1 1 “MEASURING THE INFORMATION SOCIETY” Geneva, February METHODOLOGIES AND MODEL QUESTIONS: BUSINESS CORE ICT INDICATORS Sheridan Roberts OECD

2 2 Overview Business ICT use indicators –collection methodologies for surveys of business ICT use –particular statistical issues associated –statistical unit –survey scope and coverage –classificatory variables –suggested question wording corresponding to the core indicators. ICT sector indicators –defining the ICT sector –a classification for ICT goods.

3 3 Business ICT use indicators Core indicators B-1 to B-12

4 4 Main basis for suggestions previous WPIIS work leading to a model questionnaire for measuring ICT usage and electronic commerce in enterprises (2001) current work on revising that model questionnaire (2005) work done by Eurostat and individual OECD member countries Suggestions made in the presentation and paper are likely to change: –with input from other countries –when the OECD model survey is finalised.

5 5 Suggestions - methodology Some general suggestions are offered in the OECD paper... but they are not comprehensive nor detailed – many participating countries will have surveys and procedures in place –economy-wide business surveys, or sector surveys for national accounts data. Issues raised include: –collection methods (mail-out/mail-back and others) –units: enterprise used by most OECD countries –frequency and reference period/date.

6 6 Particular statistical issues Measuring Internet commerce Measuring broadband Measuring interaction with government Choice of denominator for indicators

7 7 Survey scope and coverage Type of organisation Industry (activity) scope –Question: should it include: Agriculture? Finance? Community and personal services? Size scope –Question: what should it be? Should it include non-employers? small employers (<10)? Geographic scope and coverage

8 8 Suggested output classifications Industry –Manufacturing (ISIC D) –Construction (ISIC F) –Wholesale and retail trade (ISIC G) –Hotels and restaurants (ISIC H) –Transport, storage and communications (ISIC I) –Real estate, renting and business services (ISIC K). Size (number of employees) –Could also base on income but this is not done by most OECD countries –Ranges: 0? 1-4? 5-9? 10-49, , 250 or more

9 9 Questions corresponding to core indicators Did your business use computer/s during ? B1 What proportion of persons employed in your business used a computer as part of their normal work routine during ? B2 Did your business use the Internet during ? B3 What proportion of persons employed in your business used the Internet as part of their normal work routine during ? B4 How did your business connect to the Internet during ? B9 Which of the following information technologies, if any, did your business have in place as at ? –Internet , intranet, extranet, LAN Did your business have a Web presence as at ? B5

10 Questions corresponding to core indicators For which of the following activities did your business use the Internet during ? B12 –For getting information (on products, from government, other) –For Internet banking or other financial services –For dealing with government –For providing customer services –For delivering products on-line (digitised products, on-line services) Did your business place orders for goods or services (that is, make purchases) via the Internet during ? B8 Did your business receive orders (that is, make sales) via the Internet during ? B7

11 Other questions Information is also needed for classification purposes Suggested questions are: –Activity of the business –Number of employed persons at But these will often be available from another source (for instance, a business register) so may not need to be asked for.

12 ICT sector indicators Core indicators ICT-1 to ICT-4

13 Definition of the ICT sector Needed for indicators ICT-1 and ICT-2 WPIIS agreed on a definition of the ICT sector in 1998 and revised it slightly in The sector consists of manufacturing and services industries whose products capture, transmit or display data and information electronically.

14 ICT sector definition – based on ISIC Rev 3.1 Manufacturing 3000Office, accounting and computing machinery 3130Insulated wire and cable 3210Electronic valves and tubes and other electronic components 3220Television and radio transmitters and apparatus for line telephony and line telegraphy 3230Television and radio receivers, sound or video recording or reproducing apparatus, and associated goods 3312Instruments and appliances for measuring, checking, testing, navigating and other purposes except industrial process equipment 3313Industrial process equipment

15 ICT sector definition – based on ISIC Rev 3.1 Services 5151Wholesale of computers, computer peripheral equipment and software 5152Wholesale of electronic and telecommunications parts and equipment 6420Telecommunications 7123Renting of office machinery and equipment (including computers) 72Computer and related activities

16 ICT goods Classification is needed for indicators ICT-3 and ICT-4 OECD classification, 2003, guiding principles –ICT goods must either be intended to fulfil the function of information processing and communication by electronic means, including transmission and display, OR –Use electronic processing to detect, measure and/or record physical phenomena, or to control a physical process

17 ICT goods classification Based on six-digit Harmonized System Broad groupings are –telecommunications equipment –computer and related equipment –electronic components –audio and video equipment –other ICT goods The complete classification is annexed to the OECD paper. Question: Which ICT goods classification should be used?

18 Thank you Please feel free to send me any comments e.g. on discussion issues raised in the paper or presentation