Tips for Success in Germany

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Caroline Kelly, sales director at Burnside Autocyl, shares her top pieces of advice for Irish companies keen to tap into the German market.

• Be confident about your product or service before going into the market. We have always been focused on the parameters of our product offering – we make hydraulic cylinders with a bore diameter of 32mm up to 200mm and up to eight metres in length. We offer a wide range of products, but it is still finite at the same time. Get feedback from market experts and existing players in Germany on your product – Enterprise Ireland can help to arrange this.

• You need to convince potential customers in Germany of the three C’s – i.e. that you are capable, competent and committed – and able to interface with them on all levels. Many companies are good at selling, but not so many are good at both selling and supporting clients on a technical level. After-sales service is hugely important as you are looking at a relationship that goes on for years – in our case for the lifespan of the machine incorporating our hydraulic cylinders.

• When you are lucky enough to win German customers, mind them like gemstones. They are hard to win so you don’t want to do anything to lose them. Bad news travels faster than good, so try to exceed what they might expect from suppliers on their own doorstep. Be as good, if not better, than local suppliers in terms of quality and consistency of service.

Learn more about doing business in the Eurozone with the support of Enterprise Ireland.

Improved Competitiveness Drives Growth in Every Sense for Phonovation

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 “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 Focusing on Competitiveness Drives Innovation in vStream

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 “Because we are selling something innovative we have to be as efficient as possible in order to get the value out of what we charge clients. That’s very important when you are creating ‘world firsts’, as we often are.”

 

Key Takeouts:

  • The recession in 2008 prompted vStream to develop a presence in the UK sooner than planned.
  • 70% of vStream’s revenues come from outside Ireland, including international sports teams and global software developers.
  • Management worked closely with Enterprise Ireland to develop an operational strategy, as efficiency is key for a creative agency.

Case Study: vStream

By boosting its competitiveness Dublin-based vStream is spending more time innovating and less time administrating.
The award-winning experiential technology company creates immersive consumer experiences for big-brand customers.

Set up in 2007, one of vStream’s first Irish commissions was a 3D rugby and soccer fan experience created for Dublin’s Aviva Stadium. The personalised, stereoscopic adventure allows visitors to the stadium to be individually called up to play for Ireland, and to do so ‘virtually’.

In 2008, the recession prompted vStream to focus on competitiveness and develop a presence in the UK sooner than planned. It paid off, resulting in a major commission from the Westfield Shopping Centre group to create world-first experiences, from ‘5D for Christmas’ to clickable video content for Spring-Summer shoppers, launching in Westfield Stratford City, one of Europe’s largest shopping centres.

Commissions from further afield followed, including work for the San Francisco 49ers – an American Football team – and the US Super Bowl.

Today, 70% of vStream’s revenues come from outside Ireland. The company has worked with global brands such as Formula One teams McLaren and Mercedes F1, and enterprise software maker SAP, using leading-edge technologies, such as Augmented and Mixed Reality and gestural holographic interfaces, the kind found in Tom Cruise movies.

Using Microsoft HoloLens, vStream recently created a holographic, interactive tour guide named Simone to demonstrate one of carmaker Audi’s newest high-tech models, a world first.

At vStream’s core are the complementary skills of co-founders Niall O’Driscoll, a creative director, and Andrew Jenkinson, a technologist.

Working with Enterprise Ireland to boost operational excellence

“What we do has always been very different and big brands are always trying to tell their story in a new way,” says O’Driscoll.

It’s a competitive space, however. Management at vStream has worked closely with Enterprise Ireland to implement operational excellence. “There are other companies in our area. They don’t look exactly like us but we cross over a number of different competitors,” says O’Driscoll.

Creativity drives innovation at the company and if the technology required to deliver an experience doesn’t exist, “we build our own”, he says. To ensure vStream has the resources to do so, operational efficiencies are vital.

“Because we are selling something innovative we have to be as efficient as possible in order to get the value out of what we charge clients. That’s very important when you are creating ‘world firsts’, as we often are.”

vStream drives competitiveness from concept through to delivery

The company recently introduced 10,000ft, a resource management and time-tracking software programme. “It allows us to track hours and integrates with our accounts process. We are trialling it as part of changes to our internal management processes designed to boost efficiencies and drive competitiveness across the board, from concept through to delivery.”

The company has also introduced cloud-based collaboration tool Slack. “Email is unwieldy, especially long chains of emails. Slack allows us to organise our communications much more efficiently.”

Much of vStream’s intellectual property has been patented and future revenues will increasingly come from licensing its technology around the world. Here, too, Enterprise Ireland funding has helped.

“We had created all this value but had realised only a small amount from our IP. We have done the R&D, proved our product in the market, now it’s about taking it out to compete in as many markets as possible. Future growth will come from exploiting that IP commercially and we are hiring someone now to help us make that move from being a projects-based to a services-and-products-based-company,” says O’Driscoll.

vStream drives competitiveness from concept through to delivery

He knows that to win in a global market no company can afford to carry excess weight.

“You need the flexibility to be able to diversify as we did during the recession,” he says. “The market shifts and changes all the time and to compete you have to be efficient and innovative enough to turn on a dime.”

Learn more about Enterprise Ireland’s Competitiveness supports here.

Irish CEOs Asia Pacific

Stories from the road – Irish CEOs in Asia Pacific

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Winning business in AsiaPac is a marathon, not a sprint, for Irish fintech company Fenergo.

“We’re asking banks for between €30 million and €50 million, so these are big ticket deals. You don’t just walk up and ask for that kind of money. For us, closing deals is the equivalent of running a marathon, in that there are 26 units of work to be done, and it takes us between nine and 12 months to complete,” explained Marc Murphy, CEO of Fenergo.

He was speaking onstage at Routes to Growth Asia Pacific, a major conference organised by Enterprise Ireland at Dublin’s Aviva Stadium.

Even in a fast-paced sector like fintech, don’t expect speedy results, he cautioned. “For all we talk of digital revolutions, it’s still a pedestrian pace for big institutions. To get people to put their career on the line to back you is a big, elongated process. It’s about old-fashioned feet on the street. They want to see roots, they want to see you hiring locally, putting investment and commitment in.”

Asia currently represents 35% of Fenergo’s business. “Our beachhead in the region was Australia,” he explained. “We now have five of the largest Australian banks. From there we went after Singapore, we now have three of four local domestic banks there. We also have a presence in Tokyo, and in the next quarter we will have signed three of the large five Japanese banks.”

One of the ways Fenergo made inroads into China was via the overseas branches of banks such as Bank of China and ICBC, “they are giving us the opportunity to go into mainland China,” he said.

Certain steps can help your progress, such as using the Irish embassy for a launch, as Fenergo did in Singapore. Making key industry hires who are known locally is also helpful.

The company currently employs 90 people across AsiaPac, and has invested around €7 million in the region.

“The basics that we do in London and New York, we will do in Singapore and Tokyo too. There might be cultural differences, such as, in Tokyo, the C-Suite will only talk to the C-Suite, so you find out the customs of each society, but the principles of how we do business are no different whether it’s Toronto or Singapore.”

CAE Parc Aviation

CAE Parc Aviation first began doing business in the region almost three decades ago, said chief executive, Frank Collins. Today, 45% of its worldwide business comes from Asian companies. Moreover, 25% of its business is with Irish companies whose own customers are in Asia. All in all, “it’s a massive market for us,” he said. Parc now has seven offices spread across five AsiaPac countries.

Opening its first office in Tokyo, in 2006, proved pivotal, enabling it to develop deeper relationships. It now has three offices in China and employs 15 people in the region in total.

“Our experience was that though we found we could grow really fast – because of the growth in aviation – the hard part would have been to deliver. So we hauled back and decided to concentrate on three or four of the main airlines there and deliver a really satisfying product.”

Expansion can bring constraints for any company. “For us cash flow has not really been an issue. Our experience has been excellent in terms of getting paid,” said Collins.

“For us, it was just the length of time it took, and the regulation involved, in supplying pilots. Between the time you find a pilot and the time you have them fly, it can be months in certain Asian countries, so you’ve got to be prepared to have people on the ground, working through that, before you earn a penny. That’s the real investment, time and resources. But if you are not prepared to put in the time, and the people on the ground, don’t bother, you just won’t win.”

Cubic Telecom

Barry Napier, CEO of Cubic Telecom, first discussed the possibility of entering the region with Enterprise Ireland in 2010. Its initial market was Hong Kong, followed by Australia and New Zealand, Singapore and Japan.

Cubic Telecom also benefited from Irish embassies in the region. “Regulation is very different in every market. A key thing we leveraged from Enterprise Ireland was an introduction to the local ambassadors. They know about the laws and the regulations, and how to work within the community. It’s about networking, use that abroad,” said Napier.

Douglas Proctor is Director of UCD’s International office. The university currently has 5,000 students from the region studying at its campus, plus a further 5,000 studying in partnership arrangements in countries such as China, Singapore, Hong Kong, Sri Lanka, and Malaysia. “One of the key things universities can offer is to act as a broker for Irish industry in terms of partnerships and R&D in the region,” he said.

UCD has around 20,000 alumni living and working in the region, which “if you map that across the seven universities in the country, means there are Irish people trained and working and ready to support your export aspirations in the region,” he said.

Thinking of the market in terms of clusters, rather than geographies, helped Fenergo tackled what is a vast region.

“In our market, banks all move together. We have all the Australian banks, for example, and we get them together, which can take two or three years,” said Mark Murphy.

“Divide your market into sub-segments and go after them like they are clusters. Put every resource you can against one of those sub-segments – call it a beachhead in terms of how you tackle them – and overwhelm them with customer service. Overwhelm them with delivery. Make them feel like you are bigger and better than Apple and Microsoft, and all the other big brands out there.”

“That has been our real formula for success as we’ve gone after new markets and it has proven to be our success in Asia too.”

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

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“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.”

Strong Strategy Key to Combilift’s German Market Success

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“Having Germany as a good reference has helped to build our credibility in other export markets – customers think if German companies are buying our product, it must be good.”

– Martin McVicar, Managing Director, Combilift

Key Takeouts:

  • Exporting proved easier than domestic sales from day one.
  • Selling direct before appointing a distributor was an effective strategy.
  • Europe has delivered more sustainable growth than BRICs.
  • Enterprise Ireland provided credibility and on-the-ground support.

Case Study: Combilift

German clients have been the easiest to convince and as a market, Germany has been one of the easiest for Combilift to crack and grow in – compared to Italy or Spain – according to managing director of the company, Martin McVicar.

“The reason for this is that Germans are very analytical and open to innovative products when they can see a visible benefit – for example, when it will make them more efficient,” he says.

“Having Germany as a good reference has helped to build our credibility in other export markets — customers think if German companies are buying our product, it must be good.”

McVicar established Combilift in Co Monaghan with Robert Moffett in 1998. Both were highly qualified engineers with decades of experience between them. Their expertise, knowledge of the market and practical experience led to the development of the Combilift — an innovative long-load material handling solution.

By the end of its first year, Combilift had sold 18 units — 17 of which were in the export markets of the UK, Norway, Belgium and France. To date it has sold 35,000 units in 75 different countries and has developed a range of customised handling solutions.

“In our first year, we did sell one unit locally in Co. Monaghan, but strangely we found it easier to sell into other markets as a start-up in development stage”

“Customers in Norway, for example, didn’t query how big or small we were – they just saw that our product was innovative and solved an unmet need.”

A traditional forklift drives backwards and forwards and is manufactured by major players such as Toyota and Mitsubishi. Recognising that they couldn’t compete directly with these manufacturers, McVicar and Moffett were focused on innovation from the beginning.

“One of the unique selling points of the initial model was that it was multidirectional – it could also move left and right – allowing customers handling long products to transport them in a sideward direction, like a crab movement” McVicar explains.

“Nobody had developed a product like this before — one that could operate both indoors and outdoors. Our forklift could handle any length of product in a small space and handle it with more safety.”

Combilifts’s Partnership with Enterprise Ireland:

  • Availed of Enterprise Ireland R&D supports since it was first established in 1997.
  • Benefitted from introductions to English-speaking distributors in Germany.
  • Participated in trade missions that helped secure new key customers.
  • Boosted management capability with the Leadership for Growth programme.

To see how Enterprise Ireland has enabled Combilift’s success, click here.

The direct approach

McVicar and Moffett recognised from the outset that as a manufacturer of materials handling equipment Combilift had to be focused on exports; the UK and Ireland alone would not sustain the business.

They were very targeted in terms of the type of customers they went for — specifically the segment of companies with long products, such as timber producers. “We knew the big players weren’t specialised in the long-load market. We started in mainland Europe; then went into the UK. We went into the US and Germany in year two, which meant we had broadened out to six countries,” says McVicar.

In the early years, Combilift entered countries quite quickly, directly targeting specific industries and customers and not actively looking for distributors. Taking this route led to distributors seeking the company out. “When distributors in a given market can see there are already a number of users of your product, it convinces them of its quality and they are much more likely to be successful in selling it than if you knock on their door,” notes McVicar.

“We made mistakes in some markets, taking on distributors that promised the sun, moon and stars and we went nowhere with them. Finding users first and appointing or looking for a distributor afterwards proved to be a much more successful strategy.”

In Germany and France, Combilift purposely appointed English-speaking distributors to speak to local clients on its behalf. It didn’t invest in language skills in Ireland, but placed sales people fluent in languages on the ground in different markets. There are currently three based in Germany.

“Germany has better spoken English generally than other European countries. If you can speak to the owner of a dealership in English you are more likely to make a fast impact in that market,” says McVicar.

Combilift is in the process of building a new €40m, 46,000 sq ft greenfield operation in Co. Monaghan, which will allow the company to double its production in a single shift. This is planned to be operational in 2017. Presently, Combilift employs a total of 440 people and recorded turnover of €200m last year.

 

Asia Pacific

Asia Pacific is flying high – time for Irish companies to get on board

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Tom Cusack, regional director for Asia Pacific at Enterprise Ireland, explains what Irish exporters can gain by exploring opportunities in the region.

“Always listen,” advised Dicky Yip, non-executive director of Chinese insurance giant PingAn and former chief executive of HSBC China, during his keynote speech at Enterprise Ireland’s Routes to Growth Asia Pacific, a major conference which brought together more than 400 Irish and international business people to explore export opportunities in the region.

“It takes time to understand each area’s cultural differences”, explained Yip.

The inaugural Routes to Growth Asia Pacific event offered a unique opportunity for networking and peer-learning to current and first-time exporters, with more than 100 potential buyers travelling to attend. Enterprise Ireland’s entire Asia Pacific team assisted companies with export plans and on-the-ground experience. Enterprise Ireland also launched a series of business guides to help companies better prepare for market entry.

Asia Pacific is home to two of the world’s three biggest economies

Stretching from Australia to India and China, Asia Pacific is home to half of the world’s population and two of its three biggest economies. By 2025, it will account for more than half of the world’s economic output. Similar trends are evident with growth rates, which range from 5% to 9%, compared to the 2-3% global average. Australia, in particular, has enjoyed over 25 years of continuous growth.

More than 600 Irish companies are currently doing business in the region, worth €2 billion annually.

Irish exports more than doubled in the last five years since breaking the €1 billion mark in 2012, delivering double-digit growth for Enterprise Ireland-supported companies in 2016, with an impressive 16% year-on year-gain. As the second-fastest growing region for Enterprise Ireland-backed companies, a 50% increase in exports is targeted by 2020. Opportunities for Irish businesses in sectors including aviation, fintech, international education, and construction and engineering are particularly promising.

“Ireland has emerged as one of the greatest global aviation hubs in recent times,” commented Dermot Mannion, former deputy chairman of Royal Brunei Airlines and former Aer Lingus CEO. “That is happening at a time when Asia Pacific is by far and away the fastest growing region for aviation. Over the next twenty years, the number of aircraft going into Asia Pacific will be equal to North America and Europe combined. We are very well positioned to take advantage of that.”

One example of Irish success in the sector is CAE Parc Aviation, who first began doing business there almost three decades ago, explained chief executive, Frank Collins. Today 45% of its worldwide business comes from Asian companies. CAE Parc has seven offices spread across five AsiaPac countries. In all, “it’s a massive market for us,” Collins said.

Speakers recommended reaching out to Enterprise Ireland for assistance and tapping into the Irish diaspora.

Work with Enterprise Ireland to expand in Asia Pacific

“You need to get out there on the ground, so use Enterprise Ireland and the Department of Foreign Affairs. There is always someone who can give you introductions,” said Paul Costigan, chief sales and marketing officer at Decawave.

Barry Napier, CEO of Cubic Telecom, first discussed the possibility of entering the region with Enterprise Ireland in 2010 and benefited from Irish embassies in the region. “Regulation is very different in every market. A key thing we leveraged from Enterprise Ireland was about laws and regulations, and how to work within the market,” said Napier.

Ireland’s connectivity to the Asia Pacific region will see a big boost in June 2018 with the launch of a direct flight between Dublin and Hong Kong with Cathay Pacific, the first ever direct flight from Ireland to the Asian mainland.

“Don’t underestimate the impact of having ‘Dublin’ on departure boards in Hong Kong will have,” said Mannion. “It will create a dynamic where companies in that part of the world will be interested, because it will be easier to do business here.”

That the Routes to Growth event was organised in partnership with Cathay Pacific is fitting. There is no doubt that the AsiaPac region is flying high. For Irish companies, it is time to get on board.

Visit our markets section for insights on Singapore and China and the opportunities for Irish companies.

This article was originally published in the Sunday Independent.

Linesight Maximises Data Centre Opportunity in the Netherlands

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“We had started doing a lot of data centre projects for US multinationals in Ireland so we decided to look at the Netherlands as Amsterdam is a hub of activity for data centres.” – Paul Butler, director, Linesight

 

 

 

Key Takeouts:

  • Enterprise Ireland trade missions and market introductions a key success factor.
  • Excellence in service and personnel a key differentiator and competitive advantage.
  • Dutch data centre business a bridgehead for growing other sectors and European markets.

Case Study: Linesight

Five years ago Dublin-headquartered firm Linesight decided to go on fact-finding missions to the Netherlands with the help of Enterprise Ireland. It was a move which has led to around 70% growth in its fee base in that market since then and an increase in its team based there from four to 30 people.

Linesight provides professional services and strategic support to the global construction industry. Projects span a range of industry sectors including commercial, data centres, life sciences, healthcare, transportation and infrastructure and retail.

Originally established in 1974 as Bruce Shaw, Linesight rebranded in 2016 with a view to having a name that could be owned in all markets. The name Linesight was inspired by the company having its clients’ goals in their direct line of sight from initial concept through to successful project completion.

With staff located across Europe, the Middle East, Asia Pacific, and North America, Linesight increased its global headcount by 135 and recorded turnover of about €60m for the group in 2016. It now has 17 offices around the world and has delivered projects in 40 countries.

Linesight’s growth in the first 30 years or so was mainly focused on Ireland and the UK where it established a number of offices. When the recession hit in 2008, it had built up a 25% market share in the domestic market for professional services to the construction industry. It had also generated a limited amount of international business.

The downturn in construction at home prompted the company to look at international markets more keenly and the Benelux region – and the Netherlands in particular – seemed a promising area to focus on. It had worked on five or six small projects there, but further to building up expertise and skills in data centre projects it saw an opportunity.

“We had started doing a lot of data centre projects for US multinationals in Ireland so we decided to look at the Netherlands as Amsterdam is a hub of activity for data centres,” says Linesight director Paul Butler.

“In addition, a lot of pharmaceutical multinationals were starting to set up subsidiary plants in the Benelux region. We recognised that we had the relevant in-house expertise and key staff delivering professional services in these areas. We wanted to retain that staff and the Netherlands was of particular interest to us.”

 

Linesights’s Partnership with Enterprise Ireland:

  • Attended a series of Enterprise Ireland workshops on data centres.
  • Benefitted from introductions to the market/local contractors organised by Enterprise Ireland.
  • Participated in Taoiseach’s trade mission to the Netherlands and Germany.

To see how Enterprise Ireland has enabled Linesight’s success, click here.

Competitive advantage through people

Over the years Linesight had established a partnership approach with clients based on consistency and clarity, and it has a proven track record in terms of quality and timely delivery of projects. This stood to the company when it came to building business in the Netherlands.

“For some of our clients developing projects in the Dutch market we were preferred bidders and travelled there with them as part of their team, offering the same service as we had in the Irish market,” Butler explains.

“Other projects involved competitive bidding as companies may have had their own in-house auditing functions – but we were also very competitive in winning that work.”

Some multinational clients even requested that certain individuals from Linesight work on projects with them in the Netherlands, Butler adds, “Our people are key in terms of generating repeat business. Senior project managers see projects through from cradle to grave and directors oversee projects on a 24/7 basis. The personal relationships built up over time have been very important.”

The Netherlands has been a relatively easy market for Linesight to enter as English is widely spoken and its framework in terms of contracting is similar to Ireland’s. “Being fluent contractually is a different thing than being able to speak a language. In other European countries language can be a barrier in this respect. We demand that contractors deal with us in English in the Netherlands,” says Butler.

That being said, once Linesight started to focus on the Dutch market, it invested a lot of time in ensuring it had the right contractors and partners to deliver projects to the standard required. It also had to get to grips with different regulations in relation to construction, planning codes and timeframes.

“Even within the Netherlands different regions are more regulated in terms of construction. For example, near the German border there is still a lot of heavy industry, which contrasts with the Amsterdam area,” says Butler.

“We had to stretch our web of contractors beyond the Amsterdam area. Now we have a high level of tried and trusted partners in the Netherlands that we know will deliver for us.”

Now that Linesight is established in the Dutch market it is looking at new opportunities within its existing client base, such as in the retail and pharmaceutical sectors. It also wants to take advantage of some new areas, in particular in relation to the local supply chain and newly built logistics centres.

“There are some very good companies competing with us for business. What differentiates us, in addition to our people, is the fact that we are an all-in company that can provide cost management, project management and risk assessment. This is vital for a lot of big multinationals,” notes Butler.

“A significant proportion of our people have backgrounds in civil, electrical or mechanical engineering – so our service is not just about number crunching, they can understand the design. They can go through drawings with clients in great detail and are fluent in engineering language.”

Gaining a foothold in the Netherlands has led to Linesight building business in Germany and Belgium. Once clients’ projects are completed in the Netherlands, it has extended its network to continue working with them in other locations.

“They want the consistent, clean approach of dealing with us, rather than having to educate a new local provider in their needs and ways. The flexibility of our people and operation has been key to our success.”

Top Tips for Exporting to Europe:

  • Be flexible and adapt to the needs of major multinational customers.
  • Build a strong local presence to really be successful in a market.
  • Harness the Irish mentality of ‘getting the job done’.

For more details, click here.

Broderick’s Bars: From One Kitchen to 30 countries

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“We wanted to create something different in terms of its taste, its packaging, the branding and the format. We were aiming at export markets from the very beginning and we knew that we needed a great product if we were going to succeed.”
Barry Broderick, Co-Owner Broderick’s Bars

Key Takeouts:

  • R&D funding and Growth programmes allowed Brodericks to commit the time, people and finances to research projects.
  • Growth programmes offered by Enterprise Ireland taught them about best practice, scaling and growing exports.
  • Broderick’s range of cakes are now exported to 30 countries and available on many international airlines.

Case Study: Broderick’s Bars

The Broderick’s range of cake bars and mini-bars are now exported to 30 countries around the world and can be found on the menus of a number of leading international airlines, including American Atlantic and Delta Airlines. The company, which recently moved to a purpose-built manufacturing facility in Tallaght, employs 110 people.

This is just the start, according to co-owner Barry Broderick, who adds that innovation has been at the very heart of the business since it began life as Ina’s Handmade Foods in 1994.

“The business started out in my Mum’s kitchen when my brother Bernard and I were kids”, he says. “We got involved as unpaid labour back then and have been working in it ever since. Back then, we produced a range of cakes for coffee shops and the food service sector generally. We always used Belgian chocolate and butter, and saw the opportunity for a premium grab and go offer using those base ingredients. That’s where the idea came from initially.”

Barry and Bernard then set about developing Broderick’s Bars. “We wanted to create something different in terms of its taste, its packaging, the branding and the format. We were aiming at export markets from the very beginning and we knew that we needed a great product if we were going to succeed. You have to have a product that people are interested in and that they want to buy again. You need to have a USP, and innovation is so important to that. You can’t stand out from the crowd without it.”

He appreciates the support Enterprise Ireland has provided over the years. “Enterprise Ireland has been a very good partner”, he says. “They really try to help you to achieve your ambitions and are very good at helping you scale a business. They mentor you through the growing phase of the company. They help you put the structures in place to build the business. Their Management for Growth and Leadership 4 Growth programmes have also been really helpful. It’s really about bringing best practice to your business, so that you can scale your business and grow jobs, and grow exports.

“On the R&D side, it’s very good because it enables you to realise the importance of R&D and innovation”, he adds. “Exporting success requires a lot of innovation and we really wouldn’t have been able to do that without Enterprise Ireland assistance. It allowed us to commit the time, people and finances to research projects, which enabled us to do something different and stay relevant in the eyes of our customers.”

Innovation remains central to the company’s growth ambitions. The latest additions to the Broderick’s range are BC bars, a range of natural, healthy, protein bars. “A lot of research went into developing these bars, and that knowledge is now available to the food service side of the business as well.”

The Tallaght facility also has a dedicated gluten-free unit. This will play an important part in the company’s future growth plans. “We want to be more than just a brand, we want to be bring people an authentic experience through great-tasting innovative products.”

Learn more on how Enterprise Ireland focuses on innovation with its wide range of supports.

Design Shaping Success for Irish Exporters

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Ireland has not always considered itself a design nation. Yet our understanding of what good design means has evolved as companies recognise its commercial potential across sectors.

One milestone occurred when the Design & Crafts Council delivered Irish Design 2015 on the behalf of Enterprise Ireland and the Department of Business, Enterprise and Innovation. Since that year-long programme, the commercial impact of design in Ireland has continued to evolve. Businesses that may once have viewed design as inessential, now recognise its potential to shape business results.

For today’s exporters, an approach to design should embrace two main elements: technology and user experience. Technology describes how a product functions, and user experience how customers engage with the solution, or more importantly, how the solution engages its users. The importance of both has been clear to B2C companies for some time, with the iPhone a famous example of excellence in both. Awareness has spread to less obvious applications, like the production of agricultural machinery. Manufacturers in B2B industries now understand that design can make products look efficient, so that a user’s impression of quality is often shaped by design.

“Exporters, in particular, must treat design as strategic. Customers in different markets often have different responses to technology and user experience. It cannot be assumed that design will translate across markets.”

Exporters, in particular, must treat design as strategic. Customers in different markets often have different responses to technology and user experience. It cannot be assumed that design will translate across markets. What good design looks like in Ireland is often different to what it looks like in France. Companies must, at the very least, consider how to adapt technology and user experience for each market targeted.

Enterprise Ireland supports more and more companies to give design the focus it deserves. The success of Marco Beverage Systems, a hot water delivery systems company, has been fueled by design-driven innovation. Paul Stack, Operations Director, explains that design transcends surface styling, saying, “The main considerations for our design team are energy efficiency, beverage excellence and design excellence, incorporating user experience and aesthetics.” With just under 100 employees globally, the company’s products can be seen in significant locations, including Starbucks, Bewley’s and Costa Coffee. Stack comments, “A reputation for good design and innovation increases your brand value and drives sales all by itself.”

Irish animation Great White North

Irish animation conquers the Great White North

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Philip Callan, market executive for the animation sector based in Enterprise Ireland’s Toronto office, describes how Irish animation companies are making waves in the North American market.

With over nine million children living in Canada, and with a business climate and culture similar to Ireland, the ‘Great White North’ is a market filled with opportunities for Irish animation studios and service providers.

The Irish animation industry’s success in developing content for audiences at home and abroad has driven an increase in domestic employment. While only around 100 people were employed in the sector in the mid-2000s, it is estimated that more than 1,700 work in animation in Ireland today. The sector is worth almost €100 million to the economy, the majority of which is export generated.

The ways in which children consume entertainment internationally is evolving in ways that are suited to the strengths of Irish providers. While watching TV itself remains the most popular way for children to spend leisure time, content is increasingly consumed on newer devices, like phones and tablets, and through digital platforms, namely YouTube, Amazon and Netflix. A Viacom Insights Kids of the World study found that, of children surveyed aged 6-11, 41% owned their own tablet and 37% owned a smartphone.

Canadian broadcasters, such as CBC Kids and TVO, are required to follow government-mandated guidelines when purchasing content from international partners, including rules about representing Canadian values, such as equality, diversity and non-violence. There is a growing trend for productions that incorporate educational content that teaches children about their world and issues such as terrorism, personal safety and internet security.

Irish animation excels internationally

The widespread international recognition garnered by Irish studio Cartoon Saloon’s The Breadwinner, an Ireland/Canada co-production with Toronto-based Aircraft Pictures, is a great example of that global trend. The feature film addresses issues such as gender inequality, political oppression and warfare, and was nominated for Best Animated Feature at both the Golden Globes and Academy Awards.

Nora Keely at Guru Studio in Toronto has highlighted Canada’s co-production treaty with Ireland as a driver of projects between Irish and Canadian partners. At this year’s Kidscreen Summit in Miami, an important event for the global children’s entertainment industry, a panel of Canada’s leading figures encouraged peers to take advantage of co-production pacts and to source international partners for projects.

One challenge smaller Irish companies must overcome is scaling and getting their name known internationally, notes Ronan McCabe of Treehouse Republic and Animation Ireland. Pitching at international markets such as Kidscreen, Cartoon Forum and MIPCOM is important. Even if a pitch doesn’t succeed on the first occasion, those pitched to may remember the project later when they need to purchase content.

Pre-school shows can be easier for Irish companies to pitch to international buyers, as the older the age bracket, the greater the divergence of children’s pastimes and hobbies. Dublin and Belfast-based JAM Media secured a deal with CBC for its new pre-school show Becca’s Bunch, which combines live action, puppetry, 2D and CG animation to create a multi-textured world. Cartoon Saloon’s Puffin Rock is also aimed at the 2-5 year-old bracket and was acquired by Netflix to air in Canada, the USA, and around the world. Both shows focus on nature, wildlife, friendship and exploration, universal themes for the age range, and a great fit for the attitudes of modern children, which Viacom research describes as independent, confident and curious.

In addition to the established markets of North America and Europe, opportunities in developing markets in Asia, particularly China, are being targeted more closely by Irish studios. While significant barriers to entry remain, including a requirement for government approval of imported animation programs, they offer a growing middle-class population with significant demand for children’s content. Cartoon Saloon recently signed a multi-licence deal for Puffin Rock with the China Nebula Group (CNB) in a market with a population of 1.3 billion, of which 27% are under 20 years old.

Enterprise Ireland’s overseas office network is available to assist Small and Medium Enterprises in the animation sector with assessing in-market opportunities, identifying potential customers, and supporting international buyers to source from Ireland. For more information on doing business in Canada visit our Markets pages or download our Going Global guide.

This article was originally published in the Sunday Independent.

 

CurrencyFair

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“The foresight and belief that Enterprise Ireland has given us, and the practical advice and mentoring, we wouldn’t have gotten that anywhere else. It was really key to our success.”

Caroline Nangle – Head of People & Culture

Who

CurrencyFair gives ordinary people access to foreign exchange rates normally reserved for banks and market professionals, making it cheaper to transfer money internationally.

How

CurrencyFair was able to scale rapidly and internationally through practical advice and mentoring that they received from the Enterprise Ireland team.

Result

CurrencyFair is now a global operation with over 90 staff and offices in Ireland, Australia and the UK.

See How We Helped CurrencyFair