Taking advantage of the Government s broadband investments What are the opportunities?

Size: px
Start display at page:

Download "Taking advantage of the Government s broadband investments What are the opportunities?"

Transcription

1 Taking advantage of the Government s broadband investments What are the opportunities? Presented by: Sean Crawford Date: 12 March 2014

2 Government broadband investment Government investments: 530 million rural broadband programme 90% of UK premises by early million superfast extension programme 95% of UK premises by million innovation pilot Hard to reach places 150 million super-connected cities Voucher scheme for urban connectivity 150 million mobile infrastructure project Coverage for up to 60k premises in notspots 2

3 Benefits to economy Potential uplift of 63 billion to GDP if UK led an international digital maturity index. UK currently ranked 12 th (Booz and Co) Opportunities for SMEs to unlock up to 18.8 billion in incremental revenue (Booz and Co) 20 return for every 1 invested (SQW) BUT whilst UK is putting in place a strong digital foundation, not doing enough to drive demand/use 3

4 Infrastructure, skills and motivation Not just: A future-proofed infrastructure so SMEs and citizens can fully optimise benefits of web But also : SMEs, citizens and charities with the motivation, confidence and skills to recognise the digital opportunities on offer Combine community + business engagement with the better broadband rollout to drive strongest take-up by SMEs and citizens 4

5 Digital capabilities - citizens Media Literacy - Understanding Digital Capabilities BBC (2012) Looks at the digital capability of the online population Divides the internet population into 7 segments Identifies need to tailor benefit messages at local level to drive stronger take-up of NGA broadband 5

6 Digital capability - citizens 6

7 Digital capabilities - SMEs Britain s Digital Opportunity A study of digital maturity within Britain s businesses and charities Lloyds Banking Group, 2012 Divides SMEs digital capability into 5 segments Important insight to inform local approaches to engaging SMEs based on promote business drivers and support to drive greater take-up of NGA broadband 7

8 Digital capabilities - SMEs Higher online maturity Lower online maturity 1. Shooting Stars 2. Emerging Advocates 3. Static Surfers 4. Enthusiastic Chasers 5. Deliberate Disconnected Do a lot online, including highest level business tasks. website with higher level functionality. Have a more basic website, or don t utilise the internet for the highest level tasks. Reasonably advanced in use of web but don t have a website at all. Do low to moderate business tasks online and have basic website. not online at all or only use the internet for very basic tasks (e.g. searches) (28%) (17% ) (17% ) (17% ) (20% ) Source: Lloyds/Go ON UK Maximising Online Engagement with SMEs & Charities (Optimisa) Sept 2012.

9 Link between digital maturity + growth 9

10 Digital capability 10

11 Tourism online bookings 11

12 Tourism social media 12

13 Benefits of going online Individual businesses - Faster, more effective booking - Skype potential customers - Provide wifi for guests - Social media buzz and excitement - Customers spread the word - Increased turnover / growth - Update website with video and images - Competitive advantage - Saves time - Future survival! Sector impacts - More competitive sector - Growth in visitor numbers - Buzz created around destinations, attractions, and individual businesses - Can inspire holiday and visit ideas - Virtuous circle of connectivity - Major economic boosts possible 13

14 Promoting internet use engage communities and businesses Local Partnerships Need a broad range of local partners to deliver targeted benefit messages that are meaningful to SMEs + people they reach Need to segment engagement campaigns into business, consumer and public service transformation strands Need to focus on promoting digital opportunities and not broadband speeds Trusted Intermediaries Digital champions. Local people who will show + tell and/or support family, friends, neighbours, colleagues to recognise the MANY AND VARIED digital opportunities opened up People as important as deployment of fibre in promoting benefits Don t create new networks but inspire existing networks to promote a relevant benefit message to the SMEs + individuals they meet Marketing + Awareness Need to create business + public awareness about what better broadband offers in commercial and intervention areas Take-up of superfast 18%. Supplier TV ads likely to have some impact on this, especially take-up by families Need local marketing plan with triggers to keep campaign active over time. Amplify through partners existing internal + external channels

15 Delivering effectively Targeted demand stimulation being done in BDUK intervention areas to drive take-up of broadband But we also need engagement campaigns to create awareness of the many + varied digital opportunities opened up This means developing proper partnerships with broad range of local partners - BDUK helps broker these This is something we d like to help the tourism sector be part of

16 What can DMOs do? Partnering with local authorities and others on campaigns to promote online opportunities / web Promote digital in destination management plans, including upskilling, and realising benefits of online Consider whether or how digital champions could help support use of web amongst tourism SMEs Come to workshop on 16 April in Brockenhurst! Is there more that destinations can or should do? 16

17 Case studies Cornwall Holiday Cottages 80% bookings, 95% guests pay online Owners check bookings online Exploring next generation web services Website speed and ease influences how guests feel about us Alverton Manor Room based superfast broadband, wifi inside and outside Guests in all 34 bedrooms can use LOVEfilm / iplayer / skype at once Exploring touch-of-a-button room-based services (food orders etc) Boutique Retreats website at the heart of the business superfast broadband boosted business capabilities (online booking and videos and raising profile via social media marketing) remote employment opportunities via remote access 17

18 Conclusion Tourism SMEs already showing great progress when it comes to embracing digital media But there is much room for improvement future survival depends on this Destinations can play a part in getting partnerships going to bring this about Developing online capability and developing destinations should be hand in hand. The question is how best to do this? Any thoughts on best practice? 18

19 Sean Crawford Defra Rural Communities Policy Unit #DefraRural Natasha Innocent Broadband Delivery UK