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8166.0 - Summary of IT Use and Innovation in Australian Business, 2009-10 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 23/06/2011   
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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), 2008—09 and 2009—10

2008 - 09
2009 - 10(b)
2009 - 10(c)

Estimated number of businesses(d) '000
713
717
776
Businesses with:
internet access %
90.5
90.6
90.1
web presence %
41.5
42.3
40.0
Businesses with internet access:
broadband as main type of connection %
98.1
97.4
97.1
Businesses which:
placed orders via the internet %
46.0
48.1
46.5
received orders via the internet %
27.1
25.9
24.8
Internet income(e) $b
122.9
141.9
142.8

(a) Proportions are of all businesses.
(b) Excludes businesses in Agriculture, forestry and fishing industry division.
(c) Includes businesses in Agriculture, forestry and fishing industry division.
(d) Business counts are provided for contextual information only, please refer to Explanatory Notes 20 and 21.
(e) Please refer to Explanatory Notes 16 and 17.


The proportion of businesses with internet access in 2009-10 was 90%. Between 2008-09 and 2009-10, the results for most key indicators of IT use remained relatively unchanged.

The income resulting from orders received over the internet in 2009-10 was approximately $143 billion. Excluding the Agriculture, forestry and fishing industry, there was a 15% increase in internet income from $123 billion in 2008-09 to $142 billion in 2009-10.

Business Use of Information Technology, selected indicators, by employment size(a)(b), 2009—10

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

Estimated number of businesses(c) '000
468
244
60
4
776
Businesses with:
internet access %
87.3
93.7
96.4
99.2
90.1
web presence %
29.2
51.5
73.0
94.0
40.0
Businesses with internet access:
broadband as main type of connection %
96.9
97.2
97.3
98.6
97.1
Businesses which:
placed orders via the internet %
39.8
54.4
63.3
72.6
46.5
received orders via the internet %
21.0
29.4
33.5
33.8
24.8
Internet income(d) $b
^9.5
^29.0
^38.2
66.2
142.8

^ 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) Includes businesses in Agriculture, forestry and fishing industry division.
(c) Business counts are provided for contextual information only, please refer to Explanatory Notes 20 and 21.
(d) Please refer to Explanatory Notes 16 and 17.



Internet access

Nine in ten businesses reported having internet access as at 30 June 2010. The likelihood of a business accessing the internet was greater for each successive employment size range. For example, 87% of businesses with 0-4 persons employed accessed the internet as at 30 June 2010, compared to almost all (99%) of businesses with 200 or more persons employed.

Proportion of businesses with internet access, by industry, 2009-10
Graph: Proportion of businesses with Internet Access, by industry, 2009-10


Almost all businesses within the Information media and telecommunications industry reported having internet access, while the industry with the lowest proportion of businesses accessing the internet was Accommodation and food services at 74%. Businesses within the Agriculture, forestry and fishing industry recorded the second lowest rate of internet access at 83%.


Broadband use

Businesses with internet access were asked to identify the main type of internet connection used as at the end of June 2010. Broadband was identified as the main connection type by 97% of Australian businesses with internet access. The ABS defines broadband as an 'always on' internet connection with an access speed equal to or greater than 256kbps.

For businesses with internet access, broadband as the main type of internet connection was reasonably homogenous across employment size groups, ranging from 97% for businesses with 0-4 persons employed, to 99% for businesses with 200 or more persons employed.
Businesses with internet access - proportion with broadband as the main type of connection, by industry, 2009-10

Graph: Broadband use

Of businesses accessing the internet, broadband as the main connection type was reported by almost all businesses in Information media and telecommunications. Businesses in Agriculture, forestry and fishing were the least likely to have broadband as the main connection type (92%).


Web presence

A web presence was reported by 40% of Australian businesses as at 30 June 2010. The reported figure includes businesses with a website, home page or other web presence but not those listed as part of an on-line listing or web directory.

A strong relationship exists between the number of persons employed by a business and the likelihood that the business has a web presence. For example, at the end of June 2010, a web presence was reported by 94% of businesses with 200 or more persons employed, compared with 29% of businesses with 0-4 persons employed.

Proportion of businesses with a web presence, by industry, 2009-10
Graph: PROPORTION OF BUSINESSES WITH A WEB PRESENCE, by industry, 2009-10


At the end of June 2010, Arts and recreation services had the highest proportion of businesses with a web presence (65%), followed by Information media and telecommunications (58%) and Wholesale trade (57%). The lowest occurrence of web presence was reported by businesses within Agriculture, forestry and fishing (11%).


Internet commerce

The BCS measures the proportion of Australian businesses using the internet to place and/or receive orders (i.e. the incidence of internet commerce). For receipt of orders, an estimate of income resulting from these orders was obtained. Please refer to Explanatory Notes 16 and 17 for the definitions used and information about estimation of internet income.

Placing orders

The proportion of all businesses placing orders via the internet during 2009-10 was 46%.

The proportion of businesses placing orders via the internet increased with each successive employment size range, from 40% for businesses with 0-4 persons employed to 73% for businesses with 200 or more persons employed. This pattern has been common throughout previous releases of these data.

Proportion of businesses placing orders via the internet, by industry, 2009-10
Graph: Proportion of businesses placing orders via the Internet, by industry, 2009-10


Businesses in Professional, scientific and technical services were most likely to place orders for goods or services via the internet (71%) followed by Information media and telecommunications (70%) and Wholesale trade (58%). By contrast, Agriculture, forestry and fishing had the lowest proportion of businesses placing orders over the internet (26%).

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 for which the original commitment to purchase was made using other arrangements are excluded. The proportion of all businesses reporting receipt of orders via the internet during 2009-10 was 25%, with income obtained from these orders totalling an estimated $143 billion.

Businesses employing 200 or more persons and those employing 20-199 persons were the most likely to receive orders via the internet (34%). The least likely to receive orders were those businesses with 0-4 persons employed (21%).

Proportion of businesses receiving orders via the internet, by industry, 2009-10
Graph: Proportion of businesses receiving orders via the Internet, by industry, 2009-10


The Wholesale trade and Manufacturing industries, that are traditionally associated with physical goods, recorded the highest proportion of businesses receiving orders over the internet, at 49% and 41% respectively. The industry with the lowest proportion of businesses that received orders via the internet was Health care and social assistance (7%).


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