Business First January 2015

northern ireland’s business magazine

BUSINESSFIRST INFORM CHALLENGE INSPIRE

JANUARY - FEBRUARY 2015

NEW DAWN FOR GRANT THORNTON Economic Outlook

Thought Leader

Open Government

In Review

We launch the Business First Economic Outlook 2015 sponsored by Grant Thornton

Not being perfect should not be a barrier to being better, says UU Professor Simon Bridge

Open government is good government, argues David

What value does MATRIX bring to the Northern Ireland economy, asks Vicky Newman

McBurney, the Open Government Partnership

THIS MAGAZINE IS ALIVE INSIDE: click anywhere to visit pages, websites and videos. Be inspired!

CONTENTS

Putting your Business First

What’s inside this issue CLICK ANY PAGE TO BE TAKEN STRAIGHT THERE ECONOMIC & INDUSTRY OUTLOOK 2015 18 Ministerial Foreword

32 Northern Ireland retail grocery market will experience change in 2015

Arlene Foster, DETI Minister

Damian McCarney, acting managing director of Musgrave Retail Partners Northern Ireland

20 Economic Overview 2015 John Simpson, Economist

22 The importance of wealth creation

33 What does 2015 promise on the political front

in the digital sector in Northern Ireland

Chris Brown, director, MCE Public Relations

Jeremy Biggerstaff, Flint Studio

24 Change and opportunity on the

Welcome to the excitement that is 2015 I’m not entirely sure where 2014 went - but let me be one of the first to welcome you to 2015.

There is a false deadline around Christmas and New Year that suggests things should be complete so that when you return to your desk in January you’re starting afresh with a clean sheet of paper.

But the reality is rather different. Unfinished projects lumber on, personalities remain the same and targets still have to be met. In short, life carries on apace.

But there is still a level of expectation associated with January, so we have asked many of our leading business commentators to gaze into crystal balls and tell you what they see for the future. In general they are quite positive, but then again that is the default position of most of us in business!

Even John Simpson, a man noted for his straightforward approach to the realities of all things financial has stated in his Economic Outlook piece that ‘The potential for improved recovery rates and the expansion of output is not in doubt.’

Needless to say he adds the caveats that a number of things need to be in place before said recovery can be realised - but there is no such thing as a one-handed economist!

So, have a great 2015 - we’ll be going alongside to help in any way we can. See you on the frontline.

Gavin Gavin Walker Managing Editor FRONT COVER IMAGE New partners at Grant Thornton: Louise Kelly, Richard Gillan and Peter Legge

34 New year safety call for the waste and

horizon for Planning in 2015

recycling industry

Richard Bowman, Strategic Planning

Jim King, HSENI

25 Make 2015 the year you developed

35 There are clear skies ahead Brian Ambrose, chief executive, George Best Belfast City Airport

an effective social media strategy Bill McCartney, Social Media Consultant and Trainer

36 Autoline celebrates 2014 and looks 26 Harness the power of ideas in your business in 2015 Cherrie Stewart, ANSONS

forward to 2015 Michael Blaney, managing director, Autoline Insurance

28 We can take steps now to strengthen 37 The commercial real estate sector our tourism industry in 2015

2015

Sinead McLaughlin, Londonderry Chamber of Commerce

Brian Lavery, managing director,CBRE Belfast

30 IT’s all systems go in 2015!

Lee Surgeoner, Partner with Endeavour Information Solutions

THOUGHT LEADERSHIP 12 Improving the education system is

31 The translation of science to commercialisation Sue Dunkerton, director at the Knowledge Transfer Network (KTN).

critical to our economic future David Fry, senior policy adviser, CBI Northern Ireland

54 The half-life of Knowledge

Prof Simon Bridge, Ulster University

Subscribe to BUSINESSFIRSTDIGITAL Subscribing to your complimentary copy of BUSINESSFIRSTDIGITAL couldn’t be easier and we’ll send your copy of the magazine directly to your door or mailbox every time we publish. To subscribe, please scan the code & visit our website at www.businessfirstonline.co.uk and follow the easy links to our subscription page.

PUBLISHED BY: The Wordworks Partnership (Limited) Suite 60. Enterprise House Balloo Avenue, Bangor BT19 7QT Tel: 028 9147 2119 info@businessfirstni.co.uk www.businessfirstonline.co.uk

YOUR BUSINESSFIRST TEAM Editor Gavin Walker gavin@businessfirstni.co.uk Sales Jenny Belshaw jenny@businessfirstni.co.uk Finance Margaret Walker margaret@businessfirstni.co.uk Design Studio Tw2 studio@twworks.co.uk

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CLICK ON ANY PICTURE TO BE TAKEN TO THE ARTICLE

YOUR EDITORIAL CONTRIBUTORS Articles from some of Northern Ireland’s most influential business leaders that will inform, challenge and inspire your thinking.

Michael Scott firmus energy page 16

Arlene Foster MLA DETI page 18

John Simpson Economist page 20

Bill McCartney Bill McCartney Social Media page 25

Sinead McLaughlin Londonderry Chamber of Commerce page 28

Chris Brown MCE Public Relations page 33

Caroline Keenan ASM Chartered Accountants page 38

Lee Surgeoner Partner, Endeavour Information Solutions page 40

Caroline Prunty Miller, McCall, Wylie page 48

Ben Collins, RICS page 50

Professor Simon Bridge University of Ulster page 54

Dr Audrey McKeown, Growth Solutions International page 61

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IoD First Trust Bank Director of the Year Awards 2014 en local business leaders have been recognised and rewarded by their peers in this year’s IoD First Trust Bank Director of the Year Awards held in the Merchant Hotel, Belfast.

The prestigious awards were handed to each of the category winners in recognition of their proactive approach towards business growth, corporate governance and responsible directorship.

This year’s category winners are: • Young Enterprise NI Director of the Year sponsored by Concentrix – Stephen Henderson of Ruach Music • Leadership in Corporate Responsibility sponsored by Ulster Business – Mike Mullan of Moy Park • Non-Executive Director of the Year sponsored by First Trust Bank - Seán Hogan of Northern Ireland Water • International Director of the Year sponsored by William J Clinton Leadership Institute - Damian McGarry of Wrightbus International • Large Company Director of the Year sponsored by 4C Executive Search - John McCann of UTV Media plc • Family Director of the Year sponsored by BDO Northern Ireland - Simon Hunter of Hunter Apparel Solutions • Public Sector Director of the Year sponsored by Capita Managed IT Solutions - Marie-Thérèse McGivern of Belfast Metropolitan College • Third Sector Director of the Year sponsored by First Trust Bank - Marie Marin of Employers for Childcare Charitable Group • SME Director of the Year sponsored by Ulster University Business School -Jeremy Biggerstaff of Flint Studios • Young Director of the Year sponsored by Jaguar -Alan McKeown of Dunbia.

Speaking at the event , chairman of the Institute of Directors Northern Ireland, Paul Terrington, said: “One of the main objectives of the IoD is to provide directors with opportunities that enable each to fulfil their potential and help them explore different

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Back row (L-R): Simon Hunter of Hunter Apparel Solutions; Mike Mullan of Moy Park; Alan McKeown of Dunbia; Damian McGarry of Wrightbus International; Stephen Henderson of Ruach Music; John McCann of UTV Media plc; Jeremy Biggerstaff of Flint Studios; Seán Hogan of Northern Ireland Water Front row (L-R): Head of First Trust Bank, Des Moore; Marie Marin of Employers for Childcare Charitable Group; Marie-Thérèse McGivern of Belfast Metropolitan College; Chairman of the Institute of Directors Northern Ireland, Paul Terrington

avenues for organisational growth and stability.

“With Northern Ireland’s devolved corporation tax still on hold, it remains clear that business leaders need to adapt to the challenging financial climate to attract investment.

“Today’s winners have each demonstrated a wealth of skills and professionalism that have impacted positively on their company’s performance and the local economy.

“This year the standard of applicants was at an all-time high, making the competition very difficult. With this said, I would like to congratulate each of the finalists on their hard work, determination and forward thinking.

“I wish the winners every success for the future and the best of luck in the UK finals next year.”

Each of the winners of the Northern Ireland

Director of the Year Awards will be selected to enter the UK Director of the Year finals in late 2015 and will be nominated for the IoD Lunn’s Award of Excellence, presented at our Annual Dinner in February.

Principal sponsor of the awards was First Trust Bank. Congratulating the winners, head of First Trust Bank, Des Moore, said: “The pool of professional talent here in Northern Ireland is without a doubt one of our greatest assets and should be leveraged if we want to attract foreign investment and strengthen the local economy.

“I highly commend each of the category winners on their incredible achievement and hope it will encourage others to unlock their business potential by following suit.”

Scan the code to read what the judges said of each winner.

Arleen Elliott to lead Law Society he Law Society of Northern Ireland, which represents solicitors, has announced that Arleen Elliott will serve as its new President.

A native of Holywood, County Down, Miss Elliott brings to the Presidency a wealth of knowledge and experience gained in private practice at the Elliott-Trainor Partnership in Newry, where she is a partner specialising in conveyancing, family and litigation work.

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In recent months she has represented the Society at meetings with Department of Justice in respect of legal aid and has led the Society's team in providing evidence to the Justice Committee.

The new president was elected to the Council of the Law Society in 2006 and has served as chair of the Family Law Committee, Client Complaints Committee, Contentious Committee and Access to Justice Committee.

Norbrook announce appointment of Liam Derry City Council scoops top Nagle as Chief Executive Liam joins Norbrook from the SISK Group marketing award where he has been chief executive, and

orbrook, the Newry-based company which is a world leader in veterinary pharmaceuticals, has announced the appointment of Liam Nagle as chief executive, with effect from the beginning of February.

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latterly chairman, of Sisk’s construction and healthcare businesses.

Commenting on the appointment, chairman Sir Roy McNulty said: “We are delighted to welcome Liam to Norbrook as chief executive.

He brings a wide range of skills and experience which will be of great benefit to the team in Norbrook. The Company has a strong track record of innovation and growth, and we look forward to working with Liam in making the most of the opportunities we see ahead.”

Norbrook deputy chair, Lady Ballyedmond said: “I am very pleased that Liam is joining us and I am sure that, with his leadership and energy, we can together create a further successful phase in Norbrook’s development”.

Liam Nagle said: “I am honoured to be offered the role as chief executive of Norbrook, the business is in an excellent position and I am excited about working with the team to build on its success and take the business to even greater heights.”

Cleaver Fulton Rankin Wins UK wide Law Award for Community Work

leaver Fulton Rankin was the only Northern Ireland winner in these UKwide awards and picked up the ‘Best Community Contribution Award’ which recognises firms that have implemented policies or executed projects that have positively impacted on their community and generated outcomes with a long term benefit.

Law Net commented, “Cleaver Fulton Rankin demonstrated its commitment to Corporate Social Responsibility through an extensive programme of charity work, combined with a commitment to supporting the creation of a skilled future workforce and reducing the firm’s impact on the environment. Employees consistently

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demonstrate an inspiring level of commitment to the firm’s charity agenda.”

Cleaver Fulton Rankin’s managing director Karen Blair, who accepted the award on behalf of the company said, “This award is a credit to all my colleagues who come up with great fundraising ideas and innovative ways of building relationships in the local community.

“We have a staff led Charity Committee who do a great job promoting this ethos throughout the firm, and have raised on average over £20,000 per year for our chosen charities. We also take our environmental responsibilities seriously and have a number of systems in place to support this..”

Abbi Lammas CIM UK; Sharon O’Connor town clerk and chief executive Derry City Council; Mary Blake head of Tourism Derry City Council; Cllr Brenda Stevenson mayor of Derry.

erry City Council secured a top award for the marketing campaign for the LegenDerry Food Festival at the prestigious Chartered Institute of Marketing (CIM) in Ireland Marketing Excellence Awards, which took place in Belfast City Hall.

Mayor of Derry Councillor Brenda Stevenson attended the ceremony with the council team, which also included Chief Executive Sharon O’Connor. Speaking afterwards she praised the efforts of all involved.

“Derry has no doubt upped its game over the past few years in terms of staging events which have international impact, and it’s through the work of so many dedicated people at Derry City Council and our partner organisations, that the message about our fantastic city is furthering its reach every day.

“Events such as the LegenDerry Food Festival, the Clipper Yacht Race 2014, the Banks of the Foyle Hallowe’en Carnival and the MTV Music Awards - not to mention the packed programme of world class events which were staged during our year as City of Culture – all demonstrate the unique offering of our city in terms of tourism.”

Tourism Officer with Derry City Council, Mary Blake, said: “I am thrilled to have picked up the Marketing with Impact award, as well as gaining the commendation and recognition in the other two categories.

“In terms of tourism and marketing we have such a compelling message to carry about Derry, and that is that our city has something different to offer our visitors. When it comes to hospitality, history, food, entertainment and providing an outstanding visitor experience – we are second to none - and we will keep driving that message forward and building on the many successes of recent years.”

The CIM Ireland Marketing Excellence Awards celebrate, recognise and reward the best marketing achievements across industry sectors in Ireland and acknowledge the contribution made by individuals and teams.

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New academic courses will help shape leadership for the future usiness in the Community and the Ulster University Business School to announce a new collaboration which will deliver two new courses that will help leaders embed corporate responsibility and integrity as strategic priorities.

Leaders for the Future – Starting in early 2015, this is a high level leadership development programme for those who recognise the critical importance of sustainability and corporate responsibility within their organisations and who want it to thread through every aspect of their business.

Managers for the Future – Commencing in February 2015, this leadership and management development programme is designed to equip participants with practical insights and skills to drive positive, sustainable change in their organisation.

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Programme manager, Steve Pollard explains: “Over the past year, we have been listening to and questioning business leaders about their biggest challenges. They’ve told us that corporate responsibility and integrity are key strategic priorities for their business. The challenge is they want to know how to do it effectively. They want a high quality programme that will support them as they develop innovative strategies for the future.

They want their managers to gain from both the academic knowledge behind sustainable action and practical advice to implement good corporate responsibility within their business.

“These courses are rigorous and practical and offer the opportunity for participants to hear directly from industry leaders about their challenges they face and the approaches

Michael McQuillan, Director of the Business Institute, Patricia O’Rourke, Director Business in the Community and Steve Pollard of The Business Institute, Business in the Community and Ulster University Business School launching Business in the Community’s Leadership Academy courses – Leaders for the Future and Managers for the Future.

they take. Peer group learning is a key element and we will support participants to transform the way their business operates to deliver tangible returns and benefits.”

Michael McQuillan, director, The Business Institute, Ulster University Business School adds: “The fate of business rests, in part, on their ability to anticipate change and deliver value in the context of key emerging business issues. Those businesses committed to taking the lead in innovative strategies for the future are the ones that will not only survive, but thrive! I am convinced that leaders and managers for the future from any size or sector of organisation will benefit from participating in these courses.”

Leaders for the Future is a two year courses with each module delivered via a three-day workshop. To maximise impact and minimise time away from the business. Those who complete successfully will be awarded with an MSc in Executive Leadership. Managers for the Future takes no more than a year. Each module is delivered in a two-day workshop with an assignment to complete per module.

Successful participants will receive an Advanced Diploma in Management Practice.

If you’d like to get involved, e-mail steve.pollard@bitcni.org.uk for more information or call (028) 9046 0606.

For more information on Business in the Community, visit www.bitcni.org.uk

Roe Park Resort Spa Recognised at Irish Spa Awards he Spa at the Roe Park Resort, Limavady, has been recognised in the Best Hotel Spa category at the Irish Spa Awards.

The Roe Park Resort was the only Northern Ireland based Spa to receive an award from this year’s shortlist. The Irish Spa Awards are judged through an all-Ireland public poll and honour industry leaders who inspire future excellence across the sector.

In recent years the Spa at the Roe Park has invested heavily in modernising its treatment facilities and in staff training, to offer customers technologically advanced beauty and skin care treatments.

In 2013 the Spa at Roe Park became the first spa in Northern Ireland to introduce the new highly sought after Elemis Biotec treatment, a non-evasive facial treatment

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unique to individual skin types.

This year’s Irish Spa Awards received over 33,000 votes with the Spa at Roe Park Resort receiving the Highly Commended award in the Best Hotel Spa category, making it the only Spa in Northern Ireland to receive recognition.

Terry Kelly, Golf & Spa manager at the Roe Park Resort said: “The Spa at the Roe Park Resort has extremely high standards and it is a great accolade to be the only Spa in Northern Ireland to receive recognition at the prestigious Irish Spa Awards.

“Over the past years the Roe Park Resort has invested in developing the Spa facilities to provide customers with the most innovative and luxurious holistic health, beauty and wellness treatments.”

Businesses called upon to take a big step forward in 2015

Brian Ambrose, chair of Mencap’s Big Step Forward Appeal and chief executive of George Best Belfast City Airport helps lead the business community in taking a ‘Big Step Forward’ for Mencap alongside Vanessa Elder, regional fundraising manager for Mencap in Northern Ireland

rian Ambrose, chief executive of George Best Belfast City Airport, is calling upon the local business community to make supporting Mencap’s Big Step Forward Appeal part of their plans for 2015.

Through the Appeal, Mencap is seeking to build, equip and run a new purpose-built centre for children with a learning disability and their families in Northern Ireland. It is aiming to raise £1.7m in order to open the centre by January 2016. As chair of the Big Step Forward Appeal, Brian Ambrose is hoping the private sector will lend its weight to helping the charity make its vision a reality.

The £4.6 million centre in south Belfast will bring the therapeutic care, information, practical and emotional support children with a learning disability and their families need under one roof. At its heart will be Mencap’s relocated Segal House nursery for 2 to 4 yearolds with a learning disability, autism and developmental delay.

“Mencap has outgrown its current base, a Victorian building on Belfast’s Annadale Avenue, where it has been for over 40 years.

The charity urgently needs to move to a modern facility to best deliver support to people with a learning disability and their families,” explains Brian Ambrose.

“The public and Mencap’s partners have been continuing to give generously since the Big Step Forward Appeal was launched in October. Currently, there remains just over £1m required in order to meet Mencap’s target. The strength of the local business community would play a significant role in helping achieve that,” said Brian.

Mencap has connections with corporate partners such as Ulster Rugby, George Best

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Belfast City Airport, Winemark, Citigroup, Texthelp Ltd and McKinty and Wright Solicitors, many of whom have been raising funds throughout 2014 and will continue supporting Mencap into 2015 in aid of the Big Step Forward Appeal.

There are several ways businesses can support Mencap’s Big Step Forward Appeal, from adopting Mencap as their official charity of the year to making a one off donation, or taking part in one of Mencap’s events programme specifically designed for corporate fundraising.

This might involve entering teams into the Belfast City Marathon or signing up for Mencap’s Mourne Mountain Challenge next August. Organisations can also host a Mencap ‘Funky Footwear Friday’ event.

“Over the years, even in times of economic hardship, the business community in Northern Ireland is known for its generosity in supporting worthy causes, of which there are indeed many. I hope that generosity will extend towards supporting Mencap’s Big Step Forward Appeal, the impact of which will be felt for many years to come,” Brian Ambrose said.

Visit www.mencapbigstepforward.org to find out more information. To support Mencap’s Big Step Forward Appeal, you can text MENCAP to 70660* to donate £3 or donate online at www.mencapbigstepforward.org/donate .

For more information about donating, please call 028 9069 1351 or email fundraising.ni@mencap.org.uk *Text costs £3 plus network charge. Mencap receives 100% of your donation. Obtain bill payer’s permission. Customer care 028 9069 1351. Charity No 222377

Visit Belfast Welcome Centre celebrates first birthday

Pictured with the lord mayor is Visit Belfast chief executive, Gerry Lennon, and Mary Jo McCanny, Director of Visitor Servicing, Visit Belfast.

ince opening, the state-of-the-art Visit Belfast Welcome Centre has welcomed more than 250,000 visitors through its doors and registered a significant uplift in footfall, ticket and retail sales.

The Visitor Centre, one of Belfast City Council’s key capital projects within its wider £150 million Investment Programme, has already won a number of awards for its impressive use of digital technology and the enhanced visitor experience it provides.

The Lord Mayor, councillor Nichola Mallon, wished the Visit Belfast team a happy 1st birthday in their new location.

“Tourism has become a key economic driver for Belfast, propelling investment while creating and sustaining jobs in a city which is bursting with things to do, see and enjoy. The Visit Belfast Welcome Centre is integral to the success which the tourism industry has achieved so far,” she said.

"With this investment in Visitor Servicing, Belfast City Council, with the help of the European Regional Development Fund and the Northern Ireland Tourist Board, enables us to deliver memorable and first-class customer service and maximise the visitor experience for tourists coming to Belfast.”

Visit Belfast Chief Executive, Gerry Lennon, said: “2014 has proved to be yet another great year for tourism in Belfast as visitors travel here for city breaks, conferences, events and on board the record number of cruise ships which have now made the city a permanent fixture on their international itineraries.

“The Visit Belfast Welcome Centre is a part of our tourism achievements and I look forward to 2015 where we hope to welcome more visitors to the centre and the wider city region.”

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THOUGHT LEADERSHIP

ICT in 2015 and beyond – WHERE I IS FOR INNOVATION

by Matt McCloskey, Sales Director with eircom business solutions Northern Ireland. hotel providing Wi-Fi, it’s clear that your WiFi network can hold invaluable information on user behaviour. In 2015 we expect to see more companies looking to maximise this previously-considered commodity and this massive amount of data. We predict there will be a surge in the use of Wi-Fi analytics as companies across all sectors identify ways in which they can tap into this data to re-order shop layouts to maximise footfall, modify staff numbers to deal with peaks and troughs or to develop targeted offers for specific demographics.

Growth of BYOD and BYOA he ICT landscape is changing dramatically. Once upon a time IT departments were tasked with supplying the necessary ICT equipment and ensuring it continued to run at peak efficiency. Now, as technology is so ingrained in every aspect of a business, the role of IT has become more strategic with CIOs taking their places at the board table and adding real value to a business.

Speaking with clients during the year it’s clear that this trend is not solely the preserve of large multinationals but spans all businesses. Northern Ireland companies such as Chain Reaction Cycles and Wrightbus are at the forefront of innovation through use of IT. They’ve been able to do that because they’ve taken the step to outsource their network and their internet services. So, instead of their time being taken up with the daily tasks of ensuring their network is running effectively or their internet connection is sufficient for their needs, their CIOs are focused on how they can use technological developments to achieve their strategic goals.

Adopting a managed services approach means dedicated experts monitor your network 24/7, address any issues that arise and make any necessary tweaks and updates to ensure your foundational ICT platform can support your current and future business requirements.

Having a robust, high-performing and reliable network is going to become increasingly important as trends such as datacentre to cloud, IP and Internet of Things go mainstream in 2015.

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From datacentre to the cloud Among our customers we’re seeing a growing trend of accessing mission-critical applications from the cloud, or in some cases multiple clouds, either based at customer

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premises or hosted in a datacentre. In 2015, as well as Software Defined Networks, we will see increased adoption of solutions such as Cisco’s Application Centric Infrastructure (ACI), which has been purpose-built for integrating cloud computing and data centre management.

This application-centric approach allows organisations to deploy applications anywhere, further enhancing the mobility businesses have come to expect.

Stepping into a converged world of communications The end is fast approaching for traditional voice as IP networking becomes ubiquitous.

With IPVPN, a company’s network can handle multiple types of traffic – voice, data and multimedia – over one connection. This combined with SIP and Fixed Mobile convergence further opens up the door to converged communications where data lines converge with voice lines; mobile services converge with fixed line services; and traffic costs are largely eliminated by free on-net calling.

Internet of Everything We are fast becoming a world where everyone and everything is connected. In 2015 we expect the Internet of Things will become widespread. In 2010 12.5 billion devices were connected to the internet; Cisco predicts this will double to 25 billion by 2015 and double again to 50 billion by 2020. In the coming year we are likely to see smart organisations in Northern Ireland using sensors to give advance notice on maintenance and repairs and using smart cameras, sensors and lasers to analyse manufacturing processes.

Making more of your Wi-Fi Whether you’re a shopping centre, café or

More and more we will see organisations allowing their employees to interact with the network the way they want to. As attracting top talent and retaining it becomes a key priority, organisations will look to introduce policies such as BYOD (bring your own device) or BYOA (bring your own app). HR and IT departments will need to develop flexible policies to facilitate this trend while also protecting the company.

A robust foundation to support new working models At eircom business solutions NI we have a long heritage of embracing technological trends including next generation networks, collaboration technologies and BYOD. And our work with the Northern Ireland Civil Services (NICS) is a shining example of converged communications; we rolled out an advanced network for the NICS that carries multiple services over one platform - voice and data traffic as well as cloud and email services. This implementation transformed NICS’s ICT platform into one of the most modern and efficient Government networks in the world.

In 2015 we’re bringing all this experience to the enterprise sector as we develop new propositions focused on managed internet and network services that will equip businesses to embrace new trends such as IoT and SDN and to further free up your IT team to deliver strategic value to your business. With eircom business solutions NI as your ICT partner your organisation can fit into this new world of converged networks, flexible working models, smart use of analytics, connected devices and connected people.

Contact Matt at linkedin/in/mattmccloskey or contact eircom business solutions Northern Ireland at: Forsyth House, Cromac Square, Belfast, BT2 8LA. Tel: 0800 039 2000. www.eircom.co.uk twitter.com/eircomUK and linkedin.com/company/eircom­ni

THOUGHT LEADERSHIP

Improving the education system is critical to our economic future

by David Fry, senior policy adviser, CBI Northern Ireland

CBI Northern Ireland chair Colin Walsh with Education minister John O’Dowd MLA

rasping the opportunity of education reform to enable economic growth and enhance the futures of this country’s young people is the major focus of a major new CBI report – Step Change.

Published last month, with the support of the Education Minister at a launch event in Belfast, our report finds that there is much to be proud of in the education system, and reforms are heading in the right direction, but a lack of focus on outcomes we all want – progression and success in work and life – means too many are still being left behind.

Building on the CBI’s First Steps report in 2012, the report sets out the business vision of what is needed to enable Northern Ireland to compete in an increasingly competitive global economy. Step Change argues that raising education standards in Northern Ireland is an

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economic and social imperative and that the school and college system must better prepare young people for life outside the school gates.

Business recommendations include: • The study of maths and English to be made compulsory until 18 for all those remaining in education • More employer involvement in careers provision • All schools to offer separate sciences as an option for GCSE, and faster progress on implementing computing as a core subject • A statutory requirement for all young people at key stage 4 and 5 to undertake work experience • Computing should be taught as a core subject

Fundamentally, education must deliver for everyone, but that doesn’t have to mean everyone doing A levels and going to university. The Entitlement Framework is a great starting point on the road to a genuinely valued vocational offering, but more work is needed to ensure all vocational options create pathways to employment. This can only be achieved with business involvement at every level.

• A new statutory duty on regulators across the UK to work more closely together to ensure qualifications in different nations are directly comparable and equally valued by both young people and employers.

From the perspective of business, when recruiting young people, firms look above all else for the right attitudes and behaviours – for example, 85 per cent of firms in Northern Ireland rate attitudes to work as the most important factor they consider when recruiting school and college leavers - and this should be a key focus of our schools and colleges. Our young people need to learn resilience, enthusiasm, curiosity and creativity. These are the traits that will help them get ahead in work and life, and these should be the outcomes our education system drives towards – alongside academic progress.

The best education systems globally start with a clear idea of the desired outcomes – in our view, we need to do the same in Northern Ireland and then ensure all aspects of the system are aligned to deliver those outcomes.

The education systems of the UK benefit from devolution, but we have a responsibility to those who are taking qualifications to ensure that they are equally valued by business. More than three quarters of employers across the UK want qualifications to be directly comparable and easily understood. It’s right that a GCSE or A level in Northern Ireland is locally relevant and designed in the best interests of Northern Ireland’s children, but we cannot risk creating a perception elsewhere that a Northern Irish qualification is less rigorous.

Fundamentally, education must deliver for everyone, but that doesn’t have to mean everyone doing A levels and going to university.

The Entitlement Framework is a great starting point on the road to a genuinely valued vocational offering, but more work is needed to ensure all vocational options create pathways to employment. This can only be achieved with business involvement at every level.

The responsibility to make the recommendations in Step Change a reality does not just fall on one group. Political parties, schools and colleges, businesses, communities, parents and students all need to work together to define the outcomes we

want and to make them a reality.

Step Change calls for an education system that focuses on outcomes, with young people who are well prepared for success in work and life – and not solely on narrow process or outputs measured, like PISA scores or exam results. The revised curriculum should be allowed to flourish, allowing teachers and school leaders to focus on developing attitudes and aptitudes, not just passing exams. And destination data should play a bigger role in school and college accountability, to encourage leaders to think beyond short-term success.

Businesses recognise the vital importance of education if we are to be globally competitive, and stand ready to play their part.

The report therefore recommends: • Greater employer involvement in careers provision for young people, to inspire students about career possibilities, with a particular focus on getting more young people, particularly women, into science, technology, engineering and maths (STEM). Two in five employers in

Northern Ireland already report, or anticipate, problems in recruiting graduates with STEM skills – and over 50 per cent have or expect to have problems in recruiting experienced STEM workers.

• Businesses should encourage their employees to act as school governors, to bring high-quality and relevant skills to a key function • Schools and colleges must be better incentivised to build links with employers through a sharper focus in Education and Training Inspectorate evaluations.

Step Change therefore is a challenge to our political leaders, educationalists and the business community itself. It’s a challenge we can’t afford to fail on given its importance to all our economic futures and it is critical that we make the necessary policy changes that can be to the benefit of all our young people now and in the future.

For further information please contact: david.fry@cbi.org.uk www.cbi.org.uk/ni

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COVER STORY

GRANT THORNTON following an instinct for growth Gavin Walker meets with the three newly appointed Partners who will spearhead Grant Thornton's significant expansion plans in Northern Ireland over the coming years: Richard Gillan (Advisory Partner) Louise Kelly (Audit Partner) and Peter Legge (Tax Partner).

Richard Gillan (Advisory Partner), Louise Kelly (Audit Partner) and Peter Legge (Tax Partner)

rant Thornton, Ireland’s fastest growing large accountancy firm, has appointed three new partners to drive expansion plans over the coming years and there is a palpable sense of purpose within the team who have recently moved into their new offices in Belfast city centre.

“We grew the Grant Thornton office in Dublin from 60 to 600 employees by providing an unrivalled level of service to our clients and we are now focused on taking the Northern Ireland office to similar heights,” Louise Kelly, Audit Partner explained. “SMEs are our sweet-spot and we know our clients here are more positive about the future than they have been for some years. They are actively looking for new opportunities to

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grow their businesses and we want to play an integral part in their success.

“Our very strong relationship with both our Republic of Ireland and GB offices allows us to easily access expertise from those offices and connect our Northern Ireland-based clients with knowledge and opportunities that will help them penetrate new markets successfully.”

“Our clients tell us that our genuine interest in their business makes us stand-out” Peter Legge, Tax Partner, explained.

“Understanding our clients’ strategic ambitions is fundamental to the services we provide. We want to be a strategic sounding board, testing and challenging assumptions and facilitating debate within the board. By

focusing on the client’s agenda and issues, we have insightful conversations which form the lifeblood of our business. By developing a trusted relationship with our clients we can work with them to reach their fullest potential.”

“Additionally, we ensure that the views of Northern Ireland businesses are represented at the correct level of government by feeding into Grant Thornton UK LLP’s responses to government consultations. This has been of particular interest to our clients recently in seeking to articulate and represent their views in support of the devolution of corporation tax rate varying powers to the Northern Ireland Assembly.”

“Our very strong relationship with both our Republic of Ireland and GB offices allows us to easily access expertise from those offices and connect our Northern Ireland-based clients with knowledge and opportunities that will help them penetrate new markets successfully.” Louise Kelly Entrepreneurial spirit Richard Gillan, Advisory Partner, and the most recent of the three to join the firm, emphasised the entrepreneurial approach Grant Thornton takes to business. “After experiencing the challenges and rewards of running my own manufacturing and services businesses, I had not planned to return to practice. But the entrepreneurial culture and approach displayed by the Grant Thornton leadership convinced me to come back and put to work the experience and knowledge I have gained on our clients behalf.

“The reluctance of Banks to lend over the past number of years has resulted in latent demand from companies to review their funding options. For the first time since 2008, banks really are open for business; I have sat down with all of Northern Ireland’s key lenders in recent weeks and can confirm that they have a genuine appetite for business. Our recent successful refinancing of TBF Thompson is a good case in point.

“Add to that the reality that many local businesses have been accumulating cash over the past five years, together with the arrival of new players in the venture capital markets, and the opportunities for Northern Ireland business to really get moving are outstanding.

Plus as Peter explained, local companies know that having an effective and efficient operating environment is a pre-requisite for success and business development. “We seek to work closely with our clients to streamline processes and behaviours to ensure that they get more out of less.

Also, many business structures have evolved over time and may no longer be fit for purpose due to the changed economic landscape and tax environment. We are therefore supporting many clients to take advantage of the opportunities which exist to restructure the business in a tax efficient manner so that they are best placed to realise their growth ambitions.

“Our commercial approach to client relationships means we don’t adopt a ‘silo mentality’ to our interactions. Instead we see ourselves as a partner in their growth and want to bring our expertise to bear on every aspect of their tax affairs from corporate to

personal. By having an overall understanding of the business and an insight into the objectives and aspirations of key stakeholders, we can help develop a tax strategy to maximise and protect value for individuals and corporates.”

Keeping it local Unusually for the Northern Ireland office of a global network, Louise, Peter and Richard who are all from Northern Ireland, will be focused exclusively on Northern Ireland-based clients.

“We are focused entirely on building our business by working with local companies,” Richard explained. “Being from Northern Ireland we understand how other local businesses think and work. We’re not simply using Northern Ireland as a base to service businesses in other jurisdictions – we’re doing business right here.

“But as a member of a powerful international network with 600 offices in 100 countries, we can easily plug our Northern Ireland clients into an unrivalled knowledgebase without them losing the close personal relationship of the Northern Ireland office.”

Corporation Tax At the time of going to press we are still awaiting the outcome of the talks at Stormont and the determination of whether or not Corporation Tax will be devolved locally.

However, the partners were united in their expression of support for its successful transfer.

“Regardless of the outcome of the talks at Stormont we will drive Grant Thornton’s plans for expansion in Northern Ireland,” Peter confirmed, “However, there is no question that putting the legislation in place and taking the opportunity to set Corporation Tax in or around the same as the Republic of Ireland will be a game-changer for the rebalancing of the Northern Ireland economy.”

Meet the Partners Louise Kelly will lead the Audit team in Northern Ireland. Having joined Grant Thornton in 2000, she has experience working with public and privately owned companies, particularly within the construction, education, motor, retail and manufacturing sectors. Louise is the author of Advanced Auditing and Assurance, the text book used by Chartered Accountants Ireland.

Tax partner Peter Legge has 20 years’ experience in providing tax advice to individuals and businesses. He joined Grant Thornton in 2005 and specialises in advising owner managed businesses on tax matters ranging across the various stages of their growth model – from business structuring, to protecting and expanding business activities, to tax efficient realisation of value from the business. Peter’s focus is on ensuring his clients receive innovative, robust and commercially aligned tax advice. His clients include those from the food and beverage, property and construction, technology and media and retail sectors.

Richard Gillan joins the firm from the private sector to lead the Advisory team.

Having trained as a Chartered Accountant he has spent the last decade acquiring a number of businesses, restructuring and expanding them in advance of successful exits. He is uniquely placed in the Northern Irish market to advise on acquisitions, disposals, corporate strategy and financing.

Welcoming the new partners, Paul McCann, managing partner of Grant Thornton, Ireland, told Business First: “These appointments not only represent a new dawn for Grant Thornton in Northern Ireland but also recognise the vast experience and knowledge that all three partners possess.

“I’m delighted that all three are Northern Irish natives and know the nuances and challenges for companies and individuals when operating in both a local and global marketplace.

“While Louise and Peter have been with Grant Thornton for many years and each is vastly experienced and respected, Richard joins the firm from the private sector. He has purchased and successfully exited a number of businesses and his skills will be unrivalled as he leads the Advisory team.”

BUSINESS FIRST MEETS

All gassed up and ready to grow Business First talks to Michael Scott, managing director, firmus energy and discovers his ambition to make firmus the first choice natural gas supplier in Northern Ireland. he energy market in Northern Ireland has been maturing steadily over recent years. Northern Ireland users are now seeing the benefits that have been enjoyed by businesses in Great Britain and the Republic of Ireland for many years.

Competition from new entrants has seen thousands of SMEs switch their energy suppliers in a bid to reduce one of their main overheads and remain as viable as possible in the difficult trading conditions of the last few years.

Michael Scott is managing director of firmus energy and is responsible for the company’s business operations and developing a delivery company strategy. He works closely with an experienced team across all the main areas including finance, engineering, pricing/regulation as well as sales and marketing.

After studying Combined Economics at Queen’s University Belfast, Michael started his career with British Gas in London before joining firmus energy in 2006 as part of the senior management team.

As managing director, Michael regularly meets with customers, consumer groups, statutory bodies and elected representatives as the company develops its network to make natural gas the preferred option for homes and businesses in the new gas towns and the first choice for gas customers in greater Belfast.

Under Michael’s direction, firmus energy has grown steadily and now has over 70,000 residential and commercial customers across Northern Ireland, more than 20,000 of which are connected to the firmus energy network.

The company has also built out around 900km of pipeline and invested around £85 million in the local economy. “firmus energy is a network owner/ operator and aims to be the first choice energy provider in Northern Ireland having spent the last number of years building an extensive network across Northern Ireland.

These were towns and cities which had never had access to natural gas and businesses were quick to recognise the advantages in terms of cost savings, fuel efficiency, convenience and environmental benefits.

“There were a lot of people who lobbied hard to extend the natural gas network to their area and it is great to see so many customers grasping the opportunities it presents. The larger industrial businesses in these areas were the first to convert with smaller commercial properties and domestic customers quick to follow suit.”

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firmus energy now supplies more than 40 per cent of the natural gas used in Northern Ireland and as a result has displaced upwards of 450,000 tonnes of CO².excluding natural gas supplied to power stations for the production of electricity. Year on year, the company exceeds its connection targets, with around 4,000 new commercial and domestic customers annually, as the demand for natural gas continues to rise in line with its availability in more and more new areas.

Historically, firmus energy has offered one of the cheapest natural gas prices in Europe and communities are quick to realise the practical, cost-saving and environmental benefits which natural gas can bring to an area. Due to the increasing popularity of the fuel, firmus has already been granted eight extensions for areas outside the original licensed locations, including most recently, Bushmills and Ballyclare.

Michael continued, “Businesses know that cost is all-important. They need an efficient fuel at a competitive price and that is exactly what they get with natural gas. All savings can contribute directly to the bottom line which can be critical in this price-sensitive age.

“However, it is not just price that influences businesses and our research shows that there are a number of different factors that contribute to the decision to use natural gas.

These can include the extra space available as no fuel storage area is required and there are also environmental considerations as natural gas produces up to 30 per cent less carbon dioxide than oil. Feedback also shows that managers feel more confident as it is piped

directly into the building, there is never a fear of forgetting to reorder or the need to worry about the daily fluctuating price of oil. The bill is also paid monthly depending on usage which also means there is no need to find a huge outlay to fill a tank,” he added.

The company invests around £10 million each year in the Northern Ireland economy, expanding the natural gas network into provincial areas while creating employment opportunities for hundreds of local contractors, installers and agencies. firmus energy was recently acquired by iCON Infrastructure which has interests in other core infrastructure businesses including natural gas, renewable power, district heating and ports. This is positive news for customers and employees as iCON has committed to retain the firmus energy brand and offer job stability and will continue to invest in growing both the natural gas network and the firmus energy business.

With continued company growth, the local economy should carry on benefiting from reduced CO² emissions and job creation, network development and increased consumer choice, as well as on-the-ground community support through firmus energy’s CSR initiatives. ¹ Utility Regulator Transparency Quarterly Reports.

BUSINESSFIRSTMAGAZINE

NORTHERN IRELAND ECONOMIC OUTLOOK2015 SPONSORED BY

Ministerial Foreword

The translation of science to commercialisation

Arlene Foster, DETI Minister

by Sue Dunkerton, director at the Knowledge Transfer Network.

Economic Overview 2015

Northern Ireland retail grocery market will experience significant change in 2015

John Simpson, Economist

The importance of wealth creation in the digital sector in Northern Ireland Jeremy Biggerstaff, Flint Studio

Damian McCarney, acting managing director of Musgrave Retail Partners Northern Ireland

What does 2015 promise on the political front Chris Brown, director, MCE Public Relations

Change and opportunity on the horizon for Planning in 2015

New year safety call for the waste and recycling industry

Richard Bowman, Strategic Planning

Jim King, HSENI

Make 2015 the year you developed an effective social media strategy

There are clear skies ahead Brian Ambrose, chief executive, George Best Belfast City Airport

Bill McCartney, Social Media Consultant and Trainer

Autoline celebrates 2014 and looks forward to 2015 Harness the power of ideas in your business in 2015

Michael Blaney, managing director, Autoline Insurance

Cherrie Stewart, ANSONS

The commercial real estate sector 2015 We can take steps now to strengthen our tourism industry in 2015

Brian Lavery, managing director, CBRE Belfast

Sinead McLaughlin, Londonderry Chamber of Commerce

IT’s all systems go in 2015!

Lee Surgeoner, Partner with Endeavour Information Solutions

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

On target to make Northern Ireland one of the most innovative regions of the UK

by Arlene Foster, DETI Minister 014 was the year when we began to see the local economic recovery really take hold. Economic activity is rising, we now have 21,020 more jobs than in 2012 and there has been a sustained decrease in the number of people claiming unemployment benefits.

This recovery has been driven by our local businesses, and we need to do everything we can to support the private sector to grow in 2015 and beyond.

This is particularly important given the difficult public expenditure situation facing the Northern Ireland Executive from 2015/16 onwards due to the reductions in the block grant from Westminster.

Our Economic Strategy ambition is to rebalance the economy and, faced with difficult spending decisions in the public sector, we now need to ensure we focus our efforts on measures which grow the private sector.

But we have not been idly waiting for these powers – in 2014 we continued to work hard to drive our economy forward. It has been more than a year since the launch of Building a Prosperous and United Community and I am proud of the progress we have made.

In 2014, I welcomed the completion of the Review of Business Red Tape, the extension of the Start-up loans scheme, the approval of our 100 per cent assisted areas status until at least 2017 and positive progress of the Joint Ministerial Taskforce. I was also pleased to

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While 2015 will undoubtedly bring challenges, the work we are undertaking will allow us to build on our successes from 2014 and make real progress in helping to build a larger and more competitive private sector.

Arlene Foster 18 www.businessfirstonline.co.uk

launch the Northern Ireland Executive’s Innovation Strategy setting out the key actions to transform Northern Ireland into one of the most innovative regions of the UK by 2025.

Following on from a successful 2013-14, Invest NI has continued to raise the bar. In the first half of 2014-15 alone, Invest NI has supported 23 FDI projects promoting more than 4,700 jobs and 29 local projects promoting more than 1,500 jobs.

We have ensured the Northern Ireland brand has been visible, with 37 market visits in 2014 to over 30 countries and 59 market visits planned to over 30 countries including Chile, South Africa and Singapore next year.

Our significant investment in developing a world class tourism product is bearing fruit.

In 2014 we successfully hosted the prestigious Giro d’Italia, putting Northern Ireland firmly in the spotlight as the world watched on.

Existing attractions have also proven popular, with both the Giant’s Causeway Visitor Centre and Titanic Belfast continuing to exceed expectations.

Looking ahead to 2015, independent economic forecasters are predicting growth of around two per cent. But the Northern Ireland Executive knows it must ensure

resources are in the right place to nurture this economic growth.

The Northern Ireland Executive’s Economic Strategy was designed as a living document and will be refreshed to meet changing economic conditions with a new Action Plan for the 2016-2020 developed shortly.

We are also developing an Exports Action Plan to coordinate activity across government and the private sector to enable Northern Ireland businesses to grow and compete globally. The Northern Ireland Executive will also consider the recommendations of the Red Tape Review and provide a response in 2015 for a programme of reform to support the local economy.

I will continue to work with the Minister of Employment and Learning to develop a strategy to tackle economic activity through skills, training, incentives and job creation.

The agri-food sector is also of upmost importance with the Northern Ireland Executive committed to the achievement of the challenging industry targets set by the Agri-Food Strategy Board.

While 2015 will undoubtedly bring challenges, the work we are undertaking will allow us to build on our successes from 2014 and make real progress in helping to build a larger and more competitive private sector.

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

Measures to lift the economy remain a policy priority need byJohn Simpson, economist and visiting professor at the University of Ulster arely can a year have ended with such a range of uncertainties about the likely development of the economy in the next twelve months. The Northern Ireland economy has enjoyed steady, if slow, recovery in 2014.

Gaining the authority to set a Northern Ireland rate of corporation tax would give a powerful stimulus. The actual changes may not be effective for up to two years but the advance commitment would give a marketing boost.

Critical to the passing of legislation to allow corporation tax to be devolved there is the unfinished business, as we write, of underpinning the Executive budget for 201516. The draft awaits finalisation. In addition, proposals on the implementation of welfare reform need to be agreed.

The private sector directly generates some 70 per cent of economic activity. The main pillars of the private sector have been strengthening, but with restrained momentum.

In 2014, overall GDP has increased by about 2.4 per cent: fast enough to give a modest boost to employment. Employment has increased to exceed 818,000 people, an increase of just over 2.6 per cent. The slightly faster rate of increase in employment than GDP is a pointer to the small fall in average earnings.

Private sector average earnings for full-time employees in 2013-14 fell by 0.9 per cent in contrast to an increase in GB of 0.7 per cent.

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When allowance is made for price rises, real household incomes have fallen - and fallen rather more than in GB. This comparison is a key component of the explanation for the slower recovery in the economy in Northern Ireland.

John Simpson 20 www.businessfirstonline.co.uk

The increase in the number of employees is a welcome trend although there is a concern that much of the increase has been in lower paid occupations.

When allowance is made for price rises, real household incomes have fallen - and fallen rather more than in GB. This comparison is a key component of the explanation for the slower recovery in the economy in Northern Ireland.

FDI Success An encouraging feature of the past year has been the large number of investment decisions by external businesses, promising nearly 14,000 jobs after negotiations with Invest NI. The impact of these announcements in recent months will convert into the recruitment of more employees in the next two to three years.

The forecasts offer an average growth rate of 1.9 per cent. That creates some doubt about whether employment will increase at all, or, if it does, to the risk of pointing to poor productivity results. John Simpson Slow recovery

Restrained optimism

The composite index of local economic activity peaked in mid-2007. For five years to mid-2012, output in the private sector fell steadily by over 17%. More recently it has recovered by about 3%. This performance contrasts sharply with the UK economy where the recession was much less severe. In the UK the lost output has already been more than offset.

The slow recovery in Northern Ireland is partly a consequence of only modest increases in demand from external markets and a slow recovery in investment expenditure.

Increases in home based consumer spending remain modest. Overall average real personal incomes have fallen by more than enough to offset the extra income generated by increased employment.

In the last three years, activity in Northern Ireland has been sustained by the public sector which, in contrast to GB, has contracted only slowly. That relationship between the public and private sectors is set to change as Ministers not only take steps to rebalance the private sector by encouraging expansion, but also to live within the constrained devolved public sector budget.

Putting together the trend and impact of the several main components of demand, including particularly the spending squeeze in the public sector, gives reason to doubt how well the modest expansion of 2014 will continue in 2015.

Four professional forecasts for the regional economy in 2015 have been published.

Whilst the statistical results vary, they have in common concluded that GDP will increase but increase more slowly in 2015 than in 2014.

The forecasts offer an average growth rate of 1.9 per cent. That creates some doubt about whether employment will increase at all, or, if it does, to the risk of pointing to poor productivity results.

Much of the economic recovery in 2014 in Northern Ireland can be attributed to the stabilisation and improvement of three interrelated features. First, the near cumulative decline in property values was stemmed.

Second, the scale of losses acknowledged by the banks, in terms of provisions in their accounts, has fallen and allowed some of the banks to present positive pre-tax profits.

Third, prices in the private sector housing market have been recovering.

Critically, for 2015, some businesses and

households continue to be aware of an inheritance of negative equity which will be a continuing, but reducing, constraint on spending.

The divergence in overall trends when comparing GB with Northern Ireland may be largely explained by the events linking property development and the impact that this had on the banks.

The serious fall in construction activity on its own would have put the economy under serious strain. In Northern Ireland, after rising to an all-time high in the several years leading up to 2007, construction activity in the last seven years has halved.

The expectation is that the construction industry will begin to see a modest upturn in workload in 2015. There will be business opportunities for an increase in private sector house building and some public sector infrastructure contracts.

The potential for improved recovery rates and the expansion of output is not in doubt.

For this potential to be realised there is a requirement that the clouds of political uncertainty affecting the functioning of the Northern Ireland Executive should give way to co-operation and consensus linking the private and public sectors!

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

The Importance of Wealth Creation in the Digital Sector in Northern Ireland Jeremy Biggerstaff is involved in number of business ventures including his main role as managing director at Belfast-based web agency Flint Studios. With over 20 years of industry experience, Jeremy has an unrivalled understanding of all things commercial with an extensive background in digital and tech. Here are Jeremy's thoughts on wealth creation in Northern Ireland’s digital sector in 2015. s every company leader knows, the main focus is on the long term success of a business to deliver sustained growth. In order for Northern Ireland PLC to succeed, especially in the digital sector added value products and services will need to be at the centre of the long term planning.

In overall terms Northern Ireland remains in deficit by around £9 billion per annum, representing a shortfall of about one third of its overall performance.

The digital sector can and must play a significant role in reducing the deficit through the supply of services and products that are seen as high potential and value to the local economy.

In 2006, DETI launched a new program for supporting a broadband content initiative. A first of its kind, the program helped stimulate ideas and innovation in the content sector as opposed to supporting traditional capital intensive schemes. The sector has moved on substantially since then thanks to a focus on external sales and job creation and has established a number of great examples of companies that have been successful start-ups.

Over the last few quarters, the Northern Ireland market has been experiencing a brighter outlook, including the recent potential positive impact from the changes in Corporation Tax. Invest NI has set out a growth strategy for the digital media sector for 2013 to 2015 which includes a vision for 2020*. Despite their well published success and performance with Tier 1* and Tier 2* growth, they have a focus on increasing the number of new, Tier 3*, digital media business start-ups by 180 (60 per annum).

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The Challenge So how does the Northern Ireland market create 60 new start-ups per annum and address the need to create wealth in the economy? At a fundamental level it requires investment in ideas and talent and this is being delivered via a number of initiatives that are in place from Invest NI and other Government bodies.

The clear challenge is to get talented individuals to consider starting up their own businesses, but what are the challenges they will face if they choose to do so?

Funding and Support There is already a number of potential options for support including Propel and the Collaborative Network Programme to help get

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you started.

There is Proof of Concept funding offered by Techstart NI, who provide £10k Concept Grants, followed by £40k Pathfinder Grants.

Research and development funding can follow and help you to deliver innovation and it can be supported with various levels of job funding through Invest NI. One area that is growing is in relation to collaboration projects with Queens and University of Ulster, both of which provide innovation vouchers to help access to their extensive talent pool.

Exporting It is important that you consider the potential to export right from the beginning.

The talent and knowledge driven by the competitive nature of the Northern Ireland economy and its success globally, will make you more current and relevant than you may think. Trade missions and potential partnerships should all form part of the plan as Northern Ireland led companies have a proven track record of success, once they invest in export markets.

Corporation Tax The immediate reaction to the Corporation Tax change is that it will be positive by stimulating the sector but it will nearly exclusively impact the Tier 1 and Tier 2 companies for additional investment and growth.

This will have a direct impact on wage costs, a shortage of skills (especially in ICT and Finance) and more importantly the availability of young talent with new ideas and an appetite for disruption. Support and development of graduates and entrepreneurship will remain the biggest challenge to create wealth from new start-ups in Northern Ireland.

Mergers, Acquisitions and Partnerships At this early stage, you are less likely to have thought about an exit plan, a merger or a partnership. In the digital sector ‘exits’ are common place and unless you have a clear plan of where you think your start up business could end up, you might never be able to execute your plans and make the business a success. It is worth investing some time and resource in understanding the wider markets, especially in external markets to provide clarity on your thinking.

At a recent Chamber of Commerce event in relation to exporting, Mark Regan, CEO of Ding.com said “If there is something that you are passionate about and interested in, you should invest in it”. He also stressed about the importance of mentors to entrepreneurs and you will be surprised how much support and help you will find out there, especially through stakeholders like Invest NI, Universities, Northern Ireland Science Park and the different funders.

Northern Ireland has a lot to offer in terms of the start-up scene and with follow on funding options, through Halo, Co-Fund and private investment, it has the making of a region for generating wealth for all of the stakeholders in 2015 and beyond.

Do you have a great idea with commercial potential? Talk to Jeremy about your Proof of Concept by calling 028 9045 5554 or emailing jeremy@flintstudios.co.uk. For more info visit www.flintstudios.co.uk/poc *Taking Digital Further...The Growth Strategy for the Digital Media Sector in Northern Ireland 2013 ­ 2015 by Invest NI

In the land of the GIANTS T he Stena Line Belfast Giants, currently in their 15th season, have taken Northern Ireland by storm since their opening night back in December 2000 and at the helm is Steve Thornton, Head of Hockey Operations, after relocating his family to Belfast last Summer when friend and former Giants General Manager Todd Kelman got in touch back in April.

Thornton had a successful period as a player with the Belfast Giants, winning the Playoff title during the 2002/03 season and then he became the only Giants coach to win two trophies in one season during his second spell in Belfast, lifting the Knockout Cup and Challenge Cup as well as the Playoff championship the following season. However Thornton then moved on to take up a career working in the property market back home in Canada.

"It was a really tough decision to leave at that time,” Thornton explained. “We really liked it here, and I would probably have stayed if I could have kept playing, but the role became a little different because they were looking for a player-coach, although as it turned out they appointed a new coach that didn't play.”

"There were different owners at the time

too and it was really a year-to-year thing with Jim Gillespie, who did a great job in keeping the team going out of the goodness of his heart, simply because he wanted the Giants to keep going because he believed in what the team stood for.”

The decision for Thornton to accept the Giants job offer in April 2014 from Kelman was simple, especially with the added attraction of being appointed as Head of Hockey Operations, rather than just being the coach.

"Todd explained to me how the business was going to be run, how it was a different opportunity this time, I would be more than just a coach and I wanted to be here. I was sold because of how much we enjoyed Belfast before and how well we were treated. I've been to a lot of places in my career, but never to anywhere like Belfast.”

The only trophy that has evaded Thornton during his spells in Belfast has been the Elite League title. The 2010 Playoff win was some consolation for not winning the league that season, but the heartbreak of losing out to Coventry Blaze by a single point has never left.

"I want to win everything, but the league is top of the list. To be the best team over the course of the season is important to everyone

and it's the one that I haven't got. I still think back to the games that we lost when just one point would have made all the difference.”

Although a league title win in 2015 will not see Thornton uproot again and move on as Belfast is now his home for the long-term.

"I'll be here permanently if I can. Even if there comes a day I am not working for the Belfast Giants I would stay here regardless. I am totally immersed in my job and am still learning the structure of the Odyssey Trust and I am enjoying being part of a huge company and dealing with different people.”

The Giants are in the middle of their season and are challenging for a second league title in-a-row and a third title in four seasons. Visit www.belfastgiants.com for the Giants match schedule at the Odyssey Arena and all the info on one of Belfast’s and Northern Ireland’s best nights out!

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

Change and opportunity on the horizon for Planning in 2015

by Richard Bowman, Strategic Planning he past year has been a busy one for the planning sector in Northern Ireland.

While we have yet to return to the heady days of 2007, the reality for the past year has been slow but steady growth across all sectors, with a strong indication that developers who have been in hibernation are making a tentative and cautious return to the development game.

The move of planning powers to 11 new Super-Councils will take place on April 1st 2015, when Councillors will become the decision makers on all but a handful of regionally significant applications.

Applicants will, on most occasions, wish to ensure that planning applications are decided, or at least well advanced, by April for fear that applications could get bogged down in rounds of deliberations by new local Councillors finding their planning feet.

New planning legislation will introduce a new way of processing planning applications as well as new requirements such as Design and Access Statements and Pre-application Community Consultation for the more major applications. The changes should not be feared by the development sector however, provided they take the right advice in preparing applications.

The final version of the Strategic Planning Policy Statement is to be published in early 2015 which could see some changes to policy, such as retail which is due to be marginally more restrictive with the introduction of a few extra hoops to jump through for out of town proposals.

The new shadow Councils are already working on the early stages of development plan production which will ramp up in April for what DoE Planning promise will be a three and a half year plan making programme for all 11 Councils. We have been guiding Lisburn City Council on its plan for West Lisburn, which should see a published plan for the area in February 2015.

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Belfast Metropolitan Area Plan The adoption of the Belfast Metropolitan Area Plan (BMAP) took everyone by surprise in September 2014. DUP is now seeking leave to challenge this decision which, if successful, could well see the quashing of the new plan even before it has had time to take effect.

Student housing and offices are the invogue land uses at the moment in central Belfast. The on-going development of the university at York St has resulted in a land grab for student accommodation. There is

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talk of a potential over-supply, however, anything that brings life back into the city centre can only be a good thing and will inevitably attract further private sector investment.

The commercial office developers are also vying for city centre space to provide the much needed grade ‘A’ offices. We have come across a number of investors, some from outside the UK looking to snap up key sites and buildings for development of offices.

Many of the big residential players are back in the game and actively seeking sites along with housing associations who are still as keen as ever to acquire sites. DSD/DoE published draft policy on Developer Contributions in June 2014 which caused a bit of a stir during the summer with the main house-builders. The good news for the industry is that further research and debate will continue throughout 2015 and as a result it could be later in the year before we see any such policy.

Energy Renewables continue to be a strong sector, but has experienced a bit of a slowdown during 2014. ROCs tariffs seem fairly settled now until 2017 and as such this sector should continue to develop steadily during 2015/16.

Grid connection continues to be the key issue for NIE and many major generators will be hoping that 2015 will the year that the SONI/Eirgrid North South Interconnector project makes planning progress, along with their plans for other major grid connections in the west.

Debate continues as to the need for the new £240 million EfW plant at Hightown when Bombardier’s approved EfW gasification plant within the Belfast Harbour Estate could itself cater for the waste requirements of the ARC21 area. A decision on the ARC21 project is expected in 2015.

Fracking seems as far away as ever due to the recent decisions by DoE and the DETI regarding Tamboran’s plans in Fermanagh. Meanwhile on the oil front Rathlin Energy’s application for an exploration well could come to fruition by the middle of 2015 and Providence will continue to find a way of tapping into the oil resource in their licence area.

Minerals development generally gets a bad press and none more so than the gold mine in Omagh for which we are hoping to secure approval for expansion of the underground mine in early 2015.

Other projects for 2015 2015 will also see advancements being made on the planning of a number of other major projects, such as the Lisanelly Schools Project, for which we secured outline approval in 2013, the Belfast Transport Hub, and despite recent reports to the contrary, the Desertcreat project on which a scaled back project may yield some development.

Meanwhile, at the time of writing, we are about to submit an application for the new Colin Town Centre on the Stewartstown Road.

In retail, discount operators will continue to dominate for the foreseeable future with Home Bargains, B&M and Lidl continuing their expansion plans. The major retailers appear to have halted all development of large stores, with Tesco opting for development of small scale town centre stores such as the one planned for Dromore.

Finally, the purchase of property portfolios such as NAMA’s by various investment firms, is certainly creating plenty of transactions which are keeping the lawyers and property consultants busy. No doubt the further offloading of property loan books will see continued activity and development projects in 2015.

Our property market may be recovering slower than in ROI, but that’s OK provided our recovery is stable and gives investor confidence through sustainable long-term returns.

Make 2015 the year you developed an effective social media strategy

By Bill McCartney, Social Media Consultant and Trainer “All men can see the tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved” Sun Tzu. un Tzu's Art of War is believed to be the oldest military thesis in the world. This quote highlights how everybody can superficially see how a battle is won; what they cannot see is the long series of plans and considerations that precede the battle.

In essence this is true of business and particularly those successful businesses that take the time and effort to plan their business strategies. Strategic planning is key to a successful business and for many they now see the value of having a strategy, which includes social media.

In 2015 there will be numerous changes and if you are on Facebook, LinkedIn, Twitter, Instagram, YouTube and any of the other social media platforms you need to ensure you keep up to date with what is happening.

There are now 1.73 billion people, one quarter of the world’s population using social media. They are posting, tweeting, vining, instagraming and pinning. Every 60 seconds 20,000 pictures are uploaded on Tumblr, and 2.46 million posts are sent on Facebook.

So in addition to more people using these social media platforms there is a greater diversity of social platforms. Some will say too many platforms so having a strategy is an absolute necessity.

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Think mobile Think mobile and mobile social apps, Instagram and WhatsApp. Both have significant number of users and very high engagement. Instagram has 1.6 billion daily likes! WhatsApp users spend on average 195 minutes per week on WhatsApp. Of note the BBC in the Indian elections earlier this year used WhatsApp. Also think YouTube the second largest search engine in the world. Over one billion unique viewers per month and over six billion hours of video are watched each month on YouTube – that’s almost an hour for every person on earth.

This multitude of platforms is not about engaging with the masses it is about engaging with your target audiences. Big brands are creating coherent strategies that have good content, compelling visuals and authentic stories and the individual is happy to engage creating both positive and negative buzz.

Politics and social media in 2015 Businesses are not the only ones engaging with their target audience but politicians are too. Look at last September when the local Democratic Unionist Party (DUP) announced for the first time on Twitter the reshuffle of ministers and committee chairs – it was a first for Northern Ireland. It achieved direct engagement with their target user – the media and subsequently their direct followers.

Politicians from all of the parties have recently adopted Twitter and Facebook but most have not begun to think of the awesome power of social media mobile applications.

Social media is now mobile centric. When people leave the house in the morning in addition to their keys and purse/wallet, the mobile phone has become an essential object to be carried about daily.

Now social media in politics is not a new tool the founding father for this is possible the American President Barack Obama who four years earlier had strategically used social media and won his 2010 election campaign.

In 2015 as elections take place social media will once again play an integral part how politicians engage, how we engage with the politicians, how they are viewed, and possibly how we, the Northern Ireland public will vote.

Develop a strategy Using social media for politicians is really no different to how businesses should use it –

have a strategy that includes the modern and effective use of social media tactics.

Have a clear objective - social media is going to be a key method for engaging with the electorate – your target audience. It is a means of engaging with the wider community and getting people to understand what you will do when in power.

Sit down and clearly and succinctly (if that’s possible – 140 characters in Twitter can be a #challenge) write your messages – what do you want to tell your electorate – what is your manifesto – what are your key points on health, education, infrastructure et al.

The future of social media is image-based, and for good reason. Posts that include photo albums receive 180 percent more engagement than the average post. Note that hash tags are now competing with emoticon faces on mobile apps.

If Barack Obama’s social media team has taught us anything, it’s that images speak louder than words, with his most popular tweet (and the most retweeted tweet on the entire social network in 2012) consisting of a photo of him and Michelle Obama.

Social media is an excellent opportunity to tap into unknown quantity and change people’s views or at least have reasonable debate but make sure you have a clear defined strategy or if in doubt: “Better to remain silent and be thought a fool than to speak out and remove all doubt.”

Abraham Lincoln.

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

Harness the power of ideas in your business in 2015

by Cherrie Stewart, ANSONS “It is the strength of UK businesses’ ideas, and the way those ideas are commercialised, that will lead to sustainable growth….A developed economy will only prosper if it can harness the power of ideas to increase growth and create new jobs.” Intellectual Property Office rom going to the cinema, where you are warned not to breach copyright by using video equipment, or sending a rocket to the moon to simply turning on an electric light or deciding which of the many brands of cola drink to buy, Intellectual Property (IP), i.e. trade marks, patents, design, copyright, etc., has a part to play. It touches every sphere of life; it protects the results of creativity and ideas.

While ideas themselves are not protectable per se, the outworking of those ideas may be protected through Intellectual Property Rights (IPRs).

IPRs are present in every business, without exception. Every company or product has a name, most have a website or promotional literature in which copyright subsists; and companies involved in manufacture may develop new, inventive products which are patentable.

Just as action is taken to secure and protect tangible property of value, such as buildings, fixtures, fittings, stock etc., steps also need to be taken to secure and protect intangible property such as IP. Some IPR’s, such as copyright and design right, exist automatically but others require the owners to take action in order to secure them, e.g. trade marks, registered designs and patents.

Riccardo Zacconi, the Managing Director of the company behind games such as Candy CrushTM, understanding the importance of IP, wrote in an open letter:“Like any responsible company, we take appropriate steps to protect our IP….Our goals are simple: to ensure that our employees’ hard work is not simply copied elsewhere, that we avoid player confusion and that the integrity of our brands remains.”

Steve Jobbs, founder of AppleTM, started with the seed of an idea which materialised into the products so many know and love today. With over 416 patents in the iPhoneTM alone he too understood the importance of protecting the fruits of his, and his employees’, ideas.

The economic benefits derived from IPRs may be most obviously seen when consumers purchase branded products rather than a cheaper unbranded.

Consumers identify that goods sold under a

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certain trade mark are, due to past experience, of a nature and quality they require and have faith that goods sold under that trade mark will be the same again. Yet, despite the obvious benefits, the value of these intangible assets are often overlooked.

By protecting the palpable results of their ideas, businesses will build up a portfolio of IP which can generate income and growth.

IPRs can among other things be sold, licensed or used as security.

Securing IPRs can result in often vital investment. Indeed, the World Intellectual Property Office (WIPO) have stated that “…branding is one of the most important mechanisms for firms to secure returns to investments in research and development (R&D).”

Cross-licensing of IPRs will also bring economic rewards; early in 2014 Google and Samsung signed a global patent crosslicensing agreement which was aimed at not only reducing the risk of facing each other in IP litigation but also enhancing innovation and thereby economic growth.

Use of IPR’s to develop and grow their business is not the purview of large international firms alone. The Intellectual Property Office comments in its Corporate Strategy that “…small firms that use intellectual property rights tend to have significantly better chances of survival and growth. The use

of patents and trade marks is associated with better creation, transfer and use of knowledge, and higher firm productivity .

Recognising the important role that IPRs plays in economic recovery and growth, the UK Government have been working alongside other countries within the Organization for Economic Cooperation and Development (OECD) to introduce tax incentives and funding for research and development to encourage businesses to innovate.

They also commissioned an independent review, the Hargreaves Review, to assess the UK IP systems. This review made recommendations to “…ensure that the UK has a framework best suited to supporting innovation and promoting economics in the digital age.”

One of the results of this review is the UK Intellectual Property Act which came into force on 1st October 2014. It aims to clarify the IP legal framework, to simplify and improve design and patent protection and to ensure that the international IP system supports UK businesses effectively.

Companies wishing to grow cannot afford to neglect the safeguarding of the embodiment of their ideas, creativity and hard work through securing IPRs and, once secured, exploiting those rights and the benefits derived therefrom.

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

We can take steps now to strengthen our tourism industry in 2015

by Sinead McLoughlin, chief executive, Londonderry Chamber of Commerce This is damaging to our hotels price competitiveness.

So we can see the serious damage caused by cross-border competition. Yet we have the opportunity to at least strengthen crossborder co-operation. So it is disappointing that one obvious application has been overlooked.

Enterprise minister Arlene Foster has stressed her disappointment that the South’s very effective Wild Atlantic Way initiative has stopped at the Donegal border, instead of going on to the city of Derry/Londonderry and beyond the wonderful Derry and Antrim coasts. If ever there was a need for an integrated tourism programme from Tourism Ireland, this was it.

Tourism needs more effort

he tourism and hospitality sector knows only too well that it is not just with Corporation Tax that the Irish Republic holds a strong competitive advantage over the North. We also lag when it comes to our costly Air Passenger Duty.

This was sadly not abolished for Northern Ireland by the Chancellor of the Exchequer in the Autumn Statement, despite the precedent of the Scottish highlands and islands being exempted because of their similar reliance on air travel to connect with the rest of the UK. Ireland’s equivalent Air Travel Tax was abolished last year – causing even more people to use airports in the South in preference to those in the North. This is especially harmful to the City of Derry Airport, which is an important piece of infrastructure for the North West. Our airport would play an even more positive role if APD were abolished.

And then we suffer from the differential VAT rates. While hotels a few miles away in Donegal charge just nine per cent VAT, in Derry our hotels must charge 20 per cent.

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The latest figures underline the fact that tourism is a commercial sector where we need to do more. Even during Derry’s year as City of Culture, we were unable to match the performance of the best known Northern Ireland tourism destinations of Belfast, the Causeway Coast, the Mourne Mountains and the Fermanagh Lakelands. Derry needs to proclaim loudly that we offer rival attractions that justify short and long stay vacations.

City of Culture was, though, responsible for a 50 per cent rise in overnight stays during 2013. That was a real achievement and one that we must build on for future years to forge a larger and more sustainable tourism sector.

The same is true for Northern Ireland as a whole. We punch below our weight and we under-perform considering the quality of our natural attractions and our urban centres.

Some 13.3 per cent of Wales’ GDP comes from tourism, as does 10.4 per cent of Scotland’s.

The figure is just 4.9 per cent in Northern Ireland. And those figures understate the scale of the problem we have, given how low our GDP is anyway! Our tourism sector generates £1.5bn a year, against £9.7bn in the Irish Republic, £11.1bn in Scotland and £96.7bn in England.

Given the crisis in Northern Ireland’s Budget finances, this is a very difficult time to ask for more money from government. But to make our tourism sector competitive with the South, would require money. It would need VAT charges in the North to be comparable with those of the South. And it would require the abolition of Air Passenger Duty.

But to avoid going backwards, at the very

least we need the support of the Executive to continue to strongly market Northern Ireland, including Derry and the North West, as an international tourism destination.

It is important to remember, though, that the Irish government cut taxes in the tourism sector to raise revenues – lower costs can lead to higher demand and ultimately higher levels of tax revenues.

The Cut Tourism VAT Campaign The Cut Tourism VAT Campaign in Northern Ireland has calculated that cutting VAT in the hospitality trade to just five per cent would generate an additional £4bn a year to the UK economy as a whole and an extra £2.6bn in tax revenues for the UK Exchequer. After cutting VAT rates for the hospitality sector, the South benefited from a rise in demand of 13.1 per cent - twice the level of rise recorded in the same period in Northern Ireland.

Other initiatives in Northern Ireland would also be very helpful. To reduce waste and improve performance, the structure of tourism support should be streamlined. We have too many public bodies trying to do the same thing in promoting the sector.

We also need continued support - including from the further education and higher education sectors that face severe cuts – for industry training. Derry gained enormously from the WorldHost customer service training – an astonishing 3,000 people in the hospitality sector in our city benefited from WorldHost training.

So it is clear that there are initiatives that the hospitality sector can do for itself that will strengthen the industry. But even in tough times, it also needs help from governments at both London and Stormont.

We punch below our weight and we underperform considering the quality of our natural attractions and our urban centres.

Sinead McLoughlin

BAFE – helping you to meet your fire protection obligations urrent fire protection legislation including the Fire and Rescue Services (Northern Ireland) Order 2006 requires property managers of all non-residential premises to have adequate fire protection. It is their responsibility to ensure that there is an adequate, updated fire risk assessment and that all aspects of the requirements are carried out competently.

To demonstrate that the responsible person has met their obligations, many public authorities and commercial organisations now insist that their fire protection services are carried out by a company that has been third party certificated.

BAFE is the independent third party certification, registration body for the fire protection industry. We develop schemes for UKAS accredited certification bodies to assess and approve companies to recognised standards. There are now more than 1170 BAFE registered companies across the UK. Our aim is to support property managers to ensure that they get quality fire protection for their premises, staff and service users.

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BAFE has recently launched a UKAS accredited scheme for Companies who carry out Fire Risk Assessments (SP205) which is a vital part of meeting your obligations under fire legislation.

The scheme considers the competence of the individual assessors as well as the quality requirements for the organisation. A competent fire risk assessment is now a requirement for all care homes in Northern Ireland. There are a growing number of companies registering to the scheme, throughout the UK. If you are looking for the supply and maintenance of portable extinguishers, look for one of the 330 Companies accredited to BAFE Schemes SP101/ST104. Companies are certificated to ISO9001 and all of their technicians are assessed by BAFE for initial and ongoing competence. There are currently more than 1200 BAFE registered technicians, working for our registered companies.

For fire alarm systems Companies should hold BAFE modular SP203-1 scheme approval. This scheme includes design,

installation, commissioning and maintenance of fire detection systems and also requires that all equipment used is third party certificated. The scheme now has over 750 registered companies. Registration to this BAFE scheme is often a key requirement in tenders for the provision of fire alarms.

Our Emergency Lighting scheme (SP203-4) sets out the standards and staff competence criteria to be met. It is modular as with the fire alarm scheme and is achieving growing recognition from end users.

There are a range of other BAFE schemes covering particular sectors of the fire protection industry and details can be found on the BAFE website, along with a complete search facility to find registered companies in your area.

So if you want to be sure you are getting your fire protection from companies who are properly and regularly assessed look for more information at: Website: www.bafe.org.uk Email: info@bafe.org.uk

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

IT’s all systems go in 2015!

Lee Surgeoner, Partner with Endeavour Information Solutions shares some concerns for the local ICT industry going forward along with his thoughts on technology development and what businesses of any kind need to focus on in the next 12 months.

We’ll start with a mild tale of caution.

The IT sector within Northern Ireland is fairly unique to say the least. On the one hand we have various companies from the US and further afield running their global IT operations from Northern Ireland and bringing with it much needed investment then on the other side there are a considerable number of local longestablished IT companies that in my opinion have over the years really innovated and provided some of the best ICT solutions and services anywhere in Europe (although I might be slightly biased in that view) and these are the companies that I am concerned for and how they will be able to contribute to that same level over the next few years.

Our local universities produce some of the brightest and best students for this sector but I am concerned that we could start to lose that talent to these global giants who tempt them with offers of generous salaries and benefits and as a direct result our local IT companies just won’t be able to meet the expectations of the future IT professional.

I speak with some experience of this over the last year which has meant that we have had to take action.

If left unchecked, this situation could get worse over the next few years and impact the ability of local IT companies to deliver such innovation and service in the future.

This needs to be considered today; from personal experience this has meant increasing our staff numbers, providing additional training and professional certification opportunities and offering more than just a job but more an opportunity for personal growth and development to ensure that we keep our brightest and best growing within our business.

So please bear this in mind, because if proposed changes to our corporation tax system do come into play during 2015, it’s fairly safe to say that additional foreign investment will increase, which although will

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be great news to our economy as a whole, it might come with a sting in the tail for those in the local IT sector who ignore the best asset they have - their people.

On the road to date!

In terms of business for 2014 this has been a surprisingly good year for growth across the UK with higher than expected growth in various sectors such as Professional Services, Manufacturing and Retail, all of which feed into the additional development and sale of IT products and services.

This is something I can confirm as one of those IT providers which has experienced this growth. However, as recent media coverage has shown it is unclear going forward into the New Year what the position will be in the next 12 months with economic experts saying things will continue as they are now while government is saying we need to be prepared for stormy weather ahead.

At the end of the day I am not an expert on the economy; all I can say is that new business has been at a constant level of growth and appears to continue with customers keen to take the complexity out of their IT systems and to take control of their ongoing costs.

And so what’s hot in 2015?

The hottest ticket in town is cloud computing which vendors of such services continue to push the boundaries of what is possible to be delivered as a service. New functionality comes out nearly on a weekly basis at times and certainly keeps IT companies like ourselves that embrace it, far from being bored.

When such solutions were talked about five years ago there was concern from a number of IT companies that it would spell the end of the traditional IT service provider – and in some cases they would be right; the companies that don’t embrace the opportunity and don’t adapt their way of working to meet the new world of cloud-based subscription computing will find themselves losing out to the companies that do.

You will be amazed at what can be achieved under a cost-effective subscription that is secure, dependable and expandable to meet very specific business need and that is a business that will continue to grow over the next 12 months. That is what innovative IT companies are focusing on for their customers and those are the IT suppliers that businesses will want to work with in the future.

If market analysis is to be believed, 2015 is the year where mobile device sales will outperform traditional PC sales not only in the consumer market but in the business market as well. So if you are an app developer the opportunities in this market should be considerable.

And so what should the new business start-up of 2015 focus on?

Northern Ireland has a wealth of great businesses from all sectors that innovate and export their products and services to all corners of the globe.

A big part of that is the individuals driving these businesses forward with new ideas and raw determination, usually combined with the advice and support organisations such as Invest NI provide to help ensure their business ideas succeed.

So what I would recommend to any start-up is to focus on what you do best; that sounds really obvious, but what I mean is don’t let complexity rule your business.

Technology can get complicated so if there is one thing I would advise it would be to get as much of your technology needs from a vendor that provides the service online.

That will mean you can control your costs without a high start-up outlay and will be able to work from anywhere, which can be important when you are just starting out trying to grow your business.

For advice on how you can simplify your business IT operations you can contact Lee on 028 9031 1010 or via email at lee@endeavour-is.com

NORTHERN IRELAND ECONOMIC OUTLOOK 2015

The translation of science to commercialisation

by Sue Dunkerton, director at the Knowledge Transfer Network (KTN).

he UK has traditionally been very strong in Life Sciences research. Translation of this research into economic wealth creation and provision of a sustainable, cost effective health and care service for the future has been a priority for successive governments.

Future healthcare challenges with respect to the aging population, increasing obesity and subsequent co-morbidities mean that continued funding for the NHS must go alongside significant redesign of the service and exploitation of innovation in new technologies, products and services.

Investments are being made in areas with the potential to understand disease processes at the molecular level. These investments should provide earlier diagnosis and tailored treatments, prevention and independent living, regenerative medicines and emerging medical technologies.

The UK life sciences sector is still vibrant and characterised by a large number of small companies (>4000) alongside the smaller number of large OEMs. As these companies increasingly need to innovate to survive, they also need to understand how their new technologies will enter the market. Evidence is king, and to ease entry to the market it is much better to show cost reduction as well as improved clinical efficacy. This is sometimes difficult where spend and savings accumulate in different domains, but new products and services are much more likely to be adopted if evidence is clear of improvements both clinically and economically, and purchasing/reimbursement will increasingly move to an outcomes model from cost of service or product. Different parts of the healthcare spectrum from large scale clinical trials to rapid deployment and change of digital solutions need to address this same paradigm even if timescales are vastly different Industry trends are likely to have a greater emphasis on innovation in manufacturing in the pharmaceutical sector. The sector has understandably had a history of research in drug discovery and financial returns based on supply of patented drugs. That world has

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changed and the pharmaceutical sector is now coming together to address how it can adapt its business models. A new group spanning small molecules and biologics, the Medicines Manufacturing Industry Partnership (MMIP), has been established to identify and prioritise where new actions are needed to sustain UK capability in the broad pharmaceuticals business.

Precision medicine (also stratified or personalised) is a relatively new term, but is addressing the need to target the right treatment to the right person at the right time (and if medicine, at the right dose). This requires better and earlier diagnosis, targeted to biomarkers, which indicates onset or potential onset of disease. 2015 will see the development of the Precision Medicine (PM) Catapult, the location for which will be decided during the year. This Catapult is one of several Catapults set up by Innovate UK to help the translation of UK science to commercialisation and value to the UK economy. Catapults operate to address a market need in an area which includes the provision of access to capital intensive technologies or generation of clinical evidence and routes to adoption of new technologies. Precision medicine will require companies to consider novel business models.

It may no longer be possible to sell just a test or just a drug, the market will be seeking a solution which brings the diagnostic test and appropriate therapeutic or device together.

Demonstrating value across this piece will also require better understanding and use of health economics to build a strong business case. Northern Ireland is an example of a region with strong capability in diagnostics, with potential to capitalise in this area through strong partnerships and collaboration with other life science businesses.

The ongoing demographic trend towards an increasingly older population, often requiring ongoing management of various conditions, is driving the need for a truly integrated health and care service. Connected Health has been a strong theme for Northern Ireland alongside other parts of the UK and the world, and businesses continue to develop products and services for telecare, telehealth, remote monitoring etc. However, the ubiquitous nature of mobile technology is both a challenge and an opportunity for disease diagnosis and health management. The hardware is all around us, and businesses need to be developing new services and ‘hidden’ capability to provide value added services both to professionals and to the

consumer market. Again, new business models are needed to understand how to bring to market, how to integrate to professional services, how to protect their offering against rapid change in service and maybe easier competition. Finding and maintaining that competitive edge will be an interesting challenge to address, and will need collaboration between those understanding the health and care service alongside new players such as the creative and digital designers/businesses.

It is clear that healthcare of the future will not be just about treating and managing disease. Increased emphasis on public health and opportunities in both consumer and statutory markets will enable new approaches to the prevention of disease and decline. We will also strive to cure disease and regenerative medicine and delivery of new cell therapies offer that potential. This is still a small market for the UK, with around 250 active companies, but it can revolutionise the way we deliver healthcare in the future and is a major area of research across the world. The UK is supporting this market through the Cell Therapies Catapult Centre which is focusing UK effort on developing the route to market, with capability in clinical efficacy, regulation and manufacturing alongside technology development.

And let us not forget new developments in medical technologies. This sector is very strong in the UK, with a real dominance of small businesses. MedTech takes advantage of breakthroughs from our science base, in areas such as photonics, materials and sensors to name but a few. MedTech now employs more people than large pharma in the UK, and has a richness in its diversity. It delivers solutions across the prevention, diagnosis, therapy and rehabilitation areas, and will always be needed with again the drive to greater clinical efficacy at the ‘right’ cost.

For a business briefing, it is not possible to conclude without mentioning data – all the conventional life sciences businesses have a data element in their products and services, and how we best capitalize on that data for patient benefit and competitor advantage will be a trend that will continue through 2015 and beyond.

The KTN is the UK’s innovation network. It exists to connect businesses, value chains, entrepreneurs, innovators and investors – helping businesses to identify and develop the ideas, expertise and technologies, wherever they reside, which have the potential to be world­beating products, processes and services.

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Northern Ireland retail grocery market will experience significant change in 2015

by Damian McCarney, acting managing director of Musgrave Retail Partners Northern Ireland n looking forward and considering the outlook for the retail sector in Northern Ireland in 2015, it is vital that we reflect on what has happened in 2014 in the first instance.

In retail, we often talk about the evolution of brands and businesses but 2014 has been revolutionary rather than evolutionary. The majority of our traditional multiple retailers were in the headlines for all the wrong reasons and businesses who traditionally enjoyed steady sales and profit growth were rocked by market share decline and financial scandal. In addition, we witnessed a significant change in how consumers are choosing to shop.

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So what is happening in the world of retail in Northern Ireland?

The average shopper in Northern Ireland has become more ‘savvy’. They are now much more prudent with their disposal income.

They are shopping around for better value and are actively seeking out promotions and special offers more than ever before. In addition, there is an ever –growing trend towards using technology to seek out that value and to shop online.

This behaviour obviously means that where and how the average Northern Ireland shopper is choosing to shop is changing. The days of one big shop per week are numbered, and they are being replaced by one big shop per month, often online instead of in-store, with this one big shop being supplemented by more visits to convenience stores, local specialists and the discounters.

This new environment presents real challenges for some retailers but offers significant opportunities for others. Let’s take a look at how the various market players may choose to react to this trend in 2015.

The majority of the UK grocery multiples have had a very challenging 2014. They have large stores which have seen both footfall and spend reductions and they will need to boost their sales and profit levels again. How will they choose to react in 2015?

Firstly, some form of a price war is one potential reaction to the current challenge in order to win back some of their lost market share.

Secondly, they may look to downsize the traditional grocery part of their large stores

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and use the space to introduce complementary services such as coffee shops, hairdressers etc. which in turn would also attract greater footfall to the site.

Finally, they may look at the ‘shopping little and often’ trend and decide to move more into the convenience sector and ramp up their programs of expansion in this area. A strategy featuring all three of the above is also very possible. One thing that is sure is that they won’t rest on their laurels in 2015!

The current situation we find ourselves in is a real opportunity for growth for small supermarkets, convenience stores and local specialists. Our independent retailers are largely focused in this particular area and we already have some excellent retailers and shops taking advantage of this growing trend.

As is always the case, there is still opportunity to improve in this area but how?

More of these stores need to adapt and become more flexible opposite the changing needs of the consumer by developing a greater focus on fresh food and easy meal solutions and stocking an ambient grocery range which is relevant to today’s shopping needs.

These stores need to work harder on differentiating themselves from the

opposition to become a destination rather than just the local convenience store. They need to do the retailing basics really well and they need to excel in customer service. They need to offer real value and finally they need to work harder to appeal to the digital generation.

At Musgrave, with our three brands SuperValu, Centra and Mace, we have been working hard to rise to these challenges and take full advantage of this great opportunity which the market has presented to us.

Finally, moving on to the discounters. When we talk about the discounters most people think about Lidl in a Northern Ireland context. With very effective marketing and a strong value message, Lidl has had a significant impact on how consumers shop in Northern Ireland.

When they first entered the market, there was a novelty factor attached to shopping in Lidl and their stores were seen as somewhere that a shopper went after they had completed their main shop somewhere else. Evidence would suggest that shopper behaviour has changed and many shoppers are now going to Lidl first and then topping up their shop in other stores.

Given how the market is changing, there is little evidence to suggest that this trend won’t continue in 2015. The other development to note is the ever growing presence of other discounters in our market such as Poundland, Poundstretcher, B&M etcetera.

These stores are appearing in high street locations once the preserve of designer label stores. With their ever-growing ambient grocery ranges and their movement into fresh and chilled foods, they are becoming more of a feature in the typical Northern Ireland shopper mission. In 2015, there is no reason to believe that this trend won’t continue.

In summary, the Northern Ireland retail grocery market is going through a period of significant change. In 2015, there are real opportunities for those retailers who can cope with the pace of this change and give shoppers what they are looking for. It truly is a very exciting time to be in retailing!

What does 2015 promise on the POLITICAL FRONT with Chris Brown, director, MCE Public Relations

t’s January, so you don’t need some long winded opinion or observation from me.

Let’s get straight to the point and have a quick look at some of the legislative changes, strategies, reviews and recommendations that are expected to take place during 2015.

The Work and Families Bill is currently awaiting Royal Assent. It will make provision for shared parental rights to leave from work and statutory pay in connection with caring for children, as well as time off work to attend ante-natal appointments and the right to request flexible working.

OFMdFM is currently developing an Active Ageing Strategy which will use the Delivering Social Change Framework to manage signature projects across departments, aimed at enabling older people to contribute to a society where they feel valued and financially secure. The Strategy was due to be launched in the autumn of 2014 following Ministerial and Executive approval, however, it is still being finalised and is now expected to be launched in early 2015.

In relation to the Disability Employment and Skills Strategy, Employment and Learning minister, Dr Stephen Farry, has stated that his department will carry out a public consultation on the proposals contained within the strategy document in the early part of 2015, with a target date for the strategy launch thereafter.

The associated Action Plan to take forward the recommendations will be developed following the public consultation, and will be incorporated into the new Strategy which aims to provide a clear transition pathway from education through to economic employment for young people with disabilities.

Justice minister David Ford and Health minister Jim Wells aim to publish their joint Stopping Domestic and Sexual Violence

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and Abuse Strategy by March 2015. Wells has also stated that he intends to announce his final decision on the future of the Independent Living Fund in early 2015.

The Mental Capacity Bill is set to be introduced to the Assembly in early 2015 after its consultation period closed on 2 September 2014. The new Bill is designed to protect individuals who are unable to make a specific decision about their health, welfare or finances, fusing mental capacity law and mental health law in a single Bill framework.

It will create a new ‘Office of the Public Guardian’ and make changes to the Mental Health Review Tribunal.

The minister for Social Development, Mervyn Storey, has confirmed he will introduce a Gambling Bill to the Assembly before the 2015 summer recess. Pending Executive approval it is also likely that the Liquor Licensing Review Bill is likely to be introduced to the Assembly in the first quarter of 2015.

Much has been made about the lack of suitable Grade A office space in Belfast last year. The availability of suitable office accommodation is an important part of Northern Ireland’s investment proposition.

An Invest NI commissioned review of the commercial property market has recently finished and the organisation is currently considering its findings and recommendations.

Central to this is a need to ascertain the nature and extent of any market failure and whether government intervention would result in any market advantage. Once Invest NI has completed its deliberations it will decide on the most appropriate course of action.

The previously proposed Energy Bill will not be introduced in the current mandate.

According to the Enterprise, Trade and Investment minister, a report assessing the impacts of the Financial Capability Strategy implementation will be produced by March 2015. This strategy was first produced in early 2013 to address the specific financial capability issues and challenges facing Northern Ireland consumers.

At the time of writing, the draft Budget is still out for consultation. During this time the Finance and Personnel minister Simon Hamilton will be having a series of departmental bi-laterals with other Executive Ministers. It is anticipated that the Executive will agree a final Budget for 2015-16 in early January which will be presented to the Assembly for debate and vote.

Not to forget Corporation Tax, the legislation needs to start its passage quickly at Westminster if it is to become law by May 2015.

Other notable dates Sinn Féin will hold its annual party conference at Derry’s Millennium Forum on 7-8 March 2015.

The Alliance Party Conference will take place at La Mon Hotel on 14 March 2015.

In March 2015, George Osborne will deliver his final Budget ahead of the General Election on 7 May. Parliament will be officially dissolved on 30 March.

Connect with Chris Twitter: @CB_PRandPA Email: chrisbrown@mcepublicrelations.com The participation of third parties at any subsequent hearing is a matter to be determined by the Court and not the proposed Respondents.

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

New year safety call for the waste and recycling industry T he Health and Safety Executive for Northern Ireland (HSENI) is calling on local waste and recycling operators to play their part to ensure a safe and healthy 2015.

The call comes amid growing concerns about the poor health and safety practices still found in some parts of the local waste and recycling industry.

In 2014, poor health and safety measures resulted in one person being killed, several people seriously injured, including loss of limbs, and one person suffering severe burns.

These accidents are shocking enough, but considering there is little doubt that the numbers of incidents are under-reported, it is an alarming situation for the industry.

In 2014, HSENI established its dedicated ‘Waste Team’ as a single point of contact for safety and health issues in the industry. The new team is already having an impact with robust inspections of sites during 2014 resulting in an increase in enforcement notices issued by HSENI and in the number of cases being prepared for prosecution.

Jim King, who heads up HSENI’s Waste Sector Group, is appalled by recent findings in some parts of the waste industry. He said: “Despite the ongoing work of the Waste Industry Safety and Health Forum (WISHNI) and HSENI, it appears that some employers

simply don’t care about either their employees or about their organisation’s reputation.

“Sadly, recent evidence gathered by HSENI inspectors suggests that it is only a matter of time before there is yet another fatality on a private waste and recycling operator’s site, unless the management of safety on a number of these sites improves dramatically.”

Addressing those employers, Mr King added: “If one of your employees is killed at work then HSENI will investigate - as will the PSNI. The starting point of any such investigation will be around whether there is a case for corporate or gross negligence manslaughter.

“Your business will be stopped until the investigation is sure that the risk to employees has been dealt with. In addition, other charges may also be brought under health and safety law.”

HSENI has identified the main areas of work which cause serious accidents on waste sites - they are: • workplace transport • all-round visibility from vehicles • machinery guarding and isolation • falls from heights • lack of training The risk from fire on many sites remains extremely high, which not only puts the lives of employees on-site in danger, but also those of the fire-fighters who respond to the incident. Common causes of fire are hot plant and bearings, and self heating of the waste.

Employers should address the main areas of risk by taking the following measures: • carry out a workplace transport risk assessment and take action on the findings • separate vehicle movements from pedestrians and people working in the area • fit reversing cameras or fish eye mirrors to the rear of vehicles • make sure all mirrors and cameras are properly adjusted and working • have a daily check sheet for guards and ensure staff do not run machines without the guards • make sure no-one enters machinery without isolating all energy supplies to

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the machine • train staff in safe systems of work which have been prepared by knowledgeable members of the company • provide training in safety and environmental issues for supervisors and key managers • ensure that all fire-fighting equipment is operational and accessible and that all means of escape are kept open and free from impediments • ensure that repetitive tasks or tasks involving lifting and turning have proportionate recorded risk assessments • attend the safety and health awareness day planned for 26 February – see accompanying flyer During 2015 HSENI would also like to see more operators following the best practice advice of the Waste Industry Safety and Health Forum (WISHNI).

WISHNI is a joint initiative by a number of employers working with the HSENI to provide advice and materials to help prevent injuries and fatalities to employees in the waste sector.

WISHNI also runs an annual ‘Ambassadors Awards’ programme to recognise health and safety excellence, and best practice.

Applications are now open for 2015.

HSENI would encourage employers to take the necessary steps to improve safety by making use of the wide range of help currently available, as follows: • for more information about WISHNI and for best practice guides or tool box talks for employees, visit the HSENI website and type ‘WISHNI’ into the search box.

• for help and advice on preparing risk assessments call Health and Safety Works NI (HSWNI) who provide free safety advice to businesses with less than 50 employees on: 0300 020 0030.

• to report unsafe working conditions, phone HSENI on: 0800 0320 121 and ask for the ‘Waste Team’.

NORTHERN IRELAND ECONOMIC OUTLOOK 2015

There are clear skies ahead A says Brian Ambrose, chief executive, George Best Belfast City Airport irports tend to be good indicators of regional economic performance. With double digit growth being forecast for Belfast City Airport in 2015, hopefully this augers well for the economy in Northern Ireland.

The Airport has a clear strategy to ensure we, as a region, have excellent air connectivity. All three strands of this strategy will perform well next year, these are: - Expansion of existing routes has been achieved in 2014 with the average load factor (percentage of seats sold per flight) increasing by nine per cent across the route network - Filling the gaps in our domestic network has taken a significant step forward with the commencement of the London City service in the autumn of 2014 and the new Liverpool service due to commence in February 2015 - Expansion of the European network has again seen notable achievements with the arrival of Vueling to Belfast City and the commencement of their Barcelona service in May 2015

Capped potential Within aviation, there is the looming issue of Air Passenger Duty (APD), a stealth tax that even the ‘big four’ accountancy firms regard as detrimental to economic growth.

Accounting for up to 50 per cent of the price of a flight to the UK, it can have a negative impact on the sector for a region such as Northern Ireland that relies heavily on aviation for connectivity.

Whilst the Autumn Statement revealed that APD would be removed for under 12s from May, and for under 16s from March 2016, we will continue to work closely with the Government for its complete removal.

Another removal that would be widely welcomed is that of the Seats for Sale limit imposed on the City Airport. An issue that, after more than 10 years, looks set to be addressed with a Public Inquiry set for May. The restriction, which permits us to sell only 2 million seats per year from the airport, was established when the terminal was housed in a Portacabin. We know that a flight cap is a more appropriate measure and therefore also operate under a 48,000 flights per annum restriction which would remain should the Seats for Sale limit be lifted.

We have received huge support from the business community and the general public who recognise the negative impact this

London Calling

outdated Seats for Sale cap has on the future growth of the airport’s domestic and European route network, and indeed its potential effect on the growth of our local economy.

The rise of low cost carriers On a more general note, with oil prices expected to fall in 2015, competition will continue to grow amongst low cost carriers (LCCs), which are already experiencing above-average growth rates, on short haul routes.

One major player contributing to this will be Vueling, the Spanish low cost yet full service airline, which forms part of Willie Walsh’s International Airlines Group (IAG).

The airline is expected to be the third biggest low cost carrier in Europe by the end of 2014 and will take an even bigger portion of its ever growing share of the short-haul market in 2015 when it commences a number of new routes to European destinations.

One of these routes of course is the previously mentioned Belfast City Airport – Barcelona El Prat Airport service commencing in May. With business travellers accounting for 40% of total passenger numbers, the arrival of the airline to Northern Ireland is extremely exciting. Also of interest to the local market is the potential expansion of services from Belfast City given the airline’s vast route network to over 100 European destinations, including Brussels, Rome, Madrid, Russia and Scandinavia.

There is certainly a gap in the local aviation market with regards to key European connections and that will remain a priority for us.

London is extremely well served from Belfast City Airport with Aer Lingus and British Airways operating a total of nine flights daily to London Heathrow. Aer Lingus also have three flights per day to London Gatwick. Towards the end of 2014, Flybe commenced its thrice daily service to London City which is already proving extremely popular, particularly with business travellers keen to land in the heart of London.

This brings our total number of daily flights to the capital to 15. The popularity of these services will without a doubt continue into, and beyond, 2015.

Due to our location, connectivity with the mainland is crucial for business and leisure travellers alike, for whom hopping on a train or a boat, in most cases, is just not an option.

Through our partner airlines, we have a fantastic, and extremely popular domestic route network – from Inverness to Southampton!

In recent months, we have seen Flybe add a Liverpool service and increase their frequency on the Glasgow flight. Demand for domestic destinations is increasingly popular, particularly for weekend city breaks as people have more of disposable income. As the market continues to stabilise and maintain growth, this will also be the case in 2015 and we may see more increased frequencies on domestic routes.

The Digitalisation of Travel The digital revolution has had a huge impact on all sectors of the travel industry.

Travel ‘down time’ is a thing of a past, as leisure and business travellers can now stay fully connected via tablets and smartphones throughout every leg of their journey.

This has become a necessity rather than a luxury, so much so that last year we installed free, unlimited WiFi, in partnership with Ulster Bank, in all areas of the terminal for our passengers. Needless to say, it was a very popular decision and we’re only too keen to continuously upgrade our facilities to ensure the passenger experience through our airport remains the best in class.

2014 has been another great year for Belfast City Airport and the team of some 1,600 individuals who ensure our customers have a positive experience when they choose to use our Airport. We are fully committed to build on this success and look forward to what we trust will be another record year for the Airport.

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NORTHERN IRELAND ECONOMIC OUTLOOK 2015

Autoline celebrates 2014 and looks forward to 2015 Autoline Insurance Group is celebrating a fantastic year in business with further advances in telematics technology, recruitment and commercial insurance. Business First caught up with managing director Michael Blaney to find out more. e are proud to say that Autoline is one of Northern Ireland’s leading independent brokers providing a range of insurance and financial services to both personal and business clients across Northern Ireland. Through acquisition and business growth we now have five branches across Northern Ireland employing close to 200 people.

A number of well-known names are now no longer operating in the broker market. This reduces choice for customers which is why we believe it is very important to have a strong independent sector.

“We are keen to be one of the leading figures in that sector. While it may be important for personal lines clients it is essential for commercial clients to know that as an independent broker we can access the services they require from any number of suppliers at the most competitive price.

“From a commercial perspective we have just come through the worst economic downturn of our time so after a number of challenging years where we have been building/diversifying our offer, we have just had a very strong 12 months on the commercial side of the business. This shows a growing confidence in the market which we are well placed to build on going forward.

We believe that particularly in the SME sector our commercial customers want a tailored, personalised service. This is why we believe it is important to have a presence in towns and cities across Northern Ireland with staff who can go out to visit customers and ensure that not only are they getting the best deal but that it is completely suited to their needs.

Businesses cannot afford to be underinsured or to not take personalised advice so as a local broker we are able to offer those assurances.

Telematics technology has also been influential this year in putting us at the forefront of innovation in the insurance industry. We were the first broker in Europe to launch an app offering discounting directly linked to driving behaviour. We were seeing more and more young drivers priced out of the market, some of whom were children of our existing clients and we wanted to find a solution to help them.

The telematics industry is continuing to evolve, with lots of different uses for the data generated. We believe that it is the future for this industry. We are working in house and

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From a commercial perspective we have just come through the worst economic downturn of our time so after a number of challenging years where we have been building/ diversifying our offer, we have just had a very strong 12 months on the commercial side of the business. This shows a growing confidence in the market which we are well placed to build on going forward.

Michael Blayney

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with our partners to look at where we can go with this. For example driving behaviour can be linked quite closely to personality traits which goes beyond even the insurance industry’s requirement for the technology.

“The telematics platform enables us to analyse the data collected through our app.

This will give us a valuable commodity that will be of interest to other insurers and brokers and which will help us to substantially increase our exposure, particularly in Great Britain and the Republic of Ireland.

“Invest NI’s recent support for our new jobs is ensuring that we can build our capacity quickly to take advantage of this opportunity.”

Enterprise, Trade and Investment minister Arlene Foster recently paid tribute to Autoline as ‘an example of the many small and medium sized businesses in Northern Ireland which, with the support of Invest NI, are making an important contribution to our economy.’

The minister also acknowledged that ‘Autoline’s success has been built on innovation’.

“It was the first broker in Europe to launch an app that offered insurance premium discounting directly linked to driving behaviour. As a result, it has significantly grown its customer base of young drivers.

“It is now planning to develop its own telematics and data analysis platform, which will help it to more than double its gross written premium by 2018 with almost 60 per cent of sales coming from outside Northern Ireland.”

The jobs will support a further move into the wider UK and Republic of Ireland markets and form part of the company’s multi-million pound investment plans over the next four years.

Michael Blaney continued, “We are also delighted that this new technology will soon extend to commercial vehicles.”

Autoline’s commitment to the road safety element does not end with the app and we believe as a company we have a responsibility to make the road a safer place for all users.

“People with low scores are offered support through RoSPA and we have engaged with BRAKE the Road Safety Charity to deliver a road safety training programme in secondary schools across Northern Ireland with more than 40 workshops delivered this year already and at least another 10 in the pipeline.”

ECONOMIC OUTLOOK 2015

The commercial real estate sector 2015

by Brian Lavery, managing director, CBRE Belfast

014 was a very busy year in the Northern Ireland Commercial property sector. News that the National Asset Management Agency (NAMA) had appointed Lazard on the sale of its entire Northern Ireland property portfolio, following an approach by a potential investor was announced early in 2014, taking many by surprise.

Several assets that were being prepared for sale early in the year were then put on hold to see what effect the NAMA loan sale would have. Indeed, much of the almost £500 million of investment activity recorded in the region during the 12 month period was concluded in the second half of the year following the disposal of Project Eagle to Cerberus, which concluded in June.

The year ended on a similar note with Cerberus agreeing the purchase of Project Aran from RBS making them potentially the largest controller of property loans in Northern Ireland.

Some of the more notable investment transactions to complete during the year include the sale of Foyleside Shopping Centre in Derry and Forestside Shopping Centre in Belfast for £145 million and the sale of the Abbey Centre in Newtownabbey for over £64 million as part of a disposal known as Project Swallowtail; the sale of Shane Retail Park (one of the best bulky good retail parks in Belfast) to US investor Marathon for £30 million, reflecting a yield of 7.36 per cent; the refinancing of Connswater Shopping Centre and retail park in Belfast; the sale to Marathon of Cityside Retail Park (part of a mixed-use scheme in North Belfast anchored

by Tesco) for £24 million, reflecting a yield of 7.87 per cent; the sale of a Tesco Superstore in East Belfast for £24.74 million and the sale of the Obel development in Belfast again to Marathon for a price believed to be in excess of £22 million. As in other years, the majority of large investment transactions completed in Northern Ireland during 2014 comprised retail properties.

Demand for prime investment opportunities continued to emanate from UK

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institutions during 2014 although there was also a notable increase in interest from new investors from other jurisdictions such as the US over the course of the year.

The biggest frustration amongst investors was the scarcity of prime investment grade assets being released for sale to match the volume of demand in the market.

Activity in the occupier markets was more muted than in the investment sector during 2014. Office take-up in the region was somewhat disappointing in the first half of 2014. However, there was a notable take-up activity recorded in the second half of the year, bringing total office leasing transactional activity in Belfast during the year to over 350,000 square feet. There were a number of significant job announcements in Belfast and Derry over the course of the year which will in time boost office activity in both locations.

Office rents in the city increased to approximately £161 per square metre (£15 per sq. ft.), during the year.

Demand for owner-occupier units in the industrial sector remained strong throughout 2014 with vacancy continuing to be eroded in some of the better industrial estates across the region. However, take-up was somewhat disappointing due for the most part to a scarcity of bank funding to enable industrial occupiers to purchase properties. Although there was an increase in activity in the retail occupier market experienced during 2014 with a number of new store openings, this uplift was predominantly experienced in Belfast city centre.

And for 2015 As we look to 2015, it regrettably remains in the balance if Northern Ireland will be given autonomy to set its own rate of corporation tax to match or compete with the 12.5 per cent prevailing in the Republic of Ireland. If this materialises, subject to other budget agreements in Stormont, it could prove a very significant boost for FDI and job creation across the region.

The overriding issue in the office occupier market in Belfast in 2015 will continue to be the scarcity of Grade A accommodation to satisfy occupier requirements. This will put further upward pressure on office rents in the city over the course of the next 12 months and we anticipate prime rents reaching £16 per square foot by year-end.

This is getting very close to the level which makes office development an economic reality and more forward looking developers

may therefore go on site during 2015.

Many retailers are likely to experience some reduction in their rates bills following the revaluation effective in April 2015, which will make stores more affordable for occupiers.

However, there will be some exceptions on high streets such as Arthur Street in Belfast and in some retail park schemes where rates bills are expected to increase.

We have not witnessed any growth in retail rents over the last 12 months and it is likely that any growth during 2015 will be very location specific.

Although economic conditions have been strengthening recently, there is still concern around prospects for growth in the region over the coming years, particularly if proposed austerity measures are implemented, which have the potential to impact negatively on consumer sentiment and retail spending patterns.

A similar volume of activity could be achieved again in the investment sector in 2015 considering the volume of deleveraging that has yet to occur across the region.

In addition, a considerable volume of secondary trading is anticipated with assets purchased through loan sales over the last number of years being offered for sale. There are several large assets due to be offered for sale during 2015, the majority being retail properties although we anticipate some landmark offices will also come to the market.

The relative value of commercial real estate will become increasingly topical in 2015.

While there is currently a notable arbitrage between interest rates, bonds and real estate, which is encouraging investors, it is important to remember that this arbitrage will be eroded once interest rates and bond rates ultimately start to increase.

It is anticipated that UK interest rates may start to rise in 2015. However, rises are not anticipated to be very dramatic and the relative yield arbitrage offered by real estate investment will remain, even if prime yields as anticipated contract slightly over the course of the year in Northern Ireland.

Brian G Lavery Email: brian.lavery@cbre.com Tel: 028 9043 8555

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Succession planning for family businesses

by Caroline Keenan, Tax Director, ASM Chartered Accountants round three quarters of all businesses in Northern Ireland are family ownermanaged enterprises, but only one quarter of them will survive beyond the second generation, and just over one tenth beyond the third generation.

Clearly succession planning is one of the most important business decisions that most families will make.

Unfortunately though, it is one that is frequently deferred, or even ignored completely. Many family businesses are reluctant to deal with this issue in a timely manner due to the complex mix of business and personal challenges to be faced. Ignoring these difficult issues does not resolve them, and in our experience the sooner these challenges are considered the better for all concerned.

In most family businesses the desire will be that it remains in family control and passed to subsequent generations. This may not be possible for a number of reasons:

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• the children may be too old or too young to succeed or may have no desire to enter the business; • the children may not have the skills to step into the new role; • some of the children may wish to work in the business and some may not; and • some of the children may wish to “extract value” from the business to use elsewhere.

A realistic assessment of the current financial position of the business, the strengths and weaknesses of its key management and the intentions of its shareholders is required before any plans can be developed. Time spent exploring each of these aspects at the outset will be time well spent, and will aid the assessment of each of the various options available to the family in transitioning the business for the future.

Succession plans will generally focus on two main areas; ownership and management.

These will range from the family retaining both ownership and management to a complete disposal of the business where the family ceases to be involved in any way, and it is likely that the circumstances will be different in each business.

Whichever option is considered most appropriate it is essential that a structured plan with indicative timescales is mapped out to realise the optimal benefits. Each of the options will require different factors to be considered, for example:

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• Retain ownership and management – how is the ownership split? How do you treat children that do not wish to work in the business? How are funds extracted for retirement? What inheritance and capital gains tax issues need to be considered? Do the children have the ability to drive the business forward? Do they need further training? How will key customers and suppliers react to the retirement of the key stakeholder?; • Retain ownership but bring in outside management – where are the skills gaps?

How will the children react? How is value extracted from the business? How is senior management recruited? How is senior management rewarded and retained?

• Dispose of the business – what is the timescale for disposal? What are the key tax issues to be considered? Is the business ready for disposal? Does the business have a senior management team in place? How will key customers and suppliers react to the disposal of the business? How do we maximise the disposal value?

Each of the above plans will take a number of years to deliver and as such it is essential that the succession planning process commences as soon as possible. Successful succession planning will increase the likelihood that your business will endure well beyond the transition phase, delivering lasting value to family businesses.

The team at ASM are often called upon to assist in these situations, facilitating

discussions between the individual family members to ascertain future plans and aspirations, and providing an indication and guidance on each of the possible options. In these situations it is not only the financial and taxation implications that are considered; typically there are a number of emotive issues to be addressed.

The key is communication and opening up channels of communication between the various family members at the earliest possible opportunity thereby affording as much time as possible to transition the business.

Whilst there is no one succession plan that fits all family businesses we can definitely say, through our extensive experience, that working in close partnership with the family helps in ensuring there is a succession plan which best suits the business, and the individual family members.

If businesses do not manage the transition and succession planning from one generation to the next, they risk the business failing, the family failing to retain ownership of the business and, due to the nature of the family involvement, also potentially damaging relationships.

Each of these potential outcomes are enough to encourage early discussion and the development of a plan for the future.

If you are interested in talking to Caroline Keenan, Tax Director at ASM Belfast please call 028 9024 9222 email caroline.keenan@asmbelfast.com or visit www.asmaccountants.com for further details.

INFOTECH BY BUSINESSFIRST your guide to everything IT in northern ireland in association with

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New Year’s business resolutions 2015 Lee Surgeoner, partner with Endeavour Information Solutions a Microsoft Gold Competency Partner based in the heart of Belfast delivering Microsoft-based solutions to companies across the UK and Ireland, looks ahead to 2015 and makes some suggestions that businesses of any size might want to consider for the year ahead. ou are no doubt reading the title of this article and raising your eyebrows in disbelief that it’s already 2015. And as I write this on a cold November day I would have normally agreed with you.

However, as I started to consider what topic to discuss for this edition, it struck me that there are any number of IT bits and pieces that need to be focused on that are generally missed or ignored due to the pressures of work during the year.

So with that in mind why not take some time now to draw up a list of those things (big or small) and tackle them in the same way you would any personal New Year’s resolution. Not sure where to start? Well here are some general suggestions to help you on your way.

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Make sure your IT backup, recovery and security is sorted out and up to date.

This is number one in my book and something most small businesses tend to ignore until it’s too late. For our business we gained a lot of new customers in 2014 as we provided reactive services after outbreaks of viruses, malware and ransomware to businesses who had no idea what to do.

Fortunately, in most cases the loss was minimal but there was a cost to the business none the less with down time and lack of productivity. Today there are lots of costeffective online backup solutions that are easy to setup and maintain and it is something that will not only deal with a major risk inside your business but will also give you piece of mind and let you focus on other things.

Reduce the complexity of your IT systems.

Complexity brings increased cost and risk to any business. However, when IT is part of that complexity the cost can escalate as the issue is typically outside of the business’s comfort zone; as a business owner you just want the problem to go away and that usually means handing it over to a 3rd party resulting in an additional cost to maintain that complexity on your behalf. However, we now live in a time where traditionally complex systems can be managed like a service that you subscribe to for a monthly fee. Take email for example, it’s an essential business application that needs continuous

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management and protection. Five years ago this would have meant running your own server, antivirus and spam management software along with a maintenance contract from a supplier for the upgrades and management of it all. Today, that same functionality can be placed with a service provider for a couple of pounds per user, per month with the best protection and upgrades the industry can offer built into the deal.

Email is not the only complex system that can avail of such subscriptions and something that could deliver ease of use and reduced costs at the same time.

Should the company consider going mobile?

In the last month industry analysts and research polls have claimed that we consume more content on mobile and tablet devices than we do on traditional computers or even TV. With that in mind, perhaps now is the time to look at the company web site and see if there is a quick and cost-effective way to push your company brand, products and services onto this growing platform with a new website that is mobile responsive. This sounds expensive but there are a number of excellent cost-effective solutions out there that will get you started with a free trial to try things out.

Creating a budget for IT within the business and tracking it!

This doesn’t need to be a complex document full of pages of technical information – just a list of IT elements and how much they should cost combined with how much they actually cost your business.

There’s nothing more powerful when negotiating your next year’s deal than having your previous costs in front of you.

Increase skills and productivity in others within the business!

One of the main reasons IT systems and business processes fail to be effective is lack of end-user training. This doesn’t mean having to arrange an all-out jolly for the entire workforce where only a fraction of the staff get anything from a training day but more an opportunity to give enthusiastic individuals within your team the resources to grow their skills. We are not talking about expensive training courses, there are lots of inexpensive self-study materials and evening

Lee and Blaithin Surgeoner, Partners, Endeavour Information Solutions

classes available on a wide range of IT topics that will benefit everyone within your business not just the individual with the skills learned and transferred.

And finally, what gets written, gets done!

An old saying but true non- the-less and something most of us (myself included) tend to forget at times. It’s not complicated, all you need is a short list of things you want to achieve (for IT or otherwise) place it in a prominent place (in our office you can’t look at walls for whiteboards) to remind you of them with the added satisfaction of crossing them off when completed.

So with all this in mind I hope as a fellow business owner that you get a chance to look at implementing even one of these recommendations. Equally, we would also like wish you and your business a prosperous 2015 and hope that you have lots of new opportunities to do great things.

If you would like to discuss some of your New Year’s business resolutions and get some free advice on how to achieve them, please give the team at Endeavour a call on 028 9031 1010.

We will arrange a review of your current systems, look at how they can be put to better use and talk about what you want to achieve for the forthcoming year ahead before you have to make any commitment.

EDUCATION, EDUCATION, EDUCATION B

by Michael Noble, chief executive, Momentum

y the time this article goes to publication we will know better how the Executive budget for 2015/16 has shaped up. One thing is certain though, whether the settlement is ‘good’ or ‘bad’ (i.e. how much money is in it) tougher times are coming and the Executive must continue its focus on rebalancing the economy.

If there is one sector in Northern Ireland that we can pin our hopes on with strong demand and growth and in an export driven, private sector focussed industry then the digital sector is it.

So now is not the time to put the brakes on its growth by making hasty decisions on the mechanisms of support that help promote that growth. Due to the fact that ICT and computing is so cross cutting there is no one government department that holds all the keys to unlocking the future potential, but DEL, DETI and DE have pivotal roles to play.

At our SCRUM event in November minister Farry spoke about the programmes being delivered out of DEL and his hopes that they would continue and minister O’Dowd challenged the industry to keep participating in DE initiatives.

Both statements were welcome and within Momentum we want to work closely with those departments to keep the focus on the activities identified in our Digital Action Plan.

The theme of the conference was how we can all work together to help grow and rebalance the economy and it is reassuring that all parties, government, academia and companies expressed their desire to participate.

The day was bookended by two keynote presentations – Jonny Davis from Ulster Rugby showcased the locally sourced technology transforming the development of the Ulster Rugby Team and Angela McGowan Chief economist of the Danske bank spoke about micro and macro economic factors affecting the business environment.

There are a number of concrete examples of how a collective approach can achieve good results and minister O’Dowd expressed his support for an educational expo in 2015 which will act as a showcase for Northern Ireland technology companies and provide an insight to educators as to where the jobs of tomorrow will come from as well as highlight mechanisms of support for them to deliver new and innovative approaches to teaching.

Technology in its wider form has also the potential to deliver radical changes to the way public services are delivered.

Rather than ‘salami slicing’ percentage cuts through every programme now is the time to think radically about how public services are delivered and Momentum and its member

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Minister Farry and Momentum CEO Michael Noble at SCRUM

companies are keen to participate in that conversation.

Local companies are driving radical change in the way business processes operate in most companies and markets so why can’t this be brought to bear in public services?

One worrying response to the budget consultation was Invest Northern Ireland’s desire to focus on larger companies. While I can see the logic behind this – it delivers best ‘bang for buck’ in the short term - I believe if support for smaller companies was reduced or even eliminated we risk damaging a strong

driver for economic growth. Small innovative technology companies have strong potential for growth and help create an infrastructure which supports all – including the larger companies.

Therefore we would argue that, particularly in the technology sector, that some form of support, particularly at a regional level is maintained for these companies.

Again Momentum, as an industry body, is keen to step up to this challenge but we would need support in increasing this activity.

Jonny Davis Head of Strength and Conditioning at Ulster Rugby

Digitising Marketing event a Titanic Success

Media Partners for Digitising Marketing

Adrian Bradley, MD of i3 Digital), Russell Moore, MD of Levy McCallum; Chris Cairns, territory manager of Kentico and Niall McKeown, MD of iONOLOGY.

“Our speakers have delivered invaluable, proactive and genuine advice to everyone that attended, and provided them with information and practical tools that they can implement as soon as they go back to their places of business.

“We were delighted to get such an amazing turnout, and it really shows that local companies and organisations want to be proactive and meet future challenges head-on.

“Our event today was all about providing real guidance, and we succeeded to accomplish exactly that.”

For information on smaller, more tutorialled events that i3 Digital are hosting in 2015, call 028 90 457 800.

n Thursday 4th December marketers, digital strategists and business owners from across Northern Ireland converged on Titanic Belfast for Northern Ireland’s premier Digitising Marketing seminar. The event, hosted by Belfast’s own i3 Digital, hosted over 90 delegates to a hugely informative and inspirational morning and afternoon.

Four speakers from across the Marketing spectrum (Russell Moore, MD of Levy McCallum; Chris Cairns, Territory Manager of sponsors Kentico; Niall McKeown, MD of iONOLOGY; and Adrian Bradley, MD of i3 Digital) presented their views on the Digital Marketing areas that local businesses need to

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Adrian Bradley, MD of i3 Digital

be focusing on, or at least be very aware of, at the dawn of 2015.

The Titanic Digitising Marketing Event provided attendees with a master class in new Digital Marketing for business. Topics discussed on the day included relationship marketing (a la Star Trek), the rise of the smartphone for business, responsive websites, the digitisation of consumer expectations, marketing engagement, digital businesses, marketing automation, infobesity, and the challenges ahead for all local businesses.

Adrian Bradley, MD of i3 Digital said of the event “Today has been a renowned success.

Chris Cairns, territory manager of Kentico

Niall McKeown, MD of Ionology

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43

IN CONVERSATION

From attic office to halls of Westminster Gavin Walker talks to Stephen McCann, managing director of Lisburn-based IT company P2V Systems about the company’s growth as it completes its sixth year in business.

he recent announcement that P2V Systems partnered with Gateway Ticketing Systems UK to deliver ticketing and sales solutions for commercial tours of the Houses of Parliament as of October 2014 is a landmark in the growth of the company. But as Stephen McCann explained, it was by no means a stroke of good luck.

Rather, it was the culmination of years of hard work and an agility that has allowed the company to grow from two desks in a spare room to one of Northern Ireland's most promising exporters.

As happens to so many entrepreneurs, Stephen McCann's decision to found P2V Systems was prompted in part by circumstances.

After a very successful seven years with ticketing and booking agents Keith Prowse – during which time the company had grown to achieve a global annual turnover of £150m in sales, – the company was forced to pull back from Belfast and Stephen found himself back in the recruitment market.

A short time with Sureskills was followed by contract work with BT and Fujitsu and in 2008 the decision to create the company was made.

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As with many small IT start-ups, at first McCann IT as the company was originally known, was hungry enough to take on contract work from any source they could.

Because of the knowledge Stephen had to offer and a commitment to quality of service, it wasn't long before the young company had a full roster of clients, a busy schedule – but very little profit margin!

So at the end of the first year the decision was made to transition from small contracts and the business begin looking for project based work with larger companies.

The company name changed from McCann IT – “It was too limiting,” Stephen explained – to P2V Systems, which stands for ‘Physical to Virtual’. Bank accounts were moved from what appeared to be a non-business friendly bank to Bank of Ireland whose business banking division has since proved they are the right choice for a small business. These transitions laid the foundations for the business growth that P2V Systems is enjoying today.

“That was a difficult year,” Stephen explains.

“Having taken the decision to move from one market to another was a risk, but one that has paid off.”

As so often happens when everything is in flux, a call from a company who needed a service – in this case BT – was to turn the company’s fortunes around.

“As I had already worked on BT contracts in the past I had the advantage of understanding how the company worked and what they wanted,” Stephen said.

“So when the call came I had the opportunity to agree that we would work on a project rather than contract basis. That worked well and in many ways was the boost we needed to build upon.”

From here on, the company was to enjoy a momentum that would snowball to the contract with Gateway to serve the Houses of Parliament. A move to offices at the Titanic Quarter in 2010 provided a new home for the company for three years until they became too large for that space and made the move to premises in Lisburn.

Over the six years in business, Stephen has remained true to his commitment that the company offers the best in everything it does: the best systems, the best people and the best customer service.

Coupled with a culture of integrity and delivering what is promised, P2V Systems has developed – and continues to develop – an enviable client list.

The end of 2014 saw the company attain the coveted and hard-won title of Official BT Supplier, an achievement that will no doubt propel further growth for the business in 2015. This alongside the prospect of further projects with Gateway Ticketing Systems UK and other on-going projects, sees P2V Systems set to take full advantage of whatever opportunities the future offers.

“We recently completed the relatively straightforward requirements to become an Invest NI Client and that has been of great benefit to us,” Stephen said, “With their help we have received funding for staff and a marketing development fund.

“This year has seen our team grow with new staff recruited in Technical, Marketing and Sales roles. We expect another recruitment drive in 2015 to facilitate our pipeline business.

“Our achievements this year including winning the Houses of Parliament contract with Gateway and achieving BT Supplier status have all helped raise the profile of the business and we expect significant growth over the next 18 months. These are very exciting times for P2V Systems.”

SPONSORED ARTICLE

Moving to the cloud? What do you need to consider usinesses have become aware of the advantages adopting Cloud solutions bring, be it moving from a CAPEX model to an OPEX model, staying up to date with latest versions of software, or the ability for staff to work seamlessly from any location.

Choosing a supplier for your cloud services has now become a business-critical decision.

However when selecting such a key service for your business, it’s often pertinent to ask the question ‘Where will my business be left if something does go wrong and I am unable to access my cloud services?’

As SME’s we place a huge amount of trust in our cloud providers and look to them for reliability and security. Unfortunately as we have recently seen, even the global organisations are far from immune to problems in their solutions. A recent fault

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with the usually highly reliable Microsoft Azure left many users offline for several hours, leaving many SME’s unable to carry out business until the fault was fixed.

Problems like these are a constant battle for all companies providing Cloud based solutions regardless of the size of the provider. With this in mind, how as an SME moving to the cloud do we balance the benefits of cloud services with the risk of being left unable to access critical data?

Questions to ask your cloud provider: Where and how safe is my data?

Let’s say you have a file sharing service on the Cloud and you spend your time uploading and download documents. How well protected is that data? Not only from data security perspective but also, how well has your service provider backed it up?

If you backup your laptop or server to the Cloud, yet more questions apply. For example if your hard drive fails, how do you recover the files you’ve backed up? Downloading it

takes time and suddenly one of the advantages of the Cloud services isn’t so advantageous, you can’t simply download it onto a USB drive and take it home because your data could be stored anywhere.

Who Runs the Service?

Am I purchasing from the actual service provider, or simply one of hundreds of resellers who are reselling generic cloud services? It is important that you are connected to your data and applications so therefore it is equally important to ensure your service provider is well connected to their provider.

At he end of the day when you move your business to the cloud the data is being hosted on someone else’s server using someone else’s IT department and relying on their expertise and ability to fix any problems quickly and efficiently. Like many things in business, the level of personal service only becomes apparent when a problem arises.

Richard Simpson is managing director of Atlas Communication. Atlas provides data and telephony solutions to businesses across Northern Ireland.

COMMENTARY

It’s been a pretty good 2014 all things considered

by Paul Terrington, chair Institute of Directors in Northern Ireland

he local economy reinforced 2013’s tentative recovery, growing by around 2.2 per cent in 2014, while unemployment fell by 8,000 in the 12 months to November in 2014, with November’s claimant count jobless falling below five per cent. Invest Northern Ireland piled on the investment and the annual job promotion numbers soared to almost the level experienced at the height of the boom.

And to round off a year of seeming steady recovery, the Executive finally agreed a draft Budget and the chancellor’s Autumn Statement contained the long-awaited commitment to devolve corporation tax powers to the Northern Ireland Executive.

That leaves Northern Ireland moving into 2015 demonstrating recovery, delivering growth, with unemployment falling, the workforce growing, a skills strategy in place and the promise of a sharp cut in the taxable profits of new and existing investors.

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Growth may lag other regions, but we are moving in the right direction; the Draft Budget gives the Executive some breathing space to deliver on the talks, plan a more comprehensive Budget and Programme for Government for post 2016.

Paul Terrington

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What’s not to like?

Yet while the labour market numbers look good and overall employment is steadily increasing, this improvement is not being matched by either growth in average wages or increasing productivity. The productivity conundrum is a major barrier to wages growth, prosperity and wealthcreation but, as it has remained unresolved for a more than a generation, even a medium-term solution looks unlikely.

After the productivity conundrum comes the growth challenge. Recent growth has been largely fuelled by household consumption, but that is slowing as savings are steadily eroded.

Consequently, in the absence of significant growth in investment, exports and/or public expenditure, a decline in the rate of growth during 2015 is inevitable.

For the same reason, UK growth of around three per cent in 2014 is being marked down to 2.5 per cent for 2015 and Northern Ireland can expect growth in 2015 to fall to around 1.9 per cent.

2015 will also be the year of the public sector squeeze, with the Executive’s Draft Budget based on real spending power around £1bn less than in 2010-11, when

the Assembly last agreed a Budget, so, unsurprisingly, the finance minister has warned of “considerable” job cuts in the public sector.

Having said that, a lot of observers were convinced that any agreement around a Draft Budget was unlikely, so the Executive deserves considerable credit for delivering even the Draft Budget that’s currently out for consultation.

And while the disproportionately small private sector cannot immediately compensate for a sudden and sharp decline in both public spending and public sector employment, 2015 should see continued modest but steady growth in manufacturing sales and exports, even if this is being delivered by a relatively small number of exporters.

In addition, the corporation tax debate has been won - the devolution may be conditional on political progress and demonstrable fiscal responsibility, but the principle has been established, so it’s down to the politicians to deliver and to the business community to implement, so there’s a partnership of sorts in the making.

Northern Ireland is a great place to do business; we boast skills, infrastructure, a small number of globally-competitive companies and some demonstrably worldclass directors that lead them.

Growth may lag other regions, but we are moving in the right direction; the Draft Budget gives the Executive some breathing space to deliver on the talks, plan a more comprehensive Budget and Programme for Government for post 2016.

It’s true that 2015 will be tough, but the prize is substantial and the politicians and business community players seem determined to move forward, so, let’s take a deep breath and give it our best shot.

T’S TIME TO SAY THANK YOU TO THE SECOND MOST IMPORTANT PERSON IN YOUR LIFE

I

NORTHERN IRELAND PA AND OFFICE MANAGER

AWARDS 2015 ABOUT THE AWARDS

You are invited to take this opportunity to say a big thank you to one of the most important people in your team and nominate your PA and/or Office Manager in the inaugural Northern Ireland PA and Office Manager Awards.

Over the years your PA and Office Manager serve your organisation with a quiet efficiency that saves time and money and ensure a smooth operation. So we thought you might like to use this opportunity to really show your appreciation.

Northen Ireland PA & Office Manager Magazine launches January 2015

And to make your nomination even more special, we will send your PA and/or Office Manager a personalised letter not only telling them they have been nominated, but more importantly who nominated them.

AWARD CATEGORIES So take a moment today to visit www.northernirelandpa.com and say thank you by making your nominations in one of these categories • Northern Ireland PA of the Year 2015: Private Sector • Northern Ireland PA of the Year 2015: Public Sector • Northern Ireland PA of the Year 2015: Charity & Voluntary Sector • Northern Ireland Office Manager of the Year 2015 • Northern Ireland Executive Assistant of the Year 2015 • Northern Ireland Executive Secretary of the Year • Northern Ireland Event Organiser of the Year 2015

and here’s our thanks to you You can nominate as often as you like and for every nomination you make you will have an opportunity to win two round trip tickets to London with accommodation thanks to our Nomination Sponsor, easyjet. Visit www.northernirelandpa.com and make your nominations today Brought to you by Business First Magazine

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47

MILLAR McCALL WYLIE

Caroline Prunty Millar McCall Wylie Solicitors In this issue Gavin Walker meets Caroline Prunty, Partner and Head of Commercial Litigation at Millar McCall Wylie. Caroline explains her firm’s modern approach to dispute resolution. illar McCall Wylie (MMW), is one of the most recognisable names within the Northern Ireland legal industry and is an excellent choice for any would be litigant. In recent times, MMW has emerged as one of the big players in the local market and is now routinely involved in some of the most cutting edge litigation within the province.

Caroline Prunty, Partner, and Head of the Commercial Litigation Department at MMW believes that one of the reasons for this can be found in MMW’s energy as a firm and its strong commercial acumen.

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Extensive Experience MMW’s extensive experience of commercial litigation is reflected in what its clients say about the firm. The Legal 500 praises the fact that the litigation team at MMW is ‘very client-focused’ whilst Caroline herself is described as ‘one of the most commercially minded lawyers in Northern Ireland', and ‘continually delivers outstanding results'.

It is this commercial awareness that allows Caroline and her team to plot and navigate innovative legal solutions when advising her clients in terms of dispute resolution.

As Caroline explains: “There are occasions when litigation is unavoidable. Whether you are initiating or defending proceedings, our technical expertise, experience of the courtsystem and result-oriented advice will ensure your interests are well protected.

Our goal is to assimilate the facts as quickly as possible so that we can explain your options and prospects and enable you to make informed decisions. We will consider all available options, from alternative dispute resolution, including mediation, through to interim remedies, court action and injunctions and identify a strategy that best suits your objectives. We are always results driven.”

As a full service law firm MMW has a wide variety of resources to rely upon. It is recognized by the Legal 500 and Chambers in nearly every area of law that it practices in – quite the unique accolade amongst Northern Irish firms. The Legal 500 and Chambers are a client’s guide the best law firms in the UK. MMW has also recently been invited to join MULTILAW, the second largest association of law firms in the world.

This is particularly useful from a litigation point of view in that MMW has access to a professional knowledge bank of other firms dealing in similar issues on a cross

48 www.businessfirstonline.co.uk

jurisdictional basis.

This is also very relevant in relation to disputes regarding European Union legislation.

In 2014 MMW has experienced an increasing workload in a number of specialist areas of dispute resolution. More particularly, Caroline has recently been involved in several high profile insurance indemnity matters in the commercial court against insurance brokers.

Negligent Insurance Brokers Such matters have concerned situations where parties have suddenly found themselves uninsured as a result of a failure on the broker’s part to identify the insurance needs of the client.

Caroline is keen to encourage commercial entities to no longer take it as read that a policy will automatically provide for all their anticipated claims.

As Caroline explained: “Insurance claims have increased substantially in recent years.

However, we are now starting to notice a trend of claims against brokers where they have been negligent in giving advice as to the extent of cover provided by a particular policy.

In such circumstances we are commonly seeing that insurance companies are failing to indemnify. Instead, the remedy is against the

broker who provided the advice and renewed the policy, rather than against the insurance company that provided the cover.”

Like any firm providing advice in this area, MMW utilises the specialist assistance of industry experts.

Intimate Knowlege MMW has an intimate knowledge and understanding of the complexities of the insurance industry and Caroline has developed excellent relationships with numerous industry experts.

Caroline has a great ability to identify the relevant expert and obtain the necessary reports and advise the client in a thorough and professional manner. This best places her to advise her client on the most effective options.

MMW’s recent experiences in indemnity matters have shown that brokers can be extremely skilled in presenting a policy as covering all the anticipated needs of a business by flooding the policy with examples of specific events.

In nearly every case, the courts will assess the actions of a broker against the legal standard of the ‘reasonably competent broker’. This standard is a culmination of industry guidance, statutory instruments and case law.

Industry guidance can be found in the Insurance: Code of Business published by the

“Our goal is to assimilate the facts as quickly as possible so that we can explain your options and prospects and enable you to make informed decisions. We will consider all available options and identify a strategy that best suits your objectives. We are always results driven.” Caroline Prunty.

Financial Conduct Authority, and for example, in the context of the above case, outlines certain steps which brokers must take to make clients aware of their obligations. If you think you have been on the wrong end of bad advice from your broker you should seek legal advice immediately and Caroline’s experienced team will be on hand to assist you.

Dilapidations Claims In addition to insurance claims, Caroline has also noticed that as the economy recovers, there are more landlord and tenant disputes. In particular, there are a greater number of plaintiffs coming forward seeking advice in relation to dilapidations claims.

This more typically arises in the context of a tenant’s breach of covenant to repair any damage done to property during a commercial lease.

However, in some cases it can be the landlord themselves which can be the cause of the problem. For example, a landlord may be unduly obstructive in allowing a tenant to carry out repairs.

In one of Caroline’s recent cases a tenant was left unable to carry out the necessary repairs to a property it had been leasing because the landlord had inadvertently blocked access to the property.

If a landlord by act or omission is being unreasonable by either not facilitating the tenant in the carrying out of repairs, then this is a potentially a valid defence or a mitigating circumstance when looking at claims against tenants.

Caroline explained that most of these claims arise at the end of the lease when the landlord is seeking to put the property back on the market in prime condition. If you are a commercial tenant and your landlord is

demanding that you carry out certain maintenance and repair work which you believe to be outside the confines of your lease then Caroline would suggest approaching a solicitor for legal advice.

Judicial Review Another area which Caroline has seen a greater amount of litigants has been in seeking judicial review of decisions made by public bodies.

MMW is again experienced in providing advice in relation to some of the more common types of judicial review proceedings such as objections to decisions relating to residential planning and allocation of public grants.

However, it is this familiarity with the procedures relating to judicial review which has made MMW one of the firms of choice for the more specialist areas of challenge. Recent

examples of this have included objections to planning applications made by major utility providers and challenges of procurement processes run by some of the most visible Contracting Authorities in Northern Ireland.

Given the nature of these specific proceedings, disputes will arise quickly and it is important that if you do require legal advice, the advice provided is given at an early stage, in a fast and effective manner.

At MMW we have an established practice with a specialised knowledge. If you have any queries in relation to areas of law outlined in this article please do not hesitate to contact Caroline Prunty, Partner and Head of Commercial Litigation at MMW on 028 9020 0050 or send her an e-mail at Caroline.Prunty@mmwlegal.com.

Millar McCall Wylie SOLICITORS

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49

COMMENTARY

We need more high quality office space

by Ben Collins, director, RICS (Royal Institution of Chartered Surveyors) Northern Ireland nvest NI has achieved its best ever half year, after promoting almost 11,000 jobs and supporting investment of more than £1billion into the Northern Ireland economy.

The 10,800 new jobs it promoted in the AprilSeptember period was the same as it did for the whole of the previous year.

Indeed, before Invest NI released this information recently, it had been clear from the news agenda that an impressive number of investment and new job announcements have been happening in recent times, including by large international companies.

Baker & McKenzie (256 jobs) and Proofpoint (94 jobs) were amongst the US companies to make Invest NI-supported jobs announcements in 2014. Citi, the US financial giant, also announced a further 600 jobs for Belfast in an investment worth £54million, to add to the 1,500 it already employs here.

And this is before we potentially achieve the powers to lower the rate of corporation tax levied in Northern Ireland to act as an incentive for international companies to invest here.

Yes, the figures Invest NI has achieved were flattered by the imperative to push through projects, involving firms like Moy Park and PwC, ahead of European rule changes on grants in June. However, they are no doubt impressive figures.

And it gives an indication of the potential for inward investment and job-creation should the powers to lower corporation tax be devolved and are implemented.

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Increasing the supply of prime office space in Belfast needs to be private sector-led, but government can help create an enabling environment; for instance fast-tracking planning applications for strategically important office development.

Ben Collins

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However, there is a problem.

We currently have a situation where there is not a lot of Grade A office space available here, and a limited pipe-line. If we don’t have the kind of office space that major investors require, the reality is that in future they will go elsewhere, whether we have a low rate of corporation tax or not.

The City Quays office development at Belfast Harbour - the recently-announced second phase of which will provide some 125,000 ft of space - will help.

This £250m regeneration scheme will create almost 70,000 square feet of grade A office space by early 2015, with the further 125,000 square feet to be developed as part of City Quays 2.

There is also significant office space development at Titanic Quarter. But much more is needed.

The shortage of Grade A office space in Belfast is not a new issue and has been talked about for some time, by RICS and others.

But with the likelihood of the powers to vary our corporation tax in Northern Ireland to be granted soon, there is a new imperative, and incentive to do something about it.

Increasing the supply of prime office space in Belfast needs to be private sector-led, but government can help create an enabling environment; for instance fast-tracking planning applications for strategically important office development.

Looking to the model in Cardiff where they have designated 140 acres of prime city centre land as an Enterprise Zone to encourage Grade A office development could be an option.

There, the Welsh government has ambitious plans for developing high quality office space working alongside the private sector, and has acquired development land to help do so.

They are also making significant investments in infrastructure, including transport, public realm works, and connectivity, to encourage office development in the area.

To be able to rebalance the Northern Ireland economy, we need to be ambitious here too.

We certainly hope that that our politicians are able to act decisively to ensure that powers over corporation tax are devolved and implemented.

We also need to see other bold, pro-economy and pro-business actions taken. And helping create the conditions to support the development of more Grade A office space should be one of them.

RICS has some 4,000 members in Northern Ireland, employed in the land, property and construction markets and in associated environmental issues. Its members are employed across private practice, regional and local government, public agencies, academic institutions, business organisations and non­governmental organisations. RICS has a Royal Charter which requires it to act in the public interest.

SPONSORED ARTICLE

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51

NORTHERN IRELAND TRAINING & SKILLS

YOUTH UNEMPLOYMENT – the need for a refocused skills agenda

By Dr Mark Bailey, Course Director BSc (Hons) Economics, Ulster University Business School n the Eurozone young people were disproportionately hit by the recession with youth unemployment rates for the Eurozone as a whole rising from 15.8 per cent at the start of 2007 (2007Q1) to 23.3 per cent in the third quarter of 2014 (2014Q3) .

The current situation in Northern Ireland is slightly better than that for the Eurozone at 20 per cent but that is still a very troubling rise from the 7.3 per cent recorded at the start of 2007 .

Research conducted by the Institute for Public Policy Research (IPPR) suggests that there are a range of potentially serious long-term issues.

Firstly, rates of long-term unemployment among the young show no sign of decline - the proportion of unemployed young people in the UK who had been looking for work for more than a year was 30 per cent in 2013.

Secondly, there was a long-run trend of rising youth unemployment even during the period of stable economic growth between 2000 and 2005 suggesting that a major issue lurking in the background is the ability of young people to make a smooth transition from education to work.

The broad policy prescription normally suggested here is that people need to engage in skills acquisition not just through their education (pre or post 16) but through informal on-the-job training and experience of work – each of these avenues increase the probability of a young person subsequently finding and staying in work in the jargon of an economist, educational qualifications and work experience both act as signals to employers of the inherent ability of individuals.

The IPPR analysis found that the unemployment rate in the UK for young people who have left education fell from 20.9 per cent to 14 per cent if they were employed during their education.

In terms of work during study, the impact of informal work lowered the probability of subsequent youth unemployment by 9.8 per cent whilst work as part of vocational education lowered the probability by 12 per cent (this would include placement components of programmes of study as well as apprenticeships).

The IPPR also found that higher levels of education have a substantial effect on the probability of youth unemployment with possession of a degree or higher reducing the probability of unemployment by 27.9 per cent and possession of five GCSE ‘A*’-‘C’ Grade or equivalent

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Rates of long-term unemployment among the young show no sign of decline - the proportion of unemployed young people in the UK who had been looking for work for more than a year was 30 per cent in 2013.

Dr Mark Bailey

52 www.businessfirstonline.co.uk

qualifications reducing the probability of unemployment by 4.6 per cent both compared to having no formal qualifications.

This suggests that a means for minimising youth unemployment (whether short-term or longterm) is to provide mechanisms to encourage young people to engage in work during their studies (whether formal or informal such as the integration of employability skills into programmes of study at school, further and higher education through the introduction of skills modules, live and innovative assessment and the utilisation of real world experience in programmes ) and to engage in further or higher education.

The question we need to ask as a society is what skills do we need to develop to make our young people employable for the future and how do we deliver those skills – the combined effect of further and higher education supported by integrated employability and placement provides a powerful argument for investment in the further and higher education sectors.

improving your local business – globally Global Business Design Ltd. provides management training and facilitation across the UK and Ireland, as well as consulting services covering market entry and construction management internationally, with a particular focus on China, Africa and the Middle East. w: www.globalbusinesdesign.org t: +44 (0) 2890 025 022 e: george.watson@globalbusinessdesign.org; or jazmyne.watson@globalbusinessdesign.org

‘Our training grows naturally out of our Business experience’, explains George, coowner and Director of global.business.design, when asked to explain his firms training ethos. ‘We are consultants at heart, and in our training programme, it is vitally important for us that we remain rooted in industry and can continuously speak from real business experiences. It is these experiences, coupled with proven and solution oriented assessment and facilitation methods that we bring to a wider audience through our training programmes.’ global.business.design is best described as a management and globalisation consultancy and training facilitator. Global Business Design Ltd. was incorporated in Belfast in 2013 and will soon be celebrating its 2nd Birthday. All services to date have been exported, with China playing a special role for owners George and Jazmyne. ‘I lived in Shanghai for 8 years’, explains Jazmyne, ‘and crossed paths with professionals from all over the globe. Whilst returning to Northern Ireland, it has been natural for us that our first assignments have been China oriented’.

2013 and 2014 have seen diverse projects,

including running the successful DISC behavioural assessments programme for the management team of a school in Shanghai.

‘The school has requested that we run the programme again in 2015, as they have seen significant benefit in team cohesion and direction from it’, notes George.

‘We also supported a company from Northern Ireland in setting up their business in China, and are continuing to support the Chinese management with a mentoring programme’, he continues.

On the consulting side, support for a Singapore logistics developer in providing a facility for Mercedes Benz and for a German Manufacturer in seeking an investor and developer in Beijing are typical projects.

So what lies ahead for 2015? ‘In January and February I expect to be in Barcelona, Cape Town, Kuwait and Western China on upcoming projects’ notes George. ‘We are very excited about the opportunities we see on the horizon in 2015. Companies are using our services to establish or solidify strategic and value added links across the globe.’

‘Growth in China is slowing, but outward

investment by the Chinese is intensifying.

Africa is looking promising as several countries are increasingly politically stable, the middle class is growing and infrastructure projects are once again taking off. The Middle East continues to see some large investments and to draw in resources from all over the world to execute these’, he summarises. ‘We expect to be active in all these locations in 2015’.

‘Early on we established a broad network of individuals that we can quickly draw on to support us worldwide,’ explains Jazmyne.

‘That network is now really starting to pay off, as we can very quickly draw on local knowledge in a number of international locations to support our consulting work.’

‘It has been exciting to provide our programmes across a range of global locations, and we look forward to now also launching these in the UK and Ireland. You do not need to be internationally focussed to benefit. Our ethos is always to work in very close partnership with our clients and while we never take our focus off the results, we have a lot of fun on the way’, she promises ‘just give us a call to talk to us about your needs!’.

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53

THOUGHT LEADERSHIP

the half-life of

KNOWLEDGE

by Simon Bridge, visiting professor atUlster University

nowledge is funny stuff. We seek it out because it is helpful but sometimes the more we get the more we realise how little we have.

Nevertheless there is a lot of knowledge around and more seems to be developed every day.

Some of it is publically available and some is held in private because it can be valuable and its ownership can be protected as intellectual property; yet it is most use when fresh and if it is kept for too long it tends to leak out.

It can be sold, yet still retained by the seller.

It can be shared indefinitely without being diluted, yet it does not last forever.

Knowledge doesn’t last because it decays.

Just think of the things that were once taught in medical studies: such as that bleeding people could cure fevers and malaria was caused by bad air (hence its name).

Frequently something that we thought was knowledge turns out to be incorrect or misleading and this temporary nature of knowledge was highlighted for me the other day when I came across the concept of the ‘half-life of knowledge’.

In the study of radioactivity the half-life of a substance is a common concept and refers to the period of time over which half the atoms

K

54 www.businessfirstonline.co.uk

in a sample of a particular isotope will decay and change to something else.

For very unstable elements this period of time can be very short and for others very long. For Carbon15 it is about 2.5 seconds but for Carbon14 it is around 5730 years – which is why the state of decay of the latter can be used in carbon dating to estimate the age of an organic substance. But, whatever the length of their half-lives, the concept does indicate that the elements concerned are not everlasting.

Similarly the half-life of knowledge in a particular subject refers to the period of time over which half the current knowledge about that subject is likely to be superseded – for instance because it is shown to be incorrect and/or irrelevant.

One reason that I like this concept is that it suggests that knowledge decay is normal and therefore to be expected as part of the process of development – instead of being a surprise each time it occurs and a reason to think that the originators of the knowledge must have done a bad job and should have realised that they were wrong.

Attempts have been made to rank sciences – usually with mathematics at the top because it is the most fundamental, then physics because its theories - such as

Newton’s illuminating laws of motion - relied on mathematics, and then chemistry because it derives its laws from physics - and so on down to subjects like sociology.

These have been described as abstract or basic sciences and from them have been derived applied sciences such as engineering, medicine and the ‘management sciences’ which include economics, business and entrepreneurship.

A quarter of a century ago, in looking at the methods and theories influencing the then very recent emergence of entrepreneurship as a ‘management science’, Bill Bygrave referred to this hierarchy and reflected that those studying subjects at the bottom of the hierarchy suffered from a sort of ’physics envy’.

The hierarchy, he suggested, ranked sciences in their ability to make accurate predictions and pointed out that, in contrast with physics, the management sciences had no great theories such as those of Newton.

Economics, for example is noticeably bad at prediction – imagine the complaints were physicists to predict the motion of the plants with the accuracy with which economists predict financial depressions.

However, even in physics, the concept of the half-life of knowledge applies. Newton was

It is important to realise that making hypotheses or assumptions which subsequently turn out to be incorrect is not doing it wrong.

Professor Simon Bridge particularly hailed because he used concepts from four fields of study to produce a remarkable explanation of planetary motion.

However, although it might have taken a relatively long time, the enlightenment of Newton’s ‘laws’ of gravity were eventually found not to be perfect and were superseded by the ideas of Einstein – although Newton’s laws may still be a good enough approximation for many purposes. And other examples of changes in physics knowledge can be seen in the introduction of quantum mechanics.

Thus, even in physics, knowledge does decay although there its half-life seems to be relatively long. For other sciences lower in the hierarchy it can, apparently, be much shorter.

Changes in medical knowledge are referred to above and in medicine it has been estimated that the half-life of knowledge may be as low as ten years, and even less in psychology - and it is reported that sometimes students in these subjects are now being warned that some of what they are being taught may shortly be superseded. So might we expect knowledge in the other lower, less deterministic, sciences also to have a shorter half-life?

Therefore, if we are working in areas like economics, business or entrepreneurship should we expect the knowledge we use, not just to have a half-life, but to have a relatively short one?

Instead of thinking that in our fields, even if we don’t know everything, we can at least be sure of what we know, should we be reassessing what we think we know and expecting it sometimes to change?

We might have thought that wrong knowledge was something that happens to other people and in the past and that that, in a relatively new modern subject, learning will get better and better, more and more truth will be revealed and, as more and more facts are discovered and verified, we will move exponentially towards perfect knowledge.

However the concept of a half-life of knowledge suggests we should instead realise that imperfect knowledge is the best we can expect and some of what we think we know will inevitably turn out to be wrong.

Economics is clearly a case in point.

The orthodoxy has changed, for instance between Keynesianism and monetarism, and traditional economics has been challenged by behavioural economics but, if some commentators are to be believed, the

response of many traditional economists has been to put up barricades to shut out new ideas and to try to carry on as it nothing had happened - continuing to promote and use the orthodox views while damning anything else as misleading if not actually dangerous heresy.

Feeling threatened by new knowledge is understandable, and it would be wrong automatically always to switch to anything apparently new, but the examples of other subjects show the ultimate stupidity of refusing to acknowledge the possibility that the new might be better.

Peer review does not help because the ‘peers’ who do the reviewing are often selected because of their understanding and exposition of orthodox views and they are just the sort of people who are most likely to be threatened by new ideas in the understanding of which they have no preeminence.

And within the broader field of economics we often think we know how businesses work and that we understand what things influence them – but do we and does our understanding apply to all businesses?

Is it not the case that most things we are taught as business ‘facts’ are, in reality, hypotheses and assumptions - which subsequent experience can either lead us to confirm or, if we are prepared to admit the evidence, to disprove or discount.

This might be most noticeable in the field of small businesses which only really began to be studied as a specific sub-set of business about thirty years ago. It should not surprise us that many of the assumptions initially made would now appear to be wrong but it is human nature to resist relearning things we thought we knew.

It is much easier to ignore any new suggestions and to continue as we were. After all the evidence that some of the old ideas about small business didn’t actually work well often didn’t really seem to have bothered anyone.

As a result is our treatment of small businesses often like the practice of bleeding patients – which was promoted by the establishment, taught by medical schools, believed by doctors and sought and expected by patients, but was ultimately show to be harmful?

It is important to realise that making hypotheses or assumptions which subsequently turn out to be incorrect is not doing it wrong.

Not being able to be perfect should not be a barrier to being better.

Building knowledge has to start somewhere and a process of trial and error is often the best way to proceed.

So finding that the knowledge we have acquired has a half-life is not a sign of weakness and/or error but an indication that things are proceeding as they should. If we don’t know that our knowledge has a half-life that isn’t because everything we know is actually correct – it is much more likely to be because we have closed our minds to the possibility that some of it might be wrong.

Medical knowledge may still be changing and have a short half-life – but look how much better our medical practices are now compared with the days when bleeding was practiced - because eventually doctors have had to adjust.

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SPONSORED ARTICLE

climbing the

Wall of Worry by the head of the Quilter Cheviot Belfast office, Nigel Crawford, discusses current growth and interest rates

nvestors have had plenty to keep them awake at night over recent times. With the odd exception, this doesn’t include negative corporate or economic news.

With the exception of the Eurozone, developed economies have been making good progress and, in the case of the UK, each revision to data has added to the story of a growing and broadening advance.

As we have said before, policy makers are reluctant to contemplate a “dab on the brakes” and so plenty of talk of higher interest rates has still not yielded a change from historic lows.

This will come, but only gradually and the new norm is likely to be a lower level than has been the case in the past – perhaps three per cent in the UK. Rising rates will also be tempered by a strong urge not to snuff out the recovery. In the meantime, Europe is capitulating to received wisdom and moving towards full on quantitative easing (QE) which has been an important tool elsewhere.

Meantime, corporates are generally trading well. Confidence has largely been restored – as demonstrated by rising investment intentions and a marked pick up in acquisition and merger activity.

Earnings are rising, albeit not universally and progress has been somewhat harder won of late as a strong pound has taken its toll.

Similarly, dividends are growing modestly which ought to provide a decent backdrop for investors.

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So why so many sleepless nights?

In short – a very uncertain geo-political backdrop and remaining jitters post the financial crisis.

Ukraine, the Middle East and more recently Hong Kong have dented confidence amongst the bulls, and have reassured those of a more cautious nature that remaining out of markets is sensible.

Government bond yields have acted as a useful barometer of investor risk appetites – yields tend to fall as investors seek the relatively safe haven of gilts and other Government issued bonds. For 10 year bonds in the UK, the yield has returned to a stubbornly low level of 2.5 per cent.

Naturally, predicting the outcome of these global challenges is very difficult. It is therefore entirely appropriate to encourage balance within investor portfolios – both in terms of a spread of different assets, and across individual markets.

We at Quilter Cheviot place great store on fine tuning that balance to the needs and circumstances of our clients. It is fundamental to long term success and has driven superior client performance, which has been recognised with a series of industry awards.

However, what history has tended to show is that markets can progress when faced with a wall of worry. Regional conflicts seem to be a constant feature nowadays, but rarely have a material or long standing impact on economic activity.

So, in conclusion, whilst we recognise current headwinds may lead to market volatility, we would also tend to view slippage as an opportunity to commit to good quality investments – both here and across the international arena.

For further information, contact Nigel Crawford, regional director on 028 9026 1155 or visit www.quiltercheviot.com Investors should remember that the value of investments and the income from them can go down as well as up.

COMMENTARY

How MATRIX works Vicky Newman, communications manager for MATRIX, the Northern Ireland Science Industry Panel, looks at how the panel works and the value it brings to the Northern Ireland economy.

Past reports have included topics like Telecoms, Sustainable Energy and Intellectual Capital.

We are currently working on our second ICT and Life & Health Sciences reports and these are due to be published in the first half of 2015. You can download all our past reports from our website at www.matrix-ni.org.

Vicky Newman

ince taking up my secondment with MATRIX last month I’ve often been asked exactly what we do. It’s a unique organisation which brings a great deal of value to the Northern Ireland economy and government so I thought it would be worth giving an overview of how we work.

MATRIX was formed in 2006, primarily to advise government, industry and academia on how best to exploit scientific and technological innovation in Northern Ireland. By its very nature most of this work is medium to long term – we look forward to what technologies we can exploit over the next two, five and ten years.

We have a main panel of twelve business and academic leaders, supported by a small secretariat team based in DETI. The panel is chaired by Brian Keating, managing partner of CIP Partnership and visiting professor of Entrepreneurship at the University of Ulster, while the deputy chair is Norman Apsley, chief executive of the Northern Ireland Science Park.

Other panel members include professor Jim McLaughlin OBE, Dr. Joanne Stuart, Citi director John Healey, Bombardier’s Gavin Campbell and Seagate’s Dr. Rob Hardeman.

The first MATRIX report represented a distillation of the collective knowledge of some of the best and most experienced science and R&D based business people and researchers in Northern Ireland, supported by national and international experts in key areas.

Almost every major science based business and research institution in Northern Ireland played some part in producing the findings and the report was firmly grounded in evidence and placed in the context of the global economic challenges we faced then.

It set the vision, objectives and agenda on which MATRIX believed Northern Ireland should focus its future policy development for the commercialisation and economic exploitation of its science, technology and R&D base.

A Government Reponse paper was then published, representing a coordinated and joined-up action plan to help ensure that the Government strand of the MATRIX work was taken forward in the most effective way.

Once we had “set the scene” for science and R&D across Northern Ireland, our next task was to drill down into specific sectors within this economic landscape to discover the particular opportunities and issues that affect them.

Over the past eight years the MATRIX panel has identified several key trends and sectors which they believe will be of major value to the Northern Ireland economy in the coming years – for example, right now we are looking at the life sciences sector and the digital/ICT market. These

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recommendations have been particular influential in helping Invest NI steer resources on areas of key priority to the Northern Ireland economy, and have also helped shaped the research base and the skills agenda.

Past reports have included topics like Advanced Materials, Advanced Engineering, Procurement, Technological Capabilities, Telecoms, Sustainable Energy and Intellectual Capital. We are currently working on our second ICT and Life & Health Sciences reports and these are due to be published in the first half of 2015. You can download all our past reports from our website at www.matrix-ni.org.

Once the main MATRIX panel has identified a sector they believe merits a report, it selects a team of sector specialists from business and academia, making sure that there’s sufficient breadth and depth of experience to address all the key issues within that sector and, where possible, other sectors that are impacted. So when we formed the digital/ICT panel we made sure that there was representation from the digital creative industries and micro businesses as well as companies focussing on IT within the agrifoods and life sciences sectors.

Panel members are always very generous with their time and we are invariably impressed with their commitment and dedication to the project.

They meet regularly and work closely with the MATRIX team and amongst themselves to help us create reports which are invaluable insights into their sector and which help inform government investment in the years ahead.

We work closely with a number of partners including InvestNI, DEL and DETI to use the findings from our reports to help develop tangible solutions and practical benefits over the short term as well as providing guidance over the medium to long term.

The MATRIX panel has also proposed a number of recommendations to government that have helped kick-start, embrace and foster innovation, with business taking a leading role and academia providing the inspiration for innovative new thinking and market opportunities.

MATRIX is delighted to play a unique role in the promotion of science and technology industries and its exploitation. We believe that innovation in science and technology is one of the key drivers of economic growth in Northern Ireland and our aim is to help identify new high tech market opportunities, intellectual property and emerging technologies so that companies can exploit them and academia can benefit from them.

If you would like to find out more about what MATRIX does, please contact Vicky Newman on 07793 242801 or Vicky.newman@detini.gov.uk

SIGNAL- Meeting your Training Needs SIGNAL Centre of Business Excellence offers a one stop solution to businesses for all their training, meeting and conference needs.

Based on the Balloo Road, Bangor, SIGNAL boasts state of the art conference facilities, which have been designed to accommodate all types of events and the ever changing demands of modern conferencing. Each room has been equipped with the latest Audio Visual equipment.

This, along with complimentary Wi-Fi, free car-parking and menus to suit all budgets, makes SIGNAL the perfect venue for business meetings, conferences, training and exhibitions.

Making your business pound go further, SIGNAL has Budget Busting Day Delegate Rates from £21.00 per person including VAT.

This includes: • Room Hire • Tea & Coffee on Arrival • Tea, Coffee & Scones Mid-Morning • Soup & Sandwich/Wrap Platter lunch served with Tea & Coffee • Tea, Coffee & Biscuits Mid Afternoon • Data Projector & Screen or Plasma TV • Jugs of Water, Sweets, paper pads and pencils on delegates tables

To support the quality of the conference facilities provided SIGNAL offers a Price Match Promise:

“FIND SIMILAR CONFERENCE FACILITIES AT MORE COMPETITIVE PRICES AND SIGNAL WILL MATCH THE PRICE OR EVEN BEAT IT!” * *Terms and Conditions Apply

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BEST PRACTICE

Top 10 tips to secure new EU funding in 2015 The countdown is on to complete EU funding applications before the early Spring deadlines. As the European Union is setting new directions for its funding programmes - currently worth around €14 trillion - Dr Audrey McKeown, Growth Solutions International outlines the practical steps that local businesses can take to improve their chances of securing funding. he current tranche of EU funding is aimed at supporting business growth, jobs, innovation, addressing skills shortages as well as supporting small businesses and entrepreneurs.

There are great opportunities for local businesses and organisations to take advantage of funding programmes to secure future grow by developing their staff and services.

Working with local businesses and organisations to help them secure EU funding means that I know that writing a successful funding application is like a great recipe – it depends on the key ingredients coming together well.

Finding the appropriate stream of funding, having a clear picture of the benefits, identifying and working with European colleagues as well as writing a successful application that meets the EU’s criteria, are just some of the essential ingredients required.

My Top 10 Tips for a step by step approach to making an application are as follows:

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1. Register on the European Commission’s website (ec.europa.eu) and follow the links under Funding. This will ensure that you get any notifications, changes or updates in a timely manner.

2. Each new EU Fund or Programme will have a Guide for Applicants. This is usually available as a PDF document and is essential reading. It will answer queries on the Programme’s priority areas, the activities which may be funded as well as outlining available budget for projects.

3. Make a note of any deadlines as these will be very strictly adhered to - you will normally be notified of deadlines by email.

4. Take time to check out the types of organisations that can apply for funding as this will vary from Programme to Programme.

This information is available on the European Commission’s website (see above). EU Funding is not usually awarded to individuals but to legally, established organisations.

5. Most EU programmes will require you to identify suitable partners within other EU countries. Don’t let this be a stumbling block, instead start small and look within your own

network of existing contacts such as Trade Bodies, Small Business Federations, Professional Networks, Chambers of Commerce, Councils, etc. Often these bodies have European contacts or you may find that there opportunities for consortium bids through their networks.

6. Check the dedicated partner search database on the Programme websites as these are great research tools.

7. Keep a look-out for relevant training sessions or workshops. These are useful events to meet prospective partners.

8. Register your organisation/business with the European Commission in order to submit your application. This is free of charge and can be done online through the European Commission’s website. You will receive a PIN number that you use for all applications and correspondence.

9. Make contact with the local European Commission Office, Enterprise Europe NI as well as IntertradeIreland, both based in Northern Ireland, for advice and guidance.

10. Give yourself sufficient time to complete your application – you will find that you may need to re-draft and review sections before submitting.

Preparing application bids takes a serious amount of time and effort but these practical steps should make the application process easier and more manageable.”

For further information, advice or guidance on making applications for EU programmes please contact Dr Audrey McKeown at Growth Solutions International, McKeownA@ntlworld.com.

Dr McKeown has over 15 years’ experience in accessing European funding and is currently an Assessor for the new Eramus+ Programme.

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BUSINESS IN THE COMMUNITY

Who will shape the leadership of your business in the 21st Century?

A new type of 21st Century company is emerging that is transforming the way business is done. Corporate responsibility and integrity are now core priorities rather than something a company does because it has to.

Leaders understand they have to transform the way their business operates to deliver tangible financial returns and benefits.

Stakeholders at every level – shareholders, employees, customers, suppliers, advocacy groups and the local community at large – are increasing demands for transparency and accountability from business leaders and companies.

Most businesses however, have little experience and few tools to deal with the urgent demand to increase corporate responsibility expertise among their senior leaders.

What will the future look like for your business?

Business in the Community and the Ulster University Business School have announced a new collaboration which will deliver two new courses that will help leaders embed corporate responsibility and integrity as strategic priorities.

The courses are: Leaders for the Future – Starting in early 2015, this is a high level leadership development programme for those who recognise the critical importance of sustainability and corporate responsibility within their organisations and who want it to thread through every aspect of their business.

Managers for the Future – Commencing in February 2015, this leadership and management development programme is designed to equip participants with practical insights and skills to drive positive, sustainable change in their organisation.

Programme manager, Steve Pollard explains: “Over the past year, we have been listening to and questioning business leaders about their biggest challenges. They’ve told us that corporate responsibility and integrity are key strategic priorities for their business.

“The challenge is they want to know how to do it effectively. They want a high quality programme that will support them as they develop innovative strategies for the future.

“They want their managers to gain from both the academic knowledge behind sustainable action and practical advice to

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Michael McQuillan, director of the Business Institute, Patricia O’Rourke, Director Business in the Community and Steve Pollard of The Business Institute, Business in the Community and Ulster University Business School.

implement good corporate responsibility within their business.

“These courses are rigorous and practical and offer the opportunity for participants to hear directly from industry leaders about their challenges they face and the approaches they take.

“Peer group learning is a key element and we will support participants to transform the way their business operates to deliver tangible returns and benefits.”

Michael McQuillan, director, The Business Institute, Ulster University Business School adds: “The fate of business rests, in part, on their ability to anticipate change and deliver value in the context of key emerging business issues.

Those businesses committed to taking the lead in innovative strategies for the future are the ones that will not only survive, but thrive!

“I am convinced that leaders and managers for the future from any size or sector of organisation will benefit from participating in

these courses.”

Leaders for the Future is a two year courses with each module delivered via a three-day workshop. To maximise impact and minimise time away from the business.

Those who complete successfully will be awarded with an MSc in Executive Leadership. Managers for the Future takes no more than a year. Each module is delivered in a two-day workshop with an assignment to complete per module.

Successful participants will receive an Advanced Diploma in Management Practice.

Can your business afford not to develop a future with responsibility at its core?

If you’d like to get involved, e-mail steve.pollard@bitcni.org.uk for more information or call (028) 9046 0606.

For more information on Business in the Community, visit www.bitcni.org.uk

Harnessing digital creativity and innovation for tourism in 2015

by Dr Peter Bolan, University of Ulster evelopments in digital media are revolutionising the various sectors of the tourism industry and indeed the need to respond to what today’s tourist expects and demands. Our tourism and event related organisations are continually under pressure to develop their presence on social media platforms and to consider whether or not they should delve into the world of mobile apps to cater to the ever-growing appetites of those who increasingly use their smartphone and tablet to stay connected.

Harnessing social media correctly and creatively, developing significantly innovative, informative and immersive mobile apps for destinations, visitor attractions and events, and providing high quality free wifi connectivity for visitors are the cornerstone of what is required digitally to not only attract tomorrow’s tourist but to provide a meaningful experience to encourage such visitors to return and to recommend Northern Ireland to others.

At the Ulster Business School our travel and tourism management and our leisure and event management students explore the current importance and future potential of the internet and digital media to business success in the various sectors of the tourism industry. Final year students recently pitched their ideas and concepts for a new tourism or event based business to a panel of industry experts in a ‘Dragon’s Den’ style scenario as part of their eBusiness Strategy module.

The new business concept had to have a

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digital focus and the students were required to design a website, relevant social media presence and storyboard concepts for appropriate mobile app development in addition to pitching their core business concept and the digital strategy they would employ to achieve success.

As well as being an integral part of their studies, the students were also competing for the Ambition Digital Award – sponsored by Jill Robb, MD of Ambition Digital. Other panel

judges included Ricky Martin, director of Alive Surf School and Activity Breaks UK, Heather Quiery, director of HQ Consulting, and John Bustard, director of Awakin mobile app development and innovation coach at NRC. Fostering and developing creativity and innovation in this way with regard to applying digital knowledge and skills to the field of travel/tourism and leisure/events is something we equip and prepare our Ulster Business School students to do. With regard to such digital enterprise, it is vital that these students (who are the next generation of managers in tourism) are able to utilise and harness these aspects for future success. It enhances their employability and aids in creating a highly knowledgeable and skilled workforce that can make a major contribution to our economy.

Moving into 2015 and indeed further still into the 21st century, there is tremendous scope and potential for tourism to continue to grow in Northern Ireland but we must ensure that digitally we are capturing every opportunity and advantage to enable us to compete effectively in the global marketplace.

It is vital that we instil this in our next generation of industry managers if we are to fulfil our true potential. Tourism in Northern Ireland is a vital component for economic growth and job creation and the digital arena is one way in which we can improve and develop this crucial area for the future.

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THOUGHT LEADERSHIP

Open government is good government

by David McBurney, member of Opengovni and the Open Government Partnership argues the case of transparency in government o democracies die behind closed doors?

Of course they do and nearly everybody acknowledges that they do.

From United States presidents "A popular government, without popular information, or the means of acquiring it, is but a prologue to a farce or a tragedy; or, perhaps, both." Pres.

James Madison, August 4, 1822 and "...a nation that is afraid to let its people judge the truth and falsehood in an open market is afraid of its people." Pres. John F. Kennedy, 1962 to British prime ministers, “We want to be the most open and transparent government in the world". David Cameron, 2010

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who funds our local political parties, what they’re spending their expenses on, what they said at the Haas Talks and what they’re saying at their latest round of meetings about the future of Northern Ireland?

No. OK, let's be realistic - it's more about access to data, digital innovation and the knowledge economy. Isn't it?

Well, it depends on who you talk to. And because the concepts of 'openness' and 'transparency' are, ironically, a little ambiguous in this context, it's up to you to decide.

Open Data It's not just dead presidents and British prime ministers that think openness and transparency are good for democracy. Senior government officials and campaigners from about 60 countries gathered in London for the second annual summit of the Open Government Partnership agree.

The Partnership announced voluntary commitments on increased political transparency, and planned talks about freedom of information, civic participation, whistleblower protection and corporate accountability.

Speaking just ahead of the summit meeting, Cabinet Office minister, Francis Maude, recruited that great enabler of the free flow of knowledge Sir Tim Berners-Lee, inventor of the World Wide Web, to endorse the coalition of nations.

"Once people see the advantages of transparency," Maude claimed, "the democratic impetus for open government will be irresistible and there will be no turning back."

But what exactly do we mean when we talk about 'open government' and 'transparency'?

Sunlight is said to be the best of disinfectants; electric light the most efficient policeman. But who's going to feel the heat?

And do we get to decide where we point our torch lights?

What are the benefits of this new openness?

More to the point, who will benefit from it?

Is it all about penetrating the veil of secrecy that surrounds many government decisions?

Are we going to find out what David Cameron talked about at that Bilderberg meeting? Maybe we'll see what information the NSA and GCHQ are collecting; and what data telecommunications companies are providing..

Or, closer to home, perhaps we'll discover:

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If it's primarily about access to data, information and knowledge, then the appropriately named Open Knowledge Foundation can provide a definition and full details on the requirements for ‘open’ data and content.

Open data are the building blocks of open knowledge. Open knowledge is what open data becomes when it’s useful, usable and used.

The key features of openness are: Availability and access: the data must be available as a whole, and at no more than a reasonable reproduction cost, preferably by downloading over the internet. It must be available in a convenient and modifiable form.

Reuse and redistribution: the data must be provided under terms that permit reuse and redistribution including the intermixing with other datasets. The data must be machine-readable.

Universal participation: everyone must be able to use, reuse and redistribute — there should be no discrimination against fields of endeavour or against persons or groups.

Why should data be open?

The answer, of course, depends somewhat on the type of data. However, there are common reasons such as: Transparency: In a well-functioning, democratic society citizens need to know what their government is doing. To do that, they must be able freely to access government data and information and to share that information with other citizens. Transparency isn’t just about access; it is about sharing and reuse.

Releasing social and commercial value: In a digital age, data is a key resource for social and commercial activities. By opening up data, government can help drive the creation of innovative business and services that

deliver social and commercial value.

Participation and engagement: Much of the time citizens are only able to engage with their own governance sporadically — maybe just at an election every four or five years. By opening up data, citizens are enabled to be much more directly informed and involved in decision-making. This is more than transparency: it’s not just about knowing what is happening in the process of governance, it’s about being able to contribute to it.

Even this open data idea raises a few questions: Does the fact that data have been published on-line constitute a success even if the data are rarely used?

Does opening government data really empower individual citizens?

Will we need an army of intermediary organisations with the appropriate technical expertise and intellectual resources to meet the challenge of rendering the raw data interpretable?

The assumption is that if government puts data online, someone somewhere will do something valuable and innovative with it.

But just because data is 'open' it doesn't mean that all social groups have equal opportunity to utilise it.

So far the focus has been on the role of large technology companies and governments as the catalysts of technology-enabled progress.

How do open data initiatives that are seemingly for the benefits of all civilians ensure that they are not just of use to those who are already the most privileged?

Even those who crack the technology discover that urgent findings about poverty, health, discrimination, conflict or social change are presented in prose written by and for high-level experts, rendering it impenetrable to almost everyone else.

Information is “trapped in PDFs and in PhDs”. And there will always be a narrow market for raw policy reports.

To make it more accessible, data needs to be mashed up; to make it relevant, information must be distributed in a targeted way to those most likely to be interested.

And it must be written for the user: perhaps using blog posts, videos and graphics.

Policy information is most usable if it's linked to corresponding actions the user can take: when it helps to stimulate debate.

THOUGHT LEADERSHIP

The future of marketing

by Richard Houdmont, director for Ireland, The Chartered Institute of Marketing

recently sat in a room-full of marketers debating the meaning of ‘marketing’ (I know, I should get out more). What struck me was that you couldn’t imagine a room of architects, engineers or accountants having a debate about the meaning of their own profession.

We all know what they do and all recognise their contribution to business success. So why do marketers appear to be having a crisis of confidence?

No other corner of business has changed more than marketing in the last ten years.

Our customers have changed from the caricature of passive recipients of brand communications to product experts who expect dialogue, not one-way comms, who are willing, indeed eager, to share their thoughts and will tell the world if they’re unhappy.

There has been a fundamental shift in power from the marketer to the customer.

At the same time there has been a meteoric rise in customer expectations.

And whilst customers appear to be more willing than ever to reveal not only their thoughts but also personal details, at the same time there’s a heightened awareness of privacy issues.

In addition, perhaps as a result of the banking crisis there’s increased mistrust of corporations and an expectation of business transparency and responsibility. ‘Green’ credentials and Corporate Social Responsibility can no longer be a fig leaf.

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Big Data Marketers are also faced with so-called ‘big data’. After years of being accused of not being able to back up their arguments with

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figures, we have embraced metrics and have numbers coming out of our ears.

Except we’re still not sure we’re measuring the right thing. Ask a small business what’s important to them and they’ll say ‘cash’. The bounce rate and other statistics from Google Analytics will be way down their list.

The issue is not ‘big’ data, but using the right data, or else you’ll go in the wrong direction.

And yet we all appreciate that an effective web site will create cash, but when does a communication channel become a sales channel, and who should be driving it? When does social media end and customer service start?

Is ‘digital’ a comms channel or is it a business model? So who ‘owns’ it in your business?

Perhaps with the rush to digital and despite all this ‘big’ data we’ve forgotten a fundamental of marketing: focus on customers as people. How do they feel or think? What motivates them and drives them to visit your web site?

Perhaps we have focused too much on activity rather than insight.

Social media will give us huge amounts of data, but will it tell us the whole story?

Marketing is a mixture of sociology, anthropology, psychology and economics (perhaps to that you can add IT) but with an increasing emphasis on numbers we’ve forgotten that sociology, anthropology, psychology are about people.

Perhaps the marketing function has been weakened by its very success?

After all we’re all marketers now, especially front-line staff, but we appreciate that the

finance department have an important role to play in marketing, in the way they deal with customers and suppliers alike.

We’re all delivering the ‘brand promise’ and the brand is a shared responsibility, not exclusive to the ‘marketing’ department.

Silos are breaking down between HR, finance, sales and marketing. So where does that leave marketing?

Will there be further marginalization as the core function is shared out into other areas of the business?

Or will marketing be placed with a strategic role at the centre of the business as visionaries, coordinating and consolidating customer advantage?

Follow @CIMInfo_Ireland #marketing2025 and help shape the future of the marketing profession.

COMMENTARY

Devolved Corporation Tax powers is a prize worth working for T

The priority given to the economy by the Northern Ireland Executive in the Programme for Government, for one, sends a positive signal to investors; but this must be matched by action, namely through political consensus in progressing the conditions to reduce the corporate tax rate.

Wilfred Mitchell

he Autumn Statement brought positive news with the commitment of the UK Government to devolve corporation tax powers to the Northern Ireland Executive, depending upon political consensus.

This follows a long campaign by the Federation of Small Businesses (FSB), over the years, both locally and nationally, on this issue, during which the FSB has secured support of the five political party leaders on this issue and consequently cross-party support.

It is this consensus that the FSB is urging elected representatives to maintain, to boost our local economy for the benefit of all business activity in Northern Ireland, both large and small.

In response to Varney Reports back in 2007, the FSB highlighted that reduction of the corporation tax rate would not only attract Foreign Direct Investment (FDI) but also have a beneficial effect on the small business supply chain.

At this time, the UK’s largest business organisation illustrated that a corporation tax rate of 12.5 per cent or lower would be justified in terms of Northern Ireland as being a unique region in the United Kingdom – in that it is the only UK region to share a land border with a country with a much lower rate of corporation tax.

The FSB made clear at the time, that the Review did not acknowledge the potential amount of FDI that could come to Northern Ireland as a result of this action, and subsequently the impact this would have across the whole economy, and not only to larger companies.

The companies that invest, either through FDI or inwardly, will need to be serviced and that will principally be the responsibility of small business. This cascading effect is essential to the development of small business in Northern Ireland.

It will lead to increased innovation amongst small businesses, investing in research and development and consequently examining the need for further skills development.Wilfred Mitchell, FSB Northern Ireland Policy Chair outlined the stance of the business organisation.

“The FSB’s stance on the proposal to devolve corporation tax setting powers and cut the rate has been well documented. We believe that this will make Northern Ireland a much more attractive proposition to prospective outside interests and indigenous firms.

“Consequently, the FSB has long advocated that the Northern Ireland Executive must have a greater responsibility for fiscal planning if it is

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to take Northern Ireland forward with the economy at its heart.

“The priority given to the economy by the Northern Ireland Executive in the Programme for Government, for one, sends a positive signal to investors; but this must be matched by action, namely through political consensus in progressing the conditions to reduce the corporate tax rate.”

Mr Mitchell added that whilst there is a real need for political consensus to support corporation tax, a reduction in the rate of corporation tax alone will not suffice. The Northern Ireland Executive also needs to redress funding cuts in regards to further and higher education places as these will be essential to establishing skilled workforce to support investment.

“The devolution of corporation tax powers to Northern Ireland remains one policy measure that has united all of Northern Ireland’s business organisations and political parties.

“As the global economy gradually emerges from recession and those charged with winning FDI are exploring new opportunities, Northern Ireland needs to be positioned to be attractive.

However, it would be a misjudgement to think that a tax reduction alone would solve Northern Ireland's economic problems.

“There is a need for a co-ordinated approach across government departments to implement the various components in a swift but consistent fashion. Northern Ireland must also ensure that it can meet other expectations of potential investors in areas such as skills, research and development, and manageable energy costs.

Mr Mitchell concluded: “The FSB are confident that the devolving of the corporate tax rate will bring about the benefits of a bigger, stronger private sector that would flow out into all areas of the local economy, therefore benefitting all of our members.

“Whilst the block grant will be reduced, the lower corporation tax payments of private sector corporations are likely to be reinvested into the Northern Ireland economy.

“In effect, money will move from the public sector to the private sector and will facilitate investment in job creation and economic expansion. Over time, other tax receipts will rise more quickly as a result of more employment and higher value added activities.”

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The future of heating, cooling & refrigeration The godsend for 2015 onwards is the arrival of SEDNA AIRE’S SOLAR COOL™ The most EFFICIENT COMPRESSION system on the planet.

That’s a bold statement, yes but factual.

• Over 80% of large businesses cited cost reduction as the biggest driver of their energy strategy.

• Only 41% of large businesses said they would be acting on ESOS (Energy Savings Opportunity Scheme) audit recommendations.

• 30% said funding was a key issue preventing investment in low carbon solutions.

• 20% were sceptical about ROI • 25% cited time and disruption to operations as barriers to development • Only 51% of businesses surveyed agreed their energy reduction plans were integrated with their energy buying strategy.

• Every 1% saved on energy costs equates to significant savings up to £300,000 for a mid-sized manufacturer and iro £500,000 for a large retailer.

• A 20% reduction in energy costs represents the same bottom line benefit as a 5% increase in sales.

When the sun shines no other system can match SOLAR COOL™ for efficiency.

Solar Cool’s ability to massively improve the Super heating and subsequently the super cooling process, turns conventional thinking on its head.

BETTER FOR THE BANK BALANCE On average the UK enjoys between 1700 to 1900 hrs of uninterrupted sunshine every year. For those businesses using the SOLAR COOL™ System, this is potentially 1900hrs of free energy every single year.

BETTER FOR THE PLANET Air temperature control and refrigeration are two of the largest consumers of the worlds’ total energy usage. Solar Cool believes that by utilising solar energy we can change this.

The Hotter it gets, the less the compressor works.

• Saves vast amounts of energy • Considerably reduces Co2 emissions • Eliminates compressor failure due to overheating.

• Substantially increases compressor lifespan.

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SOLAR COOL™ LET UK ENERGY CONCEPTS TALK YOU THROUGH THE BENEFITS We have been advising clients for over 6 years, with significant success, which proven renewable energy technologies are the most beneficial to their businesses.

Now we are pleased to introduce a solution to bring about a solid benefit to your bottom line and enhance your green credentials into the bargain.

SOLAR COOL™ For a full FOC desktop presentation and illustration of energy saving opportunities for your site please contact Leigh or view UK Energy Concepts here www.ukenergyconcepts.co.uk or contact Leigh Hughes 07561 126 160 UK Energy Concepts info@ukenergyconcepts.co.uk leighh@ukenergyconcepts.co.uk

Throughout 2014 CEO’s across the business spectrum were striving to get increased sales from their sales force. So 5%+ before you pick up the phone or launch a campaign is a godsend.

More and more corporate and SME’s are turning to reducing their energy costs, not just to enhance their green credentials, but to effect genuine guaranteed savings, which impact immediately on the bottom line.

It is time for businesses to consider a technology capable of achieving up to 60% energy savings and a ROI of as little as 2 years in some cases.

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ogni-

edical

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ENTERPRISE NORTHERN IRELAND AWARDS 2015

EnterpriseNI AWARDS 2014

OUR WINNERS 2014 Home Based Business of the Year Brighter Gold Rapeseed Oil Exploring Enterprise2 Learner of the Year Judith Watson, Feet First Newry Exporter of the Year Stealth Translations Ltd Young Entrepreneur of the Year Matthew Large, Glistrr Social Economy Business of the Year Resurgam Trust Social Enterprise Intern of the Year , Acorn the Business Centre and Grace Clydesdale, SolasBT7 Business Adviser of the Year Emma Garrett, WorkWest and Alistair Smith, Inspire Business Centre Business Support Initiative of the Year Venture Causeway, Causeway Enterprise Agency Business Start-Up of the Year Winner So Popcorn Business Start-Up of the Year Runners-up Electric Alphabet Plant & Play Wildlife Garden

media partners for the

Enterprise NI Awards 2014

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EnterpriseNI chief executive Gordon Gough with host Sarah Travers, Keynote Speaker, Fraser Doherty and John D’arcy, chair Enterpriseni

ocal enterprise and entrepreneurship was celebrated after a sweet year of success at the annual Enterprise Northern Ireland Awards held in Belfast.

The purpose of the awards is to showcase the work done by the Northern Ireland small business community and the efforts of the local enterprise agency network to support business development.

Hosted by broadcaster Sarah Travers, the keynote speaker was junior minister, Jonathan Bell, MLA and the event was supported by Legacy Wealth.

Chief Executive of Enterprise NI, Gordon Gough, said: “Enterprise Northern Ireland is the voice of local entrepreneurship and we’re very pleased to celebrate great examples of local ingenuity and talent.

“Helping to develop strong companies that create employment and export across the world is an important part of what we do.

“These awards are an excellent chance to recognise hard work and dedication of businesses and members of the ENI network.

“Whether it is through offering business support or highlighting access to finance initiatives, our network of enterprise agencies is playing an important role in stimulating Northern Ireland’s economy.”

Addressing the audience at the awards was Fraser Doherty MBE, aka JamBoy, who has become a globally-known name in the AgriFood sector.

Still in his mid-20s, Fraser is the founder and CEO of SuperJam, the 100 per cent fruit

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jam company that he started when he was 14 with his grandmother’s recipes. From then to now, SuperJam has grown to supply over 2,000 supermarkets around the world; selling millions of jars.

The brand has won over 20 innovation awards and launched in 12 countries around the world, exporting to places such as Australia, Russia, Denmark, Finland and Ireland.

Fraser said: “SuperJam was borne out of small beginnings – particularly a small budget, but with innovative thinking impressing some of the large retailers, I was able to conceive a world-renowned brand.

“It is now an ‘Iconic Scottish Brand’ in the National Museum of Scotland, alongside Tunnock’s, Iron Bru and Baxters.

In 2007, Fraser became the youngest ever supplier to a supermarket chain when Waitrose launched his product range.

He commented: “Age shouldn’t be a limiting factor when doing business; I think there is definitely scope for young people in NI to make themselves a success.”

Enterprise Northern Ireland is the organisation responsible for representing the interests of Local Enterprise Agencies and small businesses with central government, official agencies, the private sector and other organisations operating in the field of enterprise and economic development.

For more information on the awards visit enterpriseni.com

John D’Arcy, junior minister Jonathan Bell with Young Enterpreneur of the Year Matthew Glisterr. Award sponsor BDO.

John D’Arcy, junior minister Jonathan Bell with joint winners of Social Enterprise Interns of the Year Grace Clydesdale and Thomas Boyd. Award sponsor Lloyds Bank Foundation NI

EnterpriseNI chief executive Gordon Gough

John D’Arcy, junior minister Jonathan Bell with Business Advisors of the Year Alistair Smith and Emma Garrett. Award sponsor Laird Design.

Keith Liggott, managing director from EnterpriseNI Awards 2014 sponsor Legacy Wealth

John D’Arcy, junior minister Jonathan Bell with StartUp of the Year Winner Declan Mcbride So Popcorn. Award sponsor Ulster Bank

Fraser Doherty, Keynote Speaker at the Awards

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ON THE MOVE

Business First celebrates your success [1] Chris Brown has been appointed as Director at MCE. A senior communicator with over 10 years’ experience in London and Belfast, he specialises in Public Affairs, Crisis and Issues Management, Community Consultation and Media Relations.

[2] Sinead Doyle has been promoted to Client Director at MCE. Sinead leads the agency’s consumer PR and marketing division, delivering campaigns for clients including Pubs of Ulster, Beannchor, Special Olympics Ulster, Northern Ireland Hospice, Tourism Ireland and Premier Inn.

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[3] Karen Grimason has been appointed Media and Public Relations Consultant at Belfast-based public relations company Stakeholder Communications. Before joining Stakeholder, Karen was the News and Digital Editor for Northern Ireland’s daily paper the News Letter.

[4] Lauren MacLean joins Cleaver Fulton Rankin's Litigation department having completed the Diploma in Professional Legal Studies, and training at the firm. As well as being a Queens’ University graduate, she also gained professional international qualifications at in university in Minnesota.

[5] Siobhan Kearney joins Cleaver Fulton Rankin's Litigation Department having completed the Certificate of Professional Legal Studies in June 2014. Her main focuses are on commercial property litigation, product liability and contentious banking disputes.

[6] Benjamin Matson joins Cleaver Fulton Rankin in a company commercial role and will advise companies and charities on a range of commercial issues and also acts on behalf of banks and other institutions in relation to lending and taking security.

[7] Joy Allen has been appointed course leader by the Institute of Directors and will deliver its prestigious ‘Role of the Director and the Board’ course from its headquarters in London and overseas offices. Joy, who has specialised in governance for 13 years, is one of only 50 Chartered Directors in Northern Ireland. She is managing director of Leading Governance.

[8] Paula Gibson has joined Cleaver Fulton Rankin as a solicitor, Private Client Department. Paula graduated in Law from Queen’s University Belfast and worked as a solicitor in a family practice in Belfast before joining the Private Client Department at Cleaver Fulton Rankin. Paula has experience in

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a range of areas, specialising in providing high quality advice in Wills, Enduring Powers of Attorney, Nursing Care, Office of Care and Protection, Probate and Administration of Estates.

[9] Traction Finance are delighted to announce the appointment of Sales DirectorAndrew McCormick. Locally owned Traction now in their 12th year, believe the time is right to position the business at the heart of finance mobility. Andrew has acquired over 22 years’ experience in the automotive industry, from Sales Executive to Sales Manager, his role within Traction will be Managing Business Development in Northern Ireland and GB. Positioning Traction as one of NI’s leading providers of Vehicle mobility Solutions Traction exists to develop and maintain your transport fleet at optimum efficiency.

Taking great care to devise the best transport strategy for your organisation.

More than that, we remove all the day to day hassles that come with running and maintaining vehicles.

We specialise in vehicle finance and management. We source, fund and maintain

packages from one vehicle to an entire fleet.

We also offer business contract hire, personal contract hire, hire purchase and sell new and used cars.

In an age when nothing stays the same and everything is mobile, McGuire comments ‘’we continually try to keep ahead of what’s coming. We want to develop ourselves in the coming years to become an even better team and to improve and provide the best kind of service for our clients. We will never stop staying ahead of new technologies, motor industry developments, and bringing more and even bigger challenges to the tablemaking our work in the future an even greater adventure’’.

Andrews Contact details Office: 028 90 30 9000 Mobile: 078 3454 3364 Email: andrew@tractionfinance.com www.tractionfinance.com Like Traction on Facebook https://www.facebook.com/tractionfinance Follow Traction on Twitter https://twitter.com/Tractionfinance Connect with Traction on LinkedIn www.linkedin.com/in/tractionfinance

RESTAURANT REVIEW

Cafe Havana: Cuba comes to Belfast Treena Clarke from Harbinson Mulholland visits the recently opened Cafe Havana on Belfast’s Bank Square on your behalf

afe Havana in Belfast’s Berry Street (just behind Castlecourt) is what might be called a happenin’ place. The overall vibe is good, very busy so lots of atmosphere but not too noisy The decor reminded me of Robert De Niro's Tribeca Grill in NYC. Lots of exposed brick work, bronze columns, ornate ceiling tiles and fabulous chandliers Expect a friendly and genuinely helpful team who enjoy asking you if you would like some Aqua de Belfast with your meal!

I was asked if I would like a pre dinner cocktail from the menu and I chose a rhubarb mojito, assuming that it would be frozen rhubarb as it's not in season. But I was told that it wasn't in season, so wasn't available but I could have a strawberry version instead.

This was very nice, no complaints on that score but perhaps the menu should only reflect what is on offer.

The starter came to the table within five minutes of ordering. The beginning of the meal did feel a little rushed and the main course also came out five minutes after we had finished our starters.

The wine I ordered with my main course arrived soon after and it was on the recommendation of our waiter who advised me to go for a Rjoca instead of Merlot as this would pick up the spicy tones of the mustard butter - this was a nice touch and the wine was really good.

The dessert and coffee took a little longer to arrive, but time wise, this was just right. The team were really knowledgeable about their product and were able to tell me all about

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their meat providers and their hopes to bring in more artisan drinks and ciders and I really enjoyed these conversations and the passion for their business was clear.

The food My soup was smooth, comforting and piping hot. Very flavoursome and served with a sliced belfast bap on the side, with a pleasant creamy butter.

The prawn cocktail was fresh and served in a glass, with a wide enough opening at the top to get a spoon down - so often glass presentations present problems when actually trying to eat the food! The spicy mayo was just right - enough to make it a bit different from the norm, but not disgusing any of the other flavours.

I opted for the steak main course which was soft and perfectly cooked to medium rare as per my request, with a lovely twist from the usual peppered sauce, having some mustard butter dotted around the plate, which was very pleasant and provided a different taste and texture every few mouthfuls. Also good to see that the steak option didn't have a supplement and was included as part of the menu.

My partner choose the hake special and it was so soft with perfectly crispy skin, presented with a creamy, rich sauce and I have to admit to having food envy, even though my steak was wonderful.

The most pleasant surprise of the evening though was reserved for the potatoes and vegetables which were outstanding.

I had the chocolate brownie for dessert which was really rich and very generous in

size. It came with a chocolate sauce and a fresh zingy ice cream which cut through the richness of the chocolate and was washed down with a cappucino to finish.

My partner's crumble was beautifully presented in a dish, with a small pot of cream and a small pot of custard which was very thoughtful, giving both options. It was full of flavour and a perfectly crumbly crumble.

Would Treena recommend?

I would happily return to Havana Really good vibe, busy but not too noisy and it would work either for couples or groups and it was good to see a nice mix of all there during my visit. Some aspects of the service could be improved but they were all small things , which could be easily rectified and none of them would stop me from returning.

Treena’s choices Prawn Cocktail with Spicy Mayo Roast Garlic and Potato Soup served with a belfast bap Fillet of Hake with garlic and white wine cream sauce Ribeye Steak with Peppered Sauce and Mustard Butter Served with selection of veg and potatoes Hot apple and Cranberry cobbler Chocolate brownie with raspberry ripple ice cream If you have a favourite restaurant you would like to review for Business First readers, please contact Gavin on 9147 2119 or gavin@businessfirstni.co.uk

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ENTERPRISE NORTHERN IRELAND AWARDS 2015

Women in Business Northern Ireland Award winners 2014 he crème of Northern Ireland business women were recognised at the fourth annual Women in Business Northern Ireland Awards in association with Invest Northern Ireland.

Women who have created thousands of jobs in the last year, increased their company turnovers, those who own and manage businesses punching above their weight across the globe and leaders some of this country’s top 100 companies descended on the Culloden Estate and Spa to celebrate their achievements.

Roseann Kelly, chief executive of Women in Business NI said: “As I looked around the room and considered the wealth of knowledge and experience in the audience at our awards, I felt an enormous sense of pride in the women who are making a phenomenal impact on our economy here in Northern Ireland and who are doing business on behalf of Northern Ireland around the world.

Women who have overcome the challenges and issues associated with starting a business and who have broken down barriers to trade, development and growth with the support of Women in Business NI. “This year we received 150 applications for the awards and the judges were overwhelmed by the sheer scale of achievement from some well known and some relatively unknown business women operating their businesses here.

“With so many women at the top of their business game across a variety of industries, recognising Janet McCollum of Moy Park as this year’s Outstanding Business Woman was not a decision we took lightly. Janet is an outstanding business woman in every sense of the word.”

A genuine trail-blazer in a globallyinterfacing company, she is a leader who has truly demonstrated the world-beating quality of women entrepreneurs in Northern Ireland.

As chief executive of Northern Ireland’s largest company, Janet has had a number of senior roles during the last 20 years, including being its finance director, and she has been pivotal in helping it evolve into a major force in the UK and European food industry.

Janet McCollum said: “I am absolutely thrilled and delighted to win this award. We have so many wonderful women in business right across Northern Ireland contributing to the Northern Ireland economy and I’m so greatly honoured to receive this recognition.

To win this award is truly a great accolade to the Moy Park team, to such great people right

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Lisa Boyd, Cleaver Fulton Rankin, receives a Women in Business NI Award for Best in Professional Services from Kate Marshall Chair of Women in Business NI and category sponsor Ronnie Foreman, Managing Partner of Foreman Consultants, at the fourth annual Women in Business NI Awards.

across our company with such passion and energy who continually go above and beyond to ensure Moy Park is the successful and growing business it is today. Thank you so much, I’m absolutely overwhelmed.”

This year’s award winners are geographically spread across the six counties.

Contributing to the economy, they include entrepreneurs, leaders of organisations creating some of the most innovative products on the market worldwide, sole traders who operate e-commerce businesses trading globally and managers representing global operations here.

The winners Best New Start Up: Mandy Little and Cathy Fay, Porcellana Tile Studio; Best New Start Up Knowledge Economy: Irene McAleese, Limeforge Ltd. Entrepreneurship/Innovation: Colleen Harte, Lucy Annabella Ltd Best in Professional Services: Lisa Boyd, Cleaver Fulton Rankin.

Best Marketing Campaign: Aine McVerry, The MAC. Best Small Business: Siobhan Allan, Extras NI Ltd. Best Customer Service: Bernie McClelland, Rayanne House, Advancing Diversity in the Work Place: Tara Moore, Ulster University; Excellence in IT: Lesley Brown, dotRetailer.com.

Best Exporter: Clare Vallely, The Rug House Best Young Business Woman of the Year: Victoria Mann, Homemade by Manns Outstanding Management and Leadership: Ellvena Graham, Ulster Bank and Jackie Henry, Deloitte.

Outstanding Businesswoman of the Year Janet McCollum

Invest Northern Ireland supported the Women in Business NI Awards for the fourth time this year.

Jeremy Fitch, Invest NI’s executive director of Business Solutions, said: “Invest NI is pleased to play a part in encouraging entrepreneurship and recognising the significant contribution women are making to the growth and development of Northern Ireland businesses. These awards offer an important opportunity to celebrate the achievements of women such asJanet and recognise their success.”

Women in Business Women NI membership is an effective way of reaching hundreds of potential new contacts. It is the largest and fastest growing business network for female entrepreneurs and business leaders in Northern Ireland. Established 12 years ago, the network has 1,000 members spread throughout all industry sectors. You can join Women in Business NI online at www.womeninbusinessni.com follow the organisation on facebook at www.facebook.com/womeinbusinessni and on twitter @wibni

Janet McCollum of Moy Park receives the Women in Business NI Outstanding Business Woman of the Year Award for 2014 from Jeremy Fitch of InvestNI and Roseann Kelly of Women in Business NI.

Pamela Ballentine was host for the recent Women in Business NI Awards.

Ellvena Graham Ulster Bank and Jackie Henry Deloitte, receive the Women in Business NI Award for Outstanding Management and Leadership from Roseann Kelly, Chief Executive, and Kate Marshall, Chair of Women in Business NI, and category sponsor Tracey Schofield of Tughans, at the fourth annual Women in Business NI Awards.

Irene McAleese, Limeforge Ltd, receives a Women in Business NI Award for Best New Start Up Knowledge Economy from Roseann Kelly, Chief Executive of Women in Business NI, and category sponsor Ellvena Graham, Head of Ulster Bank Northern Ireland and Managing Director for SME Banking, at the fourth annual Women in Business NI Awards.

Victoria Mann, Homemade by Manns, receives a Women in Business NI Award for Best Young Business Woman of the Year from Kate Marshall Chair of Women in Business NI, and category sponsor Ursula Lavery, Technical Director Europe of Moy Park, at the fourth annual Women in Business NI Awards.

Dorcas Crawford, Edwards & Co, receives a highly commended Women in Business NI Award for Entrepreneurship / Innovation from Kate Marshall Chair of Women in Business NI, at the fourth annual Women in Business NI Awards.

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MOTORING

Now this is a sports car!

by Ian Beasant, BUSINESSFIRSTMAGAZINE motoring correspondent

ith the introduction of the F-Type coupe, just a year after the F-Type convertible, Jaguar is at the top of its game, of that there is no doubt.

While most car makers launch a coupe first and roadster second, Jag has done the opposite. It’s a clever plan. Roadsters often look a little clumsier than their tin-top siblings, so while the F-Type Convertible is undeniably handsome, the Coupe version is as close to design perfection as you’re likely to get. This Coupe looks so good with its wide rear wheel arches and its mix of contemporary and retro touches that look gorgeous from any angle.

Designer Ian Callum claims that the F-Type Coupe is his favourite creation to date, and it’s hard to argue. Like the E-Type, it has a long bonnet and short tail profile that gives it incredible road presence. It’s based on a wider and shorter XK platform, although the F-Type looks and feels a more focused and serious driver’s car than its classically styled stalemate.

Inside, it serves up a wonderful combination of quirkiness and quality. The gold-finished shift paddles have a rubberised coating that feels great, while the rocker switch next to the gearlever, which allows you to select engine modes, is modelled on switches in the cockpit of a Eurofighter. The driving position is low and yet visibility is good, except rear vision which is a little compromised by the angle of rear of the car .It still is easy to park thanks to the parking camera which works well.

I chose the 3.0 litre supercharged version to test. These supercharged motors have been honed to deliver tractable power and a

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stunning soundtrack. Even the entry-level model fires up with a bark, while every press of the throttle comes with an aggressive snarl.

The S version I drove sprints to 60mph in 4.8 seconds and is capable of 171 mph offering a surprising 25-30mpg.

Although Jaguar has made some seriously powerful machines in the past, their underperforming transmissions have usually taken the edge off the driving experience.

That’s all changed with the F-Type. The eightspeed AUTO in the F-TYPE is an incredible gearbox that fully showcases the ability of the engine.

It’s silky smooth in full auto mode, and works exceptionally well in semi-automatic

mode, too, delivering fast and crisp changes.

Unlike some semi-autos, where the manual shift is little more than a gimmick, the FType’s gearbox combines the control, accuracy and punch of a double-clutch transmission with the smoothness of a traditional self-shifter. The F-Type is just a beautiful car to drive, superbly built and the design is just stunning. It offers a fair bit of practicality as well with a large boot and with the engine being so smooth the F-Type is happy rumbling around the town.

Jaguar has certainly refreshed its image with the F-Type and the XF and now is a 21st Century contemporary brand.

MOTORING

Audi’s tremendous TT

by Ian Beasant, BUSINESSFIRSTMAGAZINE motoring correspondent

t’s actually hard to believe that Audi first introduced the TT to the market back in 1998. It not only placed Audi well and truly on the sports car radar, but was a successful seller with over 50,000 units sold.

Fast forward to 2006 and the second completely redesigned TT was launched. The marque enjoyed over 60,000 sales and this time had a diesel engine option available.

The Audi TT in its 3rd generation guise is a super, smart looking car. Audi has worked hard on making this a really true sports car that will appeal to sporty drivers. It’s lighter, shorter and narrower and has a longer wheel base. This really does transform the handling of the TT. The new TT comes standard with progressive steering. Its steering rack is specially geared to produce different boost ratios depending on the steering angle somewhat less direct on centre and very direct when the wheel is turned far solution provides for easy manoeuvring, agile handling and smooth straight-line stability. This makes the car an absolute joy to drive as the turn-in is crisp and precise The new TT generation will launch with three newly developed, powerful fourcylinder engines – one TDI and one TFSI and the top-of-the-line TFSI in the TTS. All displace 2,000 cc, and power ranges from 184 PS and 310 PS – an increase of up to 38 PS over the previous model.

All three engines reflect the Audi philosophy of rightsizing. Forced induction replaces displacement and together with direct injection provides for high efficiency with the support of the standard stop-start system. All engines comply with the Euro 6 emissions standard. Another point in common is the sound actuator that comes in combination with the optional Audi drive selects driving dynamics system (standard in the TTS). In the dynamic setting, it makes the exhaust sound more sonorous.

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The 2.0 TFSI 230 BHP engine in the car I tested was super smooth offering immediate response as soon as I touched the throttle pedal.

Performance was 0-62mph in six seconds and topped out at 150mph. All this while at the same time returning 47 miles per gallon!

The TT drove through a slick changing sixspeed manual gearbox and it really surprised me how well it handled. It felt as good as any sports car I have driven if not better. The TT also felt very safe at all speeds as the brakes were excellent and not overly sharp. The new TT is definitely a sports car that can be used every day as the ride quality is also very good.

The interior is spacious for the driver and passenger with just two small seats in the rear.

With these folded down there is enough space for luggage that would cover a weekend away.

The interior also expresses the futuristic sports car character of the new Audi TT and TTS. Strongly accentuated horizontals emphasize the width. All elements are clearly structured and have taut surfaces. They are framed by clean contours. The lines are light and almost seem to float. The sinewy arcs of the armrests in the door trims correspond

visually with the centre tunnel console, which in classic TT style supports the calves.

When viewed from above, the instrument panel resembles the wing of an aircraft and is strongly inclined toward the driver. The round air vents –. They house all of the air conditioning controls. The controls for the heated seats, temperature, recirculation mode, air flow distribution. Superb Hip hugging sport seats at to the high quality interior. The New TT has a virtual dash Operating concept.

The driver-oriented operating concept of the new TT and TTS has been redesigned from the ground up. The Coupé features two major innovations from Audi – the new virtual cockpit, which is a digital instrument cluster, which houses the entire speedo, revcounter and all the information you could possibly need, it also is home to the Satellite navigation and it’s all in LCD form, which works really well. The rest of the interior is clean and uncluttered.

In two wheel drive or fitted with the Quattro four wheel drive system the Audi TT is a sports car and probably the best one in its class.

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MOTORING

Surprise Discovery

and Rover is a very forward looking company, now owned by the Indian Steel company TATA. The vehicles are still designed and built in the UK and used all over the world in all sorts of situations, Land Rover are the undoubted kings of off-road driving with exceptional capabilities of taking people and kit that other off-roaders would not even consider possible.

The 2015 model Land Rover Discovery has again upped its game; SE becomes the new entry point to the Discovery range. With this change, you receive additional features as standard compared to the previous entry point GS specification. These include; cruise

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control, front fog lights, automatic headlamps and wipers, headlamp power wash, auto dimming rear view mirror and interior foot well and door puddle lamps. These are a spotlight that shines from the door mirror onto the ground beside the door- keeps the feet dry.

SE Tech replaces the previous XS specification and adds Xenon headlights with LED signature as standard whilst HSE variants now feature 20” alloy wheels as standard rather than the previous 19”.

I drove a Discovery powered by 3.0L SDV6 Diesel engine which has a turbocharger on it –not that you would notice as the engine was

a smooth as melted chocolate. It drove all four wheels through an eight speed automatic gearbox which if you so wished you could set up so as the Discovery would climb a cliff. I just left it in road mode and it was perfect always in the right gear at the right time and the changes were not noticeable. The Discovery is no slouch either and will sprint to 60MPH in 8.8 seconds with a top speed of 112mph. It is not hard to get 35 miles per gallon either.

The Discovery is a big vehicle and you sit in a nice elevated position, this vehicle is designed to hold seven people and it does with ease and comfort. The interior is Top class and the driving position and visibility are both excellent. It handles very well for a vehicle of this size and bulk giving more of a car feel; it was only when I braked hard I felt the weight of the vehicle pushing me on, but never a cause for concern as the brakes are nicely sharp.

The interior was so well finished and the exterior looked so distinguished I wondered to myself why you would spend nearly twice the amount of money on it big brother The Range Rover.

The Discovery retains its position as the ultimate all-purpose vehicle with over 1,100,000 retail sales and 219 international awards since its launch in 1989, commending both its breadth of capability and versatility attributes. A true seven-seater with stadium seating and the capacity to carry gear in a variety of configurations, the Land Rover Discovery adapts to suit any occasion.

Renault Twingo: the City Special T

he All-New Twingo is a clean-sheet-of paper car which takes into account all the joys and stresses of living and driving in the cities it was primarily designed for. It is shorter and easier to park than its predecessor, more agile and greater fun to drive, more manoeuvrable with better allround visibility, and simpler to get in and out of. And it exhibits substantial improvements in quality.

The Twingo may have a familiar name but that is probably the only thing it has in common with its predecessors, but links with the past stop there.

In every other respect it’s all-new and radically different, introducing a number of firsts for the model – a rear-mounted engine, rear-wheel drive and five doors. The rear engine and rear drive set up did really surprise me ,with engine hidden below the rear luggage compartment, it is designed nearly back to front as the Twingo has all the attributes and design of a front wheel drive car neatly packaged and put in the back.

In keeping with the downsizing of the new Twingo, Renault has taken the opportunity to downsize the engines with a range of

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ultra-efficient three-cylinder 12-valve units.

An all-new naturally aspirated SCe 70 1.0litre Renault engine powers all but one model in the line-up. This delivers 70 hp at 6,000 rpm and 91 Nm of torque at 2,850 rpm, giving 0-62 mph acceleration in 14.5 seconds with a top speed of 94 mph. In the Dynamique SCe 70 with Stop & Start model, official fuel economy is 67.3 mpg, with CO2 emissions of 95 g/km.

I drove the 70 hp engine version , it was an

impressive engine and tremendously economical. The Twingo felt lively and was great fun to drive , the steering has been designed for city driving as it is very light and offers little feedback, but this is a city car.

The interior is characterised by a commanding driving position offering outstanding all-round visibility and a sporty cowling and steering wheel in an uncluttered dash design. If you live in the City the Twingo maybe just the car you are looking for.

HOTEL REVIEW

should you spend a night with THE GHOST ON THE COAST? Gavin Walker visits the recently refurbished Ballygally Castle Hotel

astings hotels popular north coast hotel might have undergone a £3million renovation that has introduced 18 new coast view rooms and a brand new ballroom, but the ghost of Ballygally, who has been around for the best part of 400 years, is still an important part of the property.

The popular theory is that the ghost is that of Lady Isabella Shaw, wife of Lord James Shaw. Legend has it that Lord Shaw wanted a son, and when his wife delivered his heir, he snatched the baby from his wife and locked her in a room at the top of the castle. While trying to escape to search for her beloved child, Lady Isabella fell to her death from the

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tower window!

Lady Isabella's ghost is reputed to be a "friendly" spirit who walks the corridors of the old castle. Over the years many guests have reported strange experiences and have felt a presence in their rooms! There are also endless stories of unexplained noises in the night and an eerie green mist over the castle!

Thankfully we didn’t encounter the Lady Isabella, but instead enjoyed an outstanding dinner and breakfast in the towering Garden Restaurant (yes there is a beautful garden to the rear of the hotel) and a wonderful night’s sleep in one of Hastings famously comfortable beds.

When we arrived the River Room which overlooks the trout stream and the Irish Sea, was set up for a dinner - and a Young Farmers Dinner at that -so we didn’t expect to sleep too well. But thanks to soundproofing and a thoughtful build, the noise from the hooley downstairs didn’t cost us one minute of lost beauty sleep.

So while the north coast as we understand it is a few miles further up the road, a night at the Ballygally Castle Hotel is definitely worth adding to your 2015 wish list. But don’t wait too long, even with the additional 18 rooms, the hotel was sold out on the night we stayed!

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BUSINESS IN THE COMMUNITY

Business Thinking Rewired Series inspires local business J

ames Street South, Belfast was the venue for Arts & Business NI’s recent business breakfast series, Business Thinking Rewired. These events demonstrated how looking at business issues through the lens of culture can create amazing, meaningful business transformation.

The audience were inspired by Professor Giovanni Schiuma, Professor of Arts-based Management and Director of the Innovation Insights Hub at University of the Arts London as he shared insights into how collaboration with the arts sector has a positive impact on business outputs. Professor Schiuma is widely recognised as one of the world’s leading experts in the fields of the use of arts in business and strategic knowledge management.

Sponsorship and beyond…

Professor Schiuma posed the question: Do the arts need business more than business needs the arts? The answer is that both sectors benefit from one another.

The relationship between the cultural and business sector is always evolving and whilst sponsorship plays an important role in defining how arts and business engage, it is just a snapshot of the value of what can be achieved by in-depth collaboration and engagement with the arts.

Sponsorship helps raise brand awareness, builds reputation and communicates identity.

However Schiuma highlighted how arts and business engagement first starts with the creation of a creative partnership between two different worlds and then can move beyond to an exchange of energy and cross innovation that can be generated.

There are mutual benefits when arts and business pass the boundaries of sponsorship.

Creative partnerships expand beyond sponsorship capturing new value dimensions.

Arts can provide businesses new ways to articulate how they work and what they do.

The business sector should be engaging with the arts and enjoying the value they can obtain from such partnerships.

Professor Schiuma shared his six value drivers of the 21st century business and illustrated how the arts are adding value to everyday business activity across these six value drivers: Experiences - we live in an experience based economy, businesses are exploring how they can incorporate symbolic value and meaning into their products, their engagement strategies and the ethos of their organisation. The arts are the perfect partner to undertake such activities.

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George McKinney, director of technology & services, Invest NI; Paul Geraghty, Picturk; Professor Giovanni Schiuma, University of the Arts London; Mary Trainor-Nagele, Arts & Business NI, Davy Elliott, risk manager, AES and Arthur O’Brien, partner, KPMG

Emotions – it is widely recognised that to move from ‘good to great’ individuals and organisations need to believe in and love what they do. Emotional engagement can help instill an organisation’s vision within the company. The arts can support how to develop dimensions of the mood and the emotions of people that are so critical in developing emotional intelligence within an organisation and its leaders and helping instill a vision.

Energy – principles of mindfulness, i.e. being to be fully present in the moment and in what your organisation does, is being cited by many leadership strategists as a useful principle in managing the energy and focus within an organisation and its people. The arts are a fantastic catalyst, via initiatives such displaying arts, or an artist in residence or the use of creative arts based training, which can be used to enthuse, train and motivate staff, and are proving to be very impactful for many businesses.

Ethics - it is important to have the right kind of people in an organisation. Working with the arts can help transfer the values and culture of the company into the behaviour of staff.

Environment – bringing arts and creativity within the company can create an inspirational workplace where people experience a positive atmosphere and energy, inspiring people in new ways to stimulate new thinking.

Engagement – with the arts can help engage with employees and bring new tools

to address workplace challenges.

Across the Business Thinking Rewired series the Arts & Business NI audience heard from many NI businesses who demonstrated how the arts can help organisations engage with people to create organisational value in transforming and shaping the business environment.

The application of the arts and creative processes within a business are a catalyst for the development of an innovation intensive organisation. They act as a driver to transform and to build knowledge, impacting on a company’s brand, social relationship and organisational capital. These assets build business processes and competences within an organisation and ultimately drive achievement of strategic and performance objectives. It is only when you integrate the cultures and creative partnerships into the strategy of the organisation in a strategic way that business can start to unfold new successes.

Interested in finding out more? Watch the film clips from the Business Thinking Rewired series at www.artsandbusinessni.org.uk or on the Arts & Business NI you tube channel. If you are inspired and interested in finding out how your business can get involved with the arts, contact A&B NI office.

The breakfasts are in association with AES with support by Invest NI and run annually as part of Arts & Business NI programme of events.