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8166.0 - Summary of IT Use and Innovation in Australian Business, 2011-12 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/06/2013   
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Contents >> IT USE IN AUSTRALIAN BUSINESS >> Business Use of Information Technology

BUSINESS USE OF INFORMATION TECHNOLOGY

Business Use of Information Technology, selected indicators(a), 2009-10 to 2011-12

2009-10
2010-11
2011-12

Estimated number of businesses(b) '000
776
764
776
Businesses with:
internet access %
90.1
91.2
91.9
web presence %
40.0
43.1
44.6
Businesses with internet access:
broadband as main type of connection %
97.1
99.1
99.2
Businesses which:
placed orders via the internet %
46.5
50.8
55.3
received orders via the internet %
24.8
28.0
27.8
Internet income(c) $b
142.8
188.7
237.1

(a) Proportions are of all businesses.
(b) Business counts are provided for contextual information only, and the total may not sum to the total of the components due to rounding. Refer to Explanatory Notes 20 and 21.
(c) Refer to Explanatory Notes 16 and 17.


Between 2010-11 and 2011-12, most key indicators of business use of information technology have increased. The greatest change was in the proportion of businesses that placed orders via the internet. This increased four percentage points to 55% between 2010-11 and 2011-12.

While the proportion of businesses that reported receiving orders via the internet was steady between 2010-11 and 2011-12 (28%), the value of income derived from the sale of goods or services via the internet has increased by 25%, from $189 billion in 2010-11 to $237 billion in 2011-12.

Business Use of Information Technology, selected indicators, by employment size(a), 2011-12

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

Estimated number of businesses(b)(c) '000
478
232
63
4
776
Businesses with:
internet access %
90.2
93.7
98.3
99.9
91.9
web presence %
34.1
57.0
75.7
97.0
44.6
Businesses with internet access:
broadband as main type of connection %
99.0
99.5
99.4
99.8
99.2
Businesses which:
placed orders via the internet %
47.8
65.2
74.1
81.3
55.3
received orders via the internet %
23.4
34.3
36.8
40.0
27.8
Internet income(d) $b
^15.7
^33.2
^59.7
128.5
237.1

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution.
(a) Proportions are of all businesses in each output category.
(b) Business counts are provided for contextual information only, and the total may not sum to the total of the components due to rounding. Refer to Explanatory Notes 20 and 21.
(c) The sum of the component items may not equal the total due to rounding. Refer to Explanatory Note 30 and the Quality Declaration.
(d) Refer to Explanatory Notes 16 and 17.



Internet Access

Diagram: Internet Access

Nine in ten businesses reported having internet access, as at 30 June 2012. By employment size range, the likelihood of a business having access to the internet was greater for each successive employment size range. This ranged from 90% of businesses with 0-4 persons employed to all businesses with 200 or more persons employed having reported access to the internet.

Diagram: Internet Access

While all businesses in the Information media and telecommunications industry reported access to the internet, the Accommodation and food services industry had the lowest proportion of businesses with internet access, at just over 70%. The majority of other industries recorded over 90% of businesses with internet access.


Broadband Use

The ABS defines Broadband as an 'always on' internet connection with an access speed equal to or greater than 256kbps. Businesses with internet access were asked to identify the main type of internet connection used as at 30 June 2012.

Diagram: Broadband Use

Broadband was identified as the main connection type by 99% of Australian businesses with internet access. The proportion of businesses with internet access and broadband as the main type of internet connection has been at near saturation for the past three years.

Diagram: Broadband Use

For businesses with internet access, broadband was reported as the main type of internet connection for a third of selected industries. As at 30 June 2012, businesses in Agriculture, forestry and fishing and Retail trade were least likely to have broadband as the main connection type (98%).


Web Presence

The ABS defines businesses with a web presence as those with a website, home page or other web presence but excludes those listed solely as part of an online listing. A web presence was reported by 45% of Australian businesses as at 30 June 2012.

The proportion of businesses with a web presence has steadily increased over the past three years.

Diagram: Web Presence

Consistent with previous years results, the likelihood that a business reported a web presence increased with each successive employment size range. As at 30 June 2012, a web presence was reported by 34% of businesses with 0-4 persons employed, compared with 97% of businesses with 200 or more persons employed.

Diagram: Web Presence

Businesses in Information media and telecommunications and Arts and recreational services were most likely to report a web presence (both over 70%). This is compared with less than 20% of businesses in Agriculture, forestry and fishing and Transport, postal and warehousing industries.

Business Use of Information Technology, 2011-12 (cat. no. 8129.0), to be released on 22 August 2013, will include data about the reasons that businesses did not have a web presence as at 30 June 2012.


Internet Commerce

Internet commerce is the term generally used in respect to the placement and receipt of orders via the internet. The ABS defines an order via the internet as a transaction where the commitment to purchase goods or services is made via the internet. The commitment to purchase is the agreement to purchase whether or not the payment is made via the internet. The scope of receiving orders is not limited to orders solely received from Australian households, businesses or government but also includes orders received from overseas customers. Income from the receipt of orders is referred to as internet income.


Placing orders

The proportion of businesses placing orders via the internet has steadily increased over the past three years. During the year ended 30 June 2012, placing orders via the internet was reported by 55% of all businesses.

Diagram: Placing orders

The proportion of businesses placing orders via the internet increased with each successive employment size range, from 48% of businesses with 0-4 persons employed to 81% for businesses with 200 or more persons employed. This is consistent with previous releases of this data.

Diagram: Placing orders

Businesses in Information media and telecommunications and Professional, scientific and technical services were most likely to place orders for goods or services via the internet (both over 70%). By contrast, Agriculture, forestry and fishing had the lowest proportion of businesses placing orders over the internet (37%), followed closely by Transport, postal and warehousing and Accommodation and food services (both 39%).


Receiving orders

Measures of receipt of orders via the internet exclude transactions where the commitment to purchase is not made via the internet. For example, regular orders made via the internet for goods or services, where the original commitment to purchase was made using other arrangements, are excluded. The proportion of businesses that reported receiving orders via the internet during 2011-12 was 28%, with income obtained from these orders totalling an estimated $237 billion.

Diagram: Receiving orders

Overall, the proportion of Australian businesses that reported receiving orders via the internet was steady between 2010-11 and 2011-12, following a three percentage point increase between 2009-10 and 2010-11.

During 2011-12, the proportion of businesses that received orders via the internet increased with each successive employment size range. Businesses with 0-4 persons employed were least likely to receive orders via the internet (23%) while businesses with 200 or more persons employed were most likely (40%).

Diagram: Receiving orders

More than half of businesses in Information media and telecommunications received orders via the internet during 2011-12 (55%). Businesses in the Wholesale trade (52%) and Manufacturing (48%) industries, traditionally associated with physical goods, were the next most likely to report receiving orders via the internet. Agriculture, forestry and fishing had the lowest proportion of businesses reporting receipt of orders via the internet (12%).


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