Digital Transformation campaign 2018

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MINISTER PAT BREEN Digitisation is transforming businesses P02

OMNICHANNEL STANDARDS According to the eCAI P06

ISME Cyber security for small businesses ONLINE

Digital Transformation

Aisling Curtis “We are expecting a digital disruption milestone by 2020.

Business leaders know it is imminent, but are not prepared for it.”

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IN THIS ISSUE

Helen Dixon

David Campbell

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Ireland’s booming economy brings digital opportunities Digital technologies bring a wealth of new opportunities and added risk. Minister, Pat Breen, looks at the changing economic landscape in Ireland.

I

reland is now one of the fastest growing economies in Europe.

We have over two million people at work and we are heading for full employment. The rate of unemployment is 6.1 per cent - a far cry from the high of over 15 per cent that followed the economic crash.

Prospects for the immediate future are also positive with the economy projected to grow by 3.5 per cent in 2018.

However, Brexit and other global developments have underlined the need for us to remain vigilant to changing economic circumstances and to be prepared for the opportunities and challenges that continue to emerge. Digitisation is one such opportunity that we must enthusiastically embrace.

The internet and digital technologies are transforming every facet of Follow us

our lives. As well as the difference it makes to us as citizens, digitisation provides huge economic opportunities. It is also altering the structure of long-established business models and challenging our traditional approaches to enterprise development.

For a progressive, modern economy such as Ireland’s, it is critical that individuals and enterprises are encouraged and supported to take advantage of digitisation.

The EU digital single market strategy has the goal of adapting our current single market rules to reflect the realities of a 21st-century digital environment. The strategy is made up of 16 initiatives that support three key pillars: 1.

Simplifying access to digitisation for consumers and business 2.

Shaping the environment

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Pat Breen T.D. Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection

“Technologies are transforming every facet of our lives” @MediaplanetIE

for digital networks and services to flourish 3.

Maximising the growth potential of the digital economy Ireland has long been recognised as a digital front runner within the EU and I am firmly of the view that Ireland has a key role to play in developing a stronger and more coherent EU digital single market that will boost jobs and economic growth, open new opportunities for our SMEs and ensure our global competitiveness.

With success in the digital age comes an increase in data. There are understandable concerns that this data is retained safely and used responsibly. As a government, we fully understand this and have a data protection regime that is the best in Europe. Since 2014 alone, there has been a six-fold increase in the budget for the Office of the Data @MediaplanetUK

Protection Commissioner, allowing it to perform to the highest international standards.

Further digitisation also increases the demand for new skills. The adequacy and availability of digital skills and high-level ICT skills in enterprises, and the capability of entrepreneurs and SMEs across all sectors of the economy to exploit digital technologies is paramount. The government is refining the education and training system so it continues to identify, develop and activate the mix of skills needed.

It is important for the business community to be proactive in embracing the opportunities of the continuous advances in digital technology, while clearly understanding both the positive impacts and challenges that they face. It’s an exciting time for Irish enterprise.

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Businesses must bridge their digital skills gap by multi-skilling staff SPONSORED

to develop a sustainable digital skill set and address digital innovation in the business,” he says. “Investing in employees’ skills, career and educational development is also highly valued and leads to improved employee retention and higher productivity rates,” says Dunne.

By Sean Hargrave

Companies need to improve digital skills to take down siloes for digital transformation efforts to be successful. The speed of technological change across businesses in Ireland is accelerating at such pace, it has been hard for skill sets to keep up.

While in the last number of years there has been much discussion about the digital skills challenge, there is still concern about shortages in the pipeline of this talent being fed into the workforce. Paul Dunne, Founder and CEO of Digital Skills Academy, says more needs to be done today to upskill the country’s current workforce. “There’s a clear skills gap in ICT, especially in areas such as data science and app development,” he says.

“But there is also a digital skills shortage across all business functions in organisations, and particularly in digital business management. Bridging this skills gap is about enabling people already in the workforce to become digitally-empowered and more hybrid, so that business professionals develop greater understanding of tech, and our technology experts become more business-savvy.

“It also means organisations need to foster cross-functional teamwork. We need to break down siloes so that digital transformation becomes a mindset throughout organisations and a common language internally.”

Paul Dunne Founder and CEO, Digital Skills Academy

A shortage in digital skills adds financial risks Digital transformation is inevitable and if businesses do not upskill their own talent pools with fundamental digital skills but choose to outsource or rely on recruiting from outside the organisation, there are several important ramifications to consider, Dunne warns. “Companies that don’t invest in equipping their own staff with the necessary skills, risk siloes remaining across their organisation,” he says.

“Perhaps the biggest risk is that businesses end up relying solely on a ‘buy’ strategy, going out to the market to try to recruit the skills they need. This can prove to be a costly and counter-productive solution resulting in new hires in critical roles who will have a ramp time – if they stay long enough to build up their company knowledge and internalise the company culture and values. Instead of being overly dependent on a ‘buy’ strategy, organisations should give greater focus to a ‘build’ strategy, providing staff with the training that will enable them

Financial services, tech and telecoms are most affected According to Dunne, the skills required for digital business transformation strategies to succeed are missing to varying degrees across all industries. But several sectors stand out. “The most highly affected sectors that we notice are financial services, technology, telecommunications and technology consultancies,” he explains.

“They need to embed digital skills within their roles. This entails developing a skill set in areas such as user experience (UX) design, agile project management and agile thinking, digital innovation and digital collaboration. Among tech roles, there’s a real need for more data scientists who can turn analytics in to insights, and data engineers who can build applications to exploit this.”

The pace of digital transformation exposes a growing skills gap that needs to be bridged faster than is currently being achieved. Rather than just relying on ‘buying in’, companies must upskill their current workforce to empower them to tackle the challenges of digital transformation. Preparing an already-existing team for digitalisation means utilising a current skill set that already understands the organisation, thus boosting efficiency while retaining and developing talent.

Find out more on digitalskillsacademy.com

Companies must act now or face fines To get your organisation ready for the GDPR:

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• Formulate a plan

By Steve Hemsley

With GDPR arriving in May, Irish organisations must ensure their data protection processes are transparent, accountable and secure.

Any business that handles personal data has until May 25th 2018 to comply with the new EU General Data Protection Regulation (GDPR) or face potential fines. This comes as the EU replaces its existing data protection framework in order to strengthen citizens’ privacy by making organisations more transparent, accountable and secure when it comes to the personal information they keep.

The GDPR will provide individuals with more power to discover what personal information organisations hold and get it deleted. Mike Harris, partner at professional services firm Grant Thornton Ireland, says organisations need a structured approach to ensure they comply. “GDPR will achieve consistency across the EU regarding data protection and for most organisations it will require a change in culture in how they handle personal information,” he says. Harris adds that organisations must take a project-managed approach to achieving compliance. This means setting milestones and having governance procedures in place.

Harris says organisations should adopt a ‘privacy by design’ approach so that existing and future technology and marketing systems have GDPR-compliant privacy settings built in. It

Mike Harris Partner, Grant Thornton Ireland

“Even if you are not fully compliant on May 25th, it is important to show that efforts have been made to comply” is also important that organisations work with the companies in their supply chain to ensure they are also GDPR-compliant.

“Even if you are not fully compliant on May 25th, it is important to show that efforts have been made to comply,” says Harris. “You do not want to have a data breach in 2019 and for Ireland’s Data Protection Commissioner (DPC) to discover you have done nothing.”

The DPC could fine organisations up to €20m or four per cent of total global turnover but if a company is compliant under current law its approach to data protection should largely be valid under the GDPR.

Analyse what you are doing now and seeing what gaps must be plugged to meet GDPR rules. Asking: ‘How is consent managed today?’ This could mean updating privacy policies or improving technology and systems relating to data security.

• Implement that plan

Close the gaps you identified before May 25th. This might include formulating a new data-breach plan and having processes in place to handle an individual’s request to see what personal data your organisation holds on them. (This must be supplied for free within one month.) GDPR also needs to be communicated effectively to staff and suppliers who must be able to recognise, for instance, when a data breach has occurred.

• Ensure ongoing compliance

Introduce processes that make sure data security and compliance remains up to date. People must have an opportunity to remove consent, for example, and the reason an individual’s data is being requested must always be very clear. There must also be a process that means personal data is deleted if it is no longer needed for the purpose for which it was originally collected.

Find out more on grantthornton.ie

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5 key steps for organisations ahead of the GDPR

Helen Dixon Data Protection Commissioner, Ireland

The General Data Protection Regulation comes into force this May. Data Protection Commissioner, Helen Dixon, gives her insight on how to prepare.

1. Senior management must provide support Senior management support is critical for buy-in , implementing what needs to be done and ensuring the appropriate budget and resources are allocated to the GDPR project. Consider: • What resources and budget you will need; • How you are going to divide up your programme, e.g. by themes; • Who will own actions and how they will be tracked; • How and when to update and leverage senior management.

2. A clear project management plan Implementing the GDPR cannot simply be the work of the compliance or privacy officer but rather must be a full, cross-business project plan with a cross-functional task force within the organisation to get all elements of the GDPR readiness in place – legal, compliance, business units, IT, risk management; they all need to be at the table.

3. Know your organisation’s data Know what data you have and where it is. Ask yourself: • Who are your data subjects?

• Do you process sensitive personal data?

• Do you collect data about children?

• What grounds do you currently rely on to process personal data?

• Do you make automated decisions?

• Do you profile individuals?

• Do you send data outside the EEA? • Do you have a breach notification process already?

• Do you have a DPO already?

4. Adopt a risk-based approach Understand what risks you are willing to accept and which data assets are critical to compliance and therefore must be prioritised. Your GDPR task force should continuously examine issues and processes such as legal issues, cyber security, application development, third party contracts and electronic marketing processes.

When looking at risk for your organisation, look at the tangible harms to individuals that your organisation needs to safeguard against. These are usefully detailed in Recital 75 of the GDPR and include processing that could give rise to: • Discrimination, • Identity theft or fraud, • Financial loss, • Damage to reputation, • Loss of confidentiality of personal data protected by professional secrecy, • Unauthorised reversal of pseudonymisation; or • Any other significant economic or social disadvantage.

5. Find the gaps in your data processes A gap analysis should highlight processes you need to modify before the GDPR, e.g. how you collect consent and if you need to initiate a new consent moment that meets the GDPR standard.

The gap analysis should identify if you have legacy datasets you didn’t know you had, which could be deleted where no purpose for keeping them can be identified.

Digital transformation is business evolution Digital transformation is unavoidable, but it brings opportunity, optimisation and growth with it.

Why does digitalisation seem to be a necessity for so many organisations?

We are expecting a digital disruption milestone by 2020.

Business leaders know it is imminent, but are not prepared for it. In fact, 80 per cent of global business leaders believe their industry will be digitally transformed, but less than half have a plan to tackle this.

These findings come from research into digital transformation; globally with Harvard Business Review, and in Ireland with Amárach Research.

Competitors and new entrants are using cloud computing, data analytics and the power of artificial intelligence (AI) for competitive advantage. Companies like Hailo, AirBnB, and Deliveroo – with little sectoral experience but with customer insights and maximised technology benefits – are disrupting existing industries and securing significant market share.

What key benefits can Irish businesses see from this digitalisation?

Irish businesses must see digital transformation as business evolution. By 2020, Microsoft predicts all companies will be digital companies. But this is not just about fundamental survival; digital transformation can deliver accelerated growth and huge opportunities.

The most recent Irish government report on the macroeconomic impact of the internet showed that the digital economy contributed six per cent of gross domestic product (GDP), or the equivalent of €12.3billion. The report concluded that this would expand to €21.4billion, or eight per cent of GDP, by 2020.

Digital transformation will enable Irish businesses to achieve higher revenues and provide access to global markets in a fraction of the time it took five years ago. According to a

Additionally, organisations sometimes have a limited view of their digital transformation versus their competition. This ‘digital myopia’ could see these businesses splinter the very thing they seek to transform, their business.

How inclusive is the transformation plan?

Aisling Curtis Commercial Director, Microsoft Ireland

2016 report by the IEDR, 80 per cent of Irish SMEs cannot process payments online, and over 72 per cent have no online presence. It is estimated that online spending to sites overseas cost Ireland Inc. €4.5 billion in 2016.

How can current processes and operations benefit from ‘going digital’?

Effective digital transformation will allow Irish businesses to optimise operations with connected field equipment, integrated CRM and operations workflows, continuous learning and predictive analytics, and processes that move them from analog to digital.

Another important digital transformation benefit will come through the streamlining of processes with artificial intelligence (AI). AI will play an integral role in digitisation by providing autonomous, smart machine-based processes to improve business outcomes.

Do you feel there are limitations to how far a business can digitally transform?

Currently, the significant limitation to effective digital transformation is when organisations focus only on technical transformation, while not taking an integrated technical and cultural change approach.

While digital-savvy employees in their 20s and 30s might be on board, our research shows your older employees may feel displaced or even threatened by digital transformation and not taking a fully inclusive approach may limit successful implementation.

How can organisations best prepare themselves for making digital changes to their business?

From our experience, this needs to be a multi-layered, fully integrated approach across technology and a cultural change utilising four key pillars: • Empower your employees To achieve more by designing a workplace where every working style can thrive – one that harnesses digital intelligence to improve experiences and enables the flexibility of mobility, while keeping your organisation, people and information secure.

• Engage your customers Through natural, tailored experiences that delight them and harness data representing a complete view of your customer.

• Optimise your operations Accelerate the responsiveness of your business, improve service levels, and reduce costs with intelligent processes that anticipate the future and coordinate people and assets more efficiently.

• Reinvent products and business models Harness data as a strategic asset and deliver personalisation to customers, by innovating with new business models, services, products and experiences.

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Why businesses must move to digital Digital transformation can bring benefits to all areas of a business — but it’s not simply a question of introducing new tech. A mindset change is also required from the organisation.

By Tony Greenway SPONSORED

D

igital transformation involving organisation, systems and processes is one of the most powerful drivers of change and opportunity for businesses and network operators, says Ian Hall, Head of Sales for Digital Business Systems in Ireland at Ericsson.

To begin with, a transition to digital services and operations has the power to significantly improve an organisation’s topline revenue, cost optimisation, and customer retention and growth. It can also lead to new business and partnership models, where new digital assets — such as data from customer relations and operations — form a new base for new services, innovation and partnerships for network operators and service providers.

“Digital operations are more automated, more dynamic, and create an efficiency far beyond the traditional operations processes of today,” insists Hall. “We’ll see more and more of the original human-defined processes being reshaped for machine execution, with greatly improved productivity as the result.”

Transformation beyond technology Hall’s message, then, is that businesses and network operators can run but not hide from digitalisation. “Gartner predicts that, by 2020, a customer will manage 85 per cent of the relationship with an enterprise without interacting with a human through digital means,” he says. “Also by 2020, information will be used to reinvent, digitalise or eliminate 80 per cent of business processes and products from the last decade; and business executives predict that up to 47 per cent of revenues will be influenced by digital by 2020.”

Businesses that continue to resist digitalisation might be doing so because of fear of change, fear of transformation failure, a focus on other priorities or a lack of sponsorship from top management. But, ultimately, by not embedding new digital technolo-

Ian Hall Head of Sales for Digital Business Systems in Ireland, Ericsson

gy and capabilities into their organisation and processes, they risk being left behind.

These technologies range across both IT (e.g.

Digital Devices, Data Analytics, Digital Self Care and eCommerce platforms, Customer Experience Management, IT Cloud) and the Converged Network (e.g. Telco Cloud, Network Function Virtualisation (NFV), IoT, Artificial Intelligence).

Put like that, a move to digital sounds like a must-do. Yet this kind of transformation requires more than just a modernisation of existing IT and network architecture or the introduction of new digital capabilities. That’s because “transformation goes beyond the technology,” warns Hall. For it to be successfully implemented, it also requires a mindset shift from management and staff. Gratifyingly, however, Hall says that the company is driving this change first hand “through our work in over 180 countries across the key converging areas of mobility, broadband and cloud. This gives us a deep understanding of telecom and ICT business objectives, challenges and processes, which are key success factors in digital transformation projects.”

The need for good planning Primarily, digital transformation isn’t about an organisation doing what it already does but better, he stresses; it’s about doing things differently. “This is a process that brings change across all aspects of business — and across all businesses,” says Hall. “For example, customer online digital engagements are more personal, relevant and extend far beyond

what used to be possible. Sometimes these are small, simple things like a real-time update of a payment just made, or the real-time notification of your taxi arrival to your mobile device. Other times, it’s a whole new, content-rich experience.”

Worryingly, however, figures from McKinsey reveal that 60 to 70 per cent of large IT and business transformation programmes worldwide do not fully succeed. This can often be due to a lack of clear business objectives and a well-communicated programme plan at the outset, and/or the absence of staff and stakeholder engagement and support.

“Transformation programmes need to be planned well in advance, executed with the right level of know-how and expertise, and with clear business objectives and improvements in mind from the outset,” says Hall.

This doesn’t have to be a disruptive process. If transformation is thought out correctly from the start with all staff, stakeholders and management on board, it’s more than possible to achieve a smooth transition.

The upside for telecom operators Hall also points out that digital transformation has significant benefits for telecom operators. First, there’s the potential revenue increase they may see from offering new digital services in several areas, such as cloud-based services for consumers or enterprises, entertainment and content, collaboration services for consumer and business, home automation, security and safety, financial services and internet of things (IoT) services.

Then there’s an improvement in customer experience and customer satisfaction; and, finally, by simplifying and optimising their organisation, operational processes, technology, and infrastructure, it’s easier to efficiently and effectively create, deliver and manage services to end customers.

“Many market analysts are saying that only operators who have gone through this digital transformation will be able to survive after this revolution, and that digitalisation can be considered as a mandatory step for survival,” says Hall. “What I do know, is that digitalisation is a force that will remain vital for many years to come — and we are just in an early stage of that journey for many operators.”

How going digital made life easier for a Chilean telecoms operator and its customers A few years ago, Entel — the largest Chilean telecoms operator — made the decision to implement a digital transformation programme with Ericsson after a period of sustained customer growth.

It had various reasons for doing so. The company wanted to provide consumers with a consistent omnichannel user experience, while at the same time reducing the cost of customer interaction and engagement. It also recognised its need to reduce time-to-market for new product launches, and to empower business customers to self-manage their corporate accounts. Plus, after acquiring another network operator in Peru, it knew that its different operations and systems had to be streamlined.

A better experience for customers Entel worked with Ericsson on what has been a two-year project to date. It now has market-leading operational and business support systems software — such as billing, real-time charging, inventory, product catalogue, and order management — and IT professional services. As part of the transformation project, Entel’s back-office processes were also automated and aligned to reduce costs in ongoing digital operations.

As a result, Entel’s customers are now able to carry out a wide range of activities digitally and online when doing business with the company, such as finding offerings online, comparing offerings, making online purchases, and getting fast and automated deliveries. They’re also able to receive new promotions, self-configure their services and devices, and ultimately enjoy a seamless customer experience.

Read more on Ericsson.com

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David Campbell eCommerce Manager, Retail Excellence

Building trust is key to eCommerce success

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Omnichannel services mean more loyal customers

Omnichannel strategies are offering shoppers great, consistent experiences that are getting them to spend more and keep coming back.

By Sean Hargrave

Modern retailers are operating across multiple channels, David Campbell explains how to build trust and maximise these new opportunities. eCommerce continues to grow rapidly each year with an increased focus on the mobile-first approach. Over €602 billion was spent online across the EU in 2017 and it’s crucial we support Irish retailers to capitalise on these opportunities. The Irish eCommerce Trustmark, launched in partnership with eCommerce Europe, enhances consumer confidence and promotes cross-border eCommerce. An eCommerce dashboard in November highlighted a 74 per cent year on year increase in mobile browsing activity between 2016 and 2017, with many retailers reporting their busiest online trading period in history during Cyber Week 2017 (from Monday 27th November).

As competition within the eCommerce space grows, so do customers’ concerns with privacy and security. What can retailers do to establish and build trust from consumers?

Trust plays a pivotal role when consumers are shopping online.

The Irish eCommerce Trustmark ensures a safe environment for online shoppers, which is becoming more relevant with the GDPR legislation being introduced in May this year.

A certified retailer with the Trustmark displayed on their website indicates to the consumer that they comply with the latest Irish and EU legislation. Recent EU surveys indicate that a Trustmark can increase conversion rates by up to 26 per cent.

Scaling your business can often be the make or break for many SMEs; eCommerce is no different.

What advice would you give to those looking to bring their company to the next level?

One of the biggest challenges for SMEs is resources. Almost one in five Irish SMEs have no digital presence whatsoever – while only 40 per cent of Irish SMEs with a website can process sales orders online.

I would recommend extensive research into consumer shopping habits, high potential markets, web development agencies, logistics and payment providers and grants to assist SMEs looking to scale. Steps such as eReceipts in-store will help develop a more efficient CRM (customer relationship management) database to assist with future re-marketing strategies.

It’s crucial to ensure your website is translated into the various markets you are trading within and also to constantly innovate your customer experience through live chat, improved product sizing guides and flexible delivery options, creating a simplified user experience.

M

odern shopping has evolved faster than many retailers can keep up with. The power of the internet means customers now expect to select a variety of items and have them packaged up and delivered to their door by the next day.

At the same time, the vast majority of purchases are still made on the high street. One of the biggest trends of late is ‘click and collect,’ which marries offline and online experiences.

Savvy retailers are starting to realise that their future success lies not only in being present on the high street and online, but excelling in each by offering a consistent service and a seamless customer journey across both.

According to Niall Bodkin, chairman of the eCommerce Association of Ireland, this is the difference between multichannel, being available on several channels, and omnichannel, joining up the dots between them.

“It’s all about true continuity of the customer experience,” he says. “It’s presenting your sales, customer experience and social channels in a consistent and seamless manner wherever your customer chooses to interact with you.

“It’s an extension of your brand and how you want to present yourself to your customers. The whole experience should be intuitive giving the user what they come to expect from you and where they come to expect it.”

Creating a positive customer experience both on and offline is crucial In practice, this might mean starting an order on a desktop and then logging in later on a mobile to complete it. It means customers never being frustrated by ordering something online that turns out to be out of stock nor, crucially, ordering items online to pick up in-store from a branch that does not stock them.

It is increasingly working in the other direction too, Bodkin points out. Shoppers in-store are now finding online ordering is a great way of not leaving empty-handed.

“Kiosks or point of sale terminals are increasingly being used to bring internet ordering into a shop,”he says.

“It’s perfect for when a shop doesn’t have something in stock but they can help the customer order it. The alternative is to tell them to go home and order, but how many will?

It’s far better to handle it in-store and retailers are finding that the public are far more willing to share their personal data with kiosks than an online marketing form.”

Improve experience with detailed point of sale information Anybody wondering what this looks like in real life would

Niall Bodkin Chairman, eCommerce Association of Ireland

be well advised to pop in to a Maplin store. The electronics retailer has rolled out consistent branding across its online and physical stores. Within each store, the part that impresses Bodkin the most is the terminals available for questions. Rather than use a personal device to ask a question or check an item’s specification, and potentially seeing an offer from a rival retailer, the terminals answer queries in-store.

It is a far better experience than Bodkin can recall, particularly when compared with a rival electronics store where there was little point of sale information, product names that did not match up with those given online and differences in product specifications.

Inconsistencies can frustrate customers and send them to rivals, whereas delivering omnichannel effectively has the opposite effect, he points out.

“According to a recent study published in Harvard Business Review, omnichannel users are 23 per cent more likely to revisit stores and recommend the brand to others,” he says.“They’re also 13 per cent more likely to buy in-store. I think we all know that when we know a retailer gets it right and they offer great customer service across their channels, you’re less likely to go off looking for a rival offer. You’re less price sensitive if you know you’re going to get good service with a familiar brand that makes it convenient for you to either have something delivered or pop in and pick it up, and the same for returns.”

Where this is going to take retail is not yet known. There is even potential for technology to link the physical customer journey, i.e. recognising a customer as they walk into a store and flashing up offers of products they might be interested in on the customer’s own phone.

Quite whether the public is ready for this, or will find it “spooky,” has yet to be seen but Bodkin suggests, if the customer gets value from it, they are more likely to accept sharing data.

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Irish SMEs’ digital health is improving

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IE Domain Registry (IEDR) has launched the latest edition of its Digital Health Index, an analysis of the quantity and quality of digital assets owned by Irish SMEs, such as websites, eCommerce tools and social media profiles.

In this edition (Quarter 4 2017), we record our highest ever score: 49.0 up from 45.43 in the previous Quarter 1 2017 research.

The high score reflects SMEs’ use of certain digital assets, particularly websites, social media platforms profiles and data analytics software. We also found that SMEs are more confident in the quality of their digital assets, versus their competitors, and recognise the positive contribution an online presence makes to their overall success. While only 40 per cent of those with a website can take sales orders, it is a noteworthy improvement on just 30 per cent in the last wave of research, indicating that SMEs are realising the benefits of selling online.

However, this report reveals that SMEs with a website earn, on average, an additional €26,825 per annum and 78 per cent of them said their website was important in generating new business and sales.

While SMEs’ digital health is on the rise, further improvements are required in order for SMEs to compete in the global eCommerce marketplace.

Oonagh McCutcheon Customer Operations Manager, IE Domain Registry

Despite these improvements, most SMEs are still not engaging in eCommerce. This is at a time when Ireland’s eCommerce industry is expected to grow to €14bn by 2021. Unfortunately, about 60 per cent of this figure is going overseas*. Irish consumers are not waiting for SMEs to digitise their sales offerings: more than half (54 per cent) would shop with a competitor for the same product or service if their preferred retailer was offline. Further findings reveal that almost 70 per cent of consumers find it frustrating or very frustrating if they can’t find a business online. The 19 per cent of SMEs, almost one in five, that have no online presence, claim that because the majority of their business is word-of-mouth, going online is not necessary.

To see the full report, visit iedr.ie *Source: Virgin Media Digital Insights Report 2016

Making dot ie access easier The rules for registering dot ie domain names are changing. From March 2018, the need to explain why you want a particular name when registering a new dot ie domain name (also called ‘claim to the name’) will be removed. This change will make it faster and easier for those with real Irish connections, including SMEs, to register any available domain they want.

Before then, businesses should make sure to register any available dot ie domain names they want, as this is the only way to ensure no one else does.

ECOMMERCE IS A NUMBERS GAME, AND IRP’S NUMBERS SPEAK FOR THEMSELVES...

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Its statistical based approach takes the guess work out of Ecommerce

IRP Commerce - Glandore, Fitzwilliam Hall, Fitzwilliam Place, Dublin 2, Ireland Tel: +353(0)1 513 4969 www.irpcommerce.com

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Almost 1 3 of Irish companies have no digital strategy, is your organisation one of them? have defined digital strategies for parts of their business

29% of Irish businesses have no defined digital strategy

43%

Key drivers and barriers:

Technology trends: 22/3 say the 3 development of new software and apps is the top tech trend for them, however, only 1/3 have actually implemented these.

66%

believe the digital technology of tomorrow is cyber-physical systems and the Internet of Things (IoT) – the integration of people, products and devices.

1 4

29% “don’t know much about it” but 46% of respondents say they are “familiar with digitalisation”

report they’ve made good progress in relation to IoT.

40% are confident their company has the skills required to evaluate emerging technology

1

Over 50% of companies are still in the initial/planning phase of implementing technologies

Key barriers to implementation: 33%

37%

47%

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have conducted an economic feasibility study or an analysis of workflow with a digital focus

Key findings:

Less than 1 3 have such a strategy for the company as a whole

14

57%

67%

Lack of partners to implement new technologies Training employees

Operating costs for licences and software updates Funding required

2 cannot identify a digitalisation project in their company’s medium-term plans

Lack of tax advantages for investment in digitalisation

About the survey

The survey of 135 management and business leaders across SMEs and large enterprises was conducted by international agency Buchele Gmbh on behalf of Siemens. Through a combination of telephone interviews and questionnaires, the aim of the survey was to discover how companies understand digitalisation and the value they place on it. Participants were asked who is responsible for digital strategy at their company, what challenges the company is facing in the area of digitalisation and what requirements they anticipate for the future.There were respondents across 18 industries including food and beverage, pharmaceuticals, electrical and electronics, water treatment, power utilities and infrastructure/ construction.

Helping Irish companies unlock the potential of digitalisation Irish companies have yet to fully appreciate and unlock the value presented by digitalisation, which involves integrating Big Data and New Business Models to deliver increased productivity and boost competitiveness. A report ‘Digitalisation: Unlocking the Potential’ explores the current level of adoption among Irish companies across all sectors with a focus on Ireland’s food and beverage, pharmaceuticals and electrical and electronics industries – as well as the barriers they face when it comes to embracing digitalisation.

Gary O’Callaghan, chief executive, Siemens Ireland, said: “As a world leader in the fields of electrification and automation, we recognise the opportunity that digitalisation presents to Irish businesses in boosting competitiveness and using resources and skills more efficiently. It’s essential that Irish companies position themselves to take advantage of the benefits of digitalisation. If we are not doing it in Ireland, somebody somewhere is, which is a threat to the sustainability of Irish business.

In general, many companies in Ireland still have room to grow when it comes to implementing an holistic digitalisation strategy and should therefore seize this potential in order to improve their internal processes, productivity and cooperation with suppliers and customers.

Digitalisation will also be a key factor in the choice of business location in the years ahead and policy makers as well as business leaders need to ensure that Ireland is ahead of the curve as digitalisation transforms the global economy.”

Gary O’Callaghan CEO Siemens Limited Ireland

The Siemens ‘Digitalisation: Unlocking the Potential’ report can be viewed at: www.siemens.com/digitalisation-unlocking-the-potential