CNNIC: The 35th Statistical Report on Internet Development in China in 2015 - Development Status of Enterprise Internet Applications (VI)

CNNIC: Introduction to the 35th China Internet Development Statistical Report in 2015 (I)

CNNIC: The 35th Statistical Report on Internet Development in China in 2015: Internet Basic Resources (II)

CNNIC: The 35th Statistical Report on Internet Development in China in 2015 - Internet Security Environment (Part 3)

CNNIC: The 35th Statistical Report on the Development of Internet in China in 2015 - Internet User Size and Structure (IV)

CNNIC: The 35th Statistical Report on Internet Development in China in 2015 - Status of Personal Internet Application (V)

CNNIC: The 35th Statistical Report on Internet Development in China in 2015 - Development Status of Enterprise Internet Applications (VI)

CNNIC: The 35th Statistical Report on the Development of China's Internet in 2015 - Development of the O2O Market (7)

CNNIC: The 35th Statistical Report on Internet Development in China in 2015 - Internet Video Market Development (8)

CNNIC: 2015 35th Statistical Report on Internet Development in China - Online Game Market Development (9)

1. Computer usage

As of December 2014, the proportion of enterprises in the country that used computers for office work was 90.4%.

In terms of enterprise size, the proportion of enterprises with 19 employees or less using computers for office work is less than 90%, among which micro-enterprises with 7 employees or less have the lowest proportion of using computers for office work, which is only 81.5%.

In terms of the regions where enterprises are located, the proportion of enterprises in the eastern region that use computers for office work is relatively high, reaching 93.2%, while the lowest is in the central region, at 83.3%.

2. Internet Usage

As of December 2014, the proportion of enterprises in the country using the Internet for office work was 78.7%.

In terms of enterprise size, micro-enterprises with 7 employees or less have the lowest Internet usage rate, at 66.4%; for enterprises with 50 employees or more, the Internet usage rate exceeds 80%.

In terms of the regions where enterprises are located, the Internet usage rate of enterprises in the eastern region is the highest, reaching 85.1%, while the proportions in the central and northeastern regions are relatively low, at 67.0% and 56.6% respectively. In recent years, the economic growth rate in the western region has been at the forefront of the country, and the computer and Internet usage of enterprises has developed well; because there are fewer tertiary industry enterprises in the northeastern region in this survey, the proportion of computer and Internet usage is relatively low.

3. Internet access methods

As of December 2014, the proportion of fixed broadband access in enterprises nationwide was 77.4%, which is the main way for enterprises to access the Internet. With the popularization of 4G and the development of enterprise-level mobile Internet applications such as mobile OA, mobile ERP, and mobile CRM, mobile broadband will become an important way for enterprises to access the Internet in the future.

IV. Popularity of Internet Applications in Enterprises

The enterprise Internet applications in this survey are mainly based on the "ICT Core Indicators" released by the International Telecommunications Union (ITU) of the United Nations, and some indicators are increased or decreased based on the actual situation of China's enterprise Internet applications.

Based on the characteristics of applications, this report divides enterprise Internet applications into the following four categories:

1. Communication: general Internet applications that use the Internet to complete communication, mainly including sending and receiving emails;

2. Information: Internet applications that use the Internet to obtain or publish information and communicate, including publishing information or instant messages, obtaining information about goods or services, and obtaining information from government agencies;

3. Business services: using the Internet to assist enterprises in better conducting business activities, such as online banking, providing customer service, etc.;

4. Internal support: Internet applications that use the Internet to assist in internal management of enterprises and improve internal work efficiency, including interaction with government agencies, online recruitment, online employee training, and the use of online application systems that assist enterprise operations.

According to this survey, the types of Internet applications used by enterprises are quite rich, basically covering all aspects of enterprise operation. Email, as the most basic Internet communication application, has the highest penetration rate, reaching 83.0%; Internet information applications are also relatively common, with the penetration rate of each application exceeding 50%; and among business service and internal support applications, except for online banking, interaction with government agencies, and online recruitment, the penetration rate of other applications is less than 50%, especially online employee training and online application systems, the penetration rate has always been at a low level. Most enterprises in my country have not yet carried out comprehensive and in-depth Internet construction, and are still at the basic application level.

V. E-commerce Usage

As of December 2014, the proportion of enterprises in China that conduct online sales is 24.7%. In some industries, the proportion of manufacturing, information transmission, computer services and software, and wholesale and retail industries is relatively high, reaching 38.4%, 36.5% and 34.9% respectively, while the proportion of construction, transportation, warehousing and postal services, real estate, leasing and business services, and resident services and other services is relatively low. In 2014, the Internet O2O business model achieved rapid development. This business model closely combines physical enterprises, especially local life services and commercial services, with the Internet. Offline enterprises have become an important part of the Internet consumer economy. Under this trend, more and more traditional enterprises will conduct online sales in the future.

As of December 2014, the proportion of enterprises nationwide that conduct online procurement is 22.8%. Consistent with the development of online sales, in some industries, the development ratios of manufacturing, information transmission, computer services and software, wholesale and retail are relatively high, reaching 34.3%, 36.5% and 33.8% respectively, and the leasing and business services industries also exceed the national average.

VI. Use of Internet Marketing

As of December 2014, the proportion of enterprises nationwide that use the Internet to carry out marketing and promotion activities is 24.2%. Among some industries, the information transmission, computer services and software industries have the highest proportion, reaching 35.9%; it is worth noting that the proportion of tertiary industries such as wholesale and retail, real estate, leasing and business services, resident services and other service industries that carry out Internet marketing is not high, which is basically the same as that of manufacturing and construction industries, or even lower.

The survey results show that among the interviewed companies that have used the Internet to carry out marketing activities, the highest usage rate is to use instant messaging tools for marketing promotion, reaching 62.7%. Search engine marketing promotion and e-commerce platform promotion are still popular among companies, with usage rates reaching 53.7% and 45.5% respectively. The scope and degree of penetration of the Internet in the lives of netizens are constantly expanding, and the way companies carry out Internet marketing is also constantly innovating. New terms such as combined marketing, word-of-mouth marketing, and viral marketing are emerging in an endless stream. Companies are gradually reducing their dependence on single, traditional marketing methods, and at the same time, there is a huge demand for mobile marketing.

VII. Characteristics and Trends of Enterprise Internet Applications

The popularization of information infrastructure has reached a relatively high level, but the depth of application needs further development.

In recent years, the proportion of Chinese enterprises using computers in office work has remained at around 90%, and the penetration rate of the Internet has remained at around 80%. Among enterprises using the Internet for office work, the access rate of fixed broadband has exceeded 95% for many consecutive years. The popularization of infrastructure has been basically completed, but according to the actual situation of enterprises carrying out Internet applications, there is still a lot of room for improvement.

On the one hand, the proportion of enterprises that have taken measures to improve internal operational efficiency is relatively low. One reason is that enterprises lack awareness of Internet applications. The second reason is that the internal information transformation is not well matched with traditional business processes, making it difficult to achieve true Internetization. The third reason is that the software, hardware and labor costs are high, which most small and micro enterprises cannot afford. On the other hand, the proportion of enterprises that carry out Internet activities in external operations such as marketing promotion and e-commerce is relatively low, and in actual application they are easily restricted by traditional business concepts and copying traditional methods.

To this end, cooperation is needed among the government, traditional enterprises and Internet service companies to carry out market education, lower the technical and cost thresholds for enterprise Internet applications, and achieve a deep integration of the Internet and traditional business operations.

With the rise of the Internet O2O business model, it has become an inevitable trend for traditional enterprises to go online.

In 2014, the Internet O2O business model developed rapidly. As the direct supplier of offline goods and services, traditional enterprises play a vital role in this model. On the one hand, traditional enterprises actively use the Internet to carry out business activities, and on the other hand, large Internet companies take the lead in connecting traditional enterprises to the Internet passively in order to expand their business scope and enhance their O2O strength. Under this development trend, traditional enterprises will increasingly integrate with the Internet in terms of internal operations, marketing, services and product sales. At present, the Internet O2O business model is still in the formation and exploration stage. There is still no substantial success case of O2O transformation of traditional enterprises. The industry concentration involved is significant, with wholesale, retail, accommodation and catering and life service enterprises accounting for a high proportion, and it has not yet widely benefited small and medium-sized enterprises in various industries. With the comprehensive integration of the Internet and economic activities, the impact on traditional business models and the further expansion of the degree of reform, the boundary between traditional enterprises and Internet enterprises will become increasingly blurred, and the Internet will become an inseparable part of the daily operation of enterprises.

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