Key questions to ask at your US Market Advisor meeting

/0 Comments/in , , , , , , , , , /by

Ireland would fit into the US 130 times over and as you probably know there are cultural differences between the north and south, as well as the east and west coasts. For this reason, it’s important not to treat the US as one market, instead view it as 50 markets with four time zones. 

You should keep the following questions front of mind when having your first meeting with our dedicated team. 

  • What is the awareness of Ireland in this state?
  • What are the core sectors and what sectors should I avoid in this state?
  • Will I need a local partner company?
  • What kind of obstacles should I expect when entering the market in this state?
  • What local competitors are active in this market?
  • What taxes, charges or hidden costs should I be aware of?
  • Are there any social/political instabilities in this state that could affect my business here?
  • Are there any environmental instabilities in this state that could affect my business here?
  • What social norms should I be cognizant of when engaging in meetings with local people?
  • Will I need to set up an office in the state?
  • Will I need to hire local staff?
  • Can I relocate Irish staff in this region?

Set up a call with our team in the US today 

For more be sure to check out our Going Global Guide 

Enterprise Ireland’s top tips for entering the US market can be viewed by clicking the graphic below.

Sourcing the right Eurozone market for your business

/0 Comments/in , , , /by

Exporting to the Eurozone makes sense for Irish firms for several reasons. We share a common currency. Trade within the Eurozone benefits from the absence of tariffs and customs. A common regulatory environment means that Irish goods and services comply with EU legislation.

The Eurozone offers ease of access to 340 million people in the 19 states that share the single currency and a stable economy that, as a bloc, will continue to grow a further 1.3% through 2019.

Although the Eurozone’s population is five times that of the UK, it accounts for only 20% of all Irish exports. As such, it presents what Minister for Trade Pat Breen T.D. described as one of the greatest sources of “untapped export potential” at Enterprise Ireland’s Eurozone Summit earlier this year.

 

How to find the right Eurozone market for you

Finding the right market fit for your exports requires groundwork and an awareness that Europe is composed of different economies and markets, each with its own advantages and barriers to entry.

In order to successfully enter Eurozone markets, all elements of new market entry preparations are required: market research to select the market with the best opportunities, a value proposition that matches the new market and highlights your competitive advantage, the right route to market, and the resourcing of people, skills and funding to make it happen.

Some countries have well-known strengths and sectoral specialisms. At the Eurozone Summit, delegates heard from market experts who outlined some of the major opportunities – and some of the risks – that member state economies hold for Irish exporters.

 

Opportunities across the Eurozone

Germany is the largest Eurozone economy and the world’s fourth largest. Famed for its manufacturing sector, there are also opportunities for Irish exporters in the automotive, pharmaceuticals and medical device sectors. As one of the biggest foreign direct investors in the Irish medtech sector, German firms are familiar with Irish innovation and regard it highly.

Accessing Germany requires breaking into long-standing supply chains built on loyalty and quality, with consistency a key driver for German consumers. Decision making and order lead-in times can be protracted but the Irish reputation for flexibility stands exporters in good stead.

While many German brands are well known internationally, the domestic economy is driven by SMEs or ‘mittelstadts’, Angela Cullen, Senior Editor at Bloomberg Frankfurt, told the Eurozone Summit.

“Thousands of them form the backbone of the economy and they have honed their products to be market leaders. Partnering with a German sectoral partner may be necessary to get a market foothold.”

The nearby Benelux countries are some of the most densely populated areas of the Eurozone, allowing the rollout of a product to a large cross section within a small geographic area.

The Netherlands has long positioned itself as the number one logistics nation of the Eurozone with Rotterdam often referred to as ‘Germany’s largest port’.

As well as being the first point of entry for many physical goods, the Netherlands acts as a first point of entry for data as it is home to some of the largest data centres in Europe. Irish construction consultancy and build expertise is valued by the Dutch, with the sector continuing to show growth, and Dutch firms focused on securing their design and build supply chains post-Brexit.

“It is an extremely developed economy that is open to business and used to working with partners so it is natural for the Dutch to partner with fellow member states to bring off a project,” Willem Noë from the European Commission in Ireland said.

Belgium is often said to be one of the best test markets for products, given its population mix, and can be an ideal testbed, Ruben Hamilius, managing director of Businessgames Ireland, told the event.

“But be warned, the biggest mistake I see is exporters think ‘Build it once, sell it forever’ but that is not really the case. You need to do your research, as the product fit may not be right. Belgium is great for that.”

It certainly suited Irish parking marketplace start-up Parkpnp, who rolled out its parking app tech in Belgium first, eschewing its home market and the UK. The company has now honed its product into a franchising model already in place in the Netherlands and is rolling it out into France and Germany after learning valuable lessons in the testbed market.

In France, local language skills can be crucial, while supply chains are generally built on face-to-face contact rather than via the internet.

 

Enterprise Ireland supports can help

Enterprise Ireland’s world-class Market Research Centre has extensive resources to aid your research, while our Excel at Market Intelligence programme will advise how best to conduct market research.

Our Market Discovery fund is a key financial support for new market entry, ensuring you have funding to research, get expert advice and conduct market study visits. GradStart provides up to 70pc of two-year salaries for graduates with relevant market language skills.

Companies we support benefit from our market advisers’ near-unmatched knowledge of market dynamics, target buyers, networks and ecosystems across six Eurozone locations. When you’re ready to enter the market, we offer a key manager grant to help co-fund the salary of personnel with the right skills to work with market advisers and drive your diversification plans.

These supports will help ensure you find the right market fit and  “take advantage of the Eurozone”, as advised by the first President of the European Council, Count Herman Van Rompuy, at the Eurozone Summit.

 

 

Swiss time

Smart Swiss production creates opportunity for Irish suppliers

/0 Comments/in , , /by

Jens Altmann, a market adviser based in Enterprise Ireland’s Dusseldorf office, explains why Irish exporters are looking to Switzerland.

Fittingly for an alpine country, Switzerland offers a mountain of opportunity for Irish businesses. Although small, at just over half the size of Ireland, Switzerland is highly business-focused, boasting the second-highest gross domestic product (GDP) per capita in the world.

The Swiss manufacturing sector includes many familiar names due to an Irish presence. These include ABB Technologies, a global leader in power, robotics and automation technology, and Liebherr, one of the world’s largest manufacturers of construction machinery, helping to shape technological advances across many industries.

The development and implementation of digital applications is supported by the country’s infrastructure, data governance, education and workforce, subsidies, and other factors. Continuous development at Switzerland’s high level requires a comprehensive and reliable supply chain. That creates a variety of opportunities, particularly for companies developing smart manufacturing and industrial internet of things (IIoT) solutions.

Ralf Guenthner, Senior Partner at Swiss consultancy TEAM-FACTORY, comments, “Most technology companies in Switzerland are aware of the value IIoT and digitalisation could create for them. Developing a new mindset and holistic approach, combining technology, organisational changes and human behaviours, as well as building up a strong ecosystem, would boost value realisation.”

Ireland’s IoT industry is one of the most dynamic in the world, with companies largely focused on the industrial space, and providing software, platforms, sensors, integrated circuits, antennas, and more. Irish companies target a range of sectors including manufacturing, transport, logistics and engineering, with the aim of increasing operational efficiency, improving productivity, and enhancing health and safety.

 

Focus on Innovation

Last year, Enterprise Ireland hosted a trade mission to Zurich to help Irish companies explore IIoT opportunities in Switzerland. Over two days, 10 Irish companies engaged with industry associations, visited Swiss world-class manufacturers, and attended a targeted workshop and networking session.

Swiss multinational Schindler was one company Irish attendees visited during the trade mission. Schindler is well known for its elevators, escalators, and moving walk-ways, carrying both people and materials, and connecting vertical and horizontal transport systems through intelligent mobility solutions. Schindler’s futuristic PORT Technology lab in Switzerland showcases their ideas for innovative new transit management systems and urban living concepts.

Based in Zurich, ETH University is famous for cutting-edge research in areas such as microelectronics and robotics, and is one of the world’s top ten institutions. Enterprise Ireland collaborated with the university to host an afternoon workshop that brought together Irish companies and Swiss industry experts.

Compelling questions addressed during the session include – How do machines optimally collect and share data with other machines? How can they operate with increasing autonomy? Which applications are most impacting the development of IIoT and Machine to Machine (M2M)? How can opportunities for suppliers of everything from antennae and chips, to sensors and software, be captured?

 

Irish Swiss relations

Enterprise Ireland’s Dusseldorf office is focused on helping IoT companies to identify and exploit opportunities arising from the digitalisation of Swiss industry, and across the wider German-language region. We are extending our engagement with Swiss companies and industry leaders to actively promote Ireland as a technology provider for the IIoT value chain.

Switzerland’s high-tech leadership and the collaboration with suppliers from an international value chain, combine to make it a high-potential market for growing new business and technology partnerships.

Brigid O’Donovan, technology business consultant facilitating collaboration between world-class Swiss and Irish technology organisations, confirmed the potential of Swiss-Irish collaboration, noting, “Both countries are well positioned to take advantage of the productivity and economic growth opportunities of digitalisation.”

There is now a significant opportunity for Irish companies to become part of Switzerland’s enhanced value chain. That is a summit worth achieving.

 

This article was originally published in the Sunday Independent.

Water Sector

Time for the water sector to embrace innovation

/0 Comments/in , /by

In late February 2019, Enterprise Ireland held a water innovation seminar in Dublin, collaborating with Wet Networks, an Arup and Water Research Centre (WRc) initiative – the first time the organisation held an event outside the UK.

The seminar brought together UK water utilities and their top tier contracting partners with Irish innovators keen to collaborate to overcome significant challenges.

The seminar addressed the sector at a crucial moment, as it faces into its most challenging regulatory period so far, Asset Management Period 7 (AMP7), which runs from 2020-2025. Water sector executives heard from Irish businesses offering a range of solutions in a series of innovation presentations

During AMP7, water companies in England and Wales expect to invest £50bn in service improvements. Among other aims, utilities plan to increase resilience to drought, cut water bills by 4% on average, and cut leakage by more than 16% over five years.

 

Innovation crucial to water sector during AMP7

Water company delegates at the seminar were clear – a focus on innovation will be crucial during AMP7. For instance, companies do not yet know how they will cut leakage by 16% but are acting on the belief that innovation will provide a solution.

Dr. Fabio Bacci of Glan Agua described the importance of the event in connecting water companies with innovators: “This type of forum is absolutely essential and fundamental for a successful innovation project”.

Glan Agua advocates for the value of combining resources. For a recent project in London, the company collaborated with project partners Mota-Engil and Blücher in order to bring its carbon-based synthetic absorbent for the removal of metaldehyde and other micropollutants from the domestic water supply to market.

 

Saving energy

Several Irish companies in the sector are enabling massive reductions in wastewater sector energy use. The water sector in the UK currently accounts for 3% of the total national energy demand.

One of the most sought-after start-ups in the Irish water treatment sector is OxyMem. Its membrane-aerated biofilm reactor (MABR) technology uses significantly less energy than traditional waste water oxygenation systems, which use large compressors to diffuse oxygen into water.

Wastewater needs oxygen, as the biology in the water that removes pollutants requires oxygen to live and grow. MABR delivers oxygen to wastewater in a similar manner as the human body does to cells, said John McConomy of OxyMem: “In your body, you have approximately 50,000 miles of blood vessels. That’s enough in one adult to go around the world two times. One of the primary objectives of those is to deliver oxygen on a concentration gradient to all cells in the body. MABR does the same; it has tiny hollow gas-permeable tubes, but there are no perforations. This is not a filter. We put it in the wastewater. We pass air through it, the biology grows on it and it sucks the oxygen on demand.”

SMEs can be agile and think differently to large players, explained Michael Murray of NVP Energy. He showed delegates how NVP Energy’s unique low-temperature anaerobic digestion technology is enabling the move to low-temperature, low-stress wastewater treatment. Unlike traditional methods, NVP Energy’s system works without the need for water to be heated, saving considerable amounts of energy.

Michael explained that when the company was established, a major driver for him and his team was to use the business to positively impact the environment: “We wanted to challenge the status quo to offer our customers simpler alternatives, simpler solutions to wastewater treatment.”

 

Using data

Companies in the sector are experienced at handling immense flows of water but now face a less familiar torrent: that of data. The industry is experiencing exponential growth in this area, raising two main issues: how to manage the data, and how best to utilise it. Energy Elephant’s Joe Borza explained that the challenge will grow. He noted that, for a fraction of the cost of its competitors, Energy Elephant provides one AI-powered location for a water company’s data.

The value of data has becoming a pressing issue in almost every industry, and Gearoid Ó Riain of Compass Informatics said his company is exploring if anonymised mobile phone or transport data could be utilised in the water sector. The company has been working with large UK water company Severn Trent, providing it with a biosolids management system: “It’s a system that has been working very well and has been generating real value back to the water companies over recent years.”

 

Rising to challenges

Compliance is a second major challenge that water companies currently face. “You must do it, you spend a lot of time doing it, and it has the ability to cause untold grief and angst, as well as actually costing real money,” commented Klir’s Denis Neavyn. Many companies also bear additional responsibility, as regulators. Klir’s software assists with compliance processes, enabling companies to progress from reactive to proactive systems, keeping track of what licences must be renewed, when and by whom.

For water companies to meet these challenges, they must recruit and retain the most capable staff, but Billy Glennon of VISION Consulting believes many suffer from a “culture of resignation”. He noted a tension in the sector between how companies conform to the standards of the industry and the creation of a space where innovators can take risks. He advised that it can be difficult to complete projects in water companies and that managers tend to be risk averse: “When you ‘over process’ things and you ‘over control’ things, you reduce the capacity for innovation. We’re in the culture transformation business. What we do is we transform those kinds of environments into vibrant, entrepreneurial cultures.”

Read how Enterprise Ireland enables companies to develop new market opportunities with its Innovation Supports. 

Offshore wind energy

Significant opportunities for Irish companies in the UK offshore wind industry

/0 Comments/in , /by

Ambitious plans by the UK government mean that the country’s offshore wind industry is one of the most exciting and vibrant energy sectors in Europe, translating into exciting opportunities for Irish companies.

The UK offshore wind sector received a boost in March 2019. Under the government’s offshore wind sector deal, the country plans to generate 30 Gigawatts (GW) of offshore wind power by 2030 (approximately one third of the UK’s electricity needs), up from a current operational capacity of 7GW.

This ambitious plan requires a significant infrastructural investment of over £40 billion (€46 billion) and will require substantial collaboration with international supply chain partners. What’s more, the UK government has made a strong commitment to the investment, regardless of the outcome of Brexit. Given Ireland’s strong marine heritage and aptitude for innovation, the deal creates significant opportunities for Irish companies to collaborate with the UK offshore wind industry.

To promote Irish capability in the space, Enterprise Ireland has established an Offshore Wind Cluster, currently consisting of 30 companies. The cluster will promote communication and collaboration between cluster members and act as a primary vehicle for interaction with UK industry stakeholders and key buyers. The cluster will also provide members with the market insights required to maximise the potential for success.

 

Building on offshore wind success

The levelized cost of energy (LCOE) of offshore wind in the UK has dropped at pace over the last 10 years or so, and is now regarded as the cheapest form of clean large-scale new-generation energy relative to nuclear and gas.

This new deal looks set to build on that success, with several important aims for the UK economy. These include creating 27,000 skilled jobs, decreasing the cost of electricity to UK consumers by £2.4 billion (€2.8 billion), and transforming rural coastal communities into thriving hubs of economic activity and technological innovation. Part of the plan focuses on developing a new accreditation framework for apprentices and workers, which will equip the latter in particular with transferable and exportable skills.

As part of the deal, the UK government has committed to holding biannual Contracts for Difference (CfD) rounds, with 14GW confirmed capacity likely to be supplemented by four to five further CfD rounds releasing a further 16GW. Approximately 3-4GW is likely to be released each round, with 1.5-2GW build out per annum. To put this into an Irish perspective, Ireland’s largest single power station is Moneypoint, which has a 900MW capacity – almost 25% of total Irish generating capacity. This means the UK is aiming to have an annual build out of the equivalent of two Moneypoint power stations.

These are ambitious aims for the industry, and although one objective of the UK government is to create local, regionally dispersed employment (the deal aims for 60% local content), the offshore wind industry is a global one, and the UK must compete in the global marketplace.

Offshore wind is now also a key part of energy strategies in Germany, Belgium, Denmark and France, and deployment in Europe is likely to exceed 67GW by 2030 – a huge jump from the 16GW recorded in 2017. Each country is now looking for innovative solutions to key challenges and to drive down costs, creating substantial global opportunities for companies working across the sector.

 

Key challenges

The industry’s expansion has created challenges, and opportunities for the Irish supply chain lie in the provision of cost-effective and innovative solutions. With floating offshore wind also a rapidly developing technology, deeper waters and more difficult environmental conditions create additional and more unique innovation challenges.

Ireland has strong capabilities in several areas important in helping to meet these challenges, including survey provision and geotechnical services, maintenance and data collection. Innovation is integral in all of these areas, and with our strong IT, Internet of Things (IoT) and marine industries, Irish companies are increasingly at the cutting edge when it comes to bringing effective solutions to market.

The UK offshore wind industry is also increasingly aware of the strengths of Irish companies and innovators, as evidenced by the number of major offshore wind developers and top-level contracting companies who travelled to Dublin to attend the Enterprise Ireland Offshore Wind Forum in late March 2019.

Among the visiting companies to present were SSE, who has over 15 years’ experience in offshore wind, counting such projects as Beatrice, Seagreen, Dogger Bank and Greater Gabbard Walney among their development portfolio. SSE is also currently developing the Seagreen Zone; Phase One within the Zone includes the development of two offshore wind farms, Seagreen Alpha and Seagreen Bravo, located around 27km from the Angus coastline in Scotland, which have a potential combined capacity of up to 1.5GW. The company is aiming to start construction in 2021, with first exports in 2023. Phase Two and Phase Three will follow, with billions of pounds invested in each one.

Also presenting at the event was EDF Renewables. The organisation’s Head of UK Development, Sarah Pirie, spoke about the Neart na Gaoithe project, a £3 billion (€3.5 billion) capital project over its lifetime. Another major developer to present was EDP Renewables. The company highlighted opportunities in the Moray East and Moray West projects, both of which are looking for supply chain partners.

With UK developers and their top tier contracting partners eager to engage with the Irish offshore wind supply chain, it is clear that increased interaction and dialogue is key to collaboration between the industries in both countries.

For further information on Irish capability in the space, and to learn more about future Enterprise Ireland offshore wind cluster plans, please contact Darragh Cotter in Enterprise Ireland’s London office at: darragh.cotter@enterprise-ireland.com.

Map of EU with padlock

GDPR and Data transfer to or through the UK

/0 Comments/in , , , , , , , , , , , , , , /by

The General Data Protection Regulation (GDPR) came into force on 25 May 2018 and unifies data protection law throughout the EU. It gives individuals control over their personal data and requires businesses and other organisations to put in place processes that protect and safeguard that data. The regulation also addresses the transfer of personal data outside the EU and EEA.

 

Dealing with the UK, USA and other third countries

GDPR came into sharp focus this year as a result of the UK’s withdrawal from the EU. GDPR still applies in the UK, however as it is now a third country it is subject to the GDPR rules governing the transfer of data outside the EU and EEA.

 

Data transfer to/through the UK

The first thing for firms to do is to establish exactly where their data goes. Companies may not realise that their cloud storage provider is actually located in Britain or Northern Ireland. Their pension schemes, payroll, healthcare plans may all be run out of the UK and involve the regular transfer of personal data. Workplace benefits databases could also be held in Britain or Northern Ireland. Even translation services might be covered if personal data is included in the material to be translated.

Having established that data is being transferred to the UK, the next step is to decide if that needs to continue. There may be options to look for another service provider in Ireland or another EU Member State and these should be explored.

Standard Contractual Clauses

If it is not possible or if it is too difficult to take this option, there is a ready solution to hand. There is a tool that can be used to solve this problem and it is available on the Data Protection Commission website. It is known as the standard contractual clauses (SCCs). This is a set of off-the-shelf clauses developed by the European Commission and which are recognised as an appropriate safeguard to ensure that firms remain compliant with GDPR.

The SCCs are already written and only require firms to fill in the blanks with their details. They can be appended to existing contracts and come into force when both parties sign them. Once signed, this enables firms to continue transferring data to the UK in full compliance with GDPR, and people still have their rights.

The data subject is also given certain specific rights under the SCCs even though they are not party to the relevant contract. Firms are also advised to update their privacy statements to indicate that the data is transferring to the UK under the terms of the SCCs.

The SCCs will cover most situations, but there are certain more complex cases where they may not apply. These are relatively rare, but firms in doubt should consult the Data Protection Commission or seek their own legal advice  to check out their particular situation.

There are also certain situations where the data transfer is not covered by contract. These include cases where data is being transferred from a UK Controller to an Irish processor for processing and then transferred back to the Controller. This has been a relatively routine process up until now, as the data remained within the EU at all times. The best advice for firms based in Ireland who find themselves in this situation is to look at the clauses within the SCCs and insert them into the service level agreement governing the activity. This will demonstrate an intention to be GDPR compliant in the new situation.

The same will apply to Irish shared services centres carrying out global back and middle office functions for multinational parents. They should update the terms of service to UK-based affiliates to include the SCCs.

 

Data Protection Policies

Some very large organisations use what are known as Binding Corporate Rules (BCRs). These are legally binding internal codes of conduct operating within a multinational group, which applies to transfers of personal data from the group’s EEA entities to the group’s non-EEA entities. The approval of BCRs can take a significant period of time and also, given the cost and complexity of BCRs, they are not a suitable transfer tool for most Irish companies.

The only remaining questions for Irish firms transferring data to the UK concern adequacy. Certain ‘third countries’, such as Japan, have received what is known as an ‘adequacy decision’ from the European Commission. This allows a cross-border personal data transfer from the EU to that country because it has been determined to have an adequate level of data protection safeguards compared to the EU. It could take some time before the European Commission completes its negotiations with the UK Government in order to deem the UK adequate as a jurisdiction to which data can be transferred under GDPR. Therefore, companies need to explore the options available to them when transferring data to the UK.

Irish companies banking United States

How to manage US banking, employees and legal fees

/0 Comments/in , , , , , , , , , , , , /by

Two challenges that Irish companies sometimes experience when preparing to export to the United States for the first time involve banking and employment. The following pointers will help you to prepare.

Download the full Going Global USA: Learn your Legals guide now.

All US banks require an Employer Identification Number (EIN) confirmation letter, also known as Form SS4, before opening a business account in your company’s name.

 

How to apply for an Employer Identification Number

You can apply for an EIN online on the Internal Revenue Services website, if you already have a US social security number (SSN), or an individual taxpayer identification number (ITIN).

If you don’t have an SSN, you can apply for an EIN from the IRS by fax or have a lawyer act as a ‘third-party designee’ to prepare and process an EIN application on your behalf.

 

If you have an EIN

Some banks will accept a copy of a fax from the IRS assigning your business entity with an EIN. Others will need to see the EIN verification letter sent by the IRS, which can take weeks to arrive.

Most banks will also require a copy of the company’s formation documents – US business address and annual statement of officers and directors.

To comply with mandatory anti-money laundering legislation, US banks need to verify the identity of those opening business accounts under Know Your Customer (KYC) rules. There are several ways the requirement can be met:

  • Get a visitor visa to travel to the US and personally open an account at your bank of choice
  • Use third-party services to help you set up an account
  • Some banks will set up an account without the relevant corporate officer being in the United States. If acting on a referral from a legal representative, the process can be completed via email.

 

Employment considerations

Irish companies should carefully plan their approach to hiring personnel in the US as there are a number of potential pitfalls to be aware of. For example, if you hire someone as a consultant or independent contractor, it could later be determined that they are actually an employee under US law. Improper classification risks exposing a company to penalties and liabilities, including the withholding of taxes, benefits, and the possibility of being sued by the employee.

Laws governing US employment and benefits are complicated, which makes it vital for potential exporters to seek the advice of legal professionals.

As US benefits packages vary widely and differ significantly from those in Ireland, companies should seek advice on what employees in specific roles are likely to expect when considering a job offer.

 

Legal costs

For small companies using a lawyer or legal service provider for help with company formation and setting up, fixed fee packages in the range US$3,000 to US$5,000 are available. Packages usually include general counsel, registration fees, and the creation of incorporation, confidentiality agreements and stock issuance.

In general, you can expect to pay additional fees for operating and shareholder agreements, as they can be highly complex. While legal assistance with IP transfers can also be costly due to complexity, many Irish companies keep IP rights within the Irish parent, with the US entity established as a servicing company.

 

Access more insights on doing business in the US.

Digital Health icon

Data is the road to digital health

/0 Comments/in , , , , /by

Drive on any major road in Ireland and sooner or later you will pass a sign bearing the mark of the EU flag. Such signs mark Europe’s commitment to helping Ireland build a world-class road infrastructure.

As the turn of the millennium saw the fulfilment of road projects deliver people and goods around the country, a new strategic infrastructure is now underway to deliver what is arguably the single most market-disrupting change to how we work, live and do business – the movement of data.

Data, once housed in paper files or offline digital silos contained within organisations, now has the power to connect as never before and, with the advent of General Data Protection Regulations (GDPR), there is a protocol that enables for the first time the free, and safe, movement of data throughout Europe.

For businesses, the implications are too important to ignore. The figures are truly astonishing and show the transformative nature of the growth of big data. It is estimated by the Dutch Datacenter Association that 90% of the world’s data was created in just the last two years alone. The total addressable market for the digital economy could be worth in the region of €415 billion a year, according to European Commission forecasts.

 

Data is central to digital health

It is no less than utterly transformative, and one of the biggest areas to see massive change is healthcare and patient data. Connected devices, wearables and the Internet of Things, together with cloud computing and pooled data is putting patients at the centre of their healthcare journey.

“Ten years ago, digital health in those days was an option,” says Brian O’Connor, chair of the Irish-based European Connected Health Alliance (ECHA). “Today digital health is a must. The world has moved on tremendously in the past five years and we need to embrace this revolution.”

This revolution, says O’Connor, is redefining how states interact with citizens and their personal data, not least in health. Consumers regularly hand over personal and financial details and there appears to be a growing acceptance for doing so with confidential medical data, he says.

 

Countries leading by example

He cites Estonia, which fully embraced digital citizenship and eHealth after 95% of the populace said they approved of digitised medical information. “The only thing you cannot do online in Estonia is get married or divorced,” says O’Connor. “Getting your blood results, booking a GP appointment or seeing which consultant at which hospital is available can all be done by citizens online. It’s as simple as booking a cinema ticket.”

But the power of joined-up connected data sharing becomes apparent when O’Connor explains that it works across national borders, most notably with Finland. Many Finns commute to Estonia and their digital records move with them, allowing them to see their GP in their home country but pick up the prescription at work in Estonia.

Similar cross-border data-sharing is already underway on the island of Ireland. Ambulance crews on both sides of the border are able to pick-up a patient and check out bed space and resources in hospitals either side of the border before transfer, with benefits for both patient and healthcare provider.

 

Ireland’s journey to a digital health system

Just over two years ago, Ireland unveiled the first national electronic patient chart for maternity anywhere in the world with the birth of daughter Emily to Ellen Shine and Aidan Cotter at Cork University Hospital. The scheme is now being rolled out nationally.

It is in an early stage but Health Minister Simon Harris called it the first step in a ‘national journey’ towards a digital health system. The Government has committed to implementing its vision of a digital health system, as outlined in its 2017 Slaintecare strategy and, much like the road infrastructure, Ireland has availed of a €225 million loan from the European Investment Bank to aid some of the implementation, while the State itself has earmarked some €85 million for 2019 for eHealth, €100 million for 2020 rising to €120 million by 2021.

“The EU funded bridges, roads and tunnels in the last century. Now it is funding infrastructure for the free movement of data,” adds O’Connor.

One of the key planks for this medical data sharing is the approval within the last six months of a European Patient Summary Record, a digital record that stores standard information

“Ireland is in the lead in my opinion in this area. The ECHA has linked that digital maternity programme with other countries such as Netherlands, Finland, Spain, Estonia, France and Denmark. There is huge interest in our system.”

Now there exists a real opportunity for the private sector to introduce its innovation into the HSE and beyond, says O’Connor.

 

Sourcing innovative solutions

Enterprise Ireland has also been supporting the ecosystem at its grass roots.

“We have to acknowledge the role of Enterprise Ireland here,” adds O’Connor. “It is working directly with the HSE to find out their needs in relation to Slaintecare. Then they work closely to introduce indigenous Irish companies who might have a solution.”

This builds on work by ECHA, which also reaches out to healthcare providers across its 78 member countries to link innovative eHealth products and solutions to clinical teams that need a solution.

Introducing innovation and enterprise into the supply chain is exactly where we want to be, added O’Connor.

The knock-on effect, he says, is that the healthcare procurement process is vastly improved as it builds in previously unknown innovation, innovation which may never have crossed the desk in any other event.

It remains to be seen if a GP waiting room or a hospital cloud server will carry the ubiquitous EU flag sign but one thing is certain, data infrastructure is as important for this century as roads were to the last.

 

Learn more about the innovation supports available from Enterprise Ireland.

Enterprise Ireland’s top tips for entering the Dutch market

/0 Comments/in , , , , , , , , , /by

The Netherlands is active worldwide in providing creative and sustainable solutions for global challenges relating to water, food, energy, health, environment, and security, this thriving economy welcomes foreign business and is a great starting point for clients who wish to enter the Eurozone.

If you are considering doing business in the Netherlands, please be sure to explore our tips to enter the market below and also be sure to reach out to our dedicated team.

  • Dutch is the national language of the Netherlands, but they are very open to conversing in English, with 90% of the population speaking it. Although a translator may not be crucial at first, it is considered a sign of good intent to have local people and services involved on the ground.
  • In Dutch business culture, meetings are important and famous for their traditional ‘Afspraken’, (crucial discussion opportunities.) The Netherlands has led the shift towards remote working long before the Pandemic, and are well prepared for digital meetings, something that is of increasing importance in today’s age. Come dressed relatively formally and you’ll fit right in.
  • The Dutch are masters in logistics, and home to world-class seaports, airports, and railway systems. You also have access to 170 million consumers at your fingertips, and not only that, NL is ranked no.1 in the world in digital connectivity, something that should be embraced.
  • Decide on a route to market: Joint ventures and acquisitions can be a successful route to market in the Netherlands, gaining you a foothold and bringing on board established contacts and market knowledge.
  • Like Ireland, the Netherlands relies heavily on exports. As a result, they are naturally more open to international trade, making it very possible to sell directly. That being said, export strategies that include a local partner are usually more successful and foster a consistent presence.
  • Trust the Process and embrace the economic and cultural benefits that the Netherlands has to offer. A global pioneer in several markets this is an ideal location to step into Europe.
  • Understand that sustainability is key: At present, the Corporate Tax rate is 20% on the taxable amount up to €200,000 and 25% on excess, worldwide. The environment is important to the Dutch, and reliefs are provided for companies who value sustainability.
  • Be prepared and know your competition: It is important to do your market research. This is a highly competitive landscape, with 15,000 foreign companies competing in a country smaller than Ireland. Luckily, our world-class Market Research Centre can assist you with valuable market intelligence to help shape your strategy.
  • Be innovative: in the Netherlands, it is important to be forward-thinking and competitive. Make sure you have a strong value proposition and stand out from the rest.
  • Finally, do your research! Explore the different resources available from Enterprise Ireland to delve deep into the market and really understand the opportunities and challenges that will arise. Our world-class Market Research Centre provides countless market reports, and MA’s are happy to help with market-related requests.

For more be sure to check out our Going Global Guide 

If you would like to know what to prepare ahead of your first MA call, click the graphic below

Trevor Bishop UK Water

Senior water industry executive Trevor Bishop outlines opportunities as UK enters five-year plan

/0 Comments/in , , , /by

Following a keynote speech at the Enterprise Ireland and Wet Networks (an Arup and WRC initiative) Water Innovation Seminar in February, Trevor Bishop spoke to Enterprise Ireland to discuss key issues explored at the event. Bishop is Organisational Development Director with Water Resources South East in the UK.

 

Water companies in England and Wales face demanding requirements for Asset Management Planning Period 7 (AMP7), with the next five-year plan for the sector covering the period 2020-2025. The economic water regulator Ofwat has said that issues to be addressed include population growth, climate change and water scarcity. Companies must also deliver on a need for fairer pricing, water supply resilience, and environmental protection.

 

Bishop stresses that requirements present a major opportunity for innovators to connect with water companies. One of the biggest problems faced is leakage, with many companies committing to reducing leaks by around 15% during AMP7. Bishop said, “It’s a very significant challenge. The boards [of water companies] have shown high levels of ambition following challenges set down by regulators. However, these ambitions will require companies to go beyond what they know they can do and will rely on real innovation to deliver.”

“It isn’t always easy for an SME to work directly with a big water company. We need to make sure we can find the right partnerships, so that innovation can be used where it’s appropriate and we can share and learn better between us”.

 

Bishop outlines what lies beneath

Much of a water company’s asset base is below ground, the network of pipes. A significant challenge is that knowledge about these assets is often limited: “It’s very difficult to understand their condition. We all too often tend to only know that there is a problem when something starts to go wrong,” Bishop explained.

One area in which innovators can assist water companies include the need for technology to monitor performance, condition, bursts and damage: “We’re starting to see some breakthrough technologies that could actually be quite disruptive, with regard to these aspects, particularly the shift from performance to condition monitoring.”

Bishop mentioned the potential to adapt ideas from other sectors. As we know, modern cars now use an electric current that flows through the windscreen, allowing it to detect water drops, so that wipers activate when it starts to rain. We are starting to see people thinking about similar application in the pipe network to alert companies to condition and leaks.

As its name suggests, Water Resources South East is an alliance between six water companies from the south east of England. It faces some major challenges arising with AMP7 and will need to increase capacity by roughly one third through to 2050 while needing to reduce its traditional reliance on mainly rivers and groundwater.

Bishop commented, “Most catchments are effectively fully licensed in terms of abstraction, so we need to look for innovations, new and different ways to use water more effectively by conservation, demand management and leakage, but also by moving water from areas of service to areas of deficit, looking at desalination, looking at more reservoirs, looking at effluent reuse and recycling of water within basins, etc.”

 

AMPing up the pressure

Irish innovators should be alert to the opportunities arising from challenges created by AMP7. Bishop noted that, “Ofwat is going to be putting some pretty serious efficiency challenges on base operation expenditure for water companies and that’s going to drive a strong need for really good innovations. A lot of companies were very interested in what they were seeing and hearing from some of the innovators [at the Water Innovation Seminar]”.

He added that he was not just impressed by the Irish companies alone: “I was really impressed with the system in Ireland to nurture those innovations and to help drive them through to commercial organisations.”

 

Adaptive planning

Trevor believes that resilience is about thinking about things in combination: “You can’t plan for every single extreme that might happen but what you can do is take a much broader overview of what those risks look like and what best value interventions you can make to actually help mitigate a range of threats.”

One issue of concern for Bishop is the ability to source appropriately skilled people, as multiple large infrastructural projects are underway in the UK: “Some companies are starting their own skills academies. We’ve got an organisation called Energy Utility Skills, which includes water, looking at future trends in skills and capacity”.

Water companies have traditionally been seen as risk averse. Is now the time for a change in attitude? Bishop concluded, “If you’re thinking about drinking water quality, absolutely not. They need to be risk averse. The legislation is set that way and so they should be. With regard to some of the other challenges we face, you’re looking at genuine opportunities for innovation. You’re looking at taking risks, and companies are starting to show they can do that by making their commitment on leakage above what they probably know how to deliver.”

 

Insights from the UK water sector

Steve Quarmby, United Utilities:

“United Utilities, in common with all water companies, has got to save something in the order of 8-10% of our capital spend. And that is expected to be delivered by innovative ways of working – the pathway to do that isn’t quite clear. The areas where we need to explore are defined but the means and the mechanisms are actually quite vague. Now, that’s quite inspiring and gives room for creativity but it’s also slightly scary because we don’t know what the answer is. However, I am optimistic because we do have a proven track record of having risen to all the previous challenges.”

 

Jon Brigg, Yorkshire Water:

“We’ve got a real challenge with phosphorus removal in the next five years under the Water Industry National Environment Programme (WINEP) challenge for 2020-2025. OxyMem technology [an Irish company who presented at the Water Innovation Seminar] doesn’t recover phosphorus but what it does is it creates capacity within a standing activator solution plan, which allows us to adapt half of the channel to phosphorus removal and a more concise footprint for nitrogen removal, the ammonia removal. It’s thinking about things slightly differently and with the NVP technology [another Irish company that presented at the seminar], again we’re looking differently at how we deal with small sewerage treatment works, and remote sewerage treatment works.”

 

Darragh Cotter, Cleantech Market Advisor based in Enterprise Ireland’s London office, commented, “It’s so important to have key UK water industry figures such as Trevor, Steve and Jon to Ireland to discuss the innovation challenges facing the sector.

“It gives Enterprise Ireland water and wastewater cluster members a clearer picture of the challenges and requirements facing UK water utilities. It’s also an important opportunity for Irish companies to showcase how they can collaborate with UK industry to help meet the stringent objectives set by Ofwat, the regulator. Exchanges like this are crucial for utility and supply chain engagement and are necessary to ensure that excellent Irish technology and innovation is at the forefront of sustainable water provision and management in the UK.”

East Africa

Silicon Savannah beckons for exporters keen to capitalise on East Africa growth

/0 Comments/in , , /by

Lisa Kallback, a trade representative for Kenya at Enterprise Ireland, describes exciting opportunities heating up for Irish exporters in East Africa.

The Rift Valley in East Africa is generally thought to be the area in which modern humans first appeared. Fast forward 200,000 years and this Cradle of Humankind has been reborn economically.

Three of the top 10 fastest-growing economies in the world in 2017 were located in East Africa. The African Development Bank (AfDB) has forecast growth of 5.9% in the region this year and 6.1% in 2019, with Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda all reporting GDP growth in excess of 5%.

Why East Africa is on the radar of Irish exporters

Trade between Ireland and Africa is also on the rise, forecast to reach €24 billion by 2020. In 2018, as in every year since 2012, East Africa will be the continent’s fastest-growing region.

It is little wonder then that the region’s burgeoning middle class, estimated to comprise about 10-15% of its 430 million-strong population, is on the radar for exporters.

While agriculture is an area in which many Irish companies have enjoyed success, opportunities also abound in other high-value sectors, such as healthcare, fintech, and ICT.

Nairobi, Kenya’s capital, is at the heart of East Africa’s transformation. Indeed, its reputation as an ICT hub has earned Kenya the moniker Silicon Savanah.

 

Opportunities in the Silicon Savanah

Mobile money technology was pioneered in Kenya. The electronic wallet service – which allows users to store, send, and receive money using their mobile phone – has transformed how many Africans receive their pay and spend funds. The service is actively used by an estimated 66% of all adults in Kenya, Rwanda, Tanzania, and Uganda.

Dublin-based provider Oxygen 8 offers mobile payment solutions through their Tola subsidiaries in Kenya, Mozambique, Tanzania, Uganda, and Rwanda, as well as Ghana in West Africa. Group CTO Shay Hamilton explains, “The economies in East Africa are growing quickly. Of course, some will be coming from a low base but the emerging middle class means there are more opportunities to come and sell, particularly in the digital space, due to the prevalence of tolled mobile infrastructure, coupled with the mobile payments services.”

Key advice for Small and Medium Enterprises looking to break into East African markets is to ensure you have a strong local partner.

Ruth Barnes is Director of Commercial Operations at Vitro Software, which provides medical records software to the fast-growing private health sector. She says, “We have a partner in Kenya and work very closely with them. But even when you have a partner, it’s hugely important to make the trips and be on the ground there. They are an extremely warm and affectionate people. The relationship is all important and you need to invest time in building those relationships first of all.

Pricing is another issue that Vitro has focused on. “African people are very tech savvy. They’re open to innovation but price has to be achievable because, while growth in East Africa is strong, they are still developing countries. If you’re willing to be a bit flexible in terms of your model and pricing, there are opportunities.

Peter McEntee, of telecoms software provider Nasc Technologies, draws parallels between opportunities in East Africa today and those in Ireland in the 1990s. “A lot of the telecoms software we started out doing was suited to helping telecoms companies in developing countries, and specifically, to Africa. We’ve since developed a range of software for fibre deployments as well, and there is a lot of fibre deployment happening in East Africa, similar to Ireland in the 1990s when the market opened up and new players came in.”

The modern reality of East Africa is much changed from the West’s image of the region in the late twentieth century.

Enterprise Ireland can help exporters with an eye on the savvy Silicon Savannah to identify sectors and opportunities, make introductions to potential partners and buyers, and advise on important procedures, market entry barriers and license requirements. For more information contact Lisa.Kallback@enterprise-ireland.com.

 

This article was originally published in the Sunday Independent.

Czech Republic

Central Europe: Old town, new export opportunities

/0 Comments/in , , , /by

Ladislav Müller, manager for central and southeast Europe at Enterprise Ireland, describes new opportunities that are proving attractive to Irish exporters.

From Dublin, it only takes two hours on a packed plane to land in Prague. The city is a popular tourist destination and capital of the Czech Republic, one of the fastest growing economies in Central Europe. As thousands of tourists rushed to the cobbled streets of its old town, Czech Gross Domestic Product increased by 4.5% in the first quarter of 2018. Neighbouring Slovakia has shown 3.6% growth, with Hungary at 4.7%, and Romania at 4.2%.

According to EY’S Attractiveness Survey 2017, Central Europe attracted nearly half of Europe’s industrial investment projects in the period. Its strengths are its geographical links, good infrastructure, the quality of its human capital, and its productivity. The provision of EU funds is another key driver, particularly for Romania, Hungary, and the Czech Republic. The Financial Times projected an improved economic picture for the region, based on stronger-than-expected global demand, tighter labour markets, government stimulus measures, and easy financing conditions.

Irish exports to the region have also grown for the last ten years, even during the recession.

 

Irish exporting success in Central Europe

Many Irish exporters are growing sales by supplying large multinational corporations with a base in the region. Ventac, vehicle and industrial noise control specialists from county Wicklow, set up a regional sales office in the Czech Republic, while Waterford’s PPI Adhesive Products, a leading manufacturer of technical adhesive tapes, run their regional sales operations from Slovakia. Portwest, the Mayo-based designer and manufacturer of high-quality workwear, have a CEE sales headquarters in Hungary.

But Irish companies are not only targeting large multinational companies. Central European agriculture has experienced remarkable growth over the past number of years, supported by an expanding food industry, domestic investments, and EU farm subsidies. Between 2014 and 2020, CAP and EARDF subsidies will reach €26 billion in Romania, €8.3 billion in Hungary, and €7 billion in the Czech Republic. Spending is driven by pressures on efficiency and food safety, environmental and animal welfare regulations, and requirements for farm machinery upgrade or replacement.

In 2017 MooCall, producers of unique calving sensors, were awarded a Gold Medal for innovation at AnimalTech trade fair in the Czech Republic, followed by Dairymaster, who won the Grand Prix at Czech TechAgro 2018 for smart technology for their MooMonitor health and fertility monitoring system.

Enterprise Ireland runs a long-term programme called Opportunities in Agriculture in Central and Eastern Europe that helps Irish farming machinery and technology producers to enter local markets.

Many Irish companies perceive Central Europe as a source of competitive advantage on the continent. Kingspan, producer of insulation panels, celebrated twenty years for its plant in Hradec Kralove, Czech Republic in May 2018. PM Group, international providers of services in engineering, architecture, project management and construction management opened offices in the Czech Republic and Slovakia in 2010. Grafton Recruitment and CPL Jobs are market leaders in human resources management across the region, while many Irish technology companies set up in Romania to service customers.

 

A hub for business process outsourcing

Central Europe is also one of the fastest growing locations for business process outsourcing (BPO) centres and service companies in Europe. According to Outsourcing Advisors, a third of major outsourcing companies now come from Central and Eastern Europe. Ireland has a very strong offer for BPO operators, who are in turn always seeking solutions that drive efficiencies or offer cost savings.

 

Untapped opportunities in Central Europe

As Brexit uncertainties continue, Central Europe offers significant export market potential, thanks to its closeness to Ireland, strong Irish presence, and concentration of multinationals and local buyers.

To support further growth, Minister of State Pat Breen led an Enterprise Ireland trade mission to Warsaw and Prague last June, targeting opportunities across the engineering, electronics, enterprise software, and medical devices sectors. Irish companies signed contracts in excess of €7.5 million during the mission.

Enterprise Ireland’s office in the Czech Republic is ready to facilitate market research visits, introductions to buyers, and searches for distributors, to help companies we support to win new opportunities in an exciting region.

Learn more on how Enterprise Ireland supports businesses to diversify at Markets & Opportunities.

This article was originally published in the Sunday Independent.