Read how Flynn built its international presence

This time last year, none of us were aware of the disaster which was about to unfold across the globe. But 12 months on, industry across every sector is still reeling from the impact of the pandemic which continues to make its presence felt.

But while some businesses were affected more than others, the construction sector in many areas of the world, has continued to carry out essential works and this, according to Cormac McKenna of Flynn, a Dublin based international construction company, has been beneficial for many companies which have expanded outside Ireland.

“We have been active in mainland Europe for four years and have branches in Denmark and Germany,” says McKenna, who has been with the company for 12 years. “We are predominantly in the data centre sector in mainland Europe and our offices have a blend of both Irish and local staff.

“We have also been active in the UK for nearly three years and have a regional office in London, servicing this market in the general contracting, fit-out and data centre markets.”

McKenna, a director with Flynn, oversees operations in Dublin and mainland Europe and says the move outside Ireland came about as a result of building on existing relationships and pitching the expertise the firm was confident would add value to European and UK projects.

“Our network of clients, design teams and traditional contactor partners have brought us data centre opportunities in Denmark initially – and these led to further operations in Northern Europe, the Nordics and the Benelux regions,” he says. “We are fortunate to have been able to continue working in Europe during the pandemic as it affected Irish business badly because the sector has been shut down twice during national lockdowns.

“Construction has continued in both the UK and Germany and because we have been working on data centres, which are deemed essential.

The main difficulty has been getting workforce to and from sites as every jurisdiction has its own restrictions – so in some places there are quarantine regulations and in other countries, there is a requirement to provide a negative PCR test. Everywhere is different, but you just have to roll with the punches, be nimble and able to change approach as and when is necessary. And we have relied heavily on our workforce to be flexible in their approach.”

Of course it hasn’t all been plain sailing as operating in different countries can be challenging, even without a global pandemic.

“Apart from the obvious challenges to be overcome such as supply chain, logistics, legislative issues, taxation, industrial relations and nuances in the construction regulations in any new jurisdiction we enter, working overseas also raises the additional challenge of ensuring that operations in remote locations are delivered with same culture and quality that we insist on,” says McKenna.

 

Building an international presence

“The main issues we have faced were around sourcing supply chain and getting to grips with local legislation from an industrial relations perspective and contract law perspective. But our auditors and accountants are Grant Thornton who have an international presence, which gives us a lot of satisfaction and comfort in knowing that our approach is correct.

“We have opened offices in London, Copenhagen and Frankfurt. And Enterprise Ireland and our international auditors and accountants have been key to the successful establishment of a foothold in these markets.  The key to success has also been leaning heavily on our network and ensuring we asked plenty of questions of the right people.”

Along with keeping its European interests ticking over, Flynn has also been looking after its clients here at home – but the various lockdowns have made this difficult at times.

“Like all businesses in construction, Covid 19 has affected our operations,” says McKenna. “We, like many companies, have faced difficulties and have faced additional costs for control measures and also to cover for staff who either contracted Covid or were close contacts of someone with the virus.  But we managed to get through the past year by investing in people and systems along with physical controls on our sites to ensure we have industry leading controls and management systems in place.

“Our business had well tested systems for remote working and collaboration to allow our project teams and regional offices to communicate effectively.  And as working restrictions were imposed, these existing systems have paid real dividends and we feel we are working as effectively as possible while keeping our teams safe.

The Dublin based firm has been in business for over 16 years and prides itself in the quality of its people and the prestige of its clients.  And according to McKenna, Enterprise Ireland has helped with this success.

“Flynn is predominantly a main contractor but over the past five years we have brought our main contracting experience to package contracting in the Hyperscale Data Centre Market,” says the company director. “And we feel the expertise in bringing teams of trusted trade contractors together and managing the entire CSA solution for our clients, brings tangible added value to any Hyperscale DC we have been involved in.

“Enterprise Ireland has been a key partner in our international growth. Their representatives are always at the end of the phone for advice and have provided key introductions in local authorities, supply chain parties and in some instances leads for new business.  They have also provided tangible supports from a training and marketing perspective.

“In addition, we found the Market Discovery Fund and some of the supports we got in the marketing field to be very effective. Some of the introductions they made for us in both Denmark, Germany, The Netherlands and the UK was a great help. And also, just having someone at the other end of the phone to bounce ideas off, has been invaluable.”

The company has over 140 employees across Ireland and Europe and is currently looking to further its portfolio with opportunities in Ireland, UK and Mainland Europe. and McKenna says while 2021 may be a difficult time for construction firms to be thinking of expanding abroad, once the current crisis is over, there could be plenty of opportunity for Irish companies.

“There is a definite advantage to being an Irish company overseas, particularly one with Irish employees as we are known for having the mindset of getting things done,” he says. “In the high tech and data centre world, schedule is key and the Irish work ethic of doing what you say you will do and doing it on time, is a great advantage as we can be trusted to get the job done.

“Our aim so to grow our client base across Europe, to grow our team and to bring added value to future data centre projects.  My advice to firms thinking of doing the same, would be to complete extensive research in the jurisdiction you are targeting and use the Enterprise Ireland team as they provide a lot of useful information and contacts.”

Austria landscape

Ambition Austria: Opportunities for Irish companies beyond Germany  

There’s a small, outward-looking, industrious country keen on exports that sometimes lives in the shadow of its larger neighbour. It thrives on innovation and its people are known to work and play hard.

While the above could be a description of Ireland today, it is also true of Austria. And although Irish companies tend to overlook Austria in favour of its neighbour Germany, the Eurozone’s largest economy, exporters may want to rethink the opportunities available in its equally prosperous and resourceful neighbour.

With just eight million in population but with the same landmass as Ireland, it may appear small but looking at present-day Austria in isolation ignores the deep-rooted and long-held trade links forged by the vast European empire that spanned central and eastern europe and the Balkans.

Today, it not only remains a gateway to the very same eastern markets but with the conclusion of the Chinese Silk Road rail line, goods to and from China take around 10 days from Vienna.

 

How to unlock export potential in Austria

How to unlock Austria’s export potential was a core topic of the most recent Ambition Germany event in Limerick, organised by Enterprise Ireland.

Despite its picture postcard image of Alpine vistas or Viennese opulence, Austria’s economy is driven by a high industrial base with a strong automotive sector, and it is Austria not Germany that manufacturers the iconic BMW 5 series seen on Irish roads. Only Germany and Switzerland exceed Austria’s per capita industrial output with its industrial base accounting for 28% of GDP.

It’s not hard to see why it’s home to 300 multinationals and the European home to 28 Fortune 500 companies. It has a strong presence in cleanroom manufacturing (almost half of the world’s data chipped passports contain Austrian data chips), automotive expertise in diesel engines, high-spec powertrains such as F1 cars, electric vehicles and autonomous driving tech, as well as strong clusters of cleantech and environmental, as well as fintech. Its banking sector has long standing access to the Balkan countries.

Ireland is currently a net exporter to Austria, with Irish businesses racking up a €200 million surplus in balance of trade on an export market worth €1.2 billion annually.

Austria’s ability to act as a stepping stone to near markets is a valid reason for market entry. It shares land borders with eight countries.

Graz is ideal for firms looking for a gateway to the south, and since the 1990s has evolved into a key health and medical hub, sharing a lot of synergy with the likes of Ireland’s own Galway.

Doing business in Austria is relatively straightforward but there is local complexity in setting up a direct presence, according to Josef Tremel, CEO of Advantage Austria. Setting up a limited company can require clearance from some four separate bodies, Tremel told delegates.

“The good news is that Austria has, like Ireland, because of its size, strong, tight-knit networks. You can certainly use this to your advantage to get sectoral referrals and reference projects. It’s definitely worth putting effort into a good contact in your sector because they will ultimately open up doors for you.”

While business culture will be familiar to Irish firms, it still remains formal, with Austrians placing a great deal of importance on hierarchy and titles. Austrian firms abhor risk and value being able to plan long-term. Being able to demonstrate long-term commitment and the ability to meet future capacity will count in negotiations, according to Tremel.

“We Austrians place a great deal of value on history, particularly in business, and many firms have a long family history behind them. It is always worth mentioning your own history as it generally reassures us,” he said.

Austrian productivity is famous but it may be surprising to learn that many firms simply close at 2pm on a Friday. Irish firms used to flexible working should be mindful of Austrian work practices. Leisure-time, particularly family-oriented, is taken seriously.

History continues to loom large over Austrian business and some Irish firms may be tempted to sell into market out of existing German centres but this is unlikely to go down well, the conference heard. While there are exceptions, of course, native German sales reps will find it tough going with the possible exception of Bavarians.

For Fergal Keen, Managing Director of cargo-partner Ireland, the advantages of Austria were obvious.

“There’s no doubt that actually setting up there is time consuming and frustrating but if you know what’s coming, you can live with it.

“However, the benefits outweigh all that. It really is a gateway in the fullest sense of the word. Getting into Austria means getting Irish goods beyond the borders and they go further than Austria to the likes of Croatia, Bosnia and Eastern Europe. That’s the advantage.”

Arab Health

How Irish – UAE partnerships are shaping the future of healthcare

Imed Abnoun, market executive for Enterprise Ireland Dubai, outlines partnership opportunities for Irish medtech innovators in the UAE and across the Gulf region.

Imed Abnoun, Enterprise Ireland Market ExecutiveAs part of its Brexit response, Enterprise Ireland has focused efforts on supporting Irish companies to identify new market diversification opportunities, including the Gulf region, which has become an important market for Ireland. Entering a new export market is an important strategic decision for any company but with the right preparation the rewards can be mutually beneficial.

The Middle East’s largest healthcare exhibition, Arab Health 2020, took place in Dubai in January, demonstrating that the healthcare sector provides a strong example of how Irish pharmaceutical and medtech companies can enter the market or expand further to meet rapidly rising demand in the UAE and wider Gulf region for world-class innovative products, services and expertise across the full spectrum of the healthcare sector.

 

Healthcare opportunities in the UAE

In the UAE alone, this strong demand is clear with market analysis estimating that spending on healthcare will reach $3.6 billion by 2030. Irish healthcare companies are ready to forge new partnerships with healthcare providers in the UAE to provide patients with the latest world-leading innovations that further enhance the patient experience, improve patient outcomes, and supply lifesaving technologies that are used in healthcare systems worldwide.

Ireland and the UAE already have strong economic ties and mutually beneficial partnerships, including across the healthcare sector. Take, for example, the partnership in Dubai that Martin Dunne, the Director of Ireland’s National Ambulance Service has focused on. Martin has been actively supporting the Dubai Ambulance Service in the provision of training for paramedics, equipping them with world-class life-saving professional training and development. Ireland’s National Ambulance Service, in partnership with the Higher Colleges of Technology in Dubai, provides the curriculum and accreditation for diplomas in emergency medical services that train paramedics and advanced paramedics with life-saving skillsets that benefit Dubai and the UAE.

The partnership is a good example of health diplomacy in action, through country-to-country institutional collaboration that mutually benefits all parties, both public and private sector and country-to-country bilateral relations, and ultimately leads to lives being saved in Dubai.

However, the collaboration goes further than education and training. The Dubai Ambulance Service is equipped with cutting-edge Irish hardware and software related to patient and paramedic safety, operational efficiency, and fleet maintenance and diagnostics. Irish company Acetech, a global manufacturer of vehicle intelligence solutions for emergency service fleets, provide this hardware and software.

At Arab Health 2020, we saw further collaboration between the 14 Irish companies hosted on the Ireland pavilion in the medtech, digital health and pharmaceutical sectors and healthcare providers from across the region – resulting in 10 major contract signings. The companies showcasing their world-leading expertise included:

 

From its life sciences sector, with a vibrant pharmaceutical industry that exports almost €70 billion annually, through to the innovation of the medtech sector, with exports of €12.6 billion to over 100 countries worldwide, the Irish healthcare industry is a big success story. In the UAE alone, 40% of all Irish goods exports last year were pharma, wellness and medicines-related. Ireland is a global leader in the medtech industry and will seek to leverage its innovative expertise to meet the demand in the region in a sector estimated to be worth $31.6 billion by 2025.

The UAE and Ireland recognise the significant mutual benefits that arise from collaboration and partnership. Arab Health 2020 added a new chapter to this, helping to shape the healthcare services of both countries to benefit their people.

Cutting costs and reducing food waste: Positive Carbon’s solution for the hotel industry

We are all becoming more and more aware of our impact on the world, yet when it comes to business, profit often takes precedence. But if you can form a business that makes profit and helps the environment – then you’re onto a winner.

Enterprise Ireland’s Competitive Start Fund (CSF) is encouraging applications from eligible companies that address the challenges and opportunities relating to climate change. “It’s really exciting to see more environmentally focused businesses coming through,” says Aisling Kirwan, co-founder and Director of Operations at Positive Carbon, a recent recipient of funding through the CSF. “If you can bring together a business model while answering environmental concerns, it’s a win-win. And people are becoming more aware of the consequences of their actions and their impact on the world around them.”

Positive Carbon is a great example of a business looking to have a positive impact on the environment with a product that saves money for their customers. Aimed at the hotel market, Positive Carbon manufactures a solution to reduce food waste in as simple a way as possible.

“From research, we found that hotels were the biggest wasters of food by far,” Aisling explains. “From talking to chefs and getting feedback from general managers, we came up with a solution that we thought would work the best in a busy kitchen, with the aim of halving food waste. A hotel, on average, spends €200,000 a year on food that ends up in the bin; if we can halve this, we can help the hotel save money while reducing the environmental impact of the waste.

“Our solution is a fully automated food waste monitoring system. A weighing scales fits under any bin in any kitchen and sitting alongside that is a camera that looks directly into the bin. When waste is thrown into the bin, the scales weighs it while the camera takes a picture for identification. All of that information is collected and displayed for the client, so they can see exactly what is being thrown away. For instance, the information might reveal that 13 kilos of chicken was thrown away today – this clearly needs addressing. Avoidable food waste accounts for 66% of the waste in hotels, and with functions, that number shoots up to 87% – it’s an absolutely massive amount of waste, both food and money.

The United Nations has said that if we can reduce food waste, this is the single most effective thing we can do to reduce CO2 – and it’s such a quick and easy and achievable fix.says Kirwan.

 

CSF applications – a demanding, but rewarding process

With a background in the food waste industry working with innovative companies such as FoodCloud, Aisling and her co-founder Mark Kirwan first applied to Enterprise Ireland’s New Frontiers programme to see if their solution to reduce food waste could become a viable business; Positive Carbon then opened for business in May 2020.

“The CSF felt like the logical next step for us,” says Aisling. 

“We used the funds mostly for product development, to bring out a new version of the product, and then to upscale manufacturing as we are bringing onboard a number of new hotels over the next few months.

“I’m also taking part in the Innovate programme as part of that, the three-month accelerator programme for women entrepreneurs delivered by Dublin Business Innovation Centre in partnership with Enterprise Ireland, which has been really great. It’s good to be in an environment where you can talk about any issues or thrash out solutions.”

Like many other CSF recipients, Aisling says the application process was a rewarding exercise. “I definitely wouldn’t say it was easy! There are a lot of different stages to it, but it was also very enjoyable. It made us really think what we were trying to achieve in our business, get that down on paper and then be able to pitch our plan to a panel as well – and to be confident enough to answer questions. It’s definitely a demanding process but you get a lot out of it as well.”

 

Covid – time to prepare

Launching a new business during the Covid-19 pandemic certainly brings its challenges but for Positive Carbon it also gave them time to prepare. “With Covid-19 limiting hotel business, we’ve had the chance to sit down with general managers for a chat about our product,” says Aisling. “People are so generous with their time; it’s nerve-wracking to call up someone out of the blue but people are happy to talk to you and give you really valuable advice and feedback.”

Aisling says that the reaction from the industry has been positive – and no wonder, as this product has the potential to save businesses a massive amount of money, something that the beleaguered hotel industry will welcome. “After such a difficult year, hotels are excited to try new things. Food waste is such an unnecessary cost – and it’s not just the cost of the food itself, it’s the cost of the staff time in prepping, cooking and storing the food. The EPA (Environmental Protection Agency) estimates that when you take in all the factors involved in food waste, the true cost is €5,000 a ton.”

“We’ve come a long way in the last few months, and that’s with the support of Enterprise Ireland and the CSF”, says Kirwan.

Visit this page for more information about the Competitive Start Fund.

 

Speaker at Ambition North America

Joining the American tech revolution

When Alan Turing devised his eponymous computer he could have had no idea that it had set in motion multiple technological innovations so disruptive the effects will likely eclipse the last Industrial Revolution.

That’s according to SKOUT CYBERSECURITY CEO, Aidan Kehoe, whose foray into the US market 15 years ago led to the foundation of his global business. The technology set in train by Turing has led to seismic shifts that we have still yet to fully grasp and is fueling innovation in artificial intelligence, privacy, big data, blockchain, connected cities, cloud computing, voice, audio, augmented and virtual reality.

 

Innovation key to getting heard in US market

They are megatrends, according to Kehoe, who asked delegates at Enterprise Ireland’s Ambition North America event: “Do you want to be part of the megatrend or deal with the consequences of it?”

The question posed is important because, according to Kehoe, the US economy has embraced megatrends. Innovation is seen as a key driver in business and is part of the US business psyche. Any value proposition that speaks to innovation and solves megatrend problems and pain points will get a hearing in the US.

“To understand the American business mind, you have to realise they start from the perspective that they have no choice but to make it. That, in itself, acts a great driver for innovation,” says Kehoe.

In almost every sector, from AI, machine learning, fintech, medtech, agritech, pharma, life sciences and beyond, the US leads, and thrives on, innovation. More patents are filed in the US than any other country; in fact, it files three times as many as its nearest competitor, Japan.

It’s why, if you have an innovative solution, be prepared for the US to at the very least, give you facetime.

 

Don’t try to be all things to all people

As the world’s largest economy, currently enjoying a decade of unbroken growth –  last year nudging 4.95% – and a GDP of $20.49trn, the US remains the prize export market. But exporters attempting to ‘break’ America can run into common pitfalls, not least viewing the United States as a single business monoculture.

David Walsh, CEO of Netwatch, which has 250,000 customers in North America, told delegates that the US is “where you go to scale” but warned:

“You simply cannot be all things to all people over there. You have to be clear what you can deliver and even clearer on what you can’t. It’s effectively 50 different markets sharing the same bit of land. We concentrated on four key markets and built on that. California is not the same as Texas and neither are the same as the East coast.” says Walsh.

Enterprise Ireland’s Market Research Centre at its Dublin HQ in EastPoint (and via eight regional hubs), together with grant funding such as the Market Discovery Fund, will help you to put boots, not only on the ground but in the right place to build your network.

Once in the US, do not fall into the trap of trying to bootstrap your operation, said Rob Rae, co-founder of Littus, the business development consultancy.

“Time and time again, the biggest and worst mistake we see is firms falling into the DIY trap, trying to do it all themselves. It’s only natural, Irish firms are entrepreneurial and it’s worked in other markets in the past and in Ireland but this is a different ball game. Spend your money on expertise at this early stage because it will save you many multiples later on, if what you did on your own goes wrong.”

He told the conference: “Above all bring a value proposition to the table. Don’t go to the US hoping to be the best Irish tech company there is. Go there to be the best tech company in the US that happens to be Irish.”

Key to planning is securing visas for your team in the early stages. Business visas will help for initial networking and sales but ultimately you will

need resident work visas and the paperwork can be lengthy and detailed both in time and scope, added Rebecca Mancini, Corporate Immigration Attorney at Clark Hill.

“The climate under the current administration is ‘buy American, hire American’ so in bringing skilled staff from abroad, you need to demonstrate why a US citizen could not do that.” For Irish firms with IP and trade secrets that cannot be replicated, this should be emphasised and should help the process to get key personnel in place, added Mancini.

If you have your market fit and personnel in place, be prepared for being able to scale, said SKOUT’s Aidan Kehoe, a sentiment echoed by Monaghan-based forklift manufacturer, Combilift.

“Our sales doubled in the last three years in North America,” said the firm’s North American Sales Director, Anthony Rooney.

For Kehoe, he had no doubt that riding the current internet megatrend was fundamental to the firm’s success.

“We’re in cybersecurity. Even if we weren’t any good, we would probably be doing very well indeed. That’s what riding the megatrend means.”

 

Learn more about doing business in the USA and Canada and the Enterprise Ireland supports available.

Ambition Benelux: Breaking into Benelux

Choosing the right international opportunities and how to address them are key success factors in every successful export strategy. At Enterprise Ireland’s most recent Ambition Benelux event in Athlone, Irish exporters shared the reasoning behind their move to this lucrative market that offers access to the rest of the Eurozone.

For Azpiral, a Limerick firm running real-time cloud-based customer loyalty engagement software, it was the unavoidable consequences of Brexit that focused the minds of the management team as they moved to ensure regulatory compliance with data stored in the UK.

Sales director Kevin Nolan told delegates: “We made a decision once the Brexit vote was taken that we had to make efforts on two fronts. Firstly, we had to move over data out of the UK, so it took a two-year project to bring it on to Microsoft Azure. Secondly, to move into the European market, in 2018 we started doing research into the forecourt and convenience market across Europe. We identified the main groups across multiple countries with the hope that, if we could win some of those, it would open up the market internationally.

We targeted Benelux specifically because we had integrations in place with the till systems of forecourt systems of that region.” says Nolan.

Nolan reported that they had just concluded a deal that will see their cloud-based solution positioned in 350 AVIA service stations in the Netherlands, representing 10% of the market.

AVIA is an international leader in the European forecourt sector, with over 3,000 stations across 15 European countries. Nolan says he is “hopeful that being the first choice in loyalty software for international brands like Circle K, Gulf Oil, Spar and AVIA will present opportunities for Azpiral to continue to expand internationally.”

Project management firm Aspira, who specialises in software services and digital transformation, took a more analytical route into the region. Having served the Irish arms of many multinational clients in Cork and Dublin, it heatmapped the concentration of prospective clients and settled on Amsterdam. Both the Netherlands and Belgium have high concentrations of multinational HQs meaning key decision makers are within arm’s reach.

Russell Moore, Aspira’s Resourcing Manager, said having face-to-face contact was vital: “We quickly saw that by having a local office near to where your clients were meant that you could expand quite rapidly.  It’s much better than doing FaceTime or Skype. So we weren’t afraid of looking at a new market. As time has gone on, the whole agile concept of the project management package is very interesting to Dutch clients who are very engaged with digital transformation.

Localising for Benelux

speakers at Ambition Benelux

“We rebranded lots of projects that we had already done with this in mind, such as the Central Bank, Coillte and Aer Lingus, into the digital transformation journey that had been taken by these clients, and we’ve found that is resonating really well with the Dutch market in particular.”

For Cork’s Over-C, who deploys an integrated digital platform providing transparency for all functions relating to the upkeep of high-footfall, scaling meant having to go beyond the Irish border. Their product suits high-footfall, high-risk public facilities, such as shopping centres, stadia and transit hubs, and ultimately there is finite amount of all of these here in Ireland. Over-C leveraged existing links with Dutch-owned client ScotRail when targeting the region.

James Murphy, Head of Partnerships, told delegates:

“I see the Netherlands as a gateway to the rest of Europe. The Netherlands are early software adopters, and Germany looks at the Netherlands and what works there, so it’s good preparation for new markets.” 

Over-C’s innovative software uses artificial intelligence, data and analytics to provide industry professionals with key insights for time-critical decision-making. It has been operating in the Dutch market for two years, with customers including Facilicom, Trigion, Koopgoot, Plaza Nieuwegein Shopping Centre, and Wereldhave. Over-C is working with KPN to identify further opportunities through their customer base.

 

Take the step into Benelux

Events such as Ambition Benelux are one element of Enterprise Ireland’s Step into the Eurozone campaign, which supports Irish companies at each stage of their market discovery journey. Built around five steps, the programme assists with everything from scoping, assessing and validating new market opportunities, to acquiring funding for activities such as recruiting graduates with relevant language skills.

With Nolan reporting that it took Azpiral 12 months to finalise its big deal in the Netherlands, these supports are hugely valuable for helping to sustain the investment of management time and direct costs behind successful market entry.

Why ‘no’ is the most common word used in French business

France is the most visited tourist destination in the world. Almost 83 million visitors a year make the trip to one of the most culturally rich and diverse countries in the world – and it’s easy to see why.

But visiting as a tourist, as many Irish people do, only scrapes the surface of the French psyche. How France deals with visitors is not always the same as how French business is conducted and it is important to discern the difference.

Irish business culture has evolved into an open, often informal and flexible solution-based environment, driven both by Irish innovation and the requirements of multinational partners. Given that we are an export-driven economy, we are outward facing by default and used to finding bespoke solutions.

 

How French business culture differs from Ireland

It could not be a more contrasting picture in France. French business culture can appear formal to the point of excess, governed by layered hierarchy and tiered bureaucracy.

Combined with French pride in putting their native tongue foremost, it may appear, at first, a difficult cultural barrier to overcome.

At Enterprise Ireland’s most recent Ambition France event, Irish exporters shared first-hand experience of French business culture.

By following the well-trod path to the UK, the US and the English-language friendly Benelux regions, Irish firms could be missing out on opportunities to break into one of the world’s richest countries. France remains a €2.5trn economy, with consistent growth. It is the world’s seventh-largest economy and the third biggest in the Eurozone.

However, for an Irish business keen to enter France, who has done its market research and established its product fit, it will soon become clear why the formality and ‘red tape’ exists.

France loves detail. Bureaucracy is there to establish – and protect – quality. Rather than act as a barrier for entry to the market, it levels the playing field for all competitors. It also means negotiations can be lengthy, and unlike the transactional price-based nature of, for example, the Netherlands, quality and attention to detail will be weighted highly in French business.

“It can seem bewildering,” Michael Stack, Managing Director of Tricel, the Killarney-based composites manufacturer told the conference. 

“But the rules are applied fairly and squarely. No-one is trading within our market outside of the regulatory system. It’s not just a rules-based country, it’s a rules-based country where rules are enforced. That makes it fair for everyone.” says Stack.

 

How to do business in France

It’s why, when doing business in France, one of the most common words heard in meetings will be “Non”. This is not a negative but actually the first step on the road to “Oui”. “Non” forms the basis of a discussion with your intended partner or client that will deal heavily with specifics and navigating French regulatory compliance.

“No doesn’t always mean ‘no’,” Nicola-Marie O’Donovan, Senior Agile Coach from BlaBlaCar, told delegates. “It will likely be the start of a conversation. In Ireland, we tend to say ‘yes’ too quickly. In France, an argument is usually the precursor to a discussion.”

 Formality must not be disregarded, even in looser cultural environments, such as the tech sector. Resist the urge for small talk and never ask personal questions unless invited to do so.

Within French organisations, it would be expected to inform senior figures ahead of team members of developments, even if it would seem to be non-essential information. Protocol matters.

Language skills will be mandatory if an Irish firm is to deal successfully in France or deal with French business partners. French is preferred and having a native French speaker on staff sends a very strong signal of your intent. It is quite normal to have a presentation deck in English but the discussion in French.

Do not underestimate French pride in their language. Make the effort to have marketing and web material accurately translated, preferably by a native French speaker.

“We went to a trade show early on in our venture in France and set up our display with our banner in French but it contained a grammatical error. Every single person who walked by our stand stopped and pointed it out,” Stack told the conference.

 

Get support from Enterprise Ireland

Language can be resolved, of course, with key hires and outsourced translation. Enterprise Ireland’s own GradStart programme will part-fund salaries of individual graduates with a language qualification in the key market helping to get your own boots on the ground in-country, something the French value highly.

Being there matters, agreed Eoin Licken, the Grenoble-based Commercial Manager of Tekelek:

There is often surprise when a prospect sees me ringing on a French mobile, in French, and you can see the change of tone in the conversation as a result.” Eoin Licken explains.

If your product fit is right for France and you are prepared to adapt to French culture, be prepared for a rewarding foray into the market, said Stack. He added: “If you a want a market where you can compete, where quality is valued rather than cost, then you should seriously consider doing business in France.”

team discussing market research plan

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The main ways client companies can utilise the Enterprise Ireland Market Research Centre

 

If you are interested in entering a new market or diversifying into a new sector, Enterprise Ireland’s Market Research Centre can help. Read how you can best use this Enterprise Ireland support.

Conducting market research can help to reduce business risks and assist your company to map out its journey to growing exports. To support client companies, Enterprise Ireland has invested in access to premium business intelligence databases in Market Research Centres in Dublin and eight regional hubs.

But how can you best access the Market Research Centre? Follow these five steps to make the most of your time there.

 

  1. Create your research objective

First, consider what the information you need will be used for and in what type of resource it is likely to be found. Resources provided by the Market Research Centre include:

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All of this information and research is provided by respected publishers and can only be accessed by clients within the Market Research Centre. The Centre’s information specialists work with a range of providers to ensure your company has access to the most up-to-date knowledge available. Once your research objectives are clear, then you are ready to take the next step.

 

  1. Explore the databases online

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John O Carroll Eblana Photonics

Eurostars support invaluable for SMEs developing new products

John O'Carroll

“Eurostars funding is invaluable to small businesses as it reduces the risk involved in developing new technologies.

Eblana Photonics, lead partner on TLPON Eurostars project

Key Takeouts:

  • Dublin company, Eblana Photonics, led a small consortium whose aim was to develop novel photonic integrated circuits (PIC) for optical communication applications.
  • The project was part funded by the European Union’s Eurostars research and innovation programme which is aimed at R&D-performing SMEs.
  • The TLPON project has opened new doors for Eblana to develop PIC-based laser products for telecom and spectroscopy.

Case Study: Eblana Photonics

Dublin-based Eblana Photonics, which specialises in the design and production of advanced lasers for communications, sensing and measurement, has long appreciated the value of collaborative projects. Over much of its 20 years in operation it has drawn on the support of European funding programmes to enable it to target new markets with innovative products and establish itself as a provider of world-class technology.

Recently the company completed a project, TLPON, funded under the European Union’s Eurostars programme. Eurostars is a large international funding programme for SMEs that want to collaborate on R&D projects to create innovative products, processes or services for commercialisation.

The main goal of TLPON was the development of novel photonic integrated circuits (PICs) for optical communication applications, with the new NG-PON2 application being the primary target. NG-PON2 is a telecommunications network standard mainly for higher speed fibre to the home networks.

“TLPON was about developing a multi-channel laser approach to increasing the speed and capacity of networks to meet future bandwidth demand, which is rising because of the use of Netflix and similar media and also the increasing resolution in 4k and 8k devices,” explains John O’Carroll

 

Building the European consortium

Eblana Photonics put together a strong consortium that included Dublin City University (DCU), Foton Institute and Orange Labs, the last two based in France.

“We were able to build on our close relationship with DCU. I talked to them about this project and they were interested as it’s an area they were researching as well. Through DCU’s links with one of the French partners, Foton, we were able to bring them on board and they and in turn brought Orange Labs in as the fourth partner.

“Once we had identified the consortium, we contacted Enterprise Ireland and got great advice on what to focus on in the proposal to qualify for the Eurostars programme,” says O’Carroll.

 

The benefits of collaboration

Eblana’s experience of device manufacturing married with the other partners’ research expertise and systems knowledge created a highly effective consortium. This was underpinned by the fact that the partners’ roles within the project complemented each other, and members of the consortium had successfully worked together in the past.

“Having access to the experience of DCU and the international partners was invaluable. For example, we got feedback from Orange Labs on the requirements of an end user and we benefitted from DCU’s characterisation and device packaging expertise and from Foton’s electronic circuit design and device characterisation capabilities.”

 

Commercial application

As the project progressed, however, the NG-PON2 standard was overtaken by other standards.

“When we started TLPON there was a lot of interest in the market for next generation optical networks, and it looked like it was going to be widely applied. But during the project, some other standards came into force and the market went in a different direction,” explains O’Carroll.

“However, the research wasn’t wasted as we were able to modify it and select elements of it to apply to our products roadmap. Before TPLON we didn’t have PICs in our product range, but afterwards we were able to use the research learning to integrate a laser with a modulator.  And if NG-PON2 gains traction within the next couple of years we can turn our attention back to that and develop products in that area.”

TLPON has been transformative in developing Eblana’s capabilities in the area of photonic integration and has presented new opportunities for the company to develop PIC-based laser products for telecom and spectroscopy.

Why Eurostars?

The technologies developed with the support of EU funding have been instrumental in helping Eblana Photonics target new markets with new and innovative products over the years.

“Most of our current product portfolio has been developed with the help of a European research project; the company has benefitted immensely. As with TLPON, what we developed in the projects didn’t necessarily always end up as the commercial product, but the learning led to new products for us because we were able to look for other applications for the research,” says O’Carroll.

“Particularly in the early days of the company when we didn’t have a big R&D budget, the opportunity to be involved in EU projects was invaluable. It would have been difficult for us to risk developing something ourselves that we might not get a return on. So EU programmes such as Eurostars are of great benefit to small businesses.” explains O’Carroll

“On a personal level it’s also very rewarding, particularly for people like myself who come from a research background, as it allows you to work on projects that are outside your day-to-day job and keep up to date with new research.”

Eurostars is primarily a programme for R&D-performing SMEs.  Although universities and research organisations can take part in a project, the main project partner must be an SME.

Companies that take part in Eurostars projects typically see an average of 15% annual turnover increase, while almost 70% of them enter new markets or gain market share.

For advice or further information about applying for Eurostars support please contact David Flood or consult the Eurostars website.

 

H2020 success stories banner link

 

Ambition North America Sean Davis

Ambition North America: Think big, act small

Scaling into North America is sometimes prefaced with the advice: “Go big or go home”. There is an important caveat that can get overlooked when aiming to expand there, namely: think big, act small.

For Irish firms who are trying to scale into North America, the principles might first appear to be mutually exclusive. But according to Irish business leaders at the Ambition: North America event organised by Enterprise Ireland, they are, in fact, complementary.

Entering the market is the hardest step. Servicing your first client or order, and ensuring your product fits, your price point meets market expectations, and delivering on your promises, will all allow your company to scale on a solid footing, attendees heard.

 

Huge potential for a small first step

That first small step is well worth it, given the size of the region’s markets. Despite the rise of China, the USA remains an economic giant, currently enjoying a decade of unbroken growth –  last year nudging 4.95% – and a GDP of $20.49trn. It is the world’s largest economy, with its service sector accounting for 80% of GDP and is the world’s second-largest manufacturer. Imports rose from $2.9trn in 2017 to $3.1trn last year – with Enterprise Ireland-backed companies exporting $3.7bn in 2018.

(Source: Going Global: Exporting to the United States. Download the market guide now.)

Canada remains strong too, with its CAD$2trn economy the world’s 10th largest. Enterprise Ireland-backed companies exported just under €350m of goods and services there in 2018, a 4% increase on 2017.

(Source: Going Global: Exporting to Canada. Download the market guide now.)

 

Impact of medical errors focused Pharmapod on North America

Ambition North America Leonora O'BrienLeonora O’Brien, CEO of Pharmapod, a cloud-based solution for reducing medical errors, chose Canada above other export markets after studying mortality rates in North America.

“Medical errors are the third leading cause of death in the States, so North America for us was always in the business plan we built over seven years ago,” delegates heard. Because Canada was part of an English-speaking network of countries that share pharmaceutical best practices, Canada seemed an ideal launch pad.

“We knew that Canada would be quite similar in the way they operate the healthcare system,” said O’Brien. Validation came through a social media post by a mother who lost her eight year-old son to a medication error. O’Brien met the family who had been campaigning heavily across Canada for regulation changes and as regulators stepped in, Pharmapod became a solution the market needed.

Pharmapod’s careful steps into the market are now paying off. “Canada is our largest market and the bulk of our revenue now comes from there,” O’Brien said.

 

Brexit prompted Combilift to shift focus to US

Monaghan-based fork-lift manufacturer, Combilift, has enjoyed strong growth in its 21 years but with Brexit affecting its UK market, it shifted focus to the US.

“Our goal was to target and grow within the North American region,” said Anthony Rooney, Combilift’s North America Sales Director.

“We went to trade shows that specifically targeted our end user. Our research told us that our customer had pinch points in certain sectors, so we targeted that sector. This allowed us to talk to the owners of those businesses at those shows. It was a humble beginning, at a 3 x 4 stand trying to stop people for a chat.” says Rooney.

Learnings allowed the management team to ultimately make informed key hires on the ground that would grow their business.

“It was key to get the right people that we employed directly in the right areas and get them talking to important partners.”

Carlow-based Netwatch now spans four continents and decided to go west rather east when it thought to expand exports of its security monitoring product.

Key to entering the US was making hard decisions about their business model during the last recession. CEO David Walsh said they switched from a product-based model to a SaaS service model, as well as bringing all R&D in-house.

Ambition North America Netwatch CEO“It was critically important to have a unique value proposition, and this allowed us to do that, so when we told our story in the states it had a genuine value proposition.” said Walsh.

Selling their story to US clients saw Netwatch embedding its team for two years stateside to train and recruit “successors who would make them redundant”, said Walsh.

“We kissed a lot of princes who turned out to be frogs,” he said, “but we learned an awful lot in the process. Getting the right people into the organisation who have the smarts, are articulate enough to present our value proposition and whose personalities naturally align with our business culture is paramount.”

Irish success in North America is a series of ambitious small steps.

GradStart

5 ways GradStart can help you to attract and retain graduates

Talent is one of the business world’s most valuable resources. The ability to attract, recruit and retain, ambitious, highly skilled employees is a must for every Irish company aiming for success in exporting markets.

Irish companies with the ambition to grow exports, will benefit from developing a competitive edge to attract the motivated and highly skilled talent they need. Enterprise Ireland’s GradStart offers just that. In addition to financial support, GradStart provides invaluable guidance on how to attract, retain and build long-term relationships with graduates.

Here are five ways GradStart can help you.

 

1. Know your strengths

Competing for top talent can be difficult for SMEs, due to competition for skills in the marketplace. In some cases, smaller businesses can also lack a dedicated department to focus on skills attraction and promoting the company brand. However, it’s important for Irish companies to develop a talent attraction strategy and articulate the strengths that make them attractive employers for many graduates.

Helen McMahon, senior executive for Client Skills with Enterprise Ireland, comments:

“There’s something really exciting about working for an SME. Employees have access to more business areas than they might in large multinationals, where roles are often strictly defined. Graduates get the opportunity to work with senior management teams, have more exposure to a range of processes and systems, and the potential for more responsibility at an earlier stage in their career development. Above all, there’s a chance to really make a difference in a smaller company.”

Accessing GradStart helps companies to gain confidence and expertise in these benefits in order to market them to the highly skilled people that can help their business to reach the next level.

 

2. Define the role

Be clear about the skills your company needs and remember that it should include both hard and soft skills. Hard skills include technical expertise and knowledge of a particular system or a way of working. Soft skills, such as the ability to build relationships; work as part of a team, manage people effectively, and creative problem solving, are just as important.

Helen explains: “To apply for GradStart, a company needs to have defined a specific role for a graduate, and there must be an underlying business case for the role.”

For example, a company may want to attract a graduate with specific skills attached to a particular project. Not only must the company be clear in their GradStart application about why those skills are needed, but it should also be clear on the importance of the project to the company’s overall development and export growth. Clarity on the job role and project will make your company more attractive to discerning potential employees.

 

3. Build a career path

Bright ambitious candidates are interested in more than salary and perks. Particularly at the outset of their career, good candidates want to know that a job will enable them to develop their skills and expertise.

Helen adds: “It’s vital to show graduates that you are thinking of their career path as much as they are. You’re looking to build a long-term relationship and you need to show them that you are committed to helping them grow and develop.”

Investing in a good employee’s development is one of the best ways of ensuring they stay with your company. Research indicates one common reason people leave companies is that they feel they have stopped learning and developing. Very often, they go in search of new challenges, rather than more money.

As part of the GradStart programme, you are required to plan a career path for your potential recruit, the focus on which can also be attractive to potential candidates.

 

4. Think long term

If a graduate employee eventually leaves your company, it is often wise to maintain a strong relationship with them. Opportunities to collaborate may appear later, or a role that suits them perfectly may be created within your company in the future. A strong relationship with previous graduate employees can also be an on-going source of valuable industry intelligence.

Helen comments: “When you’re recruiting a graduate, you aren’t just selling the idea of joining your company, you’re selling the idea of becoming part of an industry or sector. You want them to feel that this is an exciting industry with lots of opportunities. Even if they do someday move on from your company, it can be very beneficial if they stay within your industry.”

 

5. Use recruitment tools

As part of GradStart, you will be supported through the graduate recruitment process. You will be encouraged to advertise your new position on Enterprise Ireland’s dedicated website for graduate offers and initiatives – gradhub.ie.  This site is directly linked to GradIreland, which has access to 80,000 graduates approximately. You can, of course, source a graduate yourself. It is important to remember that, to qualify for GradStart, the employee can’t have previously worked with the company or be working there currently.

 

What does GradStart offer?

GradStart provides financial support for a company to recruit up to three graduates for a duration of two years each. The support covers 50% of a graduate’s yearly salary, up to a maximum of €15,000 a year in grant aid (ie a salary of €30,000) for two years.

For graduates with proficiency in a language relevant to the business role, the grant increases to 70% of the salary, up to a maximum of €21,000 a year for two years.

It is available for Irish graduates or for overseas graduates, based either in Ireland or overseas. The graduate must be paid by an Irish company to access GradStart funding.

Get the support you need to step into new markets.  Check your company’s eligibility on this link below.

Apply for GradStart now.

Barry Napier, CEO Cubic Telecom

CASE: How automotive disruption offers huge opportunities for Irish tech companies

The automotive industry is at a crossroads. In an era where digital technology is disrupting the status quo throughout the global economy, few industries are being so profoundly impacted as automotive.

Under pressure over emissions and sustainability, manufacturers are focused on transitioning from the internal combustion engine to a future of connected, autonomous, shared and electric vehicles,(CASE). Traditional supply chains are changing dramatically, as new technology providers force manufacturers to rethink where value can be created and by whom.

To assess the level of opportunity this offers Irish business, Enterprise Ireland asked a panel of experts what lies on the road head.

 

From hardware to software

Barry Napier, CEO of Irish company Cubic Telecom – who provides global mobile connectivity solutions for automotive manufacturers including Audi, Skoda and VW – believes the future will be driven by software rather than hardware.

“The mindset has changed,” he says. “Historically when you went to an OEM (original equipment manufacturer) and you said to them, we want to do something, there was panic in their faces because they had to go and change the hardware, and then there were multiple partners they had to talk to in order to do that.

“It’s easier to change software, so now they are looking to do as much as they can via software solutions, putting mainframe concepts into vehicles and then seeing how they can run that through the cloud. The mindset is there with the OEMs to make the car lighter, faster and doing it all via software.”says Napier.

Hiren Desai, Head of Strategy and Innovation North America for Continental, agrees that tier one suppliers will need to be able to create value by manufacturing intelligence rather than just parts.

Hiren says: “The supply chain is going to undergo disruption over the next 10 to 15 years significantly when it comes to software coming in and replacing all the hardware that companies are used to producing.

“Companies like Continental are experts in industrialisation, which essentially means manufacturing. Now, what we’re really talking about is having software factories able to produce intelligence, able to write code, able to produce artificial intelligence, that’s where it is heading.”

 

Automotive industry rethinks the car

Whether it is in vehicles that transport people, goods or freight, OEMs will be looking for partners who can help them meet this demand. Traditional players will have to adapt and make room for new entrants from non-automotive backgrounds.

For Dr Engelbert Wimmer, CEO and founder of German specialist automotive management consultancy and investment company E&Co (Entrepreneurs and Consultants), this level of disruption can be seized upon by Irish companies.

“We are reconsidering every bit and piece of the traditional car,” he says. “That means changing materials and a whole new supply chain because the concept and characteristics of a vehicle that you want to operate 90,000km a year on a shared mobility or on an autonomous platform will be completely different because the durability and ownership will be changing.

“This means we will need to change the materials that vehicles are made from – from the rubber in the tyres to the steel and the chassis. We need to do a lot on recycling and greening the car by what components we will need. For companies who have interesting materials, who operate in material science and can supply components that are recyclable, this is a massive opportunity.

“You’re not just talking about tech companies, you’re looking at companies such as plastic moulders, or in the textile sector. It could be somebody from surface technology. It could be somebody in glass technology. Glass is a super interesting surface with a lot of functions, such as integrated light and displays. All these technologies are being reborn at the moment.

“You’re looking at an awful lot of companies that couldn’t previously have looked at the automotive sector. Every time you have a disruption in that size and with this technology scope, new entrants will have a super chance.” says Napier.

 

Hub for CASE development

Many Irish companies enjoying success in the automotive sector are part of the Connected and Autonomous Vehicle (CAV) cluster, which is supported by Enterprise Ireland, IDA Ireland, Science Foundation Ireland, Department of Transport, and the Lero research centre.

With Jaguar Land Rover’s Centre for Networked and Autonomous Vehicles at Shannon and French vehicle technology giant Valeo’s facility in Tuam as members, CAV Ireland is fast establishing the West of Ireland as a hub for CASE vehicle development.

CAV companies collaborate to identify products and services which can capitalise on export opportunities in the automotive supply chain. It is an approach which Engelbert believes fits well with the future of mobility.

He says: “Whether it is software or materials, it is not about one company producing all this. It is about collaboration and partnership. The tool chain has many, many links that need to be linked together.”