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8167.0 - Selected Characteristics of Australian Business, 2010-11 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 13/09/2012   
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BUSINESS USE OF INFORMATION TECHNOLOGY


INTRODUCTION

The Business Characteristics Survey (BCS) collects key indicators of IT use and innovation in Australian businesses and more detailed information for each of these topics is collected every second year (i.e. in alternating years). The 2010-11 BCS had a focus on innovation, therefore, only a selected number of IT use indicators are available.

Summary IT use indicators for 2010-11 were released in Summary of IT Use and Innovation in Australian Business (cat. no. 8166.0) in June 2012. These indicators included internet access, web presence and placing and receiving orders via the internet. This section includes the relevant IT use indicators as well as more detailed information about the types of broadband connection and internet commerce. Where possible data are cross-classified by innovation status.

Business Use of Information Technology, selected indicators(a), by innovation status, 2010 - 11

Innovation-active
Non innovation-active

Businesses with:
internet access(b) %
96.8
87.6
web presence(b) %
63.5
30.0
Businesses with internet access and broadband as main type of connection(b) %
99.6
98.7
Businesses which:
placed orders via the internet(c) %
69.5
38.8
received orders via the internet(c) %
40.9
19.7
Internet income(d) $b
144.4
44.3

(a) Proportions are of all businesses in each output category.
(b) As at the end of the reference period 30 June 2011.
(c) During the financial year ending 30 June 2011.
(d) Estimates related to internet income should be used with caution, refer to Explanatory Notes 16 and 17.


Innovation-active businesses reported higher proportions of IT use across all IT indicators, compared to non innovation-active businesses. Innovation-active businesses reported a higher proportion of businesses with broadband as their main type of internet connection (96%) than non innovation-active businesses (86%). Innovation-active businesses were more than twice as likely than non innovation-active businesses to have a web presence (64% and 30% respectively).

Innovation-active businesses were more likely to place orders via the internet than non innovation-active businesses (70% and 39% respectively). They were also twice as likely to receive orders via the internet, 41% for innovation-active businesses and 20% for non innovation-active businesses.


INTERNET ACCESS

Overall, 91% of businesses reported having internet access as at 30 June 2011. The likelihood of a business having internet access increased with each successive employment size range.

The Information media and telecommunications and Professional, scientific and technical services industries recorded the highest proportions of businesses with internet access (both 99%). Accommodation and food services recorded the lowest proportion of businesses with internet access (73%).

Innovation-active businesses (97%), were more likely than non innovation-active businesses (88%) to report internet access.


BROADBAND CONNECTION

Businesses with internet access were asked to identify the main type of internet connection used as at 30 June 2011.

Broadband, which is defined by the ABS as an 'always on' internet connection with an access speed equal to or greater than 256kbps, was identified as the main internet connection for 99% of businesses with the internet as at 30 June 2011.

Main type of broadband connection, by employment size(a), 2010 - 11

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

Digital Subscriber Line (DSL)
71.4
79.4
82.9
65.5
74.8
Fibre To The Premises (FTTP)
0.9
1.6
3.7
17.0
1.5
Cable
7.0
4.2
4.5
13.0
5.9
Fixed wireless
6.9
5.8
4.4
1.4
6.3
Mobile wireless
10.5
6.7
3.1
1.3
8.6
Satellite
3.5
2.4
1.2
0.2
3.0

(a) Proportions are of all businesses that identified broadband as their main type of internet connection as at 30 June 2011, in each output category.


Overall, DSL, was the most common type of broadband connection (75%) and was highest among businesses with 20-199 persons employed (83%). Mobile wireless was most frequently reported by businesses with 0-4 persons employed (10%), the highest of any employment size range for this type of broadband connection.

By industry, broadband was most common in Professional, scientific and technical services (99%) and was least recorded in Accommodation and food services (72%).


WEB PRESENCE

A web presence includes a website, home page or presence on another entity's website. Web presence excludes online listings or directories.

A web presence was reported by 43% of Australian businesses as at 30 June 2011. The proportion of businesses reporting a web presence increased with each successive employment size range, from 33% for businesses with 0-4 persons employed to 97% for businesses with 200 or more persons employed.

Businesses who were innovation-active, were more than twice as likely to have a web presence than businesses who were non innovation-active (64% and 30% respectively).


INTERNET COMMERCE

The 2010-11 BCS measured the proportion of Australian businesses using the internet to place and/or receive orders (i.e. the incidence of internet commerce). Refer to Explanatory Notes 16 and 17 for the definitions used.

Internet commerce(a), by employment size, 2010 - 11

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

Proportion of all businesses which:
placed orders via the internet
43.8
59.5
68.7
81.1
50.8
received orders via the internet
24.4
32.3
38.4
38.2
28.0

(a) Data in this table were originally published in June 2012 in the release Summary of IT Use and Innovation in Australian Business (cat. no. 8166.0).



PLACING ORDERS

All businesses were asked to indicate if they placed orders via the internet. An order is defined as a commitment to purchase goods or services, whether or not payment is made online.

The likelihood of a business placing orders for goods or services via the internet increased for each successive employment size range. Over half of all businesses reported that they had purchased goods or services via the internet (51%).

Proportion of businesses placing orders via the internet, by industry, 2010-11
Graph: Proportion of businesses placing orders via the internet, by industry, 2010-11


By industry, businesses in Information media and telecommunications and Professional, scientific and technical services (both 72%) were the most likely to have placed orders via the internet. Businesses in the Transport, postal and warehousing industry were the least likely to place orders via the internet (28%).

The proportion of innovation-active businesses that placed orders via the internet was 70%, compared to 39% for non innovation-active businesses.


RECEIVING ORDERS

All businesses were asked to indicate if they received orders via the internet. An order is defined as a commitment to purchase goods or services, even if the payment is not made online. Over a quarter of businesses reported receiving orders via the internet during 2010-11 (28%). Businesses with 20-199 persons employed and those with 200 or more persons employed both reported the highest proportion of businesses receiving orders via the internet (38%).

Proportion of businesses receiving orders via the internet, by industry, 2010-11
Graph: Proportion of businesses receiving orders via the internet, by industry, 2010-11


Businesses in the Wholesale trade industry (52%) reported the highest proportion for receipt of orders via the internet, followed by Manufacturing (50%).

Innovation-active businesses (41%) were more than twice as likely to receive orders via the internet than non innovation-active businesses (20%).


INCOME FROM ORDERS RECEIVED VIA THE INTERNET (INTERNET INCOME)

All businesses which reported receiving orders via the internet were asked to indicate what proportion of their income from the sales of goods or services could be attributed to those orders (i.e. internet income). The estimated value of internet income in 2010-11 was approximately $189 billion.

Internet income as a proportion of income from goods or services(a)(b), by innovation status, by employment size, 2010 - 11

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

Innovation-active businesses
10.8
11.6
8.5
7.7
8.5
Non innovation-active businesses
5.1
3.9
6.5
6.1
5.5
All businesses
7.0
7.9
7.9
7.4
7.5

(a) Proportion of income from sales of goods or services attributable to orders received via the internet during the year ended 30 June 2011.
(b) Estimates related to internet income should be used with caution. Refer to Explanatory Notes 16 and 17.


Across each successive employment size range, innovation-active businesses reported higher proportions of income from sales of goods or services attributed to orders received via the internet, than non innovation-active businesses.

Internet income as a proportion of goods or services income, by industry, 2010-11
Graph: Internet Income as a proportion of goods or services income, by industry, 2010-11


By industry, Transport, postal and warehousing (which includes air transport) recorded the highest proportion of internet income as a proportion of goods or services income (19%), yet this industry was at the lower end of the range for proportion of businesses receiving orders via the internet (22%). Retail trade recorded the fourth highest proportion for receipt of orders (35%); however, the proportion of internet income was at the lower end of the range (3%).



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