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

6. Enabling users to access e-service in their homes Technologies Instant Internet Access Customization Broadband Home networks Wireless networks Firewalls E-Wallets Home Videoconferencing Voice over Internet Benefits Convenience Speed Security Time savings 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 Network (18%) Home Computer (70%) Internet Access (62%)

8. More Depth, less Reach The Growth last year was in Broadband 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 FlatGrowing

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

15. Satisfaction with e-Government Commercial 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 dont 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 govt 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)