KTL Lean transformation

When KTL targeted growth, they focused on competitiveness

KTL Lean transformation

“..agility can come at a significant cost to the bottom line. Lean allowed us to optimise and standardise most key business processes.”

Niall Byrne, Director KTL

Key Takeouts:

  • KTL is a leading provider of engineering services to the telecommunications and utility sectors.
  • By implementing Enterprise Ireland’s Lean transformation programme, KTL has increased turnover by 30% in the last four years.
  • After standardising their customer acceptance process, KTL allowed customers to onboard solutions much faster and more efficiently, which vastly improved their competitiveness.

Case Study: KTL

Enhanced competitiveness has enabled engineering services firm KTL to achieve significant gains in both turnover and profitability. Since implementing an Enterprise Ireland-supported Lean transformation programme four years ago, turnover has increased by 30% to €40 million, while 1.5% has been added to net margins.

The Naas-headquartered company currently employs 300 people and is recognised as a leading provider of engineering services to the telecommunications and utility sectors, working primarily with mobile network operators, electricity network operators, and major equipment vendors. With operations in Ireland and the UK, KTL’s reach extends to projects in Europe and Latin America.

“We came from small beginnings,” says Director, Niall Byrne. “The company was founded in 1998, as a small civil contractor working out of a house and yard in Maynooth with 15 people. We started out just as the mobile networks were beginning to take off and we were well positioned to serve that market. I’m not sure if we fully realised that at the time. Digifone was our first mobile network customer and we added Vodafone shortly after that. We then moved into power infrastructure.”

Today, KTL works with leading blue-chip clients in the UK and Ireland, including Vodafone, Three, Telefonica, EE, ESB, Northern Ireland Electricity (NIE), and SSE Renewables.

“We see ourselves as a design and build partner for our customers when they are upgrading their networks or installing new technologies,” Byrne points out. “Our focus is on delivering value to customers. We have been an innovative company since we started and have always looked for ways to improve. We began working with Enterprise Ireland in 2008, when we were starting out on our international journey. We worked with them on market research and feasibility studies at that stage.”

Plans for growth inspired focus on operational excellence

In subsequent years, Enterprise Ireland also assisted the company in the implementation of growth plans.

These growth plans led the company to seek ways of improving its competitive position. “We stood back and took a look at the business and at our competitiveness and capability,” Byrne adds. “With the support of Enterprise Ireland, we embarked on a LEAN transformation programme in 2014. We had always tried to be an agile company. We have to be, because we work in a very fast-moving sector. But that agility can come at a significant cost to the bottom line. Lean allowed us to optimise and standardise most key business processes.”

The best example of the benefits of the Lean programme is the customer acceptance process, according to Byrne. “On the face of it, it’s different for every customer and project. It’s a highly complex, 100+ page document for each individual site, of which there are thousands in a mobile network. Anyone who has experience of it will tell you how challenging and time-consuming the whole process is. But when we looked at it and peeled the skin off, we saw how much of it could be standardised. We figured out an innovative approach to it and we also developed a software tool, Infratrack, to do it.”

That sped up the process greatly for KTL and allowed customers to onboard solutions much faster and more efficiently. Other benefits of the Lean transformation programme included a significant reduction in site visits, a 14.7% reduction in expenses through the introduction of a fleet management solution, a 13% reduction in employee turnover, and a 35% reduction in lead time in various processes within the business, including invoicing and purchase order generation.

“It improved our competitiveness, and that enabled us to acquire additional customers and improve our profitability at the same time,” says Byrne.

For the future, he believes that ongoing growth in the mobile market, with 5G coming down the line and continued network renewal by the power companies, will deliver opportunities for the company. “We will continue to develop our fantastic team,” he adds. “We are a service company and our competitive position relies on a talented, experienced, loyal pool of people. We are nothing without our fantastic team. Enterprise Ireland has also been a key part of the team, which enabled us to internationalise and expand the business.”

Learn more about Enterprise Ireland’s Competitiveness supports here.

Focus on Exports Helped Kirby Triple Turnover

“We’ve achieved growth in three ways, through strengthening our capabilities, going deeper into our chosen sectors, and through geographic expansion.”

Jimmy Kirby, MD Kirby Group Engineering

Key Takeouts:

  • Kirby provides full mechanical and electrical engineering contracting services, as well as specialist voltage design and construction services to clients.
  • Has achieved growth in three ways, through strengthening capabilities, going deeper into chosen sectors and through geographic expansion.
  • Enterprise Ireland has supported Kirby to develop its international operations.

Case Study: Kirby

Developing export markets has helped Kirby treble its business in just seven years.

Founded in 1964, Kirby provides full mechanical and electrical engineering contracting services, as well as specialist high voltage (HV) and medium voltage (MV) design and construction services, to clients across several key sectors. These include data centre, life sciences, industrial manufacturing, commercial, petrochemical, and substations and renewables.

With the support of Enterprise Ireland, Kirby operates in a number of markets including the UK and Northern Europe.

Growing international operations

“In 2008, we began our first overseas work in the UK, initially focusing on the pharmaceutical, industrial manufacturing and power sectors,” says Jimmy Kirby. “Originally, we were invited in by one of our large multinational power sector customers to deliver projects for them; then we successfully expanded into the other sectors.”

Kirby has continued to develop and grow its international operations.

“Over the past seven years, we have almost tripled our turnover, from €58 million in 2010 to €167 million for 2017. To meet our growth targets, we increased employee numbers significantly. We currently directly employ over 700 people.”

Kirby has strengthened its management team too. “Earlier this year we announced a number of key appointments at senior level to support growth and success,” Jimmy Kirby says.

The company has recently announced further expansion in its international operations to include the new geographical area of the Nordics. “Expansion into the Nordics market is proving to be a successful development for us, having secured a data centre project and with more in the pipeline. We have the capability to execute projects in Ireland, UK, Sweden, Finland, Denmark, Netherlands and Belgium, and are currently developing the capability to execute projects in Norway, Germany, Switzerland and Luxembourg.”

Preparing for further growth

The business is poised for significant further growth. “Kirby has excellent future prospects due to the strength of our management team, our staff and associated capabilities, our strategy formulation and implementation capability, and our customer value proposition.”

The company has developed an in-house, integrated project execution process called the Kirby Way. “At the core of the Kirby Way is efficient and successful project delivery” explains Jimmy Kirby, Kirby Group Managing Director.

“It involves understanding our clients’ needs, collaboration, building high-performance teams and supporting our clients through every stage of the project,” 

Strengthening its systems and processes is helping too. “Lean practices, such as standardisation, have become important components of our project delivery, bringing significant value to us and our customers,” says Kirby.

Staff members have taken ownership of continuous improvement. “We operate an Innovation Suggestion Scheme with participation encouraged among all of our workforce. This approach allows us to encourage a culture of innovation and continuously generate innovative and lean ideas from our site and office employees. The suggestions are focused around introducing efficiencies into the business through cycle-time reduction.”

Recent project wins include Gemini Data Centre and Substation in Dublin and Kilgallioch Windfarm Substation in the UK. Kirby is currently working on a confidential data centre site in Sweden, a biopharma facility in Meath, and Wembley Park Energy Centre in the UK, among many others.

Three ways to achieve growth

“We have achieved growth in three ways, through strengthening our capabilities, going deeper into our chosen sectors, and through geographic expansion,” Kirby says. “To ensure that there is a continuous pipeline of projects, it is important to track the investment levels in our selected geographies and sectors.”

Working with Enterprise Ireland is helping. “Enterprise Ireland has supported Kirby to develop its international operations over the years in a number of ways. It has done so by providing market research support, local market information and advice on new markets, providing access to its global network of contacts, and hosting networking events and seminars – such as a construction seminar held in Stockholm recently.”

Jimmy Kirby personally participated on Enterprise Ireland’s International Selling Programme in 2010, and went on to do a Masters Degree in DIT afterwards. The company also availed of a Market Access Grant, “which was a valuable support in our internationalisation efforts,” says Kirby.

Learn more about Enterprise Ireland’s Competitiveness supports here.

Bellurgan Precision beats the challenge of staying competitive

“Enterprise Ireland has been so supportive over the years, it’s not just about money. What they do is open your eyes to opportunities.”

CEO, Stephen Hogg

Key Takeouts:

  • Bellurgan Precision specialises in solving complex design and manufacturing issues, focusing on the medical device and aerospace sectors among others.
  • Competitors in low cost countries meant that Bellurgan must continually add value to their offer in order to stay ahead of the curve.
  • Project support from Enterprise Ireland enabled them to invest in new technologies and training in order to build capabilities and reduce production times.

Case Study: Bellurgan Precision

Components produced by Bellurgan Precision at its state-of-the-art facility on the Cooley Peninsula can be found in a range of high-tech products, ranging from medical devices, aircraft parts, and electronic systems, developed by some of the world’s leading manufacturers.

Having recently celebrated 40 years in business, the family-owned company employs close to 100 people, generating worldwide sales of €12 million, and is targeting annual growth of between 15% and 20% over the next three to four years.

For companies in the sector, remaining competitive is a challenge. Bellurgan’s success is built on a combination of engineering expertise, quality, and an unwavering commitment to customer service. The company’s focus on operational excellence enabled it to add value beyond simply competing on cost, as Bellurgan Precision invests in innovative technologies, processes and skills to get ahead of international competition.

Selling engineering expertise

“We don’t really have a product,” says CEO, Stephen Hogg. “We sell engineering expertise. Our success is built on deep engineering capability and quality standards. We have an excellent team committed to solving complex design to manufacturing problems. When a customer comes and sits down to talk about the product they want us to make for them, they often leave two days later, having found that there are far fewer parts involved than they first thought.”

This is very important in the highly regulated medical devices areas.

“70% of the cost of a product is locked in at the design stage,” Hogg explains. “We help our customers cut out costs at that point. These products have to be approved by the FDA and so do the supply chains. It’s very hard to change the design of a product once it has been approved.”

The company’s principal focus is on the medical devices and aerospace sectors, with many of the world’s top companies on its highly impressive customer list.

“This is largely driven by demographics,” Hogg points out. “The global population is expanding, and there is strong growth in the middle classes, in countries like India and China, which is increasing demand for services such as healthcare and travel.

 

Competing against low-cost countries

“We are either a Gold partner or number one supplier with all of our customers, who are all global multinationals,” he continues. “Virtually everything we do is exported. Less than 1% is used on domestic market. We might sell products to multinationals based in Ireland, but they will ultimately integrate them into products which are shipped around the world.”

“Remaining competitive is a constant challenge. “We have to compete against low-cost countries, and this means continuously adding value for our customers and investing in new technologies, processes and skills to stay ahead,” says Hogg.

Support from Enterprise Ireland for continuous improvement

Enterprise Ireland has been so supportive over the years,” he adds. “It’s not just about money. What they do is open your eyes to opportunities. They took us on visits to world-class players like the Mayo Clinic and Cleveland Clinic. We were able to hear world-class clinicians talking about their work and this was a great help to us. Enterprise Ireland also strongly supported our continuous improvement programme – we just couldn’t compete without that.”

One example of that programme was the implementation of lights out manufacturing. This allows a highly sophisticated machine to run 24/7 while only being attended to for one shift a day. The pallets are set up by the operative and automated process takes over after that.

“We have also bought a robotic system to help place parts and that gives us the flexibility to make better use of high-end machines”, Hogg adds. “Enterprise Ireland has also helped us with our investment in these technologies. We have participated in a number of different Enterprise Ireland programmes, with the most recent one being Lean. It impacts everything. The great thing is that it is open to everyone to get involved. Everybody can take part and make suggestions for improvements and solve problems. It changes the way people approach problem-solving. It’s hard to put a value on that.”

Looking to the future, he says that growth will come from existing and new market segments and building strong relationships with customers.

“You have to be out in the market all the time, continuously planting acorns. You can’t just sit back on what you have. It’s all about relationships and we get great support from Enterprise Ireland in terms of trying to attack new markets and new market segments.”

Learn more about Enterprise Ireland’s Competitiveness supports here.

Ireland is becoming an agritech island

How Ireland is becoming an agritech island

James Maloney, a senior regional development executive at Enterprise Ireland, outlines how innovative Irish agritech companies are helping to combat some of the world’s toughest challenges.

One of the biggest challenges facing the world is how to feed a population set to grow from today’s 7.6 billion to 8.6 billion by 2030, 9.8 billion by 2050, and 11.2 billion by 2100. Irish agritech companies will play a key role in helping to meet that challenge.

Enterprise Ireland recently announced two initiatives that are part of its ongoing work to support agritech companies to innovate and win in international markets, from start-up stage to the point at which they become established international players.

Last month, Minister for Business, Enterprise and Innovation Heather Humphreys officially encouraged Irish agritech and agricultural companies to apply for the Innovation Arena Awards that will be announced during the National Ploughing Championships in Screggan in September.

The Enterprise Ireland Innovation Arena is a unique platform in which Irish companies display pioneering developments, with more than 100 international buyers attending in 2017. Last year’s competition attracted 200 entries, 69 of which were shortlisted as finalist exhibitors at the Innovation Arena.

Enterprise Ireland also recently funded the development of a dedicated agritech R&D facility in Tralee to further support agritech innovation.

The word ‘agritech’ tends to conjure images of drones patrolling farms, autonomous tractors and harvesters, robotic milkers, and other futuristic technologies. While those images are accurate, the most important agritech developments will be those that support sustainability and allow us to do more with less, as we continue to produce high-quality food for the world’s rapidly growing population.

Ireland might be a relatively small agricultural producer globally but what we do in the sector, we do extremely well. Ireland has the highest standard of agricultural education in Europe and has established a well-deserved reputation for innovation across the entire agricultural value chain.

Irish agri-engineering exports are now worth a quarter of a billion euro annually to the Irish economy. Machinery produced by Irish manufacturers harvests grass throughout the world and is responsible for feeding cattle on every continent.

With regard to food quality, Ireland competes with the very best internationally, thanks to extremely low rates of antibiotic usage, no hormone usage, very high standards of animal welfare, and full traceability from fork to farm.

None of these developments occurred by accident. Striking the right balance between increased production and high standards of animal welfare and sustainability requires a combination of best farming practice and the kinds of innovative agricultural technologies Irish companies are becoming increasingly known for developing.

Irish companies like Abbey Machinery, McHale and Hi-Spec are already world leaders in the specialised production of machinery, such as mixer wagons for feeding cattle, high-quality baling and wrapping systems, slurry spreaders, agricultural trailers, and handling equipment for grain.

Dairymaster also leads the way internationally, with significant investments in in-house R&D and a strong customer focus. The company’s latest innovation is a smartphone app that allows farmers to remotely control their milk tank.

Another innovative Irish business, Moocall, has developed a collar worn by bulls that detects which cows are in heat and monitors the bull’s activity.

Keenan Systems’ InTouch service uses telematics to connect its mixer wagons in the field to a data centre in Ireland’s County Carlow, allowing for remote adjustment of feed mixes to optimise yield or milk production.

Equilume’s technology, which was originally developed to manage fertility in horses, has been proven to boost milk yields by up to 9% per annum.

In another area entirely, MagGrow has developed a technology which magnetises the droplets from a sprayer, causing them to bind better with plants, thereby reducing the amount of liquid required.

The need for change in traditional agricultural systems is being driven by a range of powerful forces, including pesticide reduction initiatives, the need to reduce antibiotic use, increased scarcity of water, and the challenge to provide sustainable food production systems for the growing world population. As Irish companies develop innovative solutions to meet these challenges, the world is taking notice.

This article was originally published in the Sunday Independent.

Record food exports driven by Irish innovation

Record food exports driven by Irish innovation

Orla Battersby, divisional manager for food at Enterprise Ireland, outlines the factors driving the rapid growth of the country’s largest indigenous sector.

The value of Irish food, drink and horticulture exports increased by 13% in 2017, to reach €12.6 billion, a new record. This stellar performance marked the eighth successive year of growth for Ireland’s largest indigenous sector.

While many factors have played a role in the achievement, chief among them is the ingenuity and innovative capacity of Irish food companies. Successful exporters in this most competitive of sectors must by their nature be innovative. They must be capable of extremely rapid responses to changes in consumer demand, while at the same time remaining capable of meeting the exacting requirements of grocery multiples in relation to price, quality, and new product development.

At its simplest, innovation in food and beverage products is the market-led development of new or improved products to meet changing customer needs. But innovation is actually much more multifaceted than that. It is about embracing a culture throughout the whole business. Innovation means taking a customer-centric approach to all aspects of the company, from who is hired through to technology and processes utilised, the packaging of products and the way they are branded and sold.

Enterprise Ireland supports food and beverage innovation in numerous ways and has assisted approximately 100 significant in-company research, development and innovation projects for clients across the sector since 2013. These projects range from new, more efficient and lower-cost manufacturing processes to product reformulation and new product development, with the aim of breaking into new customer segments and markets.

Among the innovative companies supported by Enterprise Ireland is Keohanes Seafoods of Cork. They realised that many consumers did not like the hassle of preparing and cooking fish and were the first company in Ireland to produce a microwaveable skin film range of products, which means the consumer never has to touch the product. Keohanes used a packaging technology designed for other purposes and it has basically brought fish from the fish counter to the chilled convenience aisle.

Another Cork company, Dairy Concepts, manufactures hand-held nutritious dairy snacks for children, using patented milk casein technology. The key competitive differentiator of its Fruchee product is that it contains 40pc less sugar along with higher calcium, protein and Vitamin D than competitors.

Dublin-based Nuritas, led by Dr Nora Khaldi, is developing technology that combines artificial intelligence and DNA analysis to discover the health benefits of peptides in natural foods and is a great example of a food start-up company that Enterprise Ireland has worked with at feasibility stage and is now supporting to scale.

Large companies in the dairy, beverage and meat processing sectors are also highly innovative, as their export success demonstrates. In fact, the 2017 export performance was driven by a 19% leap in dairy exports to over €4 billion, and a 5% increase in sales of Irish beef. Dairy now accounts for one-third of all food and drink exports, with beef representing one-fifth of all exports at almost €2.5 billion.

There is clear evidence to demonstrate the role innovation has played in this success. Enterprise Ireland carried out a survey in 2016 which showed that firms who availed of innovation supports from us reported an average 67% growth in global sales.

These supports take many forms. The Agile Innovation Fund gives companies support of up to 50% of eligible project expenditure up to €300,000, which is very useful for projects which must happen rapidly. The approval process is fast tracked, enabling companies to get projects delivered quickly. In addition to in-company R&D, Enterprise Ireland also supports companies in collaborative innovation projects, helping them to access the insights of researchers working across Ireland’s third-level sector, and European expertise and funding under the EU Horizon 2020 programme.

But we cannot allow ourselves to become complacent when it comes to innovation. Food companies throughout Europe and beyond are competing for the same markets, while Brexit will create new challenges for Irish companies. A continued laser-like focus on innovation will be required in order to maintain and add to our success on international markets.

This article was originally published in the Sunday Independent.

Construction Turns Tide on Ireland’s Continental Drift

Collen Construction

Unlike most building companies, Collen Construction grew during the recession by identifying opportunities in new, technologically driven sectors such as data centres and biopharma. In 2010, the 210 year old family business built its first data centre for a multinational client. Now, with close to 2 million sq. ft of high-tech space completed, it is one of the top Irish contractors in the ‘hitech/data hall’ space.

In 2014, at the invitation of the same multinational client, Collen Construction built its first data centre in Germany, and last April, the company opened an office in Frankfurt from where it plans to pursue further opportunities throughout Europe.

The European operations manager of Collen GmbH, Thomas O’Connor, stresses the importance of having a clear focus in order be credible overseas. Collen’s reputation in Ireland for being good at a wide range of construction activities will not open doors or win business in Europe, he says.

“We’ve made data centres our sweet spot and built a reputation for knowing how to mitigate the risks involved. These types of projects impose challenging deadlines and require us to produce volumes of technical information. Since 2010, we’ve really got to know the suppliers in this specialised field, and we’re comfortable in it.”

One of the secrets for managing the risk, O’Connor reveals, is treating all the sub contractors as partners and stakeholders. “For our clients, it’s all about speed-to-market, and, in that sense, it’s a very unforgiving sector. In this type of specialised project, therefore, if one fails, we all fail. It really is that simple. So we adopted a partnership approach in 2014, and the model has not let us down.”

PM Group

Like Collen, PM Group has followed its blue chip clients into continental Europe and has been active in the Benelux region, in particular, over the past 10 years.

Colm Fitzgerald, head of construction services at the engineering, architecture and project management firm, says there are a number of “bear traps” that construction firms need to be aware of. First and foremost is the need to respect other cultures. “Even something as simple as a turn of phrase that might be commonly used in Ireland could be misinterpreted,” he warns.

There are also differences in approaches to health and safety across Europe. “On the ground investigation and research is essential to identify exactly where the bar is set. In some countries, it’s not as high as in Ireland or the UK, for example.”

Fitzgerald also puts a strong emphasis on identifying contractors compatible with the Irish company’s own way of approaching business. “We do a lot of work in the life science sectors, and our clients demand and expect world class standards. We put significant effort into the pre-construction phase of our projects in mapping out execution plans. This is key to establishing best-in-class construction quality and health and safety programmes, so that everyone involved in the project knows exactly what’s expected of them and is both willing and able to deliver. We have worked hard in establishing a solid supply chain, and this has paid dividends in terms of our successful project delivery.”

“We have tended to enter a country in stages. Typically we would begin with concept design work, then expand our services from there.”

Colm Fitzgerald, head of construction services, PM Group.

Up until now, PM Group’s primary focus has been on Benelux countries, but the company is beginning to turn its attention to other opportunities across mainland Europe. “We have tended to enter a country in stages, first getting to know the people, understanding the companies and cultures, etc. It takes time to establish relationships. We’ll do it organically; typically we would begin with concept design work, then expand our services from there.”

Cork Plastics

Founded in 1969, Cork Plastics (CP) manufacturers a wide range of quality plastic products for the construction, building and agricultural sectors. Its main markets are Ireland and the UK, but the company is also rapidly expanding its European customer base, notably in France. CP’s sales and marketing director Seward Lynch says that identifying the right products for, and route to, each market has been crucial. “The hardest part was identifying potential customers, using similar products to those we produce in Cork,” he told The Market. CP chose France because it is large and the closest to Ireland after the UK, which is served by sister company FloPlast. “It has been a steep learning curve for us,” he confirms. “There are a lot of similarities, but a lot of differences, too. The French are slow to change, but there’s still potential there for us in the future.”

Freefoam Plastics

Another Cork-based company Freefoam Plastics began trading in 1990 and has grown into a multinational organisation, operating from sites in the UK, Belgium, France and Germany.

Freefoam entered the French market in 2002 with a trade offering of roofline and cladding products and expanded into the DIY sector at the beginning of 2009. For the last three years, the company has been selling a new cladding product developed specifically for the Dutch market and is developing plans for Germany. The continent now accounts for over 20 per cent of the group’s turnover.

“You need to find the right people to help you enter a new market and then integrate them into your organisation. You also have to find the right customers and distribution channels,” says managing director Aidan Harte. For Freefoam, innovation has been an essential core competency. “It’s important in new markets to adapt to meet the market’s needs, to find solutions that work there, rather than trying to force your existing solutions on them,” he emphasises.

Freefoam invests substantially in R&D, with support from Enterprise Ireland. “This allows us to grow our sales and stay ahead of our pan-European competitors,” Harte says. “Our end customers always expect us to come up with new products and innovations – anything that will help them get their work done more efficiently.”

Harte says that language is always something of a barrier, even though in Europe, in general, the command of English is very good. But Freefoam still sees real benefit in hiring people with multilingual skills that will suit its markets. “We have an inherent knowledge gap in language,” he says, “which is why we make sure we bring those skills into the company by direct hires.”

The Freefoam MD is also a strong advocate of doing homework on regulations and certification. Freefoam, for example, is the only maker of PVC cladding products with ATEC certification from the French building certification body, CTSB.

“It is very important for us to have a strong technical team, but you also have to be willing to tough it out to achieve the results you want,” Harte concludes. “It can take a lot of time and money, but it really is worth it.”

“You need to find the right people to help you enter a new market and then integrate them into your organisation.” Aidan Harte, managing director, Freefoam.

Second and third language skills key to European markets

One of the keys to getting traction in European markets is a sharp focus on the product or service, according to Stephen Hughes, head of construction markets at Enterprise Ireland. “As a rough rule of thumb, the further you are from home, the sharper your focus needs to be,” he says. “You need to be laser sharp in identifying the product areas or sectors in which you can make a major contribution. If you suggest you can do everything for everyone, you won’t be taken seriously.”

He also advises companies to be rigorous in their market research. “Too many companies don’t spend enough time getting to understand the dynamics of the market, the scale, the existing players and where their own offering might fit within that in order to be compelling,” he told The Market. “There is only one opportunity to make a first impression.”

Irish companies are doing well in the German and the Benelux construction markets, but all too often, they skip France and look further afield because of unjustified prejudices, he believes.

Tied up with overcoming this reticence – and getting to grips with European business culture in general – is the need for business leaders to embed second and third languages in their companies, he adds.

“Because English is so widely used as a common language for business in Europe, there is a sense that we don’t need to be able to converse in the language of a potential German or Belgian client. And even in companies that are able to speak to the client in their own language, there are surprisingly few with the in-house capability to really engage in the detailed business and technical side of things. After 40 years of being in the EU, we might have hoped for more.”

For Hughes, the language issue is all about demonstrating commitment. “Even if the customer has perfect English, it should be part of your culture to do business in the language of the country. Local hires can be a good starting point to demonstrate that level of commitment.”

This holds true even in construction, which may involve one-off contracts. “They may be one-off projects, but that does not necessarily imply one-off relationships, between contractors and sub contractors, for example,” he says.

Knowledge Transfer Ireland

Research shows that Knowledge Transfers to the bottom line

Alison Campbell, Director, KTI Knowledge Transfer Ireland, outlines what small and medium Irish companies stand to gain from connecting with Ireland’s rich research ecosystem.

Busy Irish SMEs can sometimes see research and development as a nice to do, rather than activities that can heavily influence business results. If a company has not previously been involved in knowledge transfer, they can at times view higher-education institutes as removed from the competitive reality of driving business.

Results from Enterprise Ireland’s most recent client survey show that companies that collaborate with the Irish research system on market-led projects report more than double the sales and exports than those that don’t. Knowledge transfer delivers many additional benefits, including a closer understanding of industry challenges within academia, new entrepreneurial activity, higher business activity, and new jobs. These compelling benefits show why Irish SMEs should invest in research and development and take advantage of supports available to help them do so.

Supported by Enterprise Ireland and the Irish Universities Association, Knowledge Transfer Ireland helps companies to benefit from access to expertise and technology, by making it simple to connect and engage with the domestic research base.

A review of the performance of the Irish Technology Transfer System published by Enterprise Ireland in December showed that strong performance and a high level of impact has been achieved in the commercialisation of research over the last four years. The Annual Knowledge Transfer Survey (AKTS) published by KTI reports that an impressive 109 spin-out companies from research institutions are active in Ireland many years after their initial formation. Spin-out companies currently employ over 980 people. 99% of active spin-outs are based in Ireland, with many having a global footprint. 24 new products and services were brought to market based on ideas and technology from state-funded research.  

The Herschel is a robot arm IR sensor technology, developed in a research collaboration between the School of Engineering at TCD and Ceramicx Ireland, a spin-out company that supplies industrial heating technologies to support manufacturing processes. Frank Wilson, Managing Director at Ceramicx, describes his experience, “For me, knowledge transfer works best as advanced common sense. An organisation like Knowledge Transfer Ireland helps SMEs to connect with a world of academic expertise and institutions they might otherwise find difficult to access. They help you answer questions like ‘Who do you engage with?’ KTI can help your company focus on what your specific project needs. You might want to implement a product process that no other company is using yet. The expertise of academic specialists can help realise those plans. At Ceramicx, we’re working on two important knowledge transfer projects at the moment. But everything depends on the specific circumstances of the company.”

For company’s eager to explore what knowledge transfer could do for them, KTI’s interactive “Find R&D Funding” tool provides a mechanism that helps them to find the most appropriate funding and supports for research and development activity in Ireland.

Enterprise Ireland recently approved the third phase of its Technology Transfer Strengthening Initiative, a €34.5m investment to be made over five years that will help sustain capacity within the Technology Transfer Offices to ensure continuing effective commercialisation of research and to maintain the bridge between the research organisations, businesses and entrepreneurs.

The number and range of supports on offer by the Irish state to support enterprise innovation directly and indirectly are critical to driving increased levels of innovation in Ireland.

Ireland now ranks tenth in the world in the Global Innovation Index 2017 and has been cited as the most R&D effective country in the EU, achieving maximum innovation output per euro of public funding.

With a skilled technology transfer resource in the publicly-funded research sector and an active innovation system, we can further KTI’s work to make research collaboration and commercialisation simple and accessible.

This article was originally published in the Sunday Independent.

Critical Healthcare MD

How Critical Healthcare Makes a Difference to Medical Emergency Services

 “Our research found that that organisations were suffering from a lack of purchasing control, resulting in maverick buying, excessive supplier costs, endemic overstocking.”

 

 

Key Takeouts:

  • Critical Healthcare’s search for a competitive edge led to in-depth field research, including discussions with both procurement and ambulance teams.
  • Research inspired them to develop a managed service that streamlines procurement and stock management processes while eliminating risk.
  • Enterprise Ireland awarded the company a €150,000 Business Innovation grant to assist with the further development of the system.

Case Study: Critical Healthcare

Based in Kilbeggan, Co. Westmeath, Critical Healthcare was established 18 years ago with the aim of becoming the first choice for the emergency medical services in Ireland. Having become specialists in the market, Critical Healthcare identified further opportunities to enhance their offering and disrupt the expanding niche further afield.

“We started out supplying everything from bandages to airways, nebulisers, nasal cannulas and stretchers,” says managing director Anne Cusack. “Our customers were the emergency medical services, like the National Ambulance Service, fire service, and other rescue services. Back in those early days we were only operating in the Irish market.”

As the recession drove the market to become ever more competitive, Critical Healthcare decided it needed to examine its value proposition in full.

“Back in 2012, we were only supplying products to our customers, and we felt that we needed to move beyond that,” says Cusack. “We couldn’t continue to compete on price alone. We needed to find a way to add value to our customer offering, which would not only assist with their procurement processes, but also enable us to become part of their procurement solution.”

Successful search for competitive edge

The company’s search for a competitive edge led to in-depth field research, including discussions with both the procurement and ambulance teams within the National Ambulance Service, which uncovered potential opportunities.
Cusack explains, “Our research found that organisations were suffering from a lack of purchasing control, resulting in maverick buying, excessive supplier costs, endemic overstocking. As a result, many products were going out of date and there was poor visibility of which supplies were being used, and where. Manual purchasing processes across multiple locations were time-consuming, prone to error, and costly. Paper can be lost and manual data entry leaves room for mistakes. Increased volume of supplier queries can swamp finance departments.”

Understanding these issues inspired Critical Healthcare to develop a managed service, which provides a highly flexible solution that streamlines procurement and stock management processes, eliminates risk, improves productivity, and reduces costs.

The resulting Medlogistix Software as a Service (SaaS) system is specifically tailored to the needs of the healthcare sector. When it was piloted in the National Ambulance Service in 2012, it demonstrated savings of up to 37% on annual spend. After this success, Critical Healthcare won a tender in 2013 to implement Medlogistix across all 102 National Ambulance Service stations in Ireland, followed by contracts with Dublin Fire Brigade and the Irish Coastguard. But even that was just the beginning.

Support for becoming internationally competitive

“We knew we had something that was equally relevant to the emergency services markets internationally,” Cusack recalls. “We started looking at the UK, Scandinavian, and German markets. That’s where Enterprise Ireland enters our story. We had built the original system in-house but recognised we needed assistance to develop it further, to ensure the scalability and reliability it needed to be internationally competitive.”

Enterprise Ireland awarded the company a €150,000 Business Innovation grant in 2015, to assist with the further development of the system.

Cusack says, “We spent a year working with a development company, scoping out the needs of the system and writing the software. 2016 was spent finalising and user-testing the system, and it went live across our existing customers in 2017.”

Medlogistix, a business intelligence software package, incorporates e-procurement, stock management, and a reporting dashboard, all backed by a managed service for a traditionally manual paper-based sector.

Competing for and winning the largest international contracts

International success was already assured, due to a contract won in 2015 with Falck, the UK’s largest private ambulance service provider, thanks to the Enterprise Ireland development support.
“Falck is the largest private ambulance service provider in the world,” says Cusack. “They are headquartered in Denmark and have operations in 55 countries. We were able to compete for and win the contract in the UK because we were able to demonstrate the savings the package could offer across all elements of the procurement process and we were able to tell them what the new system would look like. Falck has been one of our biggest international advocates since.”

The next step for Critical Healthcare is expansion into continental Europe. Industry observers see strong underlying market growth for Emergency Medical Services in the EU, driven by trends including demographic shifts. In the UK, for example, the use of ambulance services has increased by 59% over a decade. The share of citizens aged 65 and older is expected to grow from 19% to 24% from 2015 to 2030 across the EU, with the number of transports required much higher for older citizens.

“The new system is working fantastically well and has made us competitive in international markets,” Cusack notes. “We are now in the next phase of its development, which we are funding ourselves. We are talking to Falck in Denmark and putting together a case for the system’s roll-out in other European countries. Our business is growing strongly. We currently employ 22 people in Kilbeggan, with forecasts to increase that to 30 over the next five years. Our turnover target for this year is €6.4 million and our goal is to grow that to €10 million in 2020.”

Learn more about Enterprise Ireland’s Competitiveness supports here.

Improved Competitiveness Drives Growth in Every Sense for Phonovation

 “I knew that there must be a better way of working and I went to Enterprise Ireland and said we had an excellent team, but we weren’t changing fast enough. They said there was only one answer: to go LEAN.”

 

Key Takeouts:

  • Automated voice and business SMS provider Phonovation undertook the LEAN transformation programme in 2015.
  • Profits have increased year-on-year since completing the programme: 150% in 2015, 240% in 2016, and 140% in 2017.
  • Phonovation’s growth shows no signs of stopping, with over 200 million messages a year going through their software each year.

Case Study: Phonovation

In 2015, automated voice and business SMS provider Phonovation decided it needed to change in order to become more competitive. That’s what led the company to begin working with Enterprise Ireland on a LEAN transformation programme.

Phonovation was already the leader in its field in Ireland, but Chief Executive Gavin Carpenter believed a step up in performance was necessary.

“I had completed a masters in management in UCD in 2013,” he explains. “I knew that there must be a better way of working and I went to Enterprise Ireland and said we had an excellent team, but we weren’t changing fast enough. They said there was only one answer: to go LEAN. A development adviser came out to us and explained it. There was complete buy-in to the concept from everyone here.”

Implementing LEAN drives dramatic growth

Growth since then has been little short of dramatic, with profits climbing by hundreds of percent since 2015.

“It has been incredibly powerful for us,” Carpenter says. “Profits increased by 150% in 2015, 240% in 2016, and 140% in 2017. We have also increased staff numbers from 16 to 26 in that time. We have grown in every sense thanks to our improved competitiveness.”

Phonovation was the first company in Ireland to provide premium-rate telephone services for TV, delivering services for popular programmes like Where in the World and The Late Late Show.

“We started to roll out business offerings in 2005,” says Carpenter. “Running premium-rate services for TV shows and so on gave us the ability to handle very large volumes of calls. We could run the service for TV in the evenings and offer business services during the day. We quickly became the largest SMS application to person (A2P) provider in Ireland. When your bin company texts you to let you know when your collection is due to take place, that’s A2P. Over 200 million messages go through our software each year.”

While consumers may be sending fewer text messages, SMS has seen year-on-year growth every year since 2011, mainly due to increased business usage.

“SMS is very effective at generating reaction and response,” Carpenter explains. “There is a 95% reaction rate for SMS, as opposed to 15-20% for email. It’s expected to continue to grow until the mid-2020s. During the winter storms, we were sending one million messages a day to parents around the country, letting them know about school closures and reopenings. It’s an essential service these days.”

Working with Enterprise Ireland on LEAN

Working with Enterprise Ireland on the LEAN programme brought about considerable efficiency improvements.

“It taught us how to identify and attack waste in the business. There are seven types of waste and each of them feeds into each other. Overprocessing is typical in IT, for example. You might build a website for a customer that does seven things when the customer only wants five. 20% of the time is spent doing things that are not needed. Waste is anything that doesn’t deliver value to customers.”

And the elimination of waste has delivered enhanced competitiveness.

“When we talk about competitiveness, we talk about delivering value to customers while still making a profit. Every sale we make is based on return on investment. That makes us very competitive. We tell customers how much they will save, or how much additional revenue they will generate, as a result of using our solution. One of our largest customers has a return on investment of seven to one from our solution – for every €100,000 they spend with us they make €700,000 in additional revenue. It makes it very easy to close deals. We put a huge amount of effort into delivering the maximum return on investment for customers.”

The future will see a mix of domestic and international growth as well as new product introductions. “We are going to grow overseas, mainly through Irish customers with international footprints. We have also developed a fintech product, which is a security solution for SMSs sent by banks. It is used by one banking customer in Ireland already and we were recently in Frankfurt with Enterprise Ireland presenting it to banks there.”

Learn more about Enterprise Ireland’s Competitiveness supports here.

How Tenderscout is helping Irish companies to win business across the world

“We’ve had Irish firms win contracts in Texas – companies who never would have looked for business beyond our shores before they started working with us.”

While every business relishes winning new contracts, few share the same enthusiasm for the tendering process. It can be laborious, consuming valuable time and requiring considerable investment, with success far from guaranteed.

One dynamic Dublin-based company, Tenderscout, is working to change that. Established by seasoned software developer and start-up specialist Tony Corrigan, the online platform was developed for Irish companies competing for tenders around the world.

Delivering expert support and specialised software, Tenderscout helps companies of all sizes to transform their approach to winning tenders, giving them the best chance to capitalise on a rapidly changing business landscape in which international borders may be no more restrictive than lines in the sand.

“We sit at the hub of the activities a company needs to complete in order to compete for global tenders,” explains Tony, who was inspired to set up the company after becoming frustrated with the inefficiencies he faced during tendering processes.

“That includes sourcing initial requests for tender, qualifying the job to assess if the company is a good fit, and then putting the proposal together.”

Irish businesses can use the Tenderscout platform to quickly find quality jobs posted around the world. The team, which numbers 10 and is growing, applies innovative technology to determine which clients are best-suited to win the tender, connecting them with expertly selected partners or consultants who can help deliver the proposal.

“For example, if you’re a business that would like to compete in Poland for an IT contract, we list companies that can provide required services in that market. That’s a huge advantage when competing internationally,” says Tony.

“We’re also building out a network of bid consultants around the world who can put together tender documents. We do some of this ourselves but primarily the platform is used to source the consultant with the expertise the bidding company needs.”

Expert knowledge of markets and sectors

Making connections with these consultants can be extremely powerful, Tony explains – whether to bridge geographical gaps and provide insights on language and cultural matters, or to offer specific sectoral subject matter expertise.

“If you’re tendering for a project to implement an IT system into a department of education, we can pair you with someone who has experience implementing IT systems into departments of education,” he explains.

Learnings from 3,000 tenders in four years

Tenderscout’s tried-and-tested framework allows the cost of partnerships to be managed to great effect.

“We’ve learned that consultants and the companies they serve don’t always share the same interests,” Tony comments. “It may be in the interests of a consultant for a job to last longer than a client company would like, for example.

By curating the relationship and providing a framework for how the process works, tenders can be developed for 60% of the cost.

We can deliver that because we’ve carried out 3,000 tenders over the past four years. It leaves us with a huge bank of reusable material, which means consultants don’t have to invent everything from scratch, so they can start working more quickly.”

Open your business to the world

One of Tenderscout’s major motivations is to change the status quo, in which most contracts are advertised and awarded to local companies.

“We work internationally ourselves, and we see that Irish companies are, in many cases, better placed to provide certain services than those in the US or Europe,” Tony says. “Particularly in areas such as software development, smart technologies, smart cities, internal productivity solutions, such as meeting room software, and other areas.

The issue is that companies are not always ambitious enough to look beyond their own borders. When they do, results are compelling. We’ve had Irish companies win contracts in Texas, companies who had never looked beyond Irish shores for business before they started working with us.”

Tony insists that companies should not allow fears or concerns about the tendering process to inhibit ambitions for growth.

“The barrier to success is not as high as people think when it comes to tendering,” he adds.

“If you were to take a random selection of tender documents and independently evaluate them, they’d score about 60%. To win, you’d need to be in the region of 90%.

“If you’re good at what you do, scoring highly shouldn’t be a problem. But the process itself can inhibit otherwise great bids.

“In short, if you put the proposal together well, you will win more often than will miss out.”

Going global with ambition

Tenderscout has become highly adept at navigating the international business landscape for clients, partly because their own journey has focused on international expansion, supported by Enterprise Ireland.

“We first became involved with Enterprise Ireland through the New Frontiers programme, then succeeded in getting a grant through the Competitive Start Fund in 2014,” recalls Tony. “From there, we were assigned an advisor, and were supported in research missions to the US and UK by the West Coast and London teams.”

While grant support was helpful in the company’s early days, the most valuable help, as with the company’s network of tendering consultants, came from creating connections and developing insights around the international markets.

“Enterprise Ireland’s support in connecting us with the local business community within each market and helping us to establish our credibility, made a real difference.”

Tech visionary Tony hopes more businesses will put their faith in the Tenderscout platform and use it to transform their fortunes.

“Tenderscout is the tool used by companies that win contracts,” says Tony. “If you’re in a situation in which you’re pitching for business, having Tenderscout in your corner is the best way to aim for success.”

End of year results

Positive Results but New Year means New Markets

Julie Sinnamon, CEO of Enterprise Ireland, describes how the agency will support Irish companies to target opportunities in key markets in 2018.

Despite the challenges and uncertainty created by Brexit, Irish companies continued to grow global exports in 2017, supporting strong job creation across all regions of Ireland. That positive trend was evident in the End of Year results Enterprise Ireland announced in January at the Dublin headquarters of client technology company Ding, with job creation figures up across every region, every county, and every sector on 2016.

The job creation figures were up on 2016, despite the uncertainty that Irish businesses faced in 2017 in the context of Brexit. 209,338 people are now employed in companies supported by Enterprise Ireland, the highest total employment achieved in the history of the agency. 19,000 new jobs were created across all regions in Ireland last year. The figure represents a net increase of 10,309 jobs for 2017, taking account of job losses. In line with total employment levels, the net increase in jobs, is the highest on record with Enterprise Ireland.

While we welcome these positive results, it not a time for complacency about the forecast for Irish companies in 2018. It is imperative that Irish businesses continue to build on the strength of their 2017 performance and implement robust plans to prepare for the impact of Brexit.

In recent months, Enterprise Ireland launched a number of new measures to strengthen the rural and regional economy and provide quicker access to innovation funding for exporting companies. The Market Discovery Fund is a new response from Enterprise Ireland to help companies to diversify in the context of Brexit. The fund supports Enterprise Ireland-backed companies to diversify into new markets and promote new products to existing markets. Three levels of funding are available to companies: up to €35,000, up to €75,000 and up to €150,000.

This latest initiative is just one example of the work Enterprise Ireland has undertaken to deliver our strategy, Build Scale, Expand Reach 2017-2020, focused on transforming the innovation and competitive capabilities of Irish companies, to help expand their global reach by diversifying into key export markets.

While the results for the first year of the strategy are encouraging, Brexit represents a huge challenge for Irish companies and is top of our agenda. The Market Discovery Fund, along with our intensive international programme of export-focused trade missions and our recently introduced Agile Innovation Fund, are key supports which are instrumental to helping even more companies grow and reach new export markets.

The Eurozone, and non-Eurozone European countries, have always been important markets for Irish companies but now their importance is significantly enhanced. Consolidating exports to the UK, while expanding the Irish export footprint in markets beyond the UK, is a high priority.

The strong 2017 performance by Irish businesses can be attributed to the continuing growth of an entrepreneurial climate for start-ups, allied to strong jobs growth in sectors such as construction, engineering and life sciences, which all saw an 8% increase. I was pleased to report the increase in female-led businesses, with 63 female-led start-ups receiving backing in 2017. 42% of Competitive Start Fund Approvals were to female-led start-ups.

It is encouraging that job creation was evenly spread across the country in 2017, with every county seeing increases. 64% of new jobs were created outside of Dublin, with the west, mid-west and north west seeing the largest level of increases for 2017 at 7%.

Whatever the outcome of the complex Brexit negotiations that lie ahead, it is vital that as a country we are ready to continue to support Irish companies to drive exports and expand to growing markets.

Last year, a new €60m Regional Enterprise Development Fund was launched to invest in the regional ecosystem. 4 new Regional Accelerators were established. €23m was invested in New Technology Centres – Irish Manufacturing Research and Meat Technology Ireland. 9 Regional Brexit Advisory Roadshows were held across the country. Irish Advantage digital campaign to promote sourcing from Ireland. 33% Increase in international Trade Missions and Events. 878 International buyer visits to Ireland. 1,391 New overseas contracts won by EI backed companies

The new Market Discovery Fund is just the first initiative of 2018 as we work with our partners in government and enterprise to help Irish companies build their scale and expand their reach whatever the challenges on the international horizon.

This article was originally published in the Sunday Independent.

US flag - exporting to the US

Top 10 Tips for Exporting to The USA

Ireland enjoys a unique advantage in trading with the US because of our deep historical links. Relations between the two governments are exceptional; and cooperation at an institutional level is excellent including in areas such as research, innovation and education.

There is, without doubt, huge opportunity in the US. Around 700 Enterprise Ireland client companies are exporting there and companies like Aerogen, Fenergo, Cylon Controls, Candidate Manager and Rubicoin have set up offices and accelerated exports in the past 24 months. To date, over 20 clients have won contracts worth over €500,000.

1. Preparation

Before entering the US market, extensive research at home is strongly advised. Make contact with State agencies, relevant support organisations and companies who currently export to the US, if possible. Targeting the US usually requires additional financial and human resources, so to keep costs and operations manageable in such as geographically big country, first-time entrants are advised to segment the market and target a particular region or state. Give careful consideration to the resources needed to serve the selected market, for instance, will the operation use a direct or indirect sales channel. Some companies hire locally and others (often in the early stages) put a C-level member of the team in the market for a short period to get things off the ground.

2. Legal

Corporate – Confirm your corporate structure. Typically setting up a US subsidiary makes sense both for tax and liability reasons. Your US subsidiary also will need to appoint a registered agent, and “qualify to do business” in every state in which you have an office or similar presence.

Intellectual Property – Address US trademark issues defensively (confirming that no one else has prior registered or unregistered rights in respect of name and key brands); and offensively (by filing a US trademark application). Patent issues may need addressed depending on the business.

Contractual Terms and Conditions – These must be converted to the laws of a US state, for legal and commercial reasons.

Employment – Get professional employment advice locally. Most US employees do not have employment contracts but employers are bound by offer-letter terms, employee manuals and other undertakings. Also, ensure confidentiality and IP assignment agreements with all employees are established.

3. Tax Structuring and Compliance

Establish appropriate arm’s-length arrangements between the Irish parent and US subsidiary to separate taxable income. This is particularly important because US corporate tax rates (federal and state), totalling about 40% are typically three times the level in Ireland. Have appropriate compliance procedures in place to address federal and state corporate income tax, as well as other potentially relevant tax regimes (sales tax, personal property tax, etc.), particularly at the state and local level.

4. Trends

US import trends indicate high potential for Irish exporters. Meat imports were valued at €9.4bn which was the second fastest-growing import; while dairy went up over 40% to €2.8 billion. The US also imports pharmaceuticals worth $86.1 billion; medical and technical equipment worth $78.3 billion and organic chemicals worth $52.1 billion. These are all among the top 10 Irish exports by category. It is also a big importer in sectors such as aviation and aerospace, mechanical and electronic equipment, insurance and ICT services – all of which are growing in Ireland.

5. Banking

It can be difficult for a non-US company to set up banking for its US subsidiary. Some banks are particularly focused on banking high-growth companies on a trans-Atlantic basis, which can help ease the process.

6. Immigration

Most Irish companies exporting to the US find it critical to establish a presence in the market. This is particularly true in software and high-tech. An estimated 65% of Irish exporters to the US have a full-time presence, ranging from a single-person sales office to manufacturing operations with thousands of employees. Route-to-market decisions are crucial and the role of agents and distributors cannot be ignored. Buyers rarely purchase directly from manufacturers, particularly those from overseas. So fulfilment centres have become increasingly important in the supply-chain, especially since the growth of e-business. This approach is better suited to non-perishable items and consumer products.

7. Insurance

The US is a high-risk environment. Get an insurance broker with trans-Atlantic experience to advise on types of cover, terms and limits.

8. Recruitment

The most difficult aspect of setting up in the US is finding the right people. Obtaining recommendations from trusted people including investors and advisors is often the best way. Otherwise get professional support (especially with sales people). Consider outsourcing for book-keeping, employee tax withholding, HR and mandatory employee insurance and benefits, and similar matters. Also note that visas permitting Irish personnel deployed in the US to work are needed. Allow three to four months to sort this out.

9. Offices

Get professional advice on office space and other properties such as co-working spaces (like WeWork), accommodation offices (like Regus) or renting an individual premises.

10. Incentives and Supports

US supports should not be overlooked. Federal, state and local development agencies and international chambers of commerce can provide very useful support. State and local incentives for investment and job creation also may be available.