1. The 2002 National Technology Readiness Survey:Technology Readiness and Key Trends Presented to: Center for eService Partnership Forum February 28, 2003 Presented by: Charles L. Colby President Rockbridge Associates, Inc. 703-757-5213 – ccolby@rockresearch.com

2. Major Points… • E-Service resources in the household are increasing • E-Government use is growing, but there is room for improvement in quality • There really are “technology ownership gaps” in America

3. Our Research Program • National Technology Readiness Survey • Authored by Parasuraman and Colby • Replicated in 1999, 2000, 2001 and 2002 • Nationally representative telephone survey • Sponsored by the University of Maryland Center for e-Service and Rockbridge Associates, Inc.

4. Household Resources How Consumers are Enabling themselves to use E-Service

5. In the 2000s, e-Service will grow, powered by the user Company 1990s Technology 2000s Employees Customers

6. Technologies Instant Internet Access Customization Broadband Home networks Wireless networks Firewalls E-Wallets Home Videoconferencing Voice over Internet Benefits Convenience Speed Security Time savings Enabling users to access e-service in their homes Important Technologies

7. Home Sweet (Wired) Home High Speed Connection 19% of US HHs Personal/family web site (21%) Personal/family Internet Identity (13%) Home Computer (70%) Home Network (18%) Internet Access (62%)

8. Computer Penetration dropped from 72% in ’01 to 70% in ‘02 Computer use at work dropped from 49% to 44% (tech collapse?) Home Internet Penetration grew from 58% to 62% Work Penetration dropped from 43% to 41% High speed access grew from 21% to 31% of Internet households Cable modems are driving the boom 20% in 2002 (from 12% in 2001) DSL is 9% (from 8% in 2001) 58% without it think it is available in their neighborhood More Depth, less ReachThe Growth last year was in Broadband Flat Growing

9. Growth e-Services (commercial)

10. Flat or Declining e-Services(2001 to 2002) • While all of these have grown since 1999, the incidence was flat or dropped in the past year for… • Online travel • Purchasing (all size categories, especially <$10) • Online banking • Applying for credit cards • Stock trading • 9/11 and the economy were no doubt factors

11. Online Venues • Many take the job home, and personal business to work • 5.9 hours per week on internet at home for work purposes* • 3.7 hours per week on internet at work for personal purposes* • 38% of of the public have used the internet at a location away from home or work, usually a friend’s home or library • M-Commerce is not yet taking off: 5% of adults accessed the internet from a portable device in 2001 and 2002 *Among those with access in both places.

12. E-Government Trends and Satisfaction

13. Business with e-Gov is Growing (but less “shopping”)

14. Local/State Taxes (19%) Motor vehicle (17%) Employment (14%) General research (11%) Federal Taxes (41%) General research (12%) Downloading forms (9%) E-Government Activities

15. Satisfaction with e-GovernmentCommercial Sites do a Little Better

16. Gaps: Technology “Have Nots” Size of the gap, who the have nots are, why they lack technology

17. Framing the Issue • Online access is a prerequisite to special advantages, such as… • Discounts (e.g., special air fares) • E-Government • 24 x 7 service • Many Americans want technology at home, but lack it • Other Americans don’t want the technology (many seniors), but need access anyway

18. Who are the “Have Nots” • Older • Less educated • Lower income • Less white • More rural and inner city

19. Should the Government Step in? • It depends on which side of the divide you are on… • 38% of the public believe “the government should provide subsidies to people who cannot afford computers” • 64% of those who lack computers because of affordability believe the gov’t should intervene

20. Why the Gap at Home? • Reasons for not having a computer: • Affordability (43%) • Lack of interest (34%) • Can use computers somewhere else (22%) • Lack of knowledge (20%) • Reasons for not having Internet access: • Lack of interest (32%) • Affordability (31%) • Can use it elsewhere (20%) • Lack of knowledge (12%)

21. Training and Experience Issues • Only 17% of those who lack computers at home and work have “moderate” or “a lot of experience” using them • 54% of the “have nots” need at least moderate or extensive training • While 38% prefer a classroom setting, many prefer a more interpersonal style of training (visiting home, neighborhood center)

22. Future Directions Where we go next with NTRS

23. Future Research Directions • Cultural influences on techno-readiness • A general theory of innovation (e.g., biotech, entertainment) • Organizational techno-readiness

24. Future Initiatives • African American/Hispanic NTRS, with Terri Albert, University of Hartford (March 2003) • Continuing studies in other countries (Austria, Sweden) • Possibility of a business executive NTRS in U.S. and Latin America (need a sponsor)