ANZ organisations have plans to capitalise on the forecasted increase in connected devices and 47% have already been impacted by this type of technology.

Other findings included:

  • 36% of the IT professionals surveyed indicated their enterprises have already achieved greater accessibility to information due to the internet of things
  • 31% have experienced improved services
  • 20% have achieved greater efficiency, lower costs and increased customer satisfaction.

Respondents also acknowledged that there were risks linked with more ubiquitous connectivity.

  • 28% of IT professionals listed security threats as a concern
  • 27% were concerned about data privacy
  • 17% were concerned about identity and access
  • 45% of respondents thought that the benefits of the internet of things would outweigh the risks for enterprises; 31% said the risks and benefits were equally balanced
  • One-quarter thought the risks outweighed the benefits.

We invite your comments: Comments Off on IoT Moving mainstream