the state of digital 2012 key findings summary
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ENERGISE2-0.COM
The State of Digital (Scotland) Survey 2012
Key Findings Report
www.energise2-0.com
ENERGISE2-0.COM
The State of Digital (Scotland) Survey
• The State of Digital (Scotland) Survey was undertaken by Energise 2-0 in partnership with:
– University of Strathclyde Business School– Scottish Council for Development and Industry– Kube Networks– Eureka Solutions
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The State of Digital (Scotland) Survey
About the Survey• The State of Digital (Scotland) Survey was administered through an Online
Survey of Senior Decision Makers and Business Leaders in Scotland• The survey was carried out between August and September, 2012• The survey collected 216 responses across 19 questions covering the
following topic areas:– The use of the Web and e-marketing– The use of Social Media and Social Business– The Cloud and Mobile Internet– Internationalisation and the Internet– Future plans and the Impact of Digital Technology
• Initial results were presented at Glasgow for Business Week
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About the Respondents
Which sector is your company most involved in? About
N=154
IT, Telecommunications and the WebAdvertising, marketing and PR
TourismAccountancy and business services
HospitalityTeaching and education
Creative arts and cultureMedia
Charity and development workConstruction
Government and public administrationHealthRetail
EngineeringLaw
PropertyEnergy and utilities
Sport and leisureBanking and finance
Environment and agricultureFashion and design
ManufacturingPublishing
Recruitment and HRScience
Social careTransport and logisticsPrefer not to respond
Don't knowOther (please specify below)
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
17%7%
7%5%5%5%
5%4%
3%3%3%
3%3%
2%2%2%
1%1%
1%1%1%1%1%1%1%1%1%1%
16%
Other• All of the above (<1%)• Charity related (<1%)• Operational Change Consultancy (<1%)• Digital (<1%)• E-commerce (2%)• Economic development body (<1%)• Education (2%)• Environment, Health & Safety Compliance (<1%)• Executive Coaching (<1%)• Funeral Services (<1%)• Interactive media (<1%)• Knowledge & Research consultancy (<1%)• Membership Organisation (<1%)• Photography (<1%)• Procurement (<1%)• Public Sector / Third Sector (<1%)• Retail, Advertising, Transport, Publishing, Media
(<1%)• Tech (2%)• Training and Development (<1%)
How many employees are in your organisation (including you)? About
N=154
0 employees (owner run)17%
1-9 employees32%
10-49 employees26%
50-249 employees6%
250+ employees19%
Which department do you work in? About
N=154
Genera
l Man
agem
ent
Other (plea
se sp
ecify
below)
Marketi
ngSa
les
Operations
Prefer
not to re
spond
Informati
on Tech
nology
Customer
Servi
ce
Product
develo
pment
Human Reso
urces
0%
5%
10%
15%
20%
25%
30%
27%
25%
19%
8%
7%5%
4%3% 3%
1%
Other• All or most areas - owner run (16%)• Commercial Property (<1%)• Communications (<1%)• Corporate support - covering multiple roles (<1%)• Digital / Social Media (2%)• Education and research (<1%)• Learning and Development (<1%)• Marketing/Customer Service/Project mgt (<1%)• Marketing/Sales and Product Development (<1%)• New Ventures (<1%)• On-line and digital Health Information Service Development
(<1%)• Partnership Relations (<1%)• Photographer- sole trader (<1%)• Programme Exec, have a few different roles (<1%)• Research (<1%)• There are no departments (<1%)
Which category best captures your role? About
N=154
CEO / Managing Director / Chairman
29%
Senior Manager / Manager20%
Department Head / Di-rector / Chief
18%
Senior Executive / Execu-tive12%
Prefer not to respond4%
Other (please specify)18%
Other• Associate (<1%)• Business Development Executive (<1%)• Deputy CEO (<1%)• Deputy head of department (<1%)• Founder, pre-start up (<1%)• Franchise owner (<1%)• Owner / Co-owner / Partner (9%)• Practice manager (<1%)• Project manager (<1%)• Sales Administrator (<1%)• Social Media manager / practitioner
(2%)
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Summary of Key Findings
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Summary of Key Findings
The State of Digital in Scotland, a few overall comments• Respondents are adopting new digital technologies and in particular making use of
the Cloud, Mobile Internet and Social Media. Respondents are getting ‘involved’ in Digital and believe it to be providing business benefits whether that be through raising their brand awareness, better understanding their customers and markets or (for some) providing exceptional levels of customer experience.
• Most adopting companies lack a 'strategy' for any aspect of Digital. This is very likely limiting the scope of their digital implementations and the level of business benefits being derived; it effects the ability of companies to organise and resource activities appropriately. This lack of ‘strategy’ is also preventing more businesses from truly transforming through digital technologies; few are or aim to be “Social Businesses”. Social Businesses use Social Media internally to improve staff communication, knowledge sharing and support key processes, as well as to engage customers.
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Summary of Key Findings
The Web is being redefined• The survey questions whether a sophisticated website is really necessary for most
companies; many now 'get by' with a simple brochure site. This does not mean that these companies are foregoing the opportunity presented by the Internet for customer interaction and engagement, it simply means that this is occurring elsewhere - on social media.
• Despite calls from support agencies for more businesses to sell online, only 5% of respondents have invested in an e-commerce site. However, this does not mean that online sales are unimportant; a further 39% have a presence that supports sales through either helping build relationships, encouraging repeat sales or building brand awareness.
• The web is still critical to achieving sales but there are few ‘shopping-cart' style businesses amongst our respondents.
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Summary of Key Findings
We are increasingly ‘social'• For many years, businesses have been supporting their web presence through e-
marketing and search engine optimisation (SEO) has been the most popular means of doing this. This is not just habit, there is a rationale here - most of us still find companies, products and services through search. However, more respondents to this survey are using Social Media to support their web presence than are using SEO.
• The reasons are not fully understood, however, this has much to do with the potential benefits of social media for businesses and also the high level of use amongst the general public. The fact is, more of us are spending more time on social channels. While search is still important it does not foster relationships.
• Companies tell us that their use of 'social' not only allows them to increase brand awareness and manage their brand reputation but it also helps them build and strengthen the relationships they have with high value customers.
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Summary of Key Findings
We are 'action' oriented• Companies are focused on 'getting involved' with social media. The majority of
respondents use it and are even deriving benefits - most believe channels like Twitter are adding value to their business. However in 2013, more than half of users have no clear strategy or are still 'experimenting' with its use.
• Few are using 'social' in a wider sense; only around a quarter have looked at supporting an internal process using social tools and a small minority view themselves as 'social businesses’.
• There are a series of activities that all companies should be getting involved in such as listening to conversations relevant to their business on social channels. The relatively low uptake of Social Media Listening is perhaps related to a more general lack of strategic orientation amongst businesses.
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Summary of Key Findings
Our future in Social Media• While more respondents expect to use Social Media strategically, looking forward
there will still be 40 per cent without a clear strategy or objectives. With companies in other countries now discussing and rapidly moving towards becoming Social Businesses, it appears that in Scotland many are still questioning the value of a Social Media Strategy.
• Without a strategy and business case for 'social' the expressed barriers to further development - of a ‘lack of time and resource’, ‘a lack of skills and knowledge’ or ‘employee resistance’ - will be difficult to overcome. A robust and integrated strategy for ‘social', supported by senior management, is critical if companies are to resource it effectively and ultimately be successful.
• For the majority of companies using Social Media it tends to be managed by ‘one or a few individuals’. If companies are to truly transform, the proportion of businesses with either dedicated teams or multiple teams (embedding Social Media across the organisation) must increase.
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Summary of Key Findings
The Cloud• Cloud Computing is on the agenda for most companies with its promise of lower
cost of ownership, better access to company information - anytime, anywhere and on any device - and its ability to flex and scale with business requirements.
• The level of awareness of the Cloud is high amongst the respondents but unlike other ‘hyped’ technologies, companies are translating high levels of awareness into adoption.
• There are many types of Cloud application, some peripheral others mission critical. As for other digital technologies fewer adopting businesses are approaching this area strategically.
• It will be interesting to see how the Cloud develops; whether it can displace traditional IT deployment models as many suggest or whether it becomes another complementary technology.
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Summary of Key Findings
Mobile Internet• Mobile and more specifically the Mobile Internet is also discussed as a technology
whose time has come. Businesses are facing challenges from connected customers and employees - a growing majority that are accessing the Internet at a time and place that suits them.
• Doing nothing in the face of this shift in the use of digital technology is no longer an option and it is somewhat encouraging that most respondents are addressing Mobile in some way, through their marketing, websites or new mobile apps.
• What is of more concern is that around two thirds of those ‘doing something’ are also failing to approach the Mobile Internet strategically (with no clear vision or objectives).
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Summary of Key Findings
Internationalisation and Digital Technology• A key characteristic of the Internet is its independence of location; in other words
it allows companies in Scotland to effectively operate internationally without much more than an Internet connection. The Internet overcomes many of the traditional barriers to exporting.
• Of the companies responding, half are international in some sense and almost one third could be considered serious exporters (actively developing sales or with most of their sales in international markets).
• What is surprising given the ability of Digital Technologies to support sales and build relationships with international customers is that 15 per cent are not using Digital at all for this purpose. A further 57 per cent are using Digital Technologies without a clear strategy or objectives or are aware that they could do more.
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Key Findings
Which of the following statements best describes the main purpose of your Web site? Q1
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
43%
5%
11%
28%
1%5%
7%
N=216
For 43% of respondent companies the Website is a simple brochure site supporting brand awareness. For these companies a low cost web solution is perhaps good enough. A further 44% have invested more heavily in their web presence: 5% have an e-commerce site supporting volume sales, 11% support relationship building and repeat sales and 28% have a presence that supports sales and brand awareness.
Which of the following e-marketing activities does your company employ to support your Web site? Q2
N=186
Other (please specify below)
None of the above
Pay-per-click
Online Promotions and Offers
Online adverts
Online PR
Link building
E-newsletters or e-mailshots
Search engine optimisation
Social Media
0% 10% 20% 30% 40% 50% 60% 70% 80%
3%
10%
15%
19%
19%
26%
34%
53%
54%
74%
For those with a Website, 74% support it through Social Media. 54% support their website through Search Engine Optimisation. 10% do not support their website through any online marketing.
Which of the following statements best describes your company's approach to Social Media? Q3
N=193
0%
5%
10%
15%
20%
25%
30%
35%
30%
21% 21%
14%
10%
5%
While 90% of respondents use Social Media, 51% have no clear strategy or objectives governing its use or are still experimenting. Encouragingly, 35% are using Social Media strategically whilst a further 5% believe they have become a Social Business.
Which Social Media initiatives have you implemented and how important are they for your company? Q4
N=152
A Social Media Listening System
A Company Blog
Other(s) e.g. Google+; Flickr, YouTube, Pinterest, TripAdvisor, etc.
Active participation in ‘external’ forums/groups
A Company Facebook Page
Networking with ‘key influencers’ on Social Media
Company use of LinkedIn
Social Media on our website
Company use of Twitter
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
15%
12%
24%
26%
22%
27%
26%
28%
24%
17%
21%
19%
27%
25%
24%
24%
29%
27%
17%
18%
14%
14%
20%
19%
20%
22%
32%
Yes, somewhat important
Yes, important
Yes, very important
There is a high level of perceived benefit across the range of Social Media activities undertaken. Of those that use Social Media 83% believe Twitter has some value for their business (and 32% believe it to be very important). Social Media Listening is seen to be relatively less important (49% believe it to be at all important) and yet it is an activity that every business can derive benefit from.
What are you trying to achieve from Social Media? Q5
N=152
Other (please specify below)
Support operations / internal processes such as recruitment, product and service development
Improve marketing efficiency and effectiveness, achieve more with less
Improve knowledge of our customers and markets, create actionable insights
Increase sales and lead generation, identify high value prospects
Improve the customer experience of the brand, deliver high levels of service and support
Build and strengthen relationships with high value customers, increase loyalty and advocacy
Increase brand awareness and/or manage brand reputation
0% 10% 20% 30% 40% 50% 60% 70% 80%
4%
26%
54%
58%
58%
59%
68%
74%
Most companies view Social Media largely as a Sales and Marketing tool. 74% are using it to increase brand awareness or manage their brand reputation. A similarly high proportion, 68%, are using it to build and strengthen relationships with high value customers. Only 26% are supporting internal processes through Social Media perhaps indicating an area where businesses lack awareness or knowledge.
Please complete the following statement..."Social Media is owned or controlled by...”? Q6
N=152
One or a few individuals within one department
27%
One or a few individuals across the organisation40%
A dedicated Social Media team within one department
4%
A dedicated Social Media team across the organisation
10%
Multiple teams across the organisation10%
Don't know3%
Other (please specify below)5%
For 67% of companies (that use Social Media) it tends to be managed by ‘one or a few individuals’. For 14% of businesses Social Media is managed through a dedicated team. For a further 11% it (has perhaps become part of more employee / department roles as it) is managed by multiple teams across the organisation.
What are your future plans for Social Media? Q7
N=168
None, we do not plan to use Social Media in future
We will experiment with Social Media in future
We will significantly increase our use of Social Media in future
We will significantly increase our use of Social Media and have a clear strategy and objectives. We will measure performance on an ongoing basis
We will fully-integrate Social Media into our wider marketing or business strategy
We will become a Social Business (as well as extensive use externally, we will use Social Media internally to improve staff communication, knowledge sharing and support key processes)
0% 5% 10% 15% 20% 25%
8%
20%
20%
19%
21%
11%
92% of respondents will use Social Media in future. 40% will still have no clear strategy or objectives governing its use or will continue to experiment in future. Encouragingly, 40% will use Social Media strategically whilst a further 11% believe they will become a Social Business.
What are the main barriers to the (further) use of Social Media within your organisation? Q8
N=168
Lack of incentives
Don't know
Other (please specify below)
Fear of challenging established norms and practices
Lack of knowledge sharing culture
Lack of policies or governance processes
Security concerns (e.g. intellectual property leakage)
Lack of senior management sponsorship
Fear of employee abuse (e.g. wasting time)
Fear of lack of control
Employee mistrust or resistance
Lack of management understanding
Lack of implementation skills
Lack of understanding
No strong business case or proven value proposition
Lack of robust strategy
Too many competing priorities, lack of time and resource
0% 10% 20% 30% 40% 50% 60%
7%
8%
10%
11%
11%
12%
14%
14%
15%
17%
19%
19%
20%
20%
21%
26%
49%
Overwhelmingly, the main barrier to further use of Social Media is a ‘lack of time and resource’ (49%) . Other barriers relate to a lack of strategy (26%), a weak business case (21%), a lack of understanding (20%) or a lack of implementation skills (20%).
Which of the following statements best describes your company's use of Cloud Computing? Q9
N=166
0%
5%
10%
15%
20%
25%
30%
7%
25%
14%13%
16%
8%
17%
Only 7% of respondent companies had never heard of Cloud Computing. 25% have heard of the Cloud but are taking no action whilst a further 15% are finding out more. 29% have no clear strategy or objectives governing its use or are still experimenting. 25% are using the Cloud strategically many as part of their wider IT strategy.
Which of the following statements best describes your company's approach to the Mobile Internet e.g. mobile marketing, websites and apps? Q10
N=166
0%
5%
10%
15%
20%
25%
30%
3%
19%
15%
28%
13% 14%
8%
Only 3% of respondent companies had never heard of the Mobile Internet. 19% have heard of the Mobile Internet but are taking no action whilst a further 15% are finding out more. 41% have no clear strategy or objectives governing its use or are still experimenting. 22% are using the Mobile Internet strategically , albeit only 8% have integrated mobile into wider initiatives.
Which of the following statements best describe your current level of internationalisation? Q11
N=166
Some international sales we react to orders from over-
seas22%
Some international sales we actively
develop sales over-seas24%
Most of our sales come from international markets
4%
Not international50%
50% of respondents are international. 22% are reactive ‘we react to orders from overseas’, 24% are proactive ‘we actively develop sales overseas’ while a further 4% believe ‘most of their sales come from international markets’.
How do you use Digital Technology to support your current level of internationalisation? Q12
N=81
We don't use Digital Technology to support our internationalisation efforts
We make some use of Digital Technology, we could do more
We make extensive use of Digital Technology but with no clear plan or strategy
We make extensive use of Digital Technology and have a clear plan or strategy
We have fully integrated Digital Technology into our international strategy
0% 5% 10% 15% 20% 25% 30% 35% 40%
15%
36%
21%
9%
20%
Of those companies that are ‘international’, only 29% are using Digital Technologies strategically to support their internationalisation efforts (including 20% who have integrated Digital into their international strategy). 57% have no clear strategy or objectives governing its use or ‘make some use but could do more’. 15% don’t use Digital Technologies.
What benefits if any have you derived through your use of Digital Technology? “We have increased or improved...“ (strongly agree or disagree) Q13
N=155
None or very little benefit
Operations / internal processes, such as recruitment, product and service development
Relationships with high value customers, levels of loyalty and advocacy
Sales and lead generation, identification of high value prospects
Marketing efficiency and effectiveness, Return on investment (ROI)
Customer experience of the brand, levels of service and support
Customer or market knowledge, actionable insights
Brand awareness and brand reputation
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
9%
16%
22%
18%
27%
31%
30%
43%
11%
34%
37%
42%
34%
42%
45%
38%
Strongly agree
Agree
The majority of respondents have benefitted from Digital Technology. The main benefits derived by companies include: ‘Brand Awareness and brand reputation’ (81%), ‘customer or market knowledge’ (75%) and ‘customer experience, of the brand, levels of service and support’ (73%)
How important is Digital Technology to your future growth or competitiveness? Q14
N=101, Open
“Very important. 21st Century business
demands it.”
“We have no offline strategy. Our business
relies completely on digital technology for
reaching our customers.”
“Our business relies on digital technology for all sales and marketing activity. The main
problem is keeping up with the changes…”
“It is essential to marketing in a niche”
“It is a useful tool, but not essential to us. We will probably not develop our digital format any further.”
“It is very important for our growth but we don't know how it will be used yet.”
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The State of Digital (Scotland) Survey
The Authors
Dr Jim Hamill
Director, Energise 2-0www.energise2-0.com
@drjimhamill
uk.linkedin.com/in/drjimhamill
Alan Stevenson
Director, Energise 2-0www.energise2-0.com
@ast3v3nson
uk.linkedin.com/in/ast3v3nson