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.

winning contracts US

Negotiating the non-negotiables: Tips for winning contracts in the US

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In a David and Goliath business encounter, David stands a better chance of success if it is obvious that he is good at what he does, said Sally Hughes, CEO of the International Association for Contract & Commercial Management (IACCM), speaking at this year’s E3 Entrepreneurship Export Exchange conference, organised by Enterprise Ireland and Global Situation Room.

 

IACCM is a not-for-profit organisation dedicated to raising the value and integrity of trading relationships worldwide, working side-by-side with both buyers and suppliers and with both mega-corporations and SMEs.

In her presentation, Hughes covered three lists:

  • the most common terms included in standard US contracts
  • the most important terms included in US contracts
  • strategies that SMEs need to adopt when dealing with major corporations.

She also described an example of an unnamed SME owner who negotiated a life-changing deal with retail giant Walmart and discussed how Irish firms could follow their example.

 

Show you’re an expert in your field

“In an environment where one side has significant buying power, as a supplier you have to demonstrate great quality and value,” she says. “More importantly, you need to present yourself as an expert in your field.

“The one area where there will inevitably be negotiation is price but it’s critical not to get dragged down in those discussions early on. In fact, in the first few meetings you don’t want to be negotiating price at all. The key to meaningful negotiation, and to the effective management of risk, is to get to know the buyer well.”

In Hughes’s Walmart example, the successful SME supplier spent 18 months getting to understand the retail giant’s needs. Notably, when the supplier was offered a contract with Walmart’s non-negotiable conditions, his lawyer warned him that the terms were ‘too risky’ and could cause the collapse of his business but the supplier continued to negotiate a deal.

 

Negotiating contracts in the US

According to Hughes, the terms most commonly negotiated in standard contracts in the US include:

  • Limitations of liability
  • Indemnification
  • Price, charges and price changes
  • Termination of contract
  • Scope and specification
  • Warranty
  • Performance guarantees and undertakings
  • Payment terms
  • Data protection, security and cyber-security
  • Liquidated damages.

Indeed, the IACCM chief said that, very often in contract negotiations, the areas that partners battle over the most are not always the most important. Hughes advised that the most important contract terms to focus on are those that will contribute most to your success, largely:

  • Scope and goals
  • Responsibilities
  • Prices, charges and price changes
  • Service levels
  • Performance, guarantees, undertakings
  • Limitation of liability
  • Payment terms
  • Warranty
  • Product specification

In the Walmart case, the SME owner believed he had to be better than the competition at accepting and managing risk. As part of his deal with the retailer, he requested access to sales data so that he could assume responsibility for ensuring that his products moved off the shelf.

“Success depends on the quality of the information flow from buyer to seller,” said Hughes. “Transparency is key and is in both parties’ best interest. This is about a partnership, no matter what your relative side.”

 

Winning business in the US

If you want to win business from bigger customers than you have ever had before in the United States, Hughes advised following these strategies:

  • Be better than your competition at accepting and managing risk
  • Demonstrate your expertise and educate your buyer – before discussing price
  • Get the buyer emotionally involved in your product or service
  • Demand quality information flows between you and your customer
  • You might not be able to negotiate ‘boilerplate’ – the standard terms and conditions listed at the end of most contracts – but you can ensure you implement good governance through communication protocols and problem-solving techniques
  • Even if it seems like a David and Goliath scenario, it is about a partnership. Big buying power doesn’t have to mean big negotiation power – that is down to you.

“Selling in the US market takes planning and it takes persistence,” added Hughes. “You need to understand who you are selling to, what rules and procedures they’ll be following, how will they measure value and what weightings they’ll apply to selection criteria.

“You’ll also need to have developed a negotiation strategy, how you will convince them that you are a reliable supplier committed to the market, that you are an expert in your field, that you are passionate about your product or service and that you understand fully the nature of your competition. You need to educate your buyer.”

 

Read more on doing business in the US market.

Innovating for Recovery: CW Applied Technology

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On the first episode in our new series Innovating for Recovery, we are joined by the Managing Director of electronics company CW Applied Technology, John O’Connell. In response to the Covid-19 crisis, CW Applied Technology designed and manufactured a portable Room UV-C Steriliser. 

The portable steriliser is designed for virtually any room that needs air and surface disinfection, including sterile areas, laboratories, unoccupied patient room. On the show, we discuss, the origins of the idea, and its variety of uses, particularly during the Covid-19 pandemic.

 

Irish exporters to Germany

How we got the German market to work for us

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As German businesses demand detailed certainty, not just now but long-term, after-sales, support and clear future planning are key to building more than just a foray into the market to deliver a sustained successful expansion for Irish firms.

While the German cultural and business identity centred on convention, conservatism and future-proofing may at first appear quite different from the Irish propensity for dynamism, innovation and can-do delivery, many Irish firms have made successful entries to this biggest market in Europe.

At the Ambition Germany event organised by Enterprise Ireland, Irish firms already active in the market shared why and how they chose Germany, and insights into their success.

 

Major opportunities and significant challenges in the German market

The opportunities are huge, given the size of the world’s fourth-largest economy but the challenges can also be substantial. It is a mature market with long-established supply chains and a preference for supplier loyalty.

Robert Byrne, director of Burnside Eurocyl, the Carlow-based hydraulic cylinder manufacturer, ventured into Germany in the early 1980s: “A combination of a weak pound and strong Deutsche Mark made our product very competitive so we set up a sales office in Germany. That was vital. You need constant feet on the ground. You simply have to have a presence in the market you intend to sell into.”

German deals must be taken seriously. Negotiations can take a long time and Germans dislike ambiguity.

“This is why, when we sell, we don’t send a sales rep but an engineer. The client can see the solution we are offering – and get the detail clearly explained. They very much appreciate that,” added Byrne.

Since taking advice from Enterprise Ireland on exploring a new market, Paul O’Sullivan, managing director of Irelands Eye Knitwear, said exports now comprise 55% of all sales with Germany being its biggest overseas market.

He told delegates: “We were encouraged to get into Germany by Enterprise Ireland but we found customers very loyal to their supply base. It’s hard to get a meeting but if you do, you’re halfway there. They will do a lot of research on you before agreeing to meet, so to get that point is a very good sign. But if you want to get to the next level you’re going to have have people on the ground, so we needed sales agents in Germany to get to there.”

Cold-calling is frowned upon in Germany and privacy is highly valued – and regulated – so do not squander a meeting or bombard with marketing material. Pat Ward, managing director of Western Automation, electrical safety specialists, said establishing the firm’s credibility and its reputation for long-term delivery was key.

“Establish your credibility to supply them with a solution for their needs. Your credibility is vested in you, not your product, and that comes from your ability to supply as promised, deliver on technical support. When dealing with German firms, be credible, be believable, and always do it in person.”

Initial successes for Burnside Eurocyl came from the firm’s dynamic approach. “We grew because we were fast and flexible and that’s what made us competitive in the German market. But we did make some mistakes. We went for sales before we had capacity and we lost customers because of that. If you give a lead-in time, stick to it.”

Expansion for Western Automation was boosted by attending one of many trade shows – Germany is one the world’s leading venues for trade shows.

Enterprise Ireland can advise on which trade shows are most beneficial for your company to attend. Recently, 34 Irish companies were supported to showcase their solutions at the world-renowned Medica and EuroTier trade fairs, leading events for medtech and agritech respectively. More than 250,000 people attended the events.

“We bit the bullet and did a trade fair in Hannover. It showed we were a company of substance. Before we went to Hannover, we had one German customer. After Hannover, we had 5.

“It’s not a cost, it’s an investment,” said Ward.

 

For more insights on doing business in Germany visit our German Market Insights pages.

 

 

 

 

 

Big Ideas in Irish medtech sector

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Enterprise Ireland’s annual Big Ideas event highlights Irish university research projects with high commercialisation potential but that require additional investment to become fully market ready.

More than half of the 12 projects showcased at Big Ideas 2018 involved new developments in the medtech sector. The figure isn’t so surprising when you remember that Ireland is the largest employer of medtech professionals in Europe per capita, with 450 medtech companies employing 38,000 people, and producing annual exports worth €12.6 billion to more than 100 countries worldwide.

Ireland has also worked to support connections between clinicians and the healthcare sector, with the Health Innovation Hub Ireland (HIHI) established to drive collaboration between the health service and enterprise. It offers companies the opportunity to carry out pilot and clinical validation studies, and offers the health service access to innovative products, services and devices that it may not otherwise be exposed to.

Tom Kelly, divisional manager for life sciences at Enterprise Ireland argues that Ireland’s compact geographic scale is to its advantage in becoming a medtech hub: “Because we are small there is huge interaction between the multinational and indigenous sectors of the industry. The highly connected nature of the industry allows relatively small Irish firms achieve global success quite quickly.”

Irish innovation in life sciences continues

SepTec, winner of the One to Watch Award at Big Ideas 2018, is among the newest wave of innovative applications to emerge from Irish universities.

The SepTec team, based at Dublin City University, developed a revolutionary diagnostic device for sepsis that can provide a diagnosis within minutes – a big improvement on the five hour minimum wait for a diagnosis using current sepsis testing technology. This is potentially life-saving, as for every hour that a patient has sepsis their life expectancy decreases by 8%. SepTec hope to have their device on the market in 2020.

The other medtech solutions presented at Big Ideas 2018 were: 

  • AtriAN Medical – developers of a new treatment for atrial fibrillation
  • Atturos – who have a proteomic-based test that can help prostate cancer patients and their doctors decide whether to operating or not
  • ChemoGel – a thermoresponsive drug-delivery platform for use in treating pancreatic cancer
  • Cortex Analytics – a predictive analytic solution to help more accurately gauge patient perception of value during drug trials
  • itremor – a hand-held concussion-detection device that can diagnose brain injury in seconds
  • Prolego Scientific – who have developed unique algorithms to make better genomic predictions about livestock and crop performance.

While it is not yet clear how many of these projects will pass through full commercialisation, many of Ireland’s universities and institutes of technology have developed spin-out companies that are either thriving or have been acquired by larger entities.

“Some people say that it is a pity if an Irish pharma or medtech spin-out doesn’t go on to become an international player in their own right,” says Dr Ciaran O’Beirne, UCD’s technology transfer manager.

“But in all cases when a spin-out was bought out by a larger partner, the Irish personnel didn’t migrate to the States.  American companies used these acquisitions to set up a presence in Ireland, to take advantage of R&D opportunities here. They have made further investments and created further employment opportunities. It has been a win-win.”

Ireland also boasts a strong services and contract research and manufacturing base; 50% of companies located here are in the business-to-business space. As pressures on healthcare systems have resulted in a greater focus on enhanced efficacy of treatments and cost reduction, there is no sense of complacency across the sector in Ireland, where industry and Government alike are constantly looking for new ways to enhance competitiveness, develop new capabilities and ultimately generate new sustainable growth.

 Learn more about how Enterprise Ireland supports innovation through its dedicated funds and supports.

NIVA – simplifying the Common Agricultural Policy claims process

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“Horizon 2020 is an ideal funding stream as it enables cross-border collaboration and ensures that technology developed will be fit for purpose on a pan European basis.”

David Hearne, Walton Institute, NIVA Horizon 2020 project

Key Takeouts:

  • Walton Institute (formerly TSSG), part of the Waterford Institute of Technology, is involved in a project that aims to develop and implement a range of digital innovations to improve the administration of the Common Agricultural Policy (CAP).
  • The NIVA project has received €10.5m in funding from the European Union’s Horizon 2020 research and innovation programme.
  • Walton Institute is focused on developing a geo-tagged photo app to help simplify the CAP claims process for farmers and paying agencies.

H2020 Case Study: NIVA

    The European Union’s Common Agricultural Policy (CAP) supports farmers, safeguards agri-food supplies and encourages sustainable management of land resources. Administering and controlling payments to farmers under CAP is done through the integrated administration and control system (IACS), which is the subject of the Horizon 2020 project, NIVA (New IACS Vision in Action).

    The three-year project, led by The Netherlands’ Wageningen University & Research and involving 27 partners, aims to modernise IACS by delivering a suite of digital solutions, e-tools and good practices for e-governance. These will ultimately produce more transparent, simpler processes that will reduce the administrative burden on farmers, paying agencies and other stakeholders.

    In Ireland, a multi-disciplinary team made up of The Walton Institute (formerly TSSG) – a centre of excellence for ICT research and innovation – the Waterford Institute of Technology (WIT), Teagasc – the Agriculture and Food Development Authority – and led by the Department of Agriculture, Food and the Marine is tasked with developing a geo-tagged photo app.

    The app will be used to resolve claim queries by enabling farmers to send digital photos of their land parcels directly to the paying agency, which will reduce the need for inspections and accelerate claim processing.

    “Our app is one of nine innovations in this project with different countries working on each,” explains David Hearne of Walton Institute’s Creative Design Unit. “Other areas include decision support systems, machine data and a solution for simplifying payments, but in the end they will all come together in one ecosystem, which will be used by paying agencies across Europe.”

    Although it won’t be the first geo-tagged photo app on the market, Hearne explains that what sets this one apart is the user-centric, multi-actor design.

    “We take the approach that we don’t know what the users want; we can’t decide what’s best for a farmer in the west of Ireland who needs to send a photo to the Dept of Agriculture. So the project started by gathering data about the needs of all stakeholders, not just in Ireland but across Europe. It’s an iterative process, so when we’d developed the first version of the app, it was tested by users across Europe and their feedback informed the next iteration and so on.

    “The fact that farmers and other stakeholders have been involved from the beginning gives them a sense of ownership, and that should result in a higher adoption rate at the end,” adds Hearne.

     

    Horizon benefits  

    Horizon 2020 has provided €10.5m in funding for the project, but beyond the financial investment the programme offers multiple other benefits.

    “Horizon 2020 is an ideal funding stream as it enables cross-border collaboration and ensures that technology developed will be fit for purpose on a pan European basis,” says Hearne

    “Currently, our app is being tested across nine EU countries with over 200 users, and other solutions being developed under NIVA will likewise be tested across different countries, so there’s a lot of interaction, integration and learning across the project.”

    Monthly work package meetings and bi-monthly project meetings, all virtual at the minute, keep the project on course and ensure that innovation is shared across the partners.

    On a personal and professional level, Hearne believes his involvement in Horizon 2020 projects has been highly advantageous.

    “It’s great to focus on these large projects with so many moving parts. You learn so much, for example, the various technologies used in different countries, how they are implemented and what the issues are.

    Hearne confirms “The opportunity to collaborate with researchers in other countries is also invaluable. You build up a huge contact base, which gives you the opportunity to collaborate on more projects.”

    To others who have not yet dipped their toe in the Horizon water, Hearne simply says “Do it”.

    “It’s a great opportunity to be involved in projects that can actually change people’s lives. With NIVA we’re reducing the burden on farmers, so we’re making a difference. My advice would be to focus on something that you’re really passionate about.”

    His other advice is to seek out the right partners at the start and use the supports that are available to help with putting the proposal together.

    “I was involved in writing sections of the NIVA proposal. It was a new experience for me because I come from a very technical background, but I had the support of people in WIT to guide me in how to approach it. And the more you do it the easier it gets.

    “We’re also in close contact with Enterprise Ireland, who have a real interest in the project, and we know that they’re there to help us if we need it.”

    For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

    H2020 success stories banner link

     

    SpeakingNGI – Shaping the internet of the future

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    “We are delighted and proud to have contributed to the successful building of the EU’s flagship Next Generation Internet – An Open Internet Initiative (NGI)”.

    TSSG’s Strategic EU Liaison Manager and coordinator of the SpeakNGI.eu project, James Clarke

    Key Takeouts:

    • TSSG (Telecommunications Software & Systems Group), an internationally recognised centre of excellence for ICT research and innovation at the Waterford Institute of Technology, led the influential SpeakNGI.eu project, which was a Pathfinder Project for the European Commission’s large-scale, flagship Next Generation Internet (NGI) initiative.
    • The project was funded by the European Union’s Horizon 2020 Research and Innovation ICT work programme 2018-2020 (WP2018-20).
    • SpeakNGI.eu’s NGI Consultation Platform and Knowledge Base were among numerous contributing projects helping to shape the internet of the future into an Internet of humans that responds to people’s fundamental needs, including trust, security and inclusion, and reflects the values and the norms that we enjoy in Europe.

    Case Study: SpeakingNGI

    Evolving the internet from its current problem-strewn form into a human-centric, secure, inclusive space that supports people’s needs and addresses global sustainability challenges is a European Commission (EC) priority.  It’s an ambitious goal, now embodied in the EC’s flagship Next Generation Internet (NGI) initiative.

    SpeakNGI.eu, a partnership between TSSG and Trust-IT Services Ltd, was one of three Horizon 2020-funded Pathfinder Projects that aimed to identify research topics, enable dynamic consultation, and shape the programme for the NGI initiative. For more information on the initiative, please consult the NGI Brochure.

    Begun in 2017 and running for just 18 months, SpeakNGI.eu addressed the dynamic consultation aspect of the pathfinder programme, by building a platform with mechanisms for engagement with the NGI stakeholder communities, creating a knowledge base and establishing a 16-strong European Champions Panel of thought-leaders.

    “These pathfinder projects were important cogs in a bigger wheel and a very important step towards the establishment of the EU’s flagship NGI initiative and directly contributing to the selection of priority NGI topics for the open calls being funded by the larger scaled NGI Research and Innovation Action projects,” explains James Clarke, SpeakNGI.eu project coordinator.

    “We were considering what the Internet will look like 10 years from now, dealing with mounting concerns about security and privacy, and anticipating radically new functionalities. Our platform enabled organisations and individuals to share their ideas and we collated the information and published it in a readable format, essentially building the topics that would eventually be funded through cascade funded open calls by the NGI RIAs.”

     

    From data gathering to experimentation

    Following the successful conclusion of the Pathfinder Projects, the EC launched Research and Innovation Actions (RIA) as the next step towards its vision of creating the ‘internet of humans’.

    In the first tranche of the NGI RIAs, they funded open-call NGI projects based on the topics the pathfinders identified, such as privacy and trust technologies, decentralized data governance, and better search and discovery technologies.

    On the back of SpeakNGI.eu’s success, Clarke led a five-partner team that secured an NGI RIA project covering EU – US cooperation. The project, NGIAtlantic.eu, which runs until June 2022, is funding EU-based researchers and innovators to carry out NGI-related experiments in collaboration with US research teams.

    “We have a €3.5 million budget, 80% of which is dedicated for open calls funding third-party projects. We select, fund and monitor the projects, which are building on research results and moving to the experimentation stage on EU and US experimental platforms,” says Clarke.

    “The vision of a new initiative, launched by the EC in 2016, is now at the stage of funding innovators through RIAs with an overall budget of €75 million over a three-year period. We are delighted and proud to have been part of this long-term strategic action and to have contributed to the successful building of the EU’s flagship NGI initiative.”

    Building on experience

    The two NGI projects are not Clarke’s first foray into the world of EU funding and he has a wealth of experience to call upon.

    “I’ve been involved in EU-funded projects back to the early-nineties so this wasn’t a first for me. For the most part, the experience has been good and challenging. Where it hasn’t been so good, it can be down to teaming up with the wrong partners, perhaps with not enough foresight into the strategy and team building experiences when working in the proposal stages. With experience, I’ve learned how to pick the right partners every time, which is very important,” says Clarke.

    Clarke says “There is certainly a lot of work involved in putting a proposal together for projects. I found the Enterprise Ireland Coordinator Grant to be a huge support in helping prepare a successful Horizon proposal.”

    It has enabled me to bring in great mentors to help with not just the reviewing process, but also to generate content, where needed. And if I couldn’t find someone suitable, who was also available, in Ireland, I could go further into Europe to get the right person.

    “Before Covid-19, I would meet the mentor and spend a couple of days working with them on the proposal and I found that much more effective than relying on feedback from written drafts. Since I started taking that approach, I’ve been winning more projects.”

    Although he admits that being a coordinator on a Horizon 2020 project can be sometimes difficult, Clarke firmly believes the experience has many rewards.

    “Working with like-minded researchers and innovators from around Europe has been a big thrill for me. Coordinating a Horizon 2020 project also frequently offers the opportunity to be invited to participate in more projects, events and follow-up activities. The more you succeed, the more invites you get. Overall, it’s very fulfilling and enjoyable.”

    For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

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    Relationship building key for Irish medtech suppliers breaking into the US

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    While Ireland’s reputation for health innovation is admired across the world, breaking into new markets is rarely easy. The US hospital supply chain is one of the most potentially lucrative for Irish companies but also one of the most difficult for outsiders to penetrate.

    Earlier this year, Enterprise Ireland’s life sciences team hosted Navigating the US Hospital Supply Chain, aiming to help Irish exporters to become more familiar with the intricacies of the sector and increase their chances of securing wins.

    One of the day’s most persistent themes was the need within the US hospital supply chain for suppliers that adopt a collaborative approach.

    David Walsh, Director of Supply Chain Administration at Boston’s Children Hospital, was a key speaker at the event. In his presentation and the panel discussion that followed, he returned repeatedly to the subject of open collaboration.

    “We’re a team. We all work together. We want to work with you if there’s a benefit on both sides,” he told an audience of medtech professionals. “We can learn from you and you can learn from us.”

    Relationship-building a key competitive advantage for Irish medtech suppliers

    The reputation Irish suppliers have developed for relationship-building is a key competitive advantage that serves this need well. Meditec Medical has applied the approach over the course of its relationship with Boston Children’s Hospital, thanks to an introduction facilitated by Enterprise Ireland.

    Alan Sullivan, Managing Director of Meditec, advised exporters, “Before going into the US market, you need to be ready.

    “We got our product tested on the east coast of America for compliance with fire regulation. Because we were already looking for our FDA approval, we had these wheels in motion.”

    Building successful business relationships requires consistent contact. While technology can bridge geographic gaps in day-to-day communications, a lasting partnership requires frequent presence in the US, including availability for stakeholder meetings. Working with a supplier located on a different continent may be considered less favourably than local options, so perceptions of risk must be mitigated in the eyes of the buyer.

    Walsh advised on the importance of presenting your ability to deal with the inevitable issues experienced during trials and roll-outs, remotely. Exporters should be prepared to answer the question: “It’s a good quality product, but what if we have problems?”

    Irish medtech businesses can’t afford to ignore the open invitation to dialogue when entering the US market but it can be intimidating for those who are new to it.

    Unlike the relatively centralised system familiar in Ireland, purchasing decisions in the US are made either by large hospitals and networks, or by group purchasing organisations (GPOs) comprised of several smaller hospitals and health centres that pool resources in order to gain more clout in the market.

    Charlie Miceli, VP Network Chief Supply Chain Officer at the University of Vermont Health Network, explained, “Getting in at group level can reap huge rewards. There are six hospitals in the University of Vermont Health Network.”

    From an outsider’s perspective, it can also make for a confusing landscape, however, with the question of where to go, and who to speak to at the first point of contact, challenging for new entrants.

    In what can already be a long sales cycle, getting in with the right person at the right stage is crucial. The best way to avoid spending time on what supply chain calls the ‘circular wheel’ is to ask the question of how to engage.

    “Try to understand what the roles are,” said Dave. “Ask the question and we’ll help you to find right person to talk to at the right stage.”

    Enterprise Ireland can also help with the process. In the Boston office, we have successfully connected a number of Irish medtech suppliers with key stakeholders in the US hospital supply chain. We encourage the companies we support to reach out and see how we can assist with their approach.

    This article was originally published in the Sunday Independent.

    Languages Connect logo

    The importance of multilingualism

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    The drive for new markets shines a light on the importance of multilingualism. Julie Sinnamon, CEO Enterprise Ireland outlines why language matters.

    Ireland’s small, open economy depends heavily on being able to trade internationally. The global dominance of the English language has worked to our advantage but with Irish companies looking to export into even more diverse markets, the need to acquire more languages has never been more important.

    Recognising the cultural value of communicating in the buyer’s local language and developing a workforce with foreign language expertise can improve relationships and increase efficiency when entering new markets.

    Learn how Enterprise Ireland can support your business with the Market Discovery Fund

     

    Irish exporters set to benefit from Italy’s economic revival

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    Paul Maguire, Enterprise Ireland’s manager for Italy, Morocco and Algeria, describes the opportunities attracting growing numbers of Irish exporters to the country

    Two months after Italy’s fraught general election, the IMF’s World Economic Outlook delivered positive economic news for the country. The report indicated that Italy’s 2017 growth rate of 1.5% was its fastest since 2010, with growth projected to remain stable this year.

    Following slow growth since the 2010 recession, the Italian economy is starting to strengthen. With a return to growth, sectors such as life sciences and medtech are presenting strong opportunities for Irish exporters, particularly in the context of Brexit.

    To support exporters targeting these opportunities, Minister for Trade Pat Breen T.D. led a mission that included 18 Irish companies to Italy in April. 15 companies visited a specialist medtech event and a further three attended a procurement conference in Rome. The Minister visited the Rome Talent Garden (TAG) digital incubator and met Enterprise Ireland-backed company City Wonders, founded by Italian entrepreneur Simone Gozzi.

    €2 billion addressable market for Irish companies

    The Italian sector encompassing life sciences and medtech continues to flourish, currently valued at €25.2 billion. With 10% of that value reserved for investment, Irish companies have an addressable market of €2 billion. Enterprise Ireland-supported companies are securing wins in the market, increasing life sciences exports to Italy by 147% to €65 million in 2017.

    This year’s medtech event took place in Mirandola in the Modena region, known as Italy’s Silicon Valley specialising in medtech. Modena is home to more than 100 medtech companies, including large Italian multinationals such as Sorin, Gambro and CID Vascular.

    By attending Enterprise Ireland’s Mirandola medtech event, Irish companies such as Anecto, Synecco and Statistica Medica had an opportunity to gauge the market and network with potential Italian partners. Opportunities for Irish life sciences companies are particularly strong in the drug development, manufacturing, packaging and regulatory sub-sectors.

    Anecto see exponential growth in Italy

    Galway-based Anecto offers product and packaging testing and are enjoying success in Italy. David Morrissey, Sales Manager at Anecto, commented, “The opportunity to meet clients in Italy has generated significant leads for us. We’ve seen exponential growth there in recent years. Irish companies looking to expand in Europe should look to Italy as a potential market.”

    Brexit is also generating opportunities for Irish companies interested in entering the Italian market. Research carried out by the UK Chartered Institute of Procurement and Supply in 2017 reported that 46% of European businesses expect to reduce their reliance on UK suppliers.

    Earlier this year, 50 senior Italian procurement officers attended an Enterprise Ireland conference held at the Irish embassy in Rome, seeking to source alternatives to existing UK suppliers. Key themes discussed included the impact of Brexit on the supply chains of Italian companies, opportunities for partnership, and Ireland’s commitment to the European market. Sean O’Dwyer President of the Irish Institute of Purchasing & Materials Management (IIPMM) and Board Member of the International Federation of Purchasing and Supply Management (IFPSM) delivered a keynote presentation to the Italian audience.

    One insight that emerged was that supply chain opportunities in Italy continue to be overlooked in favour of those in other European markets, such as Germany, France, and the UK. Yet despite being underrepresented in Italy, Europe’s third-largest economy continues to deliver deals for Irish exporters.

    How Irish companies can win in Italy

    To win opportunities in Italy, Irish companies should take a long-term partnership approach. Taking time to build relationships with Italian clients is essential to securing trust, while having a local presence with ‘boots on the ground’ is a distinct advantage.

    Italian companies are impressed by Irish companies that deliver innovative products and services that have been developed with high levels of R&D and can be integrated with their own offerings.

    As the Italian market is highly networked and regionally focussed, recommendations from Italian companies carry significant weight during negotiations.

    Enterprise Ireland’s Milan office helps Irish companies to facilitate visits to Italy. Pre-visit and in-market supports, such as identification of potential partners and securing reference sites, are included, enabling companies to meet the right clients and create a presence with true local resonance.

    This article was originally published in the Sunday Independent.

    To learn more about exporting to Italy visit Markets and Opportunities

     

    Irish Innovation arab health Middle East

    Irish Innovation in robust health in Middle East

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    Clare Roche, Market Advisor for Middle East & North Africa at Enterprise Ireland, describes the enormous opportunity for Irish exporters in the MENA region.

    If you look past the headlines about fluctuating oil prices and political instability that tend to dominate global coverage of the Middle East & North Africa (MENA) region, you will find a growing healthcare sector in which spending is expected to reach $150 billion by 2020, according to Deloitte.

    In January, 20 Irish companies participated at Arab Health, the largest healthcare exhibition and conference in the region, and the second largest such event in the world. Arab Health has become a strategically important event that enables established companies in the region to build on their existing market presence and gives new companies and high-potential start-ups a holistic overview of the market environment and opportunities, as well as providing access to key players and potential partners.

    Middle East healthcare challenges and opportunities

    The MENA region faces a variety of healthcare challenges, including the provision of sufficient hospital and primary care facilities to its growing population, and the prevalence of lifestyle diseases such as diabetes and cardiovascular conditions. Governments in the region are injecting large funds, while encouraging collaboration with companies in the private sector, to build new hospitals and clinics and update existing infrastructure. There are currently almost 350 hospital projects under development in the region, of which nearly 70 projects are worth more than $100 million each. (Source: Alpen Capital)

    The United Arab Emirates (UAE) and wider MENA region offer a dynamic market in which demand for new solutions complements the innovative products and services of Irish companies. The continued expansion of the healthcare sector in the Middle East in particular offers a number of exciting opportunities for Irish companies. Ireland is recognised as a Centre of Excellence for world-class innovation and Irish companies already have a strong track record across the Middle East, particularly in sub-sectors such as medical devices, health IT, and diagnostics.

    With a predominately import-based medical device market, there is a strong preference for European-made products and technology. As the only English-speaking member still committed to the EU, more and more Middle East-based healthcare organisations are turning to Ireland as a trusted source of innovative medical solutions. There is also a strong appetite for new and disruptive technologies, particularly in areas such as Artificial intelligence (AI) and robotics. Ireland is regarded across the region as a world leader in development in these fields. 

    Among the success stories at this year’s Arab Health event were Aerogen, who opened their first Middle East commercial office in Dubai. Aerogen is seeing growing demand in many markets but has seen outstanding growth across the entire Gulf region. John Power, Aerogen CEO and Founder, comments, “There’s a really great opportunity for us in the Middle East. It is an extremely important market for Aerogen and we look forward to strengthening our commitment here over the coming years.” Irish skincare company Ovelle Pharmaceuticals also officially launched their range of products in Life Pharmacy, the UAE’s largest pharmacy chain with 130+ outlets across the country.                            

    Irish companies interested in pursuing opportunities should be aware that the region’s healthcare environment is highly competitive. The time frame and commitment required to secure a first contract or establish a market presence can be extensive. Preparation, patience and perseverance are key to success. Relationships are important and ‘wasta’ (an Arabic word meaning connections or influence) can go a long way, with a trusted and local partner often essential to doing business.  

    Traditionally, focus for Irish companies entering the market has centred on the UAE and Saudi Arabia. However, we are also seeing growing opportunities for Irish companies in lesser developed markets, such as Oman, Jordan and Kuwait. With a rapidly developing economy, Oman has a number of high-profile hospital projects in the pipeline valued at over $3.2 billion. Enterprise Ireland is also increasing activity in Egypt, the second largest economy in the Arab world, with a population of 95 million and a strong demand for life sciences and pharmaceutical technologies.

    Clare Roche is Market Advisor for Middle East & North Africa at Enterprise Ireland.

    This article was originally published in the Sunday Independent.

    Channel sales

    Channelling Success with Channel Strategy

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    Máire P. Walsh, SVP Digital Technologies at Enterprise Ireland’s Silicon Valley office, explains how an effective channel sales strategy can give Irish companies a wide international reach.

    The business plans of start-up companies often focus on direct sales, aiming to sell as many products and solutions to as many consumers and end users as possible. The right channel sales strategy can, however, give Irish companies of all sizes and stages of maturity a wider reach, helping them to grow more quickly than a business plan that relies on direct sales alone. A successful channel strategy enables Irish exporters with unique technologies to harness sales opportunities at scale, driving business results in the US market and beyond.

    Enterprise Ireland recently held a Sales and Channel Strategy Seminar in Dublin, which featured US industry thought leaders and senior executives, and was designed to advise and guide high performing Irish start-ups to expand into the US through the channel ecosystem. World-class experts on sales planning and channel strategy shared tips and success stories, while the event showcased a number of Irish companies that are already capitalising on the potential of the channel ecosystem to drive rapid growth.

    Irish companies can apply insights shared by the event’s global speakers to use a smart channel sales strategy to quickly grow their business.

    A “Best Practices in Channel” panel featured Kevin Morata, Global Channel Strategy at Dell EMC, Gerard Sheridan, Global OEM Sales Director at DataStax, and Kurt Hoppe, Global Head of Innovation at GM. The panel discussed how true collaboration is key to building successful relationships with channel partners. Companies should be aware that not all channel partners are created equal. With 20% of partners driving 80% of sales, Irish companies should allocate more time and resources to partners that will help to maximize business results. One tip for building trust is to feed leads to new channel partners at the beginning. That will allow them to gain experience in selling your product while developing a strong understanding of your value proposition.

    Tiffany Wagner, Global Head of Sales Planning at SAP, described how a successful strategy must focus on your value proposition, rather than on the features and functions of your solution. At SAP, design thinking is key to well-orchestrated enterprise sales planning programs. All enterprise sales require a “3 x 3” influence model – three decision makers and three influencers must contribute to the process.

    Insights were shared by Irish companies, including AltoCloud, Channel Mechanics and PlanNet21 Communications, that have scaled by partnering with the channel ecosystem. Kenneth Fox, Channel Mechanics CEO, described the three points of the channel triangle:  vendors, distributors and partners. The Channel Mechanics solution sits at the centre of the triangle, providing automation that runs the entire ecosystem.

    Barry O’Sullivan, AltoCloud CEO, described how his company was formed with the channel in mind. Leveraging the business and personal relationships of partners has allowed AltoCloud to build a strong partner channel. One tip for Irish exporters is to have a ‘corporate vendor resources’ presence in the US and not attempt to drive it from Ireland.

    When launching as an ambitious company almost 20 years ago, PlanNet21 Communications convinced partners to accept them into their channel program. The strategy has delivered revenues close to €50m, with the company on a mission to hit €100m within the next two years. Denise Tormey, co-founder of PlanNet21 Communications, described the strategy that drove their success, “Trust is hard won. We manage communication face-to-face, over the phone and by mail, to build those interpersonal relationships. We listen. We respond in a timely manner. We ask ‘Why?’ We care. We are true partners.”

    The insight echoed the guidance of many of the day’s Irish and US speakers. A foundation of trust must be established to build effective relationships. Otherwise channel partner alliances are destined to fall flat and fail to deliver the growth promised. For channel strategy support, contact Enterprise Ireland’s Strategic Marketing Review program, which acts as a mechanism to review and develop your market development strategy overseas.

    This article was originally published in the Sunday Independent.