Offshore wind energy

Significant opportunities for Irish companies in the UK offshore wind industry

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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

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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.

Digital Health icon

Data is the road to digital health

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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

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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

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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.”

Czech Republic

Central Europe: Old town, new export opportunities

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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.

Digital Health

A bright future for Ireland’s digital health ecosystem

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The future of healthcare is a connected one. Digital technology and cloud computing have made technological strides that mean integrated individually tailored healthcare is now a reality.

Apps can feed back data to primary caregivers in real time, digital medical records provide accurate and timely information, while machine learning crunches big data and blockchain technology protects it.

But to get to this point requires intervention and a road map that fosters innovation and investment. Strategic investment in the knowledge economy and sowing the seeds of a digital healthcare evolution requires the creation of policy and frameworks within which the research and start-up sector can grow.

Ireland’s world-leading position in the medtech sector has been carefully nurtured through a combination of state planning and partnership with multinationals, that now positions the healthcare and life sciences sector as one of Ireland’s strongest and most important business industries. It employs some 38,000 people in around 350 companies. That makes Ireland the largest employer of medtech professionals in Europe per capita. Ireland is also the second largest exporter of medtech products in Europe, with annual exports of €12.6 billion to over 100 countries globally.

 

Government policy supports Ireland’s digital health ecosystem

Ongoing digital transformation is supported at the highest level, according to Barry Lowry, Chief Information Officer at the Department of Public Expenditure and Reform.

“Of course, when investors are looking at where to go, one of the key things they’re looking at is, well what is the digital ecosystem like in that country that we’re going to? Because that suggests there’s a market there, it suggests there’s a workforce there.

“We obviously want that European digital capability to be dominated disproportionately by Ireland and we’ve got a lot of the skill sets to make a really good contribution in that area. The key thing is national government policies are aligned with this.”

In its 2017 Sláintecare strategy, the Irish government outlined its healthcare vision for the next 10 years, including the implementation of connected digital health, stating: “Digital health solutions can support more efficient processes, empowering patients in managing their care and accessing their own medical records, as well as facilitating the provision of services in more appropriate care settings closer to the patient’s home.

“In the future, a coherent suite of eHealth solutions will underpin and support our overall vision for integrated, patient-centred care, population health planning and more effective and safe delivery of health services. Patients and health professionals will have ready access to clinical records and administrative information, which will enable better decisions to be made.”

It may seem to be easier said than done, when according to the Health and Information Quality Authority (HIQA) information is spread over 120 datasets across Irish healthcare.

But the government has set out a clear funding pathway for eHealth, Muiris O’Connor, the Department of Health’s assistant secretary at R&D and Health Analytics Division told a recent Enterprise Ireland-hosted conference on the eHealth Ireland EcoSystem.

Some €85 million is earmarked for 2019, €100 million for 2020 rising to €120 million by 2021, delegates were told.

 

Enterprise Ireland support for digital health

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

Procurement of innovation by State bodies has been boosted by Enterprise Ireland’s Small Business Innovation Research programme (SBIR), which aims to meet unmet needs across the public sector, including areas such as health and community engagement, by funding up-to-date trialling of new concepts and tech at an earlier point in the supply chain.

This allows innovation to be baked into the supply chain at a much earlier point in a product development cycle. In its five-year lifespan, it has funded 20 projects including the development of smart sensors by Danalto, Carra and mSemicon that are being deployed in gullies across Dublin City to measure and monitor flood levels.

Perhaps crucially for SBIR, IP is retained by the business, meaning a successful solution can be scaled and rolled out quickly.

Enterprise Ireland provides further sector-specific supports, such as Health Innovation Hubs Ireland (HIHI) scheme, Technology Transfer Offices (TTO), and the Technology Gateway Programme.

HIHI facilitates and accelerates the commercialisation of innovative healthcare solutions by offering companies the opportunity for pilot and clinical validation studies and the health service access to innovative products, services and devices that they may not otherwise be exposed to.

TTOs, which are embedded in university and college research institutes throughout Ireland, provide an invaluable resource in relation to research, development and innovation.

And the Technology Gateway Programme fosters greater cooperation between business and Institutes of Technology by offering funding rounds for capital expenditure for R&D.

But the ecosystem would be nothing without the skill sets to grow it, which is why this emerging sector is a national priority. The Irish Medtech Association, a key industry stakeholder in the Irish ecosystem, has reinvented its offering. It has a Connected Health Skillnet that offers learning, development and networking opportunities and is run in partnership with Biopharmachem Ireland and Technology Ireland.

The sector is also supported by a strong networking and collaborative culture, with Ireland being home to the European Connected Health Alliance, which actively promotes and supports the connected health agenda through its presence in more than 40 countries. ECH Alliance events are the perfect forum for investors, partners and start-ups to engage with leading experts from government, education, multinationals and the indigenous sectors.

 

Read more on the Irish companies succeeding in the Healthcare and MedTech sectors.

ProDig agri machinery

ProDig invests in the future as it continues to do the heavy lifting

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As the use of digital technology to improve farming efficiency increases, it can sometimes be forgotten that advances in more traditional areas of agriculture remain as important as ever.

Machinery is the original agritech. Innovations that reduce the physical workload for farmers are as old as agriculture itself and are vital to the sector’s profitability in every market.

ProDig Attachments prides itself on doing the heavy lifting. From its base in County Carlow, the company introduced its expertise in manufacturing machine attachments for the construction sector into agriculture 10 years ago and quickly built a reputation for the quality and versatility of its machinery.

Donny Nolan, co-founder and director of ProDig, explains: “ProDig has a strong focus on multi-purpose machinery. We produce attachments that will do the job of three traditional attachments, so the farmer only has to buy one. These attachments also make the feeding process easier, faster and more economical.”

ProDig’s product range includes shear grabs, shear buckets, bale handling attachments, folding grass forks, hi-tip buckets, and bag fillers – all of which are designed and manufactured at the company’s purpose-built factory.

ProDig agri attachment

Donny says: “Our products are pitched generally at the top end of the market. We don’t make cheap equipment. We manufacture on a quality basis and on the basis of a long lifespan for an implement, so we look at the mid to top range of the market. There are a lot of manufacturers in Eastern Europe, China and cheaper economies that we don’t really try to compete with. We look to create implements of top-end quality, innovative products.

“We distribute through importerships. We try to have one single point of importership in a region, whether that be a state in the USA or an entire country. For example, in Germany, we have one importer for the whole country and they in turn the distribute to the dealer network.

 

Strong export strategy

“We’ve got nine or 10 export markets and we also have some markets that we export to on a one-off sale. For some of our unique attachments, the likes of bag-filling units, we export to markets where we have one-off sales going direct to end-user customers. This would be to countries including India, Thailand and South Africa.”

It is a model that has served ProDig well. Consistently growing sales of its broad range of products in various export markets is testament to the quality and effectiveness of the machinery ProDig makes. Indeed, the company has big plans for further growth, spearheaded by a major investment to expand its manufacturing facilities at its Bagenalstown base in County Carlow.

Donny says: “We started an expansion plan in mid-2018 and that’s really kicking into place now. We’re expanding our existing production areas. We’re installing new capital items – new fabrication bays, new welding bays, some new machinery, some new robotic systems.

“It is quite a substantial investment. Over a three-year period, we’re looking at an investment of €1.5 million in the business.”

As with the machinery it makes, ProDig has put considerable energy into planning and preparing its expansion plans and the company is confident that the demand for their machinery is there.

Donny explains: “All our existing markets are expanding all the time, as we are. Our German market is expanding, our New Zealand market is expanding. We have several markets that we’re looking to move into over 2019-2020. We’re currently looking at increasing our presence in the USA, and we’re planning to do feasibility studies on the French and Australian markets.

“This investment will give us an increased manufacturing capacity of 40% and this will help us reach these markets.”

 

Focus on R&D drives innovation at ProDig

For ProDig’s customers, the investment and increased capacity also means enhanced innovation to improve and create new machine attachments.

“As part of our three-year investment, starting from the middle of this year, we’re running a new R&D programme to look at several new products,” Donny says.

The focus of the R&D programme will be the same for ProDig as it has been for the past 10 years: to help farmers do the basics better.

Donny explains: “To innovate within those basic tools and come up with new ideas and faster solutions for the basics – the attachments, bailers and other tools – is vital. If you make the basics better, you make the overall better.”

Doing the basics better is very much in the company DNA at ProDig, while the company’s continuing growth and expansion plans demonstrate the importance of innovating and constantly-improving machinery for farming.

 

Learn more about Enterprise Ireland’s innovation supports. enabling companies to develop new market opportunities and maximise their business performance. 

Diversity in Blockchain

Diversity key to blockchain success

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Some of the most senior figures in Irish blockchain are succeeding, not despite moving from a tech background but because of it, delegates at the Blockchain for Finance Conference heard.

Co-author of the recent Government discussion paper on the subject of blockchain, Mai Santamaria spoke at a ‘lunch and learn’ panel discussion about her background as a native of Barcelona who studied and qualified as an accountant. She worked for a number of banks and insurance companies before joining the Department of Finance over 18 months ago as a senior financial advisor.

Canadian Coral Movasseli is managing director of Girls in Tech Dublin, a global not-for-profit that runs a number of programmes designed to encourage more women to enter the tech sector. She previously worked for the Canadian government’s foreign office, as well as in telecoms and banking before coming to Ireland to work as a professional services consultant.

Laura Clifford, industry partnership manger at the ADAPT Centre based at Trinity College Dublin, told the audience how she had studied biology at university and how this led to work in the medtech and subsequently the tech sectors. She now drives fintech collaboration at ADAPT, acting as the broker bringing industry and academia together to commercialise academic research.

 

Great opportunities in blockchain today

“One of the reasons I’m focused on blockchain is because of the opportunity it represents for bigger things and further collaboration,” said Clifford, who, along with others on the panel, co-created Blockchain Women Ireland, an initiative designed to encourage women to participate in this still nascent but fast-growing sector.

Fellow panellist Emma Walker, who is managing director of Wachsman, a dedicated professional services firm for the blockchain sector, spoke of her background as a Spanish and sociology graduate. The opportunity she was given, at age 25, to set up the European office of what at the time, three years ago, was a two-person operation based in New York, gives some indication of the opportunities that exist in blockchain, she said. Today the company employs 120 people globally.

Speaker Luana Cavalcanti is a UX/UI designer at TradeIX, a blockchain technology company who started out in the hospitality sector working on cruise ships. She changed careers three years ago by retraining first in localisation and has progressed rapidly, thanks in part, she said, to mentoring she received by other women in tech.

 

Careers for professionals of all backgrounds in blockchain

People from all backgrounds are required in the fast-growing blockchain sector, and not just as technologists, but as people who can best communicate the use cases to a wide audience, delegates heard. 

“Blockchain is fragmented and, as it is emerging, questions are arising in relation to regulation, to interoperability with legacy systems, to transitions and how to manage them,” said Clifford.

It requires people with change management experience, who have transitioned initiatives before, as much as it does financial experts and tech experts, she said. “That’s why I got involved in Women in Blockchain,” she told delegates. “As you can see from the panel, not one of us has taken a linear path into the blockchain realm. It’s a very enjoyable space and I wanted to be part of that journey.”

The ‘penny drop’ moment came for her in relation to blockchain while attending an earlier conference, where a speaker called blockchain the ‘TCPIP’ of our day.

Realising that cryptocurrencies are simply to blockchain what email is to internet, “I thought, here’s an opportunity for me to be part of something and not feel like an imposter. It’s emerging. The barriers to entry aren’t there and I don’t have to try and retrofit myself into it,” she said.

Blockchain represents a paradigm change, said Movasseli, and as such it requires a diverse set of skills to drive it forward commercially.

To succeed, it requires diversity around more than gender, said Santamaria. “If you’re the kind of person that is driven by learning something new every day, you can’t go wrong with blockchain because you don’t stop learning,” she said.

It also offers a clear sense of purpose. “It really does feel there is a wider purpose to the blockchain project because it is all about collaborating to actually improve things.”

 

Enjoyed this article? Read more fintech insights here.

Ambition Benelux: How we got up and running

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There’s an interesting Dutch saying for doing business that describes the appetite in the Netherlands for making something out of nothing: “Let’s make land together”.

It’s what the Dutch excel at and applies equally to trade and business. Where there is a market opportunity, chances are a firm from the Netherlands and Benelux region will be on it from the outset.

It should come as no surprise. The Benelux economies are some of the most open and easily accessible in the Eurozone, and also among the most lucrative.

 

Benelux as a gateway to the Eurozone

The Netherlands, Belgium and Luxembourg often present themselves as the gateway to Europe, in both a physical sense in shipping and logistics, as well as in areas such as data and financial services. And they have good reason to, with 200 million consumers living within just 500 miles of Benelux cities.

With a very compact and centralised population of their own serviced with excellent infrastructure, the opportunity has not gone unnoticed by Irish companies keen to diversify and take operations into the Eurozone.

At Enterprise Ireland’s Ambition Benelux event, companies that have entered the region explained why – and how – they chose to launch to secure the growth their companies required.

Gone are the days when a company could simply open a virtual office. Now companies must decide whether a branch office of their Irish company is best to get boots on the ground, or whether they need to set up a company in the usual manner in the export country. Either way, Irish companies have prospered by making their foray through a distribution agent or local partner, which provide useful market introductions and a real face-to-face contact point for clients and customers.

 

Parkpnp’s journey into Benelux

In some cases, the move is strategic from the get-go. In just 14 months, Parkpnp, a marketplace for renting unused car parking spaces, has expanded from Ireland into both Belgium and Netherlands with ambitions to enter a further eight European markets in the next two years.

For Jason Popplewell, Parkpnp COO, it became clear that branching from the Irish market to the UK or US would see his fledgling firm bump into larger and more established competitors in the sharing economy, so Europe was a logical choice.

“About six months ago, we acquired a company in Belgium called Sharemypark but they were just doing residential car parking spaces. It was a great match for us to bolt onto our system and it’s going very well.”

With a presence in Belgium, the company then moved into franchising their model.

“We sold our franchise into the Netherlands, and that launched around four months ago, and that’s going very well.

“Ultimately nothing beats feet on the ground.”

 

Booming sectors in Benelux

The boom in data centre construction in the Netherlands in particular, and the wider cleanbuild, pharma and life sciences sector has seen Irish design and construction expertise in demand. The trend has seen firms like Dublin-based RKD Architects move into Belgium and in a client-led sector, having a local presence has been vital for winning and expanding their order book.

Director, Geert Douterlungne said: “At the end of the day, it’s just an extra 10 minutes in the plane from Dublin. Clients want to meet, and given the location, you can be there to resolve any issue quickly.”

But entering a new market may force a company to learn some hard lessons, said Jim Costello, founder of Forest Produce, a horticultural giftware company. Entering the floral and horticulture market in one of the most competitive markets of its kind in Europe saw Costello quickly realise that competing on price points would not be an option.

 Getting a foothold in the market required Forest Produce to bring a USP to the table.

“The Dutch are very competitive and will outsource to a cheaper alternative very quickly. But what we have found though is that Dutch customers appreciate innovation. If you have something novel that they like they will pay good money for it,” said Costello

“You have to have something cutting edge. If you have something that is unique, be it a service or solving a problem, that is what we have found is the way to get and keep your company relevant in the Dutch marketplace.”

Darren Fortune, managing director of Wicklow-based Ventac, a specialist acoustic solutions company in the automotive industry said they opened their first overseas office in 2011 near Eindhoven.

“The UK was our biggest market but we knew that the bigger volume was Europe itself, so we wanted to break out.

“We went to Enterprise Ireland and did a lot of market research. We felt that the Netherlands was a great start, as it was easy access and the language barrier was negligible. Enterprise Ireland introduced us to people in our sector and, because the Netherlands is big into sector clusters, we were able to get into the automotive sector very quickly.

“The legal stuff scared me a little bit but it was much easier than we anticipated. We rented an office for €8,000 a year in a business centre with around 30 other firms and we were up and running.”

It’s a much-trotted out axiom in the age of the multinational: think global, act local. But with Benelux, it is possible. Fortune added: “It’s an hour away and they want to do business. What more could you want?”

 

Learn how Enterprise Ireland’s Market Research Centre can help you assess new market opportunities with bespoke business intelligence.

Speak the language of European customers

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Enterprise Ireland’s GradStart programme helps companies to break through the language barrier.

The single market has given Irish companies free and unfettered access to markets across Europe, and the euro has eliminated currency risk in the majority of them, but a significant trade barrier remains – language. When compared with other EU member states, particularly those in the west of the continent, Ireland lags behind when it comes to language proficiency.

This lack of skills can present real difficulties for Irish companies seeking to break into European markets. “You have to be proficient if you want to be taken seriously,” explains Helen McMahon, senior executive for Client Skills with Enterprise Ireland. “Cultural understanding is also very important when entering a new market, and the ability to speak to potential customers in their own language is vital in that respect.”

 

Overcome the language barrier with GradStart

Help is at hand for companies who wish to overcome the language barrier in the form of the Enterprise Ireland GradStart programme, a new initiative aimed at supporting Enterprise Ireland client companies with the recruitment of graduates to help develop and expand their businesses.

“The programme has been designed to support companies to attract talent and recruit graduates,” says McMahon. “It will help them create a talent pipeline to support and grow their business.”

GradStart provides financial support for the recruitment of up to three graduates in a company. Fifty per cent of the graduate’s yearly salary, subject to a maximum of €15,000 per annum in grant aid, is available for two years, depending on certain conditions.

“The graduate has to be allocated to a specific role and project in the business,” McMahon points out. “The company has to show that it will benefit from having additional expertise in that role and that it will contribute to the growth plan for the business. There also has to be potential for the graduates to learn and acquire new skills. We want the graduates to develop and gain from it as well.”

Very importantly, additional support is on offer for graduates with proficiency in a language relevant to this business; for this cohort, grants of up to 70% of salary subject to a maximum of €21,000 per annum for two years is available. Language proficiency is defined as the graduate being a native speaker; and/or holding a diploma in a required language from a recognised language institute; and/or has lived in a country for at least six months where the required language is the first language of that country; and/or holds a minimum level 6 qualification from a course wholly or partly dedicated to language studies.

“This will help address the lack of language skills in companies,” says McMahon “and help companies attract graduates with language ability. Although graduates cannot be assigned to direct sales and marketing roles, they will add enormous value to a company in areas crucial to successful market entry and growth such as market analysis, research on market needs and competitors, and marketplace profiling or roles in other key aspects of the business. Having a direct knowledge of the local language is essential for all of these things.” Over time, these graduates may have the opportunity to become permanent members of staff.

 

Importance of languages in the Eurozone

Looking to the Eurozone, she points out that language is vitally important regardless of the market concerned. “Even in the Netherlands, where English is so widely spoken, company websites and technical documentation will be in Dutch, and you need to fully understand these in order to compete successfully.”

IMS Labels hired graduate Marcella Mendes, who speaks Portuguese, Italian, Spanish and English, with the support of the GradStart programme. “The Enterprise Ireland GradStart Programme has not only enabled IMS Labels to rapidly develop our expertise through highly skilled graduates, it gave us an instant advantage in our international target markets through multilanguage capability,” says Commercial Director, Steven Burke.

Contract manufacturer Keltech has benefited through hiring a German-speaking graduate: “English is the universal business language,” says Business Development Manager, Seamus Lawlor. “However, we felt that certain opportunities were not being realised by not speaking our clients’ mother tongue. The introduction of our native German-speaking graduate in 2018 bridged this gap. Our clients are genuinely impressed that we have taken the time and effort to recruit a multilingual employee who can dive deeper into their requirements through their native language.”

Developing in-company capability for Eurozone languages is increasingly important, particularly in light of Brexit. “Even if there was no Brexit, there is a need to build Irish exports in the Eurozone,” McMahon notes. “And we must not let language be a barrier to that. The GradStart programme can help companies overcome that barrier while also bringing in new skills to help them meet their growth ambitions.”

The benefits aren’t limited to Eurozone markets of course. “Language proficiency can be even more important in Asia, where English is not so widely spoken, and cultural sensitivity can be crucial to success. GradStart can help companies recruit overseas graduates who were studying here and are now looking for an opportunity to stay on,” McMahon adds.

Companies wishing to avail of support under the GradStart programme should contact their Enterprise Ireland development advisor in the first instance. “They will guide the company through the process and assess if they are eligible for support to employ one, two or three graduates. We can help companies find the graduates, but we also encourage companies to source graduates directly. We recommend that companies build relationships with third-level institutions to support them to build talent pipelines for the future. We have set up the gradhub.ie website to help companies find the right graduates and they can also use the gradireland.ie website.”

Irish ambition winning in France

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Sinead Lonergan, Enterprise Ireland’s country manager for France, looks at the opportunities allowing Irish companies like Smurfit Kappa and Grant Engineering to win in this big market.

 Opportunity comes to pass not pause and right now it’s in France. That was the message from Terry McGivern, Chief Operating Officer of Smurfit Kappa in France and keynote speaker at Ambition France.

 The event was the first in a series of Enterprise Ireland workshops for Eurozone markets and a step towards creating a peer group of Irish companies selling into France.

 Ambition France provided seminars, presentations and panel discussions based on learnings from Irish companies already succeeding in France. Attendees included a highly targeted group of businesses keen to emulate that success. 

 

Why France should be your next export focus

France is the sixth biggest market in the world, with a GDP of €2.5 trillion and a population of 66 million. Delegates at Ambition France left with a sense of the opportunity that exists in a growing market in which consumer confidence is increasingly buoyed.

Part of the reason Enterprise Ireland is building this peer group is because we know that having a network of people willing to share successful commercial tactics helps to accelerate business success. 

With France, however, there is also an additional reason. A key recurring theme at Ambition France focused on how hugely relationship-based the market is and how challenging it can be to develop these relationships. Securing a referral helps enormously, which is why I’m keen to bring first time entrants together with seasoned campaigners.

Recruitment can also be a challenge. Niall Fay of Grant Engineering told of his company’s recent success securing experienced French staff to help open up the market. It was a significant advantage in a country in which having team members with established relationships is so important.

To overcome these challenges, Irish businesses need to make their value proposition clear and really sell the company to prospective employees. It’s worth doing, when local staff with a strong network of contacts can be a huge advantage in accessing potential customers.

We at Enterprise Ireland help too – opening doors, fostering links, and ensuring French buyers are aware that Ireland is a dynamic country with which to do business. We prepare the ground so that the companies we support are not met by outdated, but sometimes lingering, perceptions that Ireland is primarily agricultural.

 

Understanding French business culture

The best way to assess the market is to get out there, advised Shane Lyons of Ei Electronics, “Meet the customer, find out how they buy, and what they are interested in. Then develop a solution that suits them. Use Enterprise Ireland, use their contacts, get to exhibitions, and get a sense of where the market is going.”

It is more important than ever to do this. Brexit presents a huge opportunity for Irish companies to position themselves as alternative English-speaking suppliers.

To capitalise on this opportunity, however, you must be fully au fait with French business culture – or rather cultures. It is a country of huge regional variations, so acquaint yourself with local nuances.

Invest in linguistic skills. Andrew Fleury, CEO of Transpoco, told how his staff takes French lessons via Skype. “It makes it easier to do business and clients are very appreciative of it,” he said.

That’s for sure. I have seen very many deals scuppered by ignoring basic business etiquette. For example, Irish people almost by default go into a meeting shaking hands and chatting about the weather and their trip over. But if you are dealing with a large French company, that’s a faux pas.

Meetings here are much more formal.  Focus on the business, plan your presentation to the nth degree and demonstrate – with evidence – why you are the best supplier with the best product. Keep the chat for later.

It’s the kind of thing a peer would tell you and you’ll be glad they did, because right now, in France, opportunity is here for the taking.

This article was originally published in the Sunday Independent.

For more information on doing business in France download our Going Global Guide to France