Report. Report A SECTOR-BASED ANALYSIS OF THE IMPLEMENTATION OF ICT IN THE SPANISH SME

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Report

A SECTOR-BASED ANALYSIS OF THE

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A SECTOR-BASED ANALYSIS OF THE

IMPLEMENTATION OF ICT IN THE SPANISH SME

1. Introduction ... 4

2. ICT in the Spanish Business ...6

3. Sector-Based overview of Mobile Technologies ...15

4. General Conclusions and Recommendations ...27

Fact Sheet ...29

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A scenario of securing financing as complex as that expe-rienced in 2011 requires a clear assessment of the return on any investment. Investment in technology is no exception to this reality marked by the plight of the Spanish economy over the past year. The fourth edition of ‘eSME Report. A

Sec-tor-based Analysis of the Implementation of ICT in the Spanish SME’ looks at how, in different sectors, the focus

on incorporating ICT has been affected by this reality. However, the idea that new technologies provide the neces-sary improvements in competitiveness and productivity to com-pete in business has made an impact on the Spanish business community, and it therefore remains committed to the use of Information and Communications Technology (ICT) even in situa-tions of great difficulty, such as those we currently face.

As in previous editions, the analysis of the penetration of technology in the Spanish business has used as a starting point the annual survey conducted by the Spanish Office for National Statistics (INE) on the use of ICT and e-commerce in companies, together with the report prepared by the Natio-nal Observatory of Telecommunications and the Information Society (ONTSI).

This edition of the report once again analyses the value chain and the business processes of each sector, highlighting

the possible developments and changes in their relative weight within the value chain as a whole. As stated in the 2010 report, the opportunities ICT offers to improving a criti-cal business process for a sector is becoming the determi-ning factor when deciding whether or not to incorporate new technological solutions, given that during a recession, and with difficulties in securing financing, it is essential to obtain a clear and immediate return on any investment.

The sector-based approach

The sector-based approach remains the cornerstone of this report and is its greatest added value. This approach applies both to the quantitative phase of the analysis, based on the re-sults of the survey of SMEs in each sector, and to the qualitative, which is based on the information collected during personal in-terviews and the study of different technological solutions.

The report looks at evolution in the following sectors: Lo-gistics, Transport, Hotel, Rural Tourism, Retail, Crafts, Agri-Food and ICT Installers. In addition, this fourth edition inclu-des the Engineering Consultancy Sector, which replaces the Textile Sector. These all constitute a significant percentage both to the Spanish Gross Domestic Product (GDP), over 40%, and the total number of companies in Spain, which

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sufficiently illustrates the significance of the findings and recommendations identified in the report.

Structure

The structure of the report follows the same style as that of previous editions and is intended to facilitate reference to both general data and sector-based data. Thus, the report includes in its first chapter a comparison of the implementa-tion of ICT in businesses in the different sectors. It shows a sector-based comparison of the situation regarding access to and use of the basic technology infrastructure and the most common general applications.

In the chapters which discuss the technological situation in each sector, the analysis begins with a description of the sector using the most relevant economic variables (number of businesses, turnover, employment, etc.). It then goes on to look at the value chain and the business processes in the sector, thereby permitting identification of the most appro-priate technologies for each one. Where approappro-priate, the report also describes the latest technologies which have made the biggest impact per sector in 2011.

The quantitative analysis has been segmented with re-gard to technological solutions, among which include: basic

infrastructure, connectivity and Internet use, use of compu-ter applications and electronic commerce, social networks, and eGovernment.

This edition of the report aims to place special emphasis on mobile technologies, given their growing impact and rele-vance in the business sector. For this reason, a special file has been created dedicated exclusively to the study of these technologies in the different sectors.

Another emerging technology solution, which is will slowly finding a niche among small and medium enterprises, is the provision of services based on cloud computing. The strategic nature of this model of providing ICT services has determined its inclusion in the analysis of each sector, to thus determine its adoption by businesses.

The analysis of each sector also includes the identification of barriers that prevent, delay or hinder the adoption of ICT, as well as the levers and accelerators whose activation can remove the aforementioned barriers.

Each sector-based chapter concludes with a set of recom-mendations in order to improve the technological status of each sector. The report also includes a final chapter with general recommendations aimed at both the government and businesses and technology providers.

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2.1 DiSTribuTiON OF

buSiNESS SECTOrS iN SPAiN

In 2011, the number of SMEs and large companies in Spain decreased by 4.4% with respect to 2010. The indus-trial sector still has the highest concentration of SMEs and large companies, although its contribution dropped by 0.5 points. The second largest sector, in terms of number of com-panies, is the construction sector, which experienced a signi-ficant drop of 2 points, losing over 4,000 medium and large companies. The remaining sectors have not experienced any noticeable change.

In the area of micro-businesses, retail and construction are the sectors in which more companies coalesce. However, these are two of the sectors most affected by the recession, therefore their contribution to the total for Spanish micro-businesses dropped from 32.5% to 31.9%, with a loss of around 20,000 companies between the two sectors. The to-tal number of micro-businesses decreased by 1.4% compa-red to 2010.

The total for the sectors analysed accounted for 40.1% of national GDP in 2009, which is the last year with conclusive financial data for most sectors. This percentage has dropped 2 points with respect to last year’s edition, mainly as a result of the strong impact of the recession on the largest sectors (in financial terms) analysed in the report: Retail, Agri-Food and Transport. These three sectors have been significantly affected by the reduction in domestic consumption, thereby

losing representation in the Spanish GDP. Despite this decli-ne, the high percentage of GDP in this fourth edition establis-hes the report as a major reference for the study of the im-plementation of ICT in the Spanish business.

2. ICT in the Spanish Business

[ Fig. 1 ]

Contribution to national GDP in 2009

Remaining sectors Retail Agri-Food Transport Hotel

Engineering and Consultancy Crafts Logistics ICT Installers Rural Tourism 20,95% 1,34% 1,17% 59,88% 7,93% 0,16% 0,28% 0,33% 0,38% 7,58%

Source: INE; Annual Survey of Services (2009). Industrial Survey of Companies (2009)

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2.2 SECTOr-bASED ANALYSiS OF

THE iMPLEMENTATiON OF iCT

v Technology and communications

infrastructure

The development of the Information Society in business requires a sound technology infrastructure which will sup-port the most advanced products and services. The basic te-chnology infrastructure includes a computer, communica-tions servers and basic office equipment (multi-function equipment). The communications infrastructure includes fi-xed and mobile telephony, an Internet connection (fifi-xed and mobile broadband) and the installation of local area net-works (LANs) in the company.

ImplemenTaTIon and uSe oF The CompuTer

The implementation of the computer as a work tool ap-pears to have peaked in our country. In 2011, 66.2% of Spa-nish micro-businesses used computer technology, the same percentage obtained in 2010. In the area of SMEs, the com-puter is used as a work tool by 98.6% of companies, a per-centage similar to that obtained in 2010.

In the area of micro-businesses, in terms of computer pe-netration, the gap between businesses with 0 to 2 emplo-yees (62%) and businesses with 3 to 9 emploemplo-yees persists, with a percentage similar to that of SMEs (91.8%), which is almost 100% and with no real differences with relation to the size of the company.

It therefore seems essential to increase efforts to raise awareness and motivation in companies with fewer than two employees, in which nearly four out of ten do not use the most basic ICT tool: the computer.

The computer (desktop or laptop) reaches 100% penetra-tion in five of the nine sectors included in the study. Penetra-tion is over 95% in the remaining sectors. Despite the emer-gence of new devices with features similar to those offered by computers, such as the tablet PC, in business the compu-ter remains an indispensable tool for business management and for the introduction of other ICT solutions.

It is worth noting that in the sectors with the highest pro-portion of micro-businesses (Transport, Crafts, Rural Tourism,

ICT Installers and Retail) penetration is well above the ave-rage for Spanish micro-businesses.

By sector, developments in computer penetration in Retail are particularly relevant. In just two years, this has increased from being present in seven out of ten stores to being pre-sent in all stores.

100% 97.8% 100% 100% 97.3% 100% 95.9% 99.2% 100% 100% 81% 69.6% 99.2% 98.2% 97.2% 99.2% 95.8% 98.2% 98.6% 98.6% 97.8% 98.2% 98.6% 77.3% _95.9% 98.7% 100% 66.2% 66.3% 64.7% [ Fig. 2 ]

Computer penetration by sector

Source: Fundetec and ONTSI (2011)

2011 2010 2009 ICT Installers Agri-Food Hotel Engineering Retail Rural Tourism Crafts SME national average Transport Logistics Micro-business national average

ImplemenTaTIon and uSe oF moBIle Telephony ServICeS

While in 2010 mobile phone penetration fell with respect to 2009, it has maintained the same average rate of penetra-tion in 2011, reaching 66.4%, one tenth above the previous year. In the SME segment, penetration of mobile telephony increased 0.6 points, standing at 91.5%.

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ImplemenTaTIon and uSe oF InTerneT

The number of companies with Internet access continues to grow, and this is more prominent in the business segments with fewer employees. The percentage of micro-businesses with Internet access stands at 58.1%, 2.1 points higher than in 2010. As regards SMEs, 97.2% have Internet access, 1 point higher than in 2010. Increasingly, Internet access is becoming an everyday tool in business. This is evidenced by the fact that penetration has increased in six of the nine sectors analysed.

Once again, the significant increase in penetration in the Retail Sector is relevant. Business owners have made a con-siderable effort in 2011 to modernise their business, incorpo-rating more ICT products and services in order to make it more competitive in the current recession.

Mobile telephony has experienced a year of contrasts in 2011. In sectors in which mobility is an essential featu-re of the business (Logistics, Transport), penetration has continued to grow until almost universal. In the remaining sectors, growth has slowed (except in sectors in which low penetration was assumed, such as Agri-Food and Re-tail), or even declined. The decline experienced in the Crafts and Hotel sectors is especially important. The re-cession is forcing many employers to cut unnecessary spending, and mobile telephony, often considered an al-ternative to fixed telephony, could be considered an unne-cessary cost. 100% 96.1% 92.9% 97.1% 95.2% 73.7% 91.5% 91.2% 90.1% 88.7% 91.2% 87.5% 75% 77.5% 61.2% 70.9% 71.3% 71.2% 69.6% 60.1% 66.4% 66.3% 69.1% 62.2% 69.7% 66.8% 58.1% 46.4% 24.6% 90.9% [ Fig. 3 ]

Penetration of voice mobile telephony

by sector

2011 2010 2009 Logistics Transport SME national average Engineering ICT Installers Hotel Rural Tourism Agri-Food Micro-business national average Crafts Retail [ Fig. 4 ]

businesses with internet connection by sector

2011 2010 2009 100% 98.7% 98.2% 99.5% 92.7% 99% 99.2% 91.7% 98.7% 96.7% 97.2% 98% 97.2% 96.2% 94.9% 93% 94.5% 92.6% 92.9% 92.7% 89.5% 87.7% 80.8% 73.7% 86.6% 75.2% 55.8% 58.1% 55.9% 53% Logistics Agri-Food ICT Installers Hotel Engineering SME national average Rural Tourism Crafts Transport Retail Micro-business national average

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v internet Presence

Internet presence of Spanish companies, via the corporate website, continues to increase dramatically. 25% of micro-businesses have a web page, 3.1 points higher than in 2010, and in the case of SMEs, the percentage stands at 64%, 5.1 points higher. This development indicates an increase in bu-siness confidence in the website as an indispensable tool for their sales and marketing strategy.

In micro-businesses with 0 to 2 employees, the penetra-tion of the website has experienced a significant increase (4.2 points). In micro-businesses with 3 to 9 workers this ser-vice has also increased its penetration, by more than 3 points. Another highlight is the remarkable rise in the use of the website in SMEs with between 10 and 49 employees.

Four of the nine sectors analysed have over 90% penetra-tion of the corporate website. This service has become the optimum form of promotion for businesspeople.

The Hotel sector enjoys the highest level of implementation of the website. This tool is essential for the promotion of ho-tels and the services provided by each establishment. Howe-ver, the most noteworthy is the significant growth experien-ced in the Agri-Food sector and in the Retail Sector. In the latter, almost five out of ten businesses have a website, when Fixed broadband has continued to increase its

penetra-tion in 2011 across all business segments. However, mobi-le broadband suffered a setback in the micro-business seg-ment, undoubtedly the result of the severe economic crisis, which has led to small businesses optimising their costs and eliminating those services not yet essential to their business. Mobile broadband may now be considered as one of these non-essential services, thereby making it the task of the ICT sector to provide added value to this servi-ce, so that the small business will see this as an inves-tment and not merely a cost.

ADSL technology remains the leading technology for Internet access. However, sectors are starting to appear in which the use of mobile broadband technology exceeds fixed broadband technology, such as Engineering Consul-tancy and Logistics, in which more companies claim to connect to the Internet via mobile broadband as opposed to ADSL.

The most noteworthy event of 2011 is the significant growth of mobile broadband in business. This ICT service has increased in all sectors except Transport. Most noteworthy is the increase in penetration experienced in Retail, Agri-Food and ICT Installers.

[ Fig. 5 ]

internet access by sector and type of access

Source: Fundetec

ADSL Mobile Telephony Modem/ISDN

2009 2010 2011 2009 2010 2011 2009 2010 2011 Logistics 71.4% 85.5% 81.6% 69.6% 89.5% 98% 30.4% 7.9% 8.2% Transport 43.4% 62.9% 83% 15.8% 11.4% 7.3% 15.5% 14.8% 0% Hotel 79.3% 79.1% 81.8% 38% 52% 60.2% 23.7% 23.4% 19.5% Rural Tourism 62.2% 59% 63.6% 26.6% 31.2% 39.6% 18.3% 15.9% 15.6% Engineering - - 76.2% - - 81.5% - - 21.2% Crafts 62.7% 62.1% 61.7% 17.3% 20.5% 29.4% 14.1% 15.4% 17.2% Retail 38.9% 48.4% 68% 8.2% 22.5% 38.5% 10.8% 21% 10.6% ICT Installers 83.3% 77.2% 78.4% 33.3% 55.1% 78.4% 12.5% 14.7% 14.4% Agri-Food - 77.9% 89.2% - 66.7% 77.9% - 6.8% 19.6%

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cations, followed by invoicing and accounting applications. The ‘technologically advanced’ sectors (Hotel, Logistics, ICT Installers) have a very high level of penetration for the three types of applications. However, in the ‘technologically emerging’ sectors (Retail), penetration continues to increase dramatically.

In a large part of each of the sectors, corporate accounting is managed by external companies, therefore the penetration of these applications will never be as high as for office soft-ware or invoicing tools.

With reference to the use of specific tools, four sectors are above 80% penetration in the use of a technology solution specifically designed to manage business processes. The lo-gistics sector makes the most use of these tools, with 91.8% penetration in the case of computerised management of cus-tomer orders. Engineering Consultancy follows, which rea-ched 89.4% penetration in technical calculation tools, then the Rural Tourism and Hotel sectors with booking manage-ment, which achieved 87.9% and 83.5%, respectively. just two years ago this figure was two out of ten. Retail is

entering the Information Society with great impetus in 2011. The main uses of the website in micro-businesses and SMEs are presentation of the company and access to pro-duct catalogues and price lists, both functions directly rela-ted to the marketing process. Other possible services are still a small minority. Of relevance is the continuing decline in the number of micro-businesses’ websites which offer online reservations and ordering, as well as online payment. Online trade, which will be discussed further on, remains a pending issue for the Spanish micro-business, and its website seems to be mainly focused on presentation of the company.

v iT systems and applications

In 2011, the most prominent computer applications in busi-nesses in the sectors analysed were still office software

appli-[ Fig. 6 ]

businesses with a website by sector

8% 25.3%20.3% 21.4%21.9% 25% 18.6% 33.7% 49.2%57.5% 58.9%63.9% 67.3% 65.2%69.5% 62.5% 73.4% 87%87.9% 88.9% 67.2% 90.7% 92.8% 80.3%85.5% 95.9% 95.8% 96.1% 93.8% 63.9% Hotel Logistics Engineering Agri-Food Rural Tourism ICT Installers Crafts SME national average Retail Micro-business national average Transport

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Retail Transport Crafts Agri-Food Rural Tourism Engineering Hotel Logistics ICT Installers

Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting Office software applications Invoicing Accounting [ Fig. 7 ]

iT applications

Source: Fundetec 2011 2010 2009 47.3% 72.3% 87% 38.9% _55.9% 65.5% 39.6% 46.1% 56.5% 50.3% 99.1% 86.3% 44.1% 78.4% 56.7% 42.1% 18.4% 55.8% 75% 84.7% 50.5% 55.3% 47.8% 34.1% 40.4% 32.8% 99.3% 98.5% 88.4% 87.7% 89.1% 85.8% 84.5% 83.1% 90.6% 57.6% 63.1% 52.6% 42.1% 36.4% 98% 67.5% 54.3% 91.1% 94.7% 92.8% 84.9% 82.8% 79.2% 72.6% 72.5% 69.9% 94.6% 98.7% 100% 80.4% 97.4% 95.9% 78.6% 96.1% 95.9% 83.3% 91.2% 92.8% 79.2% 81.6% 87.6% 64.7% 62.5% 68% 45% 75.6%

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v Electronic Commerce

E-commerce in Spain continues to grow, but without really taking off in micro-businesses or Spanish SMEs. In the seg-ment with greater impleseg-mentation of electronic commerce, businesses with 50 to 249 employees, only three out of ten shop online and only one in five sells its products online. As the size of the company decreases, so too does the company’s use of electronic commerce, decreasing signifi-cantly to minimum levels in the case of micro-businesses with fewer than three employees.

Evolution of the comparison between Internet access and the use of e-commerce yields interesting conclusions. Since 2009, the hotel sector has been the leader in Internet pene-tration and use of electronic commerce. This sector, together with Rural Tourism, makes the most use of e-commerce.

The two biggest sectors, in terms of their contribution to GDP, Retail and Transport, have also experienced remarkable progress in both indicators, from being far removed from the other sectors in 2009 to matching them in 2011.

v e-Government

Interaction between businesses and public administration through electronic procedures (e-Government) is progressing, albeit slowly. While nine out of ten SMEs with over 50 em-ployees and with Internet access use e-government services on a regular basis, at the opposite end, in micro-businesses with fewer than 3 employees, the percentage drops dramati-cally. The main reason for this difference is the increased outsourcing of administrative procedures in micro-busines-ses to specialised companies (administrative agencies), com-pared to medium-sized SMEs which often have an internal administration department.

Interaction with the Administration by electronic means is focused mainly on obtaining information and requesting forms, both in micro-businesses and SMEs. The full electro-nic management of an administrative procedure (requesting form, filling in, sending and electronic processing) is used by 55.7% of micro-businesses who claim to use eGovernment services, and 72.2% of SMEs.

Interaction with eGovernment depends largely on the na-ture of business. Thus, the most active sectors are those

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 70% 50% 30% 10% 0%

% Businesses with Internet access

Retail Retail Retail Agri-Food Agri-Food Transport Transport Transport

Textile and confection

Textile and confection Crafts Crafts Crafts ICT Installers ICT Intallers ICT Installers Rural Tourism Rural Tourism Rural Tourism Hotel Hotel Hotel Logistics Logistics Logistics Engineering

% Businesses with Internet access

% of companies that use electronic commerce

[ Fig. 8 ]

internet Access vs. Electronic

Commerce by sector

Source: Fundetec

The size of the bubble is proportional to each sector’s contribution to GDP

2009

2010

2011

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 70% 50% 30% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 70% 50% 30% 10% 0%

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the highest penetrations, above 50%. In the other sectors, the use of social networks is still low and business owners are still unclear as to the benefits they bring. We will have to wait a few years to see whether or not these ICT services offer a competitive advantage to the companies that use them. with more business processes which require a constant

ex-change of information with the Administration. In Logistics, Agri-Food, Engineering Consultancy, ICT Installers and Trans-port, eGovernment stands at over 50% penetration.

[ Fig. 9 ]

use of eGovernment by sector

Logistics Agri-Food Engineering SME national average ICT Installers Transport Hotel Micro-business national average Rural Tourism Crafts Retail 93.8% 78.9% 84.8% 57.3% 77.6% 70.1% 67.8% 70.1% 60.3% 52.3% 22.5% 47% 56.1% 39.8% 38.8% 35.3% 34.4% 31.2% 34.5% 30.6% 21% Source: Fundetec 2011 2010

v Social networks

Spanish SMEs and micro-businesses continue experimen-ting with social networks, with their use greatly increasing as a tool for marketing and communication with customers. In-deed, in the sectors with greater dependence on marketing to attract customers (Hotel and Rural Tourism) we can appreciate

[ Fig. 10 ]

use of social networks, by sector

Source: Fundetec Hotel Rural Tourism Logistics ICT Installers Retail Crafts Engineering Agri-Food Transport 60.6% 57% 46.9% 51.7% 9.2% 42.8% 16.9% 41.2% 14.5% 36.2% 35.2% 30.3% 26.8% 27.5% 2.2% 8.6% 31.7% 2011 2010

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2.3 TECHNOLOGY LEVELS OF THE

SECTOrS ANALYSED

The comparative analysis of the technology levels of the sectors analyzed has been made based on the penetration of the various technology solutions analysed in this report.

The first level comprises the presence of the basic infrastructure (computers, mobile phones, local area network) and Internet connectivity.

The second level comprises the technology solutions which contribute to improving management of busi-ness operational processes (invoicing and accounting), Internet presence (website) and online relationship with customers and suppliers (electronic commerce). The third level includes tools specifically designed for

use in the business processes of each sector, in order to increase the competitiveness and productivity of com-panies in these critical processes. It includes the use of eGovernment, mobile tools and social media presence. For each of the levels a scale of 1 to 10 has been conside-red, in which implementation is weighted for each of the technologies grouped into its respective level.

In 2011, the Logistics Sector overtook the Hotel Sector in terms of highest use of ICT. Its developments in Internet-re-lated services (website and e-commerce), along with an in-creased use of general ICT tools (accounting and invoicing), have placed it ahead on the defined second level.

Another important finding is the significant progress made by the Retail and Transport sectors, as expressed throughout the whole chapter. Although vast improvements still need to be made in terms of ICT, these are comparable to the other sectors, given that only two years ago they were just token. Given that as a whole they represent nearly 30% of GDP, this development is excellent news and will undoubtedly contri-bute to increased competitiveness, essential for the econo-mic recovery of our country.

Basic ICT infrastructure

Management tools and Internet presence 2 4 6 8 10

10 9 8 7 6 5 4 3 2 1 0

10 9 8 7 6 5 4 3 2 1 0 [ Fig. 11 ]

Sector-based comparison of adoption

of technology

Source: Fundetec

The size of the bubble is proportional to the weighting of the third defined level

2009

2010

2011

10 9 8 7 6 5 4 3 2 1 0 Retail Retail Retail Agri-Food Engineering Agri-Food Transport Transport Transport Textile and confection Textile and confection Crafts Crafts Crafts ICT Installers ICT Installers ICT Installers Rural Tourism Rural Tourism Rural Tourism Hotel Hotel Hotel Logistics Logistics Logistics

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3.1 PENETrATiON OF iCT TOOLS iN

MObiLE TECHNOLOGY

The following chart shows to what extent companies in the sectors analysed equip their employees with a mobile technology tool. It is evident how those sectors in which em-ployee movement outside the workplace is inherent to the business show a firm commitment to these technologies. This is the case in the Logistics Sector, with a penetration of 95%. Other sectors in which employees frequently use these tools are Agri-Food, Engineering Consultancy and ICT Insta-llers. At the other extreme, the scope for introduction of mo-bile technology tools is still wide in sectors such as Crafts, Retail, Hotel and Rural Tourism.

3. Sector-Based overview of

mobile Technologies

[ Fig. 12 ]

Employees with mobile technology tools

Agri-Food

Crafts Retail Hotel

Engineering Logistics _{ICT Installers}

Rural T ourism Source: Fundetec 77% 28% 33% 45% 74% 95% 75% 40%

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We can see how the most technologically-advanced sec-tors - Logistics, Engineering Consultancy, and Agri-Food - are, conversely, the sectors which use mobile technology tools most frequently, with the exception of the Hotel Sec-tor. The characteristics of this sector, especially the low levels of employee movement outside the workplace, mean mobile technology tools have little penetration.

3.2 TYPES OF MObiLE DEViCES

The following chart clearly shows how mobiles with the best features are concentrated in the Engineering Consultancy and Logistics sectors. In these sectors, the penetration of smartphones is very high, and a large pre-sence of notebooks and tablet PCs is even recorded. By contrast, in sectors less developed in technology, such as Rural Tourism, Retail and Crafts, the mobile phone for voi-ce remains the predominant devivoi-ce. In the Agri-Food sec-tor, without the penetration of Logistics, the presence of mobile phones with Internet capability is important. The analysis clearly shows that in the most technologically developed areas, mobile data transmission has become very important.

Overall, and despite the characteristics of the sectors in which critical processes are carried out specifically using mo-bile technology, there is a relationship between general ICT adoption and the adoption of mobile technologies. The fo-llowing chart shows the correlation between the adoption of mobile technologies and the degree of general adoption of ICT.

[ Fig. 13 ]

Correlation between the general adoption of

iCT and the adoption of mobile solutions

1 2 3 4 5 6 7 8 9 10 10 8 5 3 0 Agri-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism Source: Fundetec

Level of implementation of mobile technology tools

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buted to the fact that artisans develop their business on the move, at fairs and markets, and the need to offer their custo-mers various payment methods means they have to have data phones for credit/debit cards, with the corresponding mobile data connection.

3.3 PENETrATiON OF MObiLE

DATA LiNES

The analysis of the data transmission capability of those devices used to work outside the workplace yields some in-teresting results. In sectors with the highest penetration of mobile technology tools, a higher percentage of mobile data lines was detected, especially in the Logistics Sector, where 94% of companies with mobile technology tools have mobile data lines.

In the Agri-Food and Engineering Consultancy sectors, mo-bile broadband also has a high level of penetration. Mean-while, in the Crafts Sector, which has the lowest penetration of mobile technology tools, 68% of companies that have them also have mobile data lines. Perhaps this result is

Source: Fundetec

mobile phones mobile phones with Internet connection Smartphones notebooks Tablet pC

[ Fig. 14 ]

Most frequently used types of mobile devices

Agri-Food Crafts Retail Hotel Engineering Logistics ICT Intallers Rural Tourism

81% 75% 53% 34% 23% 71% 36% 21% _18% 85% 42% 30% 9% 3% 69% 58% 51% 27% 22% 74% 74% 61% 27% 20% 98%96%94% 75% 38% 64% 57% 41% 37% 20% 73% 43% 28% 10%10% 14%

in sectors with the highest

penetration of mobile technology

tools, a higher percentage of mobile

data lines was detected, especially in

the Logistics Sector

[ Fig. 15 ]

Companies with mobile data lines

Agri-Food

Crafts Retail Hotel

Engineering Logistics _{ICT Installers}

Rural T ourism Source: Fundetec 77% _68% 52% 73% 81% 94% 72% 53%

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tions. Smartphones and tablet PCs, however, concentrate their presence in applications such as email and Internet access.

In terms of sectors, while the use of the laptop does not vary much, smartphone and tablet PCs have much more pe-netration in Logistics, Hotel, Agri-Food, ICT Installers and Engineering Consultancy.

With regard to Internet access, the laptop is the most frequently used device across all sectors, followed closely by the smartphone. Again, the logistics sector stands out as the sector which widely uses these technologies.

Obtaining general information using mobile devices is

another use which the companies interviewed were asked about. In this case, the laptop is clearly the preferred device in all sectors. Here, the more technologically-advanced sec-tors are distinguished for also making appropriate use of the other two devices.

As regards e-mail applications, and notwithstanding the importance of the laptop, the growing importance of smartphones is clear. In particular, the most technologically-advanced sectors tend to balance the use of smartphones and laptops as tools to access email.

In the case of instant messaging, smartphones have even overtaken the laptop, at least in the Logistics Sector. In the other sectors, although the laptop is still the most wi-dely-used device, smartphone penetration is high, and in the most technologically-advanced sectors, such as Engineering Consultancy or ICT Installers, penetration is now very close to that of the laptop.

Without a doubt, the laptop is the most widely-used devi-ce for acdevi-cessing corporate systems while on the move. Only in the Logistics Sector is the smartphone used for this purpose in over half of the companies.

When asked about the devices used to perform various

bu-siness operations or general company bubu-siness, the

answer is, overwhelmingly, that the laptop is the most widely-used device. In this case, the differences between tablet PCs and smartphones are fewer than in the other uses studied.

For inventory checks, the use of devices other than the laptop is very low, confirming the trend that the greater the need for integration of mobile devices with corporate sys-tems, the greater the tendency to use the laptop.

3.4 iNTEGrATiON OF

COrPOrATE SYSTEMS

The sectors whose companies have, to a large degree, in-tegrated their mobile technology tools with corporate tools (files, databases, etc.) are, once again, the most technologi-cally-advanced, such as Logistics, Craft or ICT Installers. This integration allows employees to access and use corporate systems when they are outside the workplace, accessing the same information and tools as when they are in office. Re-mote access to corporate systems using mobile technology tools considerably improves productivity and significantly increases savings in time and travel expenses.

[ Fig. 16 ]

Companies with remote access to

corporate data

Source: Fundetec

Agri-Food

Crafts Retail Hotel

Engineering Logistics _{ICT Installers} _{Rural T}

ourism 48% 30% 24% 42% 51% 79% 49% 35%

3.5 uSES OF iCT TOOLS iN

MObiLE DEViCES

In this chapter, we will look at the different uses that com-panies make of the three types of mobile devices offering the greatest number of features (smartphone, laptop and tablet PC), both by types of applications and by sector.

The personal computer is the most commonly-used and ver-satile device, with high levels of penetration for most

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applica-milar to those obtained for the preparation of offers and quo-tes, given the close link between the two activities.

The consultation of financial balances is also carried out mainly on the laptop, as is shown in the chart below. As in the aforementioned cases, the laptop is the

domi-nant device across all sectors for the preparation of offers

and quotes while on the move.

The results related to the ordering process are very

si-[ Fig. 17 ]

Activities carried out on the laptop

Source: Fundetec Internet access Inventory checks General information Preparation of offers and quotes Email Ordering process Instant messaging Consultation of customer financial balances Access to corporate information Confirmation of logistics processes Sales operations or business processes Transmission of internal company data Agro-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism 92% 87% 82% 79% 84%88% 98% 79% 73% 90% 82% 79% 87% 88% 96% 81% 75% 87% 82% 79% 84%88% 96% 77% 73% 83% 75%79%76% 72% 79% 70% 92% 82% 88%91% 93%94% 85% 80% 91% 86%88% 89% 92%92% 84% 78% 63% 89%88%89% 91% 83%87% 80% 92% 89% 85% 87% 93% 83%87% 80% 87%89%_{85% 87%} 96% 83% 83% 80% 88%89% 88% 89% 96% 81%84%_80% 90% 86%88%89% 88% 83% 83% 80% 91% 91% 88% 86% 92% 83% 83% 80%

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In short, it seems clear that the laptop is the device that companies consider versatile, with diverse uses, and with which they are totally familiar.

The smartphone, however, presents some major differen-ces across sectors as well as between applications. The Lo-gistics Sector stands head and shoulders above the rest, while with regard to applications, this device, for now, seems confined to messaging, email, Internet access and retrieval of general information.

In the confirmation of logistics processes, the smartphone and the tablet PC have a slightly higher presen-ce, even though the laptop is still the most widely-used devi-ce for this application while on the move.

For the final application studied, the transmission of

in-ternal company data, the laptop appears again as the most

widely-used device. In the most technologically-advanced sec-tors, smartphones and tablet PCs have a presence of around 20-30%, while in the remaining sectors this is even lower.

[ Fig. 18 ]

Activities carried out on the Smartphone

Internet access Inventory checks General information Preparation of offers and quotes Email Ordering process Instant messaging Consultation of customer financial balances Access to corporate information Confirmation of logistics processes Sales operations or business processes Transmission of internal company data

Source: Fundetec

Agro-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism 17% 65% 39%39% 67%66% 71% 89% 53% 58% 62% 77% 67% 40% 71% 36%39% 69%72% 72% 89% 48% 52% 56% 39% 32% 66% 85% 60% 40% 25%25% 21% 31%31% 56% 39% 28% 30% 25% 18% 31% 36% 26% 29% 23% 48% 36% 33% 11% 15%_13% 23% 32% 17% 15% 22% 18% 15% 24% 14% 32% 25% 23% 30% 18% 18%20% 12% 38% 23%23% 18% 11% 12%13%_9% 17%18% 21%18% 12%13% 31%34% 25% 15% 22% 18% 12%13% 24% 34%33% 20% 34%

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and uses. This device is also used mainly for messaging, email, Internet access and retrieval of general information. The tablet PC features a profile similar to that of the

smartphone, again with significant variations across sectors

Internet access Inventory checks General information Preparation of offers and quotes Email Ordering process Instant messaging Consultation of customer financial balances Access to corporate information Confirmation of logistics processes Sales operations or business processes Transmission of internal company data

Source: Fundetec

Agro-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism [ Fig. 19 ]

Activities carried out on the tablet PC

18% 9% 18% 11% 9% 3% 27% 11% 23% 15% 29% 12% 27% 36% 27% 27% 16% 18% 14% 17% 10% 13% 10% 6% 3% 23% 9% 23% 16% 21% 13% 15% 10% 18% 14% 6% 3% 24% 9% 23% 12% 25% 13% 38% 29% 34% 29% 18% 9% 15% 5% 20% 13% 13% 8% 14% 9% 18% 11% 16% 9% 3% 0% 18% 12% 19% 13% 29% 29% 27% 29% 13% 9% 14% 11% 12% 10% 10% 8% 3% 6% 11% 12% 10% 10% 19% 17% 18% 7% 0% 0% 18% 10% 14% 9%

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The explanation is clear: the way to resist competitive pressure is to improve one’s own competitiveness, and the means for this is ICT, particularly mobile technologies, so critical to this sector.

Other interesting findings are the absence of IT consultancy and a lack of competition in the Crafts Sector, the remarkable differences in commercial tasks by the technology providers in the various sectors, and the importance of friends and acquaintances in Retail, Crafts and Rural Tourism.

3.7 rEQuirEMENTS

The characteristics and requirements of ICT tools in the different business sectors are highly influenced by the pro-cesses in the respective businesses. For example, the Lo-gistics Sector requires security, access to business applica-tions and corporate information, messaging and, most significantly, price, the latter being consistent with the competitive pressure which, as we have already seen, this sector is under.

3.6 TECHNOLOGiCAL MOTiVATOrS

Several interesting conclusions can be drawn from the analysis of who the motivators of mobile solutions are. First, in most areas there is a strong awareness of the va-lue of ICT tools, with business owners considering that they use their own initiative in the adoption of technology. This strong awareness of the value of ICT is a clear reflec-tion of the degree of maturity of business owners in rela-tion to new technologies.

Apart from this assessment, the weight of competitive pressure in the case of the Logistics Sector is surprising.

[ Fig. 20 ]

Most required features of mobile technology tools

Operator Battery life Remote access to corporate information

Easy access to

Internet Security Access to corporate applications

Instant

messaging/chat Price

Source: Fundetec

Agro-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism

This strong awareness of the

value of iCT is a clear reflection

of the degree of maturity of

business owners in relation to

new technologies

27% 36%36% 29% 24% 42%45% 25% 36% 57% 39% 33% 46% 34% 48% 45% 60%61%64%60%62% 66% 58% 43% 71% 35% 48% 44%46% 66% 43%45% 69% 64% 70% 58% 72% 87% 59% 50% 40% 32% 24% 36%35% 64% 31% 35% 23% 36% 24% 29% 26% 58% 28% 21% 71% 44% 52%53% 65% 51% 58% 83%

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Source: Fundetec

Agro-Food Crafts Retail Hotel Engineering Logistics ICT Installers Rural Tourism For sectors such as Crafts, battery life is a key issue, along with the cost. The following graph shows the respon-ses in the survey to this question, the purpose of which is to know more precisely what each sector requires of mobi-le ICT tools.

3.8 ASSESSMENT OF bENEFiTS

As regards assessment of the benefits obtained from the use of these tools, the differences between sectors are sof-tened, the most important being the possibility of being con-nected to Internet and interacting with customers and suppliers from any geographical location. The optimisation of resources and the cost-saving benefits obtained are highly valued across all the sectors.

[ Fig. 21 ]

benefits of mobile iCT tools

Can be connected to Internet anywhere

Can interact with customers/suppliers

at any time

Can incorporate

new applications Differs from competitors data processingFewer errors in decision making Facilitates and processes Can optimise resources and save costs 4.2 4.03.9 4.34.4 4.5 4.14.3 4.14.3 3.94.14.1 4.4 4.4 3.9 3.5 3.53.43.7 3.73.7 3.7 3.8 3.9 3.3_3.2 3.0 3.33.4 3.7 3.33.5 3.8 3.5 3.2 3.9 3.7 4.0 3.5 3.8 3.8 3.6 3.3 3.9_3.84.0 3.8 3.7 3.5 3.4 3.6 3.4 3.3 3.1 3.6

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3.9 bArriErS TO ADOPTiON

The main barrier to the adoption of mobile ICT tools is cost, with the exception of the Logistics Sector, for which the lack of security and interoperability are also an impor-tant hindrance to the further development of these tech-nologies.

The complexity of use for the Craft Sector is also impor-tant, undoubtedly associated with a lack of training, as well as the problems of interoperability in the Hotel Sec-tor. It is also significant that two technologically-advan-ced and skilled sectors such as Engineering Consultancy and ICT Installers consider that these tools fall short of their expectations.

[ Fig. 22 ]

Main barriers to the implementation of mobile services

Unawareness Of little use High price Low profitability Complexity of

use Low security Falls short of expectations between handsets/Interoperability operators

Source: Fundetec

The main barrier to the adoption of

mobile iCT tools is cost, with the

exception of the Logistics Sector, for

which the lack of security and

interoperability are more important

6% 11% 18% 11% 7% 0% 8%10% _5% 14% 9%11% 4%4% 15% 49% 57% 48%51%50% 49% 58% 9% 18% 12% 9% 5% 11% 20% 15% 17% 36% 21%22% 18% 4% 25% 33% 34% 18%21% 29% 34% 36% 23% 20% 21%_18% 12% 22% 34% 29% 4% 20% 19% 11%12% 40% 32% 33% 17% 23% 21% 8%

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3.11 CONCLuSiONS AND

rECOMMENDATiONS

Mobile ICT tools have a significant presence in the sec-tors analysed, which is still experiencing slight growth even in a time of severe economic recession, such as is currently being experienced by the Spanish economy.

Among the most interesting conclusions to be drawn from the study, we must first emphasize the close rela-tionship between competitive pressure and the use of ICT. The much-heralded correlation between competitiveness and ICT is, in this study, empirical proof in the Logistics Sector.

The importance of finding the right place for ICT and, in particular, mobile technologies in business processes is evident throughout this study. Those sectors which identify the competitive advantages to be gained by the incorpora-tion of ICT into their critical business processes make a firm and unequivocal commitment to these technologies.

The correlation between training and effective use of mobile technologies has also been established. Sectors such as Crafts, in which a lack of training is evident, obtain poorer results from the incorporation of these tools than others with higher levels of training.

3.10 THE FuTurE

OF MObiLE iCT TOOLS

The questionnaire distributed to the companies included questions designed to learn what each sector expects of mo-bile ICT tools in the future. In short, requests that companies make of technology providers and the features or characte-ristics considered relevant according to the individual cha-racteristics of their business.

The Logistics Sector is the one which most requires further development of these tools, and this is consistent with the strong competitive pressures to which their businesses are subjected. From the global perspective, ease of use and size of the devices do not seem to overly concern companies. Price, speed and adaptation to the specific nature of the business are the main requirements companies ask of mobile technology providers.

Source: Fundetec

Price, speed and adaptation to the

specific nature of the business are

the main requirements companies

ask of mobile technology providers

[ Fig. 23 ]

Principal requirements of future mobile services

Smaller devices Faster data transmission Lower-priced devices Lower-priced services New applications adapted to business characteristics More user-friendly devices 17%_14%18% 20% 11% 34% 13%15% 60% 43% 55% 60% 83% 57% 60% 53% _49% 61%64% 56% 51% 79% 60%58% 53%54% 45%49%49% 83% 61% 50% 56%54% 36% 58%58% 77% 48%53% 22% 39% 33% 29% 20% 32% 20% 30%

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In any case, the need for a reconsideration of expecta-tions is normal in any technology adoption process, with its inevitable impact on processes and the deve-lopment of core business tasks. Improved training and suitability of the products to the needs of customers are the best ways to accelerate convergence of expec-tations and performance.

Business associations, especially those in sectors

least developed in terms of ICT: it is still essential to promote both the dissemination of mobile technology solutions and the training of professionals, without which it is not possible to obtain full performance of mobile technologies.

Public administration: you must continue the

mo-mentum of ICT in business, through dissemination, training, incentives and direct grants for the imple-mentation of technology.

recommendations

The analysis also highlights some recommendations ai-med at technology providers, business associations and pu-blic administrations.

Technology providers: you need to adjust the various

features to the business characteristics of the compa-nies in each of the sectors. Aspects such as security and interoperability of applications are very much taken into account by companies when incorporating technologies. You must also address the question of expectations in order to prevent users being disappointed after the incorporation of ICT. As shown in the study, in some sectors the results that companies have obtained from their mobile technology tools are not meeting their expectations, which may be due as much to a lack of training as to a mismatch between the features of the tool and the characteristics of the business.

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The economic crisis has caused the disappearance of many companies in the sectors analysed, in some cases with figures as high as 7,500, the number of companies in the transport sector that ceased trading in just the last quarter of 2011. This downward turn in the number of com-panies, the increasing difficulty for financing investments and the existence of other spending priorities have meant putting a brake on ICT developments. This has not, howe-ver, dented the perception of the usefulness of these tech-nologies by business owners.

Moreover, after an enthusiastic initial adoption phase of technology tools, encouraged by public policies and tech-nology providers, associations and other players in the sec-tor, the results obtained in some cases have fallen short of expectations. This phenomenon is explained by the still insufficient ICT training of employers and employees on the In the current context, marked by a deep economic crisis

which makes it difficult for SMEs to secure financing for any investment, specifically in the ICT area, the idea that new technologies provide companies with the improvements in competitiveness and productivity needed to compete in their business and help them cope with the recession, is already widely accepted among Spanish business owners.

Successive editions of this report provide an excellent opportunity to analyse developments in the adoption, use and assessment of ICT by small and medium enterprises. Two conclusions can be drawn from the analysis of this development. First, the impact of the recession, which has worsened in the past year. Second, the higher level of ma-turity of the sectors regarding their perception of the use of technology as a tool to increase the competitiveness and productivity of companies.

4. General Conclusions

and recommendations

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Sector’s business activity with that of the major logistics operators, who are very technologically advanced.

recommendations

From the conclusions and recommendations contained in the chapters on each sector, we can draw some general re-commendations, which would be applicable to all.

There are two technological elements which could signifi-cantly promote the competitiveness of SMEs. Firstly, the in-formation and knowledge of cloud computing services, which can offer great advantages to SMEs, by permitting access to powerful ICT solutions but without having to undertake major investments or be technology experts.

Secondly, it is important to mention the opportunity opened up to SMEs by the emergence of mobile technologies and their ecosystem of applications, for their growing impact and relevance. These technologies are easily affordable and can be used to improve both internal business processes and the ability to gain and secure customer loyalty.

Based on these assumptions we can identify the following lines of action:

Promote SME access to sources of finance for ICT investments.

Promote awareness of cloud-based services and the pay-ment options for use (Software as a Service, SaaS) for SMEs. It is important to increase awareness of the benefits offered by this new technology and the business models. Increase training of companies in the use of the new

intelligent mobile handsets to attract and retain

customers, especially when combined with the use of social networks.

Launch specific campaigns for companies with 0

to 2 employees, which show stagnation in the use of

resources.

Provide businesses with simple solutions adapted

to the needs of the sector, to adopt vertical

stan-dards both nationally and internationally.

Improve education and training in ICT, which requi-res extra effort by companies, and with the indispensa-ble support of both the public administrations and ma-nufacturers and integrators of ICT solutions.

one hand, and the lack of customisation and personalisa-tion of ICT tools to the specific needs of each sector on the other. In any case, one should look ahead with optimism and hope that, after some frustration and disappointment, there is finally a balance between performance and expec-tations, and that ICT is integrated into the business proces-ses of companies.

During the current climate of austerity and restraint, both in investment and expenditure, only if employers clearly appreciate the impact of ICT on results in their business will they consider an investment in it. To make this possi-ble, the success stories of other companies in the sector, together with consistency in the results to be expected, will play a major role.

The ‘pull’ effect of the Public Administration is also very different depending on each sector. In those sectors which as a result of their business activity are obliged to interact with it on a regular basis via electronic means, the use of ICT of course shows a much higher level of penetration than in tho-se areas where this is not the catho-se.

Interaction with sectors which are already heavy users of ICT is another important lever for promoting the adoption of these technologies, and this should be exploited. This would be the case, for example, of integration of the Transport

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FACT SHEET

Logistics Sector

Size of sample ...49 No. of businesses in sector ...200 Estimated statistical error ... 12.2% Confidence level... 95%

Transport Sector

Size of sample ...384 No. of businesses in sector ...200,067 Estimated statistical error ... 5% Confidence level ... 95% Hotel Sector

Size of sample ...236 No. of businesses in sector ...14,838 Estimated statistical error ... 6.3% Confidence level ... 95% Rural Tourism Sector

Size of sample ...371 No. of businesses in sector ...14,320 Estimated statistical error ... 5% Confidence level ... 95%

Retail Sector

Size of sample ...323 No. of businesses in sector ...497,991 Estimated statistical error ... 5.5% Confidence level ... 95%

Crafts Sector

Agri-Food Sector

Size of sample/ No. of companies ...204 No. of businesses in sector ...29,334 Estimated statistical error ... 6.8% Confidence level ... 95% ICT Installers Sector

Size of sample/ No. of companies ...97 No. of businesses in sector ...12,015 Estimated statistical error ... 9.9% Confidence level ... 95% Engineering Consultancy Sector