Industry Bulletin – Automotive – New mindset to focus on future solutions

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AVL is the world’s largest independent company for the development, simulation and testing of powertrain systems for passenger cars and commercial and industrial vehicles and is directly exposed to the deepest and most rapid business downturn in the history of the automotive industry. Dr. Daniel Kürschner, Head of the Company’s Munich-based advanced driver assistance systems (ADAS) centre, remains optimistic, however.

He points out that AVL is not a traditional Tier 1 supplier to the industry and is not directly connected to the supply chain. It is therefore also not directly affected by vehicle sales as many other companies.

While some projects are subject to renegotiation and delay, there are positives to the current environment, he notes. “We as a German or European car industry need to see this crisis as an opportunity to rethink our traditional mindset and to focus on more sustainable, future-oriented solutions, following the CASE trends (connectivity, autonomous, sharing/subscription and electrification) and also noting different demands of the younger generations.” says Kürschner. “Car makers would have the time now to catch up on delayed technology developments which they have not focused on over the past decade. A lot of companies worldwide, particularly innovative start-ups, have technologies available that could be combined with those of the traditional corporations in order to speed up launching competitive products at the end.”

AVL is already moving into new areas such as e-mobility, fuel cells and ADAS. “We see a big opportunity to grow within these new business fields and it would be great to see a green economy emerge in the near future,” he adds.

As a direct impact of Covid-19, also AVL has successfully switched to remote working. “Like for others, it has affected us in the sense that people can’t come together in person , but that we are currently working in home offices but, luckily, our teams are experienced in digitalisation and web-based communication so that we can keep the productivity levels very high.”

The downstream effect of the industry downturn is being felt, however. “The car industry in general is very cautious at the moment, so capital expenditure is on hold and also AVL – as one player in the industry – has changed over to short-term work,” Kürschner explains. “As a technology and engineering provider we are dependent on the automotive industry reopening, and we will continue to provide our technological expertise as best as possible, trying to overcome all hurdles resulting from the crisis.”

 

Addressing future market demands

Many of the challenges the industry is currently facing, already existed before the current crisis, he adds. “The current situation just accelerates the formation of fundamental structural changes within the market. The structural changes basically result from the green trend and because younger generations are demanding greener and more sustainable yet still safe and superior technology. However, they are still willing to spend money for this, so the industry must adapt to these changing circumstances and take measures to understand and accept future market demands.”

This superior technology includes ADAS.

“More and more customers will expect to find ADAS and autonomous driving features within their cars,” says Kürschner. “Moreover, autonomous driving is providing the technical basis for future concepts such as mobility as a service.”

He also mentions the upcoming development of the centralised electronic control unit. “This has a lot of benefits for maintenance and remote updates. It allows the provider to keep the product updated all the time, and will also feature active safety and cybersecurity functions.”

Innovation will continue to play a major role in automotive industry, he believes. “As we had already seen in the e-mobility trend starting over 10 years ago, today, also ADAS and newer trends will cause shifting supply chains, with innovative solutions looking to alter and take over from traditional fields within the industry.”

He takes a positive view of the industry’s future. “Looking at the business perspective, the focus will be on measures over the near term to keep the industry and economy running, which is partially a government responsibility, but also the companies themselves need to sharpen their product portfolio, ready to keep up with the latest customer demands. People will continue to need mobility despite the deep crisis and despite the current uncertainty and therefore, for now I am not concerned that people will stop buying cars. However, in the medium and long term, I would focus on the technologies following the CASE trends in order to maintain our global competitiveness within the future car industry.”

 

 

 

 

Managing Cashflow

Managing Cashflow in a Crisis

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As managers reset the business for recovery, companies need to adopt a lean culture where expenditure is minimised and every cost is questioned.

One of the greatest risks facing many businesses in the current environment is running out of cash. A company that can’t pay its bills, regardless of how profitable it is, will quickly go out of business. Cash conservation is therefore key to survival.

While in the medium to longer term companies will have to look at reengineering their business and operational models in order to meet challenges presented by the post-Covid-19 world, the short term is going to see a focus on cash according to Business Financial Consultant Brendan Binchy.

“There is much more urgency relating to cash now,” he says. “And there are many things a business can do to manage its cash. Almost everyone out there is availing of debt payment deferrals, for example. They are trying to hit the pause button on cash going out wherever they can so that they can preserve the status quo as much as possible. They are also looking at other areas like aged debtors. You almost have to look at it like a company threatened in a pre-receivership condition.”

Binchy recommends a structured approach to cash conservation and this starts with the balance sheet. “The profit and loss account is a record of a business over a period of time, but the balance sheet gives a snapshot of the business at a particular moment in time.”

Companies should pay particular attention to their gearing, he advises. This is the ratio of debt to equity on the balance sheet. “The lower it is the better, but losses will erode equity and increase the gearing ratio,” Binchy continues.

A healthy gearing ratio will allow companies to borrow judiciously in order to bolster their cash position. “This can be very helpful, but companies need to be aware of the associated debt service costs.”

The next step is to look at asset funding, where they may be scope for some reverse engineering. “Businesses frequently purchase assets for cash during good times,” Binchy notes. “They could be re-financed now with bank debt and this will improve the cash position. Generally speaking, the asset lifetime and the funding cycle should be the same. It is important to remember that trade debt, like invoice financing, is for working capital not capital expenditure.”

The sales lead to cash cycle is the next area for examining.

“It takes time for marketing effort to translate into sales leads, buying decisions, billing, and cash collection”, Binchy explains.

 “This can be quite protracted, and companies need to look for ways to get to close sales quickly and speed up invoicing.”

The supply chain should also come in for attention to slow the outward flow of cash. “Companies should identify strategic supplier relationships, tighten stock management overall, improve workflows, and negotiate new arrangements such as stockholding facilities with key suppliers. Talking to key suppliers and developing strategic partnerships is a very good ongoing strategy for companies. The more they do it the better.”

And then there are what Binchy calls the common-sense measures.

“Defer capital expenditure and other spending decisions wherever possible,” he advises. “Companies need to adopt a mean and lean culture where expenditure is minimised, and every cost is questioned. But this must come from the top down and everyone must share the pain and to be seen to share it.” 

Once those actions have been taken, it is time to put together a budget plan. “Having these measures in place means you already have your fingers on the pulse and you can make a budget plan to take you from where the business was before the crisis to what’s likely to happen afterwards. The most important thing about the plan is that it should be iterative. You’re not going to get everything right first time around. The plan gives you a framework to forecast and plan for what might happen. You can adjust it weekly and monthly rather than having to build new plans all the time.”

And businesses don’t have to do this on their own. Binchy recommends the Enterprise Ireland Lean Business Continuity Voucher as a good starting point. This offers eligible companies up to €2,500 in training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the Covid-19 pandemic.

There is also the Covid-19 Business Financial Planning Grant, which is worth up to €5,000, and can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to assist them prepare a financial plan, understand their immediate financial position, manage costs and identify their funding requirement.

When it comes to cash for the business, Binchy points to the Temporary Covid-19 Wage Subsidy which he says has been very helpful to businesses throughout the country.

Sources of working capital and loan finance include the €450 million Covid-19 Working Capital Loan Fund and the €200 million Future Growth Loan Scheme fund available through the Strategic Banking Corporation of Ireland. Businesses which have difficulty accessing bank finance can apply for funding of up to €800,000 from the Enterprise Ireland Sustaining Enterprise Funds. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

 

    Hear from financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.

    manufacturing

    Seismic change on global auto production could offer opportunities for Irish suppliers  

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    Continental AG addresses fresh challenges as a result of the Covid-19 pandemic

    The company was forced to shut down all of its global tyre manufacturing operations within a short space of time as a result of the Covid-19 pandemic and has recently begun a return to production. “During that period, we had to wind down operations efficiently as well as implement cost mitigation measures such as short-term work initiatives from national governments, having workers take holidays, as well as unpaid leave along with salary reductions at management level,” says David O’Donnell, Global Head of Passenger and Light Truck Tyres at Continental AG.

    The company is now seeing a welcome but slow return to activity among key automaker customers globally. 

    “We are observing more build-to-order in response to a concrete need for the vehicles in contrast to before, where they were built for an assumed level of demand.” said David O’Donnell

    O’Donnell believes it will be several years before production levels recover. “We will be looking at 2022 or 2023 best case before we get to anything like 2019 volumes. Everybody will have to react to the seismic shift in volumes. We are looking at 70 million vehicles this year versus more than 80 million last year. If you can get used to the current level somehow, then you likely have two years of growth. The question is do you hold your capacity to be able to access more opportunities, or do you reduce your cost exposure in order to go into a new growth mode in a different way? That will put pressure on cost management and will also make them look at systems efficiencies and internal company structures.”

     

    Focus on Agility

    One impact of the global pandemic has been an enforced increased level of agility on the part of manufacturers. “How quickly can you ramp something down? Can you run with a portion of the plant and do that cost-effectively? How do you align it better system-wise to orders?” O’Donnell asks.

    “They might have full orders for a certain vehicle and then change it completely from week to week or month to month. It will take time for people to get over their nervousness to rely on orders and feel comfortable with the new processes,” he adds. “Those who can adapt to that uncertainty will be winners in this situation.”

    He believes this may present opportunities for Irish firms, which have a reputation for agility and flexibility. According to O’Donnell, anything a company can offer in terms of productivity, improving potential efficiency or agility such as adjusting payment terms for a period, holding more stock, or quickening pace of production would be beneficial.

     

    Supply Chain

    Opportunities may also exist in the dual procurement structure and more localised supply chain which could result from the crisis. “When China went into lockdown there were war room discussions in our organisation concerning who’s going to stop the slide first. It was a pivotal moment because you had electronic equipment coming from the huge manufacturing hub of China and that affected the batches in Serbia, for example. The aftershock will see OEMs discussing a change in tactics with their purchasing groups, as well as sourcing from multiple and more local suppliers going forward.”

    Noting that the Trump administration’s policies have already led to a discussion about what operations can companies relocate to the US, O’Donnell says more nationalisation in Europe may bring more opportunities than in the past.

    “A friend and colleague of mine is doing relatively small batch production of printed circuit boards and prototypes. He’s based in Germany and he has had a lot of requests because he is both local and agile as well as an alternative supplier to China. He might be more expensive but he’s offering the flexibility these companies need.”

    But customers won’t be willing to pay higher prices forever. “Once the OEMs are back at full capacity with high volumes again, they will come very aggressively with price discussions as they try to regain profitability.”

    He advises suppliers to be proactive in going after these opportunities. “It’s a question of arguing yourself into that space as a potential partner and bringing the advantages forward. Become ready for agility and be customer-centric by assessing challenges they have, look at the macro picture and present yourself as a local and flexible supplier. If you can do something there, you may have an advantage in winning long-term business.”

     

    Market Watch Germany – Webinar – Managing and supporting channel partners

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    Enterprise Ireland’s offices in Germany have launched a series of Webinars: Market Watch Germany. Every Wednesday at 14:00 BST/15:00 CET a new theme will be addressed to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid 19.

    Managing and Supporting Channel Partners in the German market’ is the fourth installment of Market Watch Germany webinar series. The purpose of this webinar is to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid-19.

    Panellists:

    Brian English an Engineer and Marketer with over 30 years international sales and routes-to-market experience.

    Dr. Andrea Seidel, with a wealth of experience in business development and strategic partnership.

    Paul Browne from Enterprise Ireland’s Client Management Development & Client Skills department.

    Financial planning to accelerate your recovery

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    The global economic crisis triggered by the Covid-19 pandemic is unlike any seen before in history in terms of the rapidity of its onset and its scale. It has been variously referred to as a black swan event or as a perfect storm, and for individual businesses worldwide its effects have included state- mandated shutdowns, a near total collapse in demand and, for the lucky, an enforced shift to new ways of working and business models.

    As Ireland begins its first tentative steps towards a return to something approaching normality, businesses too must start planning their pathway to recovery and beyond. According to Business Transition Consultant Brendan Binchy, the first step for business owners is to analyse the company’s current position and develop a vision for the future.

    He advises people not to panic. “It’s not a question of asking if the crisis will impact on the business and worrying about that,” he says. “It is self-evident that it will impact. You have to be proactive, not reactive. You might know how it will affect the business this year, but what about next year? Where do you want to be then? You need a to have vision for that. And from there you can work out what to do and what not to do and what you need to change.”

    There are also actions which need to be taken immediately to stabilise the business. In Binchy’s view, these actions require businesses to examine and reset their business models, develop and implement very tight cash management strategies, and adapt and modify their operations to meet the new conditions in which they find themselves.

    “You have to look at where you are financially, ask where your customers are coming from and why they buy from you, and if it is possible to recalibrate the business, to come up with a new model which will see it through the current period,” he advises.

    That might be termed the firefighting or survival phase. The next stage is to plan for recovery and beyond. While planning in such times of massive uncertainty may seem an impossible or even futile task, Binchy believes it is worthwhile and an absolute necessity.

    But the plan must be flexible and adaptive in order to deal with sudden changes in a highly dynamic environment. “We have to accept that what we think will happen may not come about. But if you don’t have a flight plan, you have no way of getting to your destination. When you’re up in the air you need to know where you’re going. You may get knocked off course from time to time and you will need to adjust the plan in response.”

    Even the process of putting the plan together can be helpful, he notes. “It is cathartic and helps clarify things.”

    This clarity comes from the examination of the business and its environment. Questions Binchy puts include:

    • Is your industry shut down or is it still working?
    • Are there opportunities there?
    • What has been the impact of the crisis on customers?
    • Do they still have money?
    • Do they still need your products or services?
    • Are there customers you no longer need?
    • What has been the impact on competitors?

    Fortunately, there is help out there both to develop plans and implement them.

    He points to the Enterprise Ireland Covid-19 Business Financial Planning Grant as a very important support. The grant, worth up to €5,000, can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant. The consultant will work with the company to prepare a robust financial and business plan that identifies the funding needs and the potential sources of this funding.  

    Another valuable support Binchy advises businesses to take note of is the Lean Business Continuity Voucher, which offers eligible companies up to €2,500 in vouchers for training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate safely during the Covid-19 pandemic.

    Support for the implementation of the plan is there in the form of the Enterprise Ireland Sustaining Enterprise Fund, which offers funding of up to €800,000. Very importantly, no repayments are required for the first three years of the five-year term of the advance and there is an annual administration fee of just 4%, making it a very attractive source of finance.

    Smaller businesses can also apply for advances of up to €50,000 depending on their size under the Sustaining Enterprise Fund – Small Enterprise scheme.

    “Businesses can also look to shareholders to put in new capital or go to the banks,”, Binchy concludes. “The important thing is to develop a plan and have the finance in place to implement it.”

     

    Watch our webinar addressing the critical challenges facing Covid-19 impacted businesses – Accessing liquidity and managing cashflow.

    Get advice from financial expert, Brendan Binchy on how best to navigate these issues and hear from Enterprise Ireland’s finance team on the financial supports available from Enterprise Ireland.

    Industry Bulletin – Automotive – Impact of Covid-19 on automotive technologies

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    Jens Altmann, Market Advisor, Automotive Industry, Enterprise Ireland Germany interviewed Robert Metzger CEO and publisher at eMove360°, a trade fair and community platform for Mobility 4.0 – electric – connected – autonomous in Munich.

    eMove360° Europe is already now world’s biggest B2B trade fair for electric mobility and connected & autonomous driving.

    The video interview discusses the effects of the current Covid-19 situation on new technologies, forecasts on the industry and alternative ways of connecting with stakeholder in the market.

    • Effects of Covid-19 on technological development in the automotive industry
    • Influence on regulations and Electromobility  and its related supply chain
    • How to counteract current contact restrictions e.g. alternatives for physical trade shows

     

    UK BPO & IT

    Market Watch Industry Bulletin – BPO & IT

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    UK BPO & IT_Market Watch

    See the webinar here.

    Customer engagement is critical during the Covid-19 pandemic, as organisations across every industry look to connect, engage, reassure, and supply their customer base.

    In this time of uncertainty and disruption, Irish BPO and IT companies have demonstrated impressive flexibility in providing their outsourced services to ensure international companies can overcome these engagement challenges from a remote setting and provide a positive customer experience.

    Following Enterprise Ireland’s recent Industry Bulletin which looked at developments across the world affecting Irish BPO and IT Services companies, this edition of our Market Watch series focuses on the UK region and a key end-market for many Irish companies; the UK energy sector.

    This webinar reflects on the

    • Immediate impact of Covid-19 on the UK Energy sector
    • Challenges for energy retailers and their customers
    • Future opportunities in the sector for outsourced service providers to develop new and stronger partnerships with energy retailers in the UK.

     

    See the webinar here.

    Panellists:

    David Corcoran, Senior Market Advisor, Enterprise Ireland UK

    Peter Haigh, former Managing Director of Bristol Energy, CEO of ELEXON, and Director of Business Retail at E.ON.

     

    ASINA: enabling safe-and sustainable-by-design nanotechnologies

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    Picture of male interviewee, Dt Ehtsham U.Haq

    “One of the advantages of being involved in Horizon projects is the breadth of experience one gets by sharing expertise and access to new networks in partner countries.”


    Dr Ehtsham U. Haq, University of Limerick, ASINA Horizon 2020 project

    Key Takeouts:

    • The University of Limerick is taking part in a major project that is developing scientifically sound safe-by-design nanotechnologies.
    • The 42-month ASINA project has received €5.99m from the European Union’s Horizon 2020 Research and Innovation Programme.
    • The ASINA project will support the fast industrial uptake of nanotechnology by providing safe-by-design solutions and supporting tools.

    H2020 Case Study: ASINA

      Nanotechnology impacts nearly every sector of the global economy from electronics to cosmetics, and from defence to the automotive sector and agriculture. It plays a part in everyday items such as antibacterial hand creams and coated textiles and it is anticipated that the market worth will exceed $120 billion by 2024.

      However, safety issues in relation to producing and disposing of nano-enabled products remain a concern.

      “Although previous EU-funded projects have defined tools and concepts to ensure the safety of nano-enabled products through design, the current state of the art indicates that industrial production is struggling to activate the safe-and sustainable-by-design (SSbD) approach and the fast industrial uptake of engineered nanomaterials (NMs) is missing or unsafely implemented,” explains Dr Ehtsham U Haq, Senior Research Fellow at the University of Limerick, one of the ASINA (Anticipating Safety Issues at the Design Stage of NAno Product Development) project partners.

      “The ASINA project aims to promote consistent, applicable and scientifically sound SSbD nanotechnologies by collecting information across all the design dimensions: functionality, production technologies, safety, environmental sustainability, cost effectiveness and regulatory requirements.”

      Led by the National Research Council of Italy, the Horizon 2020-funded ASINA project will use an approach modelled on six-sigma practices, that  focus on process improvement.

      “One of the challenge that ASINA will address is how to distil existing methods into simple, robust, cost-effective methods for monitoring of physio-chemical properties and biological effect assessment of nanomaterials and address properties of concern like technical performance, hazard and exposure related issues in product-relevant matrices. ASINA will develop pilot facilities with a combination of digital technologies and artificial intelligence technologies (Digital Twins) under a SSbD framework,” adds Haq.

      “In turn, this should help to accelerate the uptake of nanotechnology by industry and reassure end users of its safety, matching existing challenges summarised by the European Green Deal.” 

      Real-world applications

      One of 21 partners in the ASINA consortium, the six-strong University of Limerick team is tasked primarily with physical-chemical characterisation of the nanoparticles and developing information about their properties. Two spin-out companies from the university are also partners on the project.

      Focusing on two real-world product lines–antimicrobialcoatings for clean technology applications (textile and air filtration sector), and nanostructured capsules for applications in the cosmetic sector, ASINA has also had a part to play in tackling the Covid-19 pandemic.

      “The methodologies of physio-chemical characterization developed by us can be applied to other nano-enabled products as well. We are developing coatings for variously functionalized textiles for face masks, air filters for example in collaboration with other partners,” says Haq.

      “We’re enthusiastic about ASINA because what we’re doing will be used in real-life industrial applications,” explains Haq.

      “We’re using machine learning tools to generate response functions and obtain the full set of design solutions performance attributes. An expert system (ASINA- ES), easily adoptable by industries, will be developed for supporting the industrial product designers in identifying the suitable SSbD solutions better complying with the design constraints….There will be huge learning from this project.”

       

      The Horizon advantage

      Like all Horizon projects, ASINA is a multi-disciplinary, international project involving a range of players from large research institutes to small and medium-sized enterprises. The project is also collaborating with other Horizon 2020 funded projects focusing on safe-by design production of nano-enabled products. While ASINA is still very much in its infancy, having been held up by laboratory closures due to Covid-19, Haq has recently been involved in two other Horizon projects – OYSTER and M3DLOC.

      “One of the advantages of being involved in Horizon projects is the breadth of experience you get and the profile of your research in an international audience. The projects I’ve been involved with have all been very different. OYSTER  aims to develop standardized measurement protocol for surface free energy for quality control in nano-enabled and bioinspired products, while M3DLOC involved 3D printing for the fabrication of microfluidic MEMS for lab-on-a-chip and sensing applications.  ASINA is on the other hand is dealing with nanoparticles and nano-enabled products. That makes the work very interesting, challenging and in return it also extends your technical expertise,” says Haq.

      “Overall, the Horizon experience is beneficial for both your research and personal development. Because you are dealing with people from other professions who have a completely different perspective and experience, you become more multi-disciplinary and broaden your collaborations and skill level.” says Haq.

      For those considering getting involved in a Horizon proposal, perhaps for the first time, Haq highlights two issues.

      “In Horizon projects a great deal of time is spent on consortium building. You’re bringing together not only researchers but managers, Intellectual Property experts, SMEs and others, so that side of things is as important along the original idea, and it’s important to get it right.

      “Also, take advantage of any support that’s available if you are involved in producing the proposal. Enterprise Ireland has a range of supports and my experience of dealing with them has been very positive.”

      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

      Data on mobile phone

      How Exertis is using blockchain to transform global tech supply chains

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      The global supply chains for technology products like smartphones and laptop computers are now almost as complex as the products themselves.

      A typical smartphone, for example, is made up of components and materials sourced from up to a dozen suppliers on multiple continents, which are shipped to a manufacturer for final assembly before being sent onwards to distributors, retailers and ultimately sold to consumers.

      This presents two major problems for manufacturers and others involved in the chain – visibility and provenance. A new project led by Dublin-based Exertis Supply Chain Services, with funding from Ireland’s Disruptive Technologies Innovation Fund (DTIF), is aimed at solving both of them.

      A subsidiary of DCC, Exertis Supply Chain Services is a leader in materials supply chain design and operation. “Our focus is on technology and we provide global supply chain capability for the Exertis group and clients across the globe,” says Brian Cassidy, Head of IT and Director responsible for data protection with the company. “We are also a centre of excellence within the group for the use of blockchain technology.”

      The Disruptive Technologies Innovation Fund is a €500 million fund run by Ireland’s Department of Business, Enterprise and Innovation, as part of the National Development Plan under Project Ireland 2040. It is administered by Enterprise Ireland, the trade and innovation agency. An example of the country’s strong focus on developing some of the world’s most innovative companies, the initiative funds collaborations between research facilities and ambitious companies to develop innovative technologies that change the world in which we live.

       

      Exertis solves visibility problems in the supply chain

      The objective of Exertis’s DTIF-supported project, which also involves Dublin-based technology company Sonalake and the CeADAR Technology Centre located at University College Dublin, is to develop a blockchain-based platform, which will transform the technology product supply chain.

      “The two problems we are focusing on is the need for end-to-end visibility of products and components along the supply chain and the need to prove the authenticity of products once they reach the market,” says Cassidy.

      “We are using the blockchain to provide a peer-to-peer platform for authenticating provenance and we are providing visibility across the supply chain where multiple partners and a high volume of products are involved.”

      The current lack of visibility and difficulty with provenance result in a number of issues. “In terms of visibility, for any participant in the supply chain it is very difficult to know what is selling and what is not,” says Cassidy.

      This lack of visibility leads to problems with availability. “Typically, the retailer might know what the distributor has in stock but won’t know what the manufacturer has. Visibility is very much limited to one point up or down in the chain. A manufacturer may not know how much product distributors or retailers have because they usually don’t share that information.”

       

      Proving Authenticity

      Provenance is another issue. “When the item does arrive at the retailer, proving its authenticity can be a really interesting challenge. If a fake product comes into a customer’s hands, a manufacturer wants to be able to see how it got there.”

       

      Sharing information dynamically

      The Exertis project is highly innovative in that it will provide an open platform for multiple users in multiple supply chains, with each participant being able to decide which other members of the chain they wish to share information with. Furthermore, it will allow them to share selected pieces of information with selected participants.

      Once the data gets put on the blockchain it is immutable and cannot be deleted. “It is encrypted and decrypted at a granular level,” Cassidy adds. “A retailer might want to put a transaction on the platform but may not want competitors to know anything about it, whereas they do want the distributor and manufacturer to know. However, they may not be able to share with the manufacturer certain details such as the price they paid for it or what they sold it for. They can decrypt different parts of that dataset for different partners and their ERP system will be able to dynamically decide what information to share and who to share it with.”

      Manufacturers will be able to see what is selling and how much product is in the channel in real time. This is important for planning manufacturing output, as well as for managing warranty liabilities. “Manufacturers will usually know how many units were sold, but don’t know exactly when. They need to know that for when the warranty starts. This platform will address that issue. It provides a place where all participants in the chain can contribute, but everyone controls their own data.”

      Initial work on the project, began in 2018, with the DTIF-supported three-year project beginning in earnest in August 2019. “The DTIF funding has accelerated this project significantly and facilitated our collaboration with CeADAR and Sonalake. At Exertis, we have looked across our business and identified several exciting use cases, which we expect to roll out in several areas in the coming years”.

       

      For more information and call dates for the Disruptive Technologies Innovation Fund visit the Department of Business, Enterprise and Innovation website.

      Cubic Telecom car image

      Cubic Telecom’s swift response to Covid-19 strengthens its customer relationships

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      When the novel coronavirus first emerged, Cubic Telecom acted fast to protect its staff and cement its customer relationships. Those moves are paying dividends now.

      The company provides global mobility solutions for IoT, automotive and mobile device companies around the world, from Germany’s Volkswagen Group to US satellite communications company Kymeta.

      The software innovator, which has received funding from Enterprise Ireland, today employs 150 people. It experienced particularly fast growth last year and was recruiting new team members right up until January, when the first inklings of the Covid-19 crisis emerged. When it did, the company acted swiftly.

      “The senior team was very focused on getting as much information in as possible early in the Covid-19 life stage. There was a focus on human impact and economic impact. We did some very detailed analysis on the impact to the company and took the right amount of time to assess the steps that needed to be taken to ensure the sustainability of the company. Once this was done the teams could be reassured and day to day work could continue as before,” says Richard Springer, the company’s Director of Commercial Strategy.

      “People have come first and this has been led from CEO level down. There have been cost reductions and tighter control of the financials but at the same time, we are still driving the business forward to make sure we come out of this period in a strong position.”

      As a technology company, it helped that remote working and the use of tools such as MS Teams and Zoom were already well established in the company.

      Once the scale of the crisis was assessed, all staff members were asked to work from home, with some international staff flying home to their native countries to work from there. The use of video and teleconferencing has ensured productivity has been maintained ever since.

      “As restrictions started coming into place, very open communication with employees was maintained and, in the background, extensive modelling work done by looking at previous events, including Spanish Flu to SARS and MERS, in order to create very good future forecasting and cash management,” explains Springer.

      Decision making was quick and efficient at the top, with the senior team participating in daily catch-ups every morning. What were previously weekly catch-ups were turned into reviews of what was happening in key markets worldwide, as well as planning for the recoveries in each.

      The key to successfully managing the crisis for the company so far has been to focus on ensuring there was “over communication” with both staff and customers as both cohorts adjusted to remote working.

      “That meant giving people more information, communicating at a more personal level about how their family is, for example, and ensuring there was more collaboration,” says Springer, who says that acknowledging the ‘human’ side of current events is vital. “It’s about making sure the team is okay and that everyone knows what is happening.”

      Being empathetic and working to safeguard employees’ physical and mental health was paramount too, with new programmes in areas such as yoga and mindfulness introduced for staff.

       

      Adapting to customers’ needs

      Cubic Telecom has customers all over the world, which means travel has always been a staple part of its customer relationship management.  Business development strategies traditionally include a presence at major international trade shows, such as CES in Las Vegas and the Mobile World Congress in Barcelona, with vital support provided by Enterprise Ireland.

      With such events no longer taking place, the company quickly predicted that customer relationships would need to be maintained and developed remotely too.

      “We spent the first few weeks of the lockdown focusing on customer relationships, talking to existing customers,” he says.

      While nothing replaces face to face meetings, he says, by again focusing on the human side of the situation, and encouraging collaboration, these relationships are successfully being strengthened remotely.

      Although a pandemic is never welcome, the fact that Cubic Telecom is by now so well recognised in its sectors internationally helps. “We are at a point where a lot of our relationships are very well established. As a business we are also still small enough to move fast, but big enough to be recognised in the industry as a player,” he explains.

       

      International recognition

      Enterprise Ireland’s backing from its earliest days led to Cubic Telecom unlocking a series of investments as it grew, including from major industry players such as Audi and Qualcomm, among others. More recent investment has come from long term backer ACT Venture Capital and the European Investment Bank.

      The connected intelligence company is now acknowledged as a pioneer in eSIM technologies and advanced data analytics, offering mobility solutions for IoT, automotive and mobile device companies across the globe.

      It has mobile operator partnerships in more than 190 countries, for example. One of the most recent, with Etisalat, a UAE telecoms company, was announced at an Enterprise Ireland trade mission to the Middle East.

      While it is not business as usual for the company right now – too much outside its walls have changed – it is business as ‘best as possible’.

      “Our employees are well informed about what is going on, our business is running as it was previously and supply chains are open and running,” he says.

      As a supplier, it is critical to understand that “everyone is experiencing different impacts to their business,” he advises.

      “It does not matter what size that business is, during this time everyone could be under pressure. That is the key when dealing with any business during this time. There needs to be a collaborative approach in how to get through the next months together and as much sharing of impacts, plans and information as possible to help each other.”

      Anne Lanigan Enterprise Ireland

      Market Watch – A view from Europe

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      Key Takeaways

      • Business in Europe has been severely impacted by Covid-19, but many countries are now beginning to re-open and are determined to get industry and business moving again
      • Movement of products is improving while movement of people is still a challenge.
      • Opportunities are likely to emerge for example in digitisation across industries; or in the healthcare sector for non-Covid related health issues.
      • Preparation and planning is vital.
      • Enterprise Ireland offices around the region are on hand to offer support.

      There is no doubt that Europe has been heavily hit by the effects of the current pandemic, but regional director Anne Lanigan says many countries are beginning to move into recovery phase and countries across the Eurozone are determined to get their industries and businesses moving again. There is a general acceptance in Europe that we need to learn to live, as safely as possible, with the virus. Construction and manufacturing industries are gearing up while observing social distancing and using personal protective equipment; digital technology and office based businesses are for the most part still working remotely but increasingly effectively and in a number of countries e.g. in France and the Netherlands some services like hairdressing have re-opened under strict guidelines.

      “The numbers speak for themselves in terms of infections and fatalities, but most countries have passed their peak and are moving into exiting confinement and reopening – all at slightly different stages,” she says. “But there is alot of similarity in terms of the timing of countries coming out of lockdown at this point and what this is really saying is that Europe is opening up again.”

      Lanigan says while we are inclined to look at when schools, shops, and social outlets open, what is really important to the restarting of economies is when industry is recommencing.

      “Whether or not you can get a haircut isn’t relevant to most of our clients, what is really vital is the restarting of construction and manufacture and the returning to work in businesses. Of course movement of people and products is crucial to this” she says. “Movement of product is definitely improving but movement of people, particularly across borders, is still an issue which of course affects our clients.

      “Each country is different and even regions within countries can be at different stages and have different restrictions, so it’s important to get up to date and accurate information from your partners, customers and logistics providers.  For example most countries will have a requirement to use face masks in certain circumstances, and social distancing rules will differ between countries. So don’t assume that the Irish rules will work – it’s important to know the specifics of the country you are working in.” Enterprise Ireland offices across the Eurozone can also help clients with this.” Irish companies with personnel on the ground in Europe are in a lot of cases eligible for state support from the country they are operating in and again our offices can offer advice and direction on this.

      Thankfully many Enterprise Ireland client companies have maintained business in the Eurozone throughout the crisis and some have won new business. However while some clients have continued to do business in a similar fashion to pre-Covid days, most will need to get used to new requirements and many may also need to diversify.

      “Our clients will need to be creative in adjusting to the new normal” says Lanigan. “Digitisation will form a large part of this. Localising (not just translating) websites is more important than ever – ensuring that websites are easily found, are easy to navigate and provide all the necessary information in a clear format. Social media is also getting a lot of traction at the moment, so making sure to be ‘out there’ in terms of social media, will help to raise a company’s profile.”

      “As countries open up, travel will continue to be restricted so if companies can digitise their maintenance and servicing by providing online videos or some kind of instruction online or via a webinar in a sophisticated and professional manner, this will help them to hold on to business. Online shopping functionality may also be an important capability to add for some businesses.

      Understanding how each country works is vital for Irish exporters, but the regional director says keeping in touch is even more important.

      “Communicating with customers is still crucial whether business has slowed, stopped or continued during the current crisis,” she advises. “The communication lines must be kept open – and ear-to-ear or ideally face-to-face on a virtual platform is much better than an email. So virtual meetings, webinars and virtual distributor forums will all help to maintain communication and build strong relationships.

      “This will keep businesses up to speed on what is happening in the markets and what is happening with their customers and so position them to adjust more quickly and in the right direction to maximise potential.

      In every crisis there is opportunity and the current pandemic is no different with several sectors set to do well out of the situation. Lanigan says “Every industry is now seeing digital transformation at an accelerated pace and there are opportunities for businesses who digitise fast and opportunities for businesses who offer digital and tech solutions.”

      “Our clients and Irish people are typically good at spotting opportunities,” says Lanigan. “I would encourage companies to look at how they can pivot in the current crisis – anything which reduces human contact and allows remote operations will have opportunities i.e. digitisation. 

      “Another area likely to surge is non-Covid related healthcare. In most countries routine treatments have been put on hold or much reduced in order to deal with Covid 19 cases. As things move back to normal, there is likely to be a big demand for other med tech and pharma products. Now is the time to prepare for that.”

      Lanigan advises companies to be look toward the future, reset and get ready for the recovery. “There is a danger that we just focus on the immediate – we are advising clients to also look at the medium to long term and get plans in place” she says. Future business may be a continuation of current business but with added value or an adjusted value proposition; it may be with a repurposed product pivoting to a different sector; it may be exploiting brand new opportunities created by Covid 19; or it may be replacing global products with ‘made in the eurozone’ products. “We are nearing the end of the stabilise phase and moving into reset but we need our eyes on the recovery – so be prepared, be aware and look forward. Enterprise Ireland’s team across the Eurozone are here to help you reset, recover and build your business.”

      Anne Lanigan is Enterprise Ireland’s Regional Director for Europe. To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.

      Kilkenny Group Evelyn Moynihan

      Online retail helps Kilkenny Group weather the Covid-19 storm

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      With 17 shops spread throughout Ireland, the initial impact of the Covid-19 lockdown on design and craft retailer Kilkenny was sudden and severe.

      Most of the shops are in prime high-street locations and are reliant on heavy footfall for their trade, especially from tourists. With the global tourism industry decimated and the domestic market isolating at home, the outlook did not look good for the Kilkenny Group, its 350 employees, or the companies and craftspeople who make the homeware, wellness, jewellery and fashion products that the shops sell. Kilkenny Group Logo

      Evelyn Moynihan, Director of Marketing and Business Development at Kilkenny Group, explains: “Kilkenny is all about championing Irish design and craft, about 72% of what we do is Irish made or designed. We stock just under 300 Irish designers and makers in our stores and online, and Covid-19 has had a huge impact on our business.

      “We temporarily closed our shops and restaurants on the 16th of March. It was obviously a very difficult decision but it was the only one we could make for safety of our staff and customers.”

      Customer insight

      Kilkennyshop.com was now the group’s only means of generating sales revenue. Fortunately the Kilkenny team had the capacity to pivot and ramp up online sales as a result of their participation in Enterprise Ireland’s Online Retail Scheme last year. The company received funding through the scheme to improve the performance of the Kilkennyshop.com website and develop a better understanding of their online customers.

      Evelyn says: “The Online Retail Scheme helped us put a proper structure and way of working in place so that we were set up for growth:

      “We used the funding to complete key steps like conducting a UX (user experience) and UI (user interface) audit of the website, and to outline a clear digital marketing strategy for our business. We also used the funding to complete a strong inventory consolidation for our eCommerce business.”

      Kilkenny responded to the Coivd-19 challenge by redeploying staff working from home to support their online and telesales operations. The group’s started operating split shifts for warehouse staff over six days rather than five in order to ensure that it operated efficiently and also meet strict social distancing guidelines.

      “We’ve gone from eight employees working on our online team prior to Covid-19 to now having 18 employees working across our online and telesales operation,” Evelyn says. “These are long-term staff members, so they know our products and our brands and are really passionate about the Kilkenny business. It’s fabulous to see that care and attention being put into our online and our customer service phone lines.”

       

      Online growth

      The Kilkenny Group’s ability to adapt has been rewarded with a dramatic increase in online sales. Evelyn says: “We’ve seen huge growth online – more than 400% since the 16th of March, which has been great for our business. Telesales has been an interesting new channel where lots of people are ringing up and ordering gifts to be sent out to their loved ones. Some of the cocooners who maybe aren’t as confident shopping online, are using that channel.

      “Prior to the virus, online was circa five percent of our total business. Now, when we look out for the rest of this financial year, we believe that it will finished at 15% of our business, which is great to see.” says Evelyn Moynihan, Director of Marketing and Business Development at Kilkenny Group

       

      The Covid-19 Online Retail Scheme

      The Covid-19 Online Retail Scheme, which has €5.5m available, is open for traditional retailers who want to invest in their online offering and grow their markets in Ireland and internationally. It is offering an 80pc grant rate – meaning companies can apply funding of up to €40,000 against a project spend of up to €50,000.

      Stephen Hughes, Head of Consumer at Enterprise Ireland, says:

      “The Covid-19 Online Retail Scheme is not just for large retailers – there’s no reason why smaller niche, regional or local companies can’t use it to grow their online business and end up trading internationally, if they have an ambition to do so.” 

      The Kilkenny Group is now making plans to reopen shops later this summer in accordance with the Government’s phased easing of Covid-19 restrictions – but continuing to grow online sales remain a priority.

      Evelyn says: “International sales are a key area of growth that we’re setting ourselves for the rest of the year towards 2021. There are so many people with strong Irish connections or roots – we know from the shops that the market’s there and we know the products that they like.

      “Although no one could have predicted the impact of Covid-19, the investment that we made and the work we did with Enterprise Ireland last year was critical for us to be ready to take on the growth that we see now in our business today.”

      Learn how the Covid-19 Online Retail Scheme can support your retail business online growth.