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8158.0 - Innovation in Australian Business, 2010-11 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 23/08/2012   
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Contents >> SUMMARY OF FINDINGS >> Innovation by Type and Status

INNOVATION BY TYPE AND STATUS

Goods and/or Services

The introduction of new or significantly improved goods and/or services during the year ended 30 June 2011 was reported by 17% of all businesses. New services (11%) were more likely to be introduced than new goods (10%). One in ten businesses reported new goods and/or services still in development as at 30 June 2011, while 2% of businesses reported that they abandoned the development or introduction of new goods and/or services during 2010-11.

Goods or services innovation, by employment size(a), by status, 2010 - 11

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:(b)
goods
7.0
12.8
15.9
16.3
9.6
services
9.3
14.0
16.7
13.8
11.4
goods and/or services
13.2
22.6
26.9
26.8
17.3
Businesses with any activity related to new or significantly improved goods and/or services which was:(b)
still in development(c)
7.1
12.6
16.8
18.4
9.6
abandoned
2.0
3.1
3.2
4.2
2.5

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2011.


Businesses with 200 or more persons employed and those with 20-199 persons employed (both 27%) were more than twice as likely to introduce new or significantly improved goods and/or services than businesses with 0-4 persons employed (13%).

Businesses within industries that are traditionally associated with the sale and development of goods, Wholesale trade (26%), Retail trade (23%) and Manufacturing (16%), were most likely to report the introduction of new goods. Businesses in the Information media and telecommunications industry were most likely to report introducing new services (22%) and also were most likely to report new goods and/or services still in development (20%). The Wholesale trade industry had the highest proportion of businesses that abandoned activity associated with the development of new goods and/or services (5%).


Operational Processes

New or significantly improved operational processes were introduced by 16% of businesses during the year ended 30 June 2011. The most commonly reported type of introduced new operational process was
supporting activities for business operations, such as maintenance systems or processes for purchasing
, accounting or computing (10%), followed by methods of manufacturing or producing goods or services (6%). Overall, 8% of businesses reported new operational processes still in development. A small proportion of businesses reported abandoning innovative activity that had been intended to result in the development or introduction of new or significantly improved operational processes (1%).

Operational processes innovation, by employment size(a), by status, 2010 - 11

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:(b)
methods of manufacturing or producing goods or services
4.3
8.5
8.3
13.6
5.9
logistics, delivery or distribution methods for goods or services
2.9
6.0
7.9
11.6
4.3
supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing
6.0
14.8
19.4
25.9
9.9
other operational processes
-
0.1
np
0.2
-
any operational processes
11.3
23.1
28.3
37.7
16.4
Businesses with any activity related to new or significantly improved operational processes which was:(b)
still in development(c)
5.2
11.1
19.7
23.6
8.2
abandoned
1.0
1.7
1.2
4.8
1.3

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2011.


The proportion of businesses that reported the introduction of new or significantly improved operational processes increased with each successive employment size, ranging from 11% for businesses with 0-4 persons employed to 38% for businesses with 200 or more persons employed.

Businesses in Manufacturing were more than twice as likely to introduce new or significantly improved methods of manufacturing or producing goods or services (19%) than any other industry. New or significantly improved logistics, delivery or distribution methods for goods or services was most likely to be introduced by businesses in Wholesale trade (11%), followed by Retail trade (9%). Logistics, delivery or distribution methods for goods or services was least likely to be reported by businesses in the Health care and social assistance industry (1%). New or significantly improved supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing was most frequently reported by businesses in Professional, scientific and technical services (16%), followed by Rental, hiring and real estate services (15%). In contrast, Agriculture, forestry and fishing was the industry least likely to introduce new or significantly improved supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing (4%).

Arts and recreation services had the greatest proportion of businesses that reported abandoned innovative activity related to operational processes (5%), followed by Accommodation and food services and Rental, hiring and real estate services (both 3%). Operational processes still in development during 2010-11 were most likely to be reported by businesses in Financial and insurance services (16%), followed closely by Electricity, gas, water and waste services (15%).


Organisational/Managerial Processes

During the year ended 30 June 2011, new or significantly improved organisational/managerial processes were introduced by nearly one in five businesses (19%). New or significantly improved knowledge management processes to better use or exchange information, knowledge and skills within the businesses and methods of organising work responsibilities and decision making were the most commonly introduced processes (both 11%). New or significantly improved methods of organising external relations with other businesses or public institutions was the least commonly reported process introduced (5%).

Organisational/managerial processes innovation, by employment size(a), by status, 2010 - 11

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:(b)
knowledge management processes to better use or exchange information, knowledge or skills within the business
7.7
14.9
23.3
20.7
11.2
business practices for organising procedures
4.4
10.5
15.9
18.1
7.3
methods of organising work responsibilities and decision making
6.0
17.4
24.0
23.4
11.0
methods of orgainsing external relations with other businesses or public institutions
3.7
5.9
7.0
6.4
4.6
other organisational/managerial processes
-
np
np
0.1
-
any organisational/managerial processes
12.9
25.9
36.4
37.4
18.9
Businesses with any activity related to new or significantly improved organisational/managerial processes which was:(b)
still in development(c)
4.4
11.5
19.3
18.1
7.8
abandoned
0.7
1.0
1.5
3.9
0.9

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2011.


The proportion of businesses that reported the introduction of any new or significantly improved organisational/managerial processes rose with each successive employment size range, from 13% of businesses with 0-4 persons employed to 37% of businesses with 200 or more persons employed. Businesses with 20-199 persons employed were the most likely to report the introduction of new or significantly improved processes for three of the four response options (excluding other organisational/managerial processes). While the remaining response option, new business practices for organising procedures, was most frequently reported by businesses with 200 or more persons employed (18%).

Businesses in the Professional, scientific and technical services industry were the most likely to have introduced any new organisational/managerial processes (26%). In contrast, businesses in Agriculture, forestry and fishing and Other services (both 12%) were the least likely to introduce any new organisational/managerial processes. Professional, scientific and technical services had the highest proportion of businesses reporting new knowledge management processes to better use or exchange information, knowledge and skills within the business (18%) and methods of organising work responsibilities and decision making (17%). Of the other organisational/managerial processes, business practices for organising procedures was most likely to be reported by businesses in Wholesale trade, Financial and insurance services and Administrative and support services (all 11%), while new methods of organising external relations with other businesses or public institutions was most likely to be reported by businesses in the Rental, hiring and real estate services industry (9%).

Other services recorded the lowest proportion of businesses having introduced new business practices for organising procedures (3%) and new methods of organising external relations with other businesses or public institutions (1%). Other services and Transport, postal and warehousing recorded the lowest proportion of businesses to introduce new knowledge management processes to better use or exchange information, knowledge and skills within the business (both 7%).

Businesses in the Professional, scientific and technical services industry were the most likely to report new organisational/managerial processes still in development (13%) as at 30 June 2011. Businesses with 200 or more persons employed (4%) were four times more likely to report abandoned innovative activity related to organisational/managerial processes than businesses with 0-4 persons employed (1%).


Marketing Methods

The introduction of any new or significantly improved marketing methods during the year ended 30 June 2011 was reported by 17% of all businesses. The type of marketing method most likely to be introduced was new media or techniques for product promotion (12%).

Marketing methods innovation, by employment size(a), by status, 2010 - 11

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:(b)
changes to the aesthetic design or packaging of goods or services
1.5
4.5
7.4
8.0
2.9
media or techniques for product promotion
9.2
15.7
22.0
19.2
12.2
methods of product placement or sales channels
2.6
5.6
4.7
4.8
3.7
methods of pricing goods or services
3.6
6.4
6.9
5.8
4.7
other marketing methods
np
-
0.2
0.2
0.1
any marketing methods
12.5
22.4
28.1
24.8
16.8
Businesses with any activity related to new or significantly improved marketing methods which was:(b)
still in development(c)
7.3
14.5
16.3
14.4
10.3
abandoned
3.0
3.6
2.0
1.7
3.1

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2011.


By employment size, businesses with 20-199 persons employed were most likely to report the introduction of new marketing methods (28%), while businesses with 0-4 persons employed were the least likely (12%). Businesses with 5-19 persons employed were most likely to introduce new methods of product placement or sales channels (6%). Businesses with 20-199 persons employed reported the highest proportion of new media or techniques for product promotion (22%) and new methods of pricing goods or services (7%). Businesses employing 200 or more persons were most likely to report the introduction of significant
changes to the aesthetic design or packaging of goods or services
(8%).

By industry, businesses in Wholesale trade were the most likely to have introduced any new or significantly improved marketing methods (30%) during the year ended 30 June 2011. Businesses in Transport, postal and warehousing were the least likely to introduce any new or significantly improved marketing method (6%). The introduction of significant changes to the aesthetic design or packaging of goods or services was most common among businesses in Information media and telecommunications, Wholesale trade and Arts and recreation services (all 6%). New media or techniques for product promotion was most likely to be undertaken by businesses in the Retail trade and Information, media and telecommunications industries (both 19%), while new methods of product placement or sales channels was most likely to be introduced by businesses in Wholesale trade (8%). Businesses in Retail trade and Wholesale trade were the most likely to implement new methods of pricing goods or services (9%).

By industry, the proportion of businesses that reported new or significantly improved marketing methods still in development as at 30 June 2011, ranged from 2% for Mining to 18% for Arts and recreation services. Retail trade and Arts and recreation services recorded the highest proportion of abandoned activity associated with the development or introduction of new marketing methods (both 6%).

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