Australian businesses earned $237.1 billion from the internet in 2011-12, a big jump from $188.7 billion in 2010-11, according to data released by the Australian Bureau of Statistics (ABS).
The report, Summary of IT Use and Innovation in Australian Business 2011-12, reveals more Australian businesses are transacting online, with 45 per cent having a web presence, up from 43 per cent in 2010-11, and 55 per cent having placed orders online in 2011-12, up from 51 per cent in 2010-11.
The financial and insurance services industry is ahead of others in its use of IT with 57 percent of businesses having a web presence compared to 45 per cent of all businesses nationally. In addition, 65 per cent of businesses in the financial services sector placed orders over the internet in 2011-12, compared to 55 per cent across the nation.
However, the financial services industry lags in other areas, including internet commerce. The proportion of businesses in the finance industry that “received orders via the internet” was just 22 per cent in 2011-12, trailing the information media and telecommunications industry at 55 per cent, wholesale trade at 52 per cent, the manufacturing sector at 48 per cent and the retail sector at 36 per cent.
Karen De Angelis, an executive director with DST Bluedoor, a provider of IT solutions for the wealth management industry, said it is critical that the financial services sector invests more in IT to remain competitive.
“As SuperStream initiatives begin taking effect from July 2013, we expect to see a substantial increase in online business-to-business processing and direct access with members through mobile devices,” she said.
“Another key consideration is the use of Web 2.0 or social media forums such as Facebook, LinkedIn and Twitter. Greater engagement is required with investors who are driven by the need to be kept in contact with and who want to have a say; the one-way conversation between institutions and their clients is all but over.
“Moreover, now that superannuation funds are being forced to offer more generic super products through MySuper, they are also looking at enhancing and differentiating their services elsewhere. Some funds, for example, are introducing innovations in online marketing so their service and product offers are better targeted to members’ needs.”
