3. E-business across applications and sectors

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Over 25% of OECD businesses reported using cloud services in 2016, ranging from 57% in Finland to 8% in Poland.

Electronic business (e-business) can help drive business growth by expanding market reach, saving on costs and meeting customised demand. Cloud computing, in particular, is opening up an array of new business processes, as it allows firms, particularly young ones, to use and pay for on-demand computing services. Over 25% of businesses in the OECD reported using such services in 2016, up from 22% in 2014.

Intensity of use of cloud computing varies largely among countries and sectors, as well as between small and large firms. On average, only 22% of small firms in the OECD area use cloud services, against 32% in medium firms and 47% in large ones.

Differences across sectors and among countries for a given sector are large as well. The sector with the highest uptake by far is information and communication services where, on average, 51% of OECD firms use cloud services. Professional, scientific and technical activities are the second highest sector in terms of cloud uptake, with 38% of OECD firms using cloud services. The lowest share of firms using cloud services are, on average, retail trade (20%) and accommodation and food services (17%).

Diffusion of other ICT tools tends to vary among sectors. In 2016, sectoral differences regarding uptake among firms were largest for social media (46 percentage points) and customer relationship management (45), and smallest for broadband (8). Construction and accommodation and food services appear to be the sectors with the lowest diffusion of ICT tools and activities.

Definitions

Cloud computing refers to ICT services over the Internet to access server, storage, network components and software applications.

Size classes are defined as small (10 to 49 persons employed), medium (50 to 249) and large (250 and more).

Broadband includes both fixed and mobile connections with an advertised download rate of at least 256 kbps. Supply chain management refers to the use of automated data exchange (ADE) applications. Enterprise resource planning (ERP) systems are software-based tools for managing internal information flows. Customer relationship management (CRM) refers to software for managing a company’s interactions with customers, employees and suppliers. Big data refers to the analysis of huge amounts of data generated by activities carried out electronically and from machine-to-machine communications. E-sales refer to the sale of goods or services conducted over computer networks by methods specifically designed for the purpose of receiving or placing orders.

Measurability

Not all OECD countries undertake specific surveys on ICT usage by businesses. Aside from differences in the survey vehicle, the majority of indicators correspond to generic definitions, which can only proxy ICT tools’ functionalities and potential uses. For example, various software tools with different functionalities fall under the same electronic resource planning (ERP) heading, and there are substantial differences in the sophistication of ERP systems and their degree of implementation. Cloud services are a relatively new phenomenon compared to Web applications for customer relationship management (CMR) or ERP. One of the main challenges faced when measuring usage is the ability to make a clear distinction between cloud computing and other online services

Other issues include differences in sectoral coverage of surveys. Convergence of technologies brings additional challenges for the treatment (and surveying) of emerging transactions, notably over mobile phones, via SMS or using devices that enable near-field communication.