The future is digital

In today’s troubled times, governments to show leadership or for banks to free up credit. The key to the future lies in making use of technology to run efficient, lean global businesses and driving Irish exports to the four corners of the earth.

This reality isn’t lost on Microsoft country manager Paul Rellis. “In the present economic times the biggest single message I’m getting from businesses is: ‘Can you make us more productive? Can you help us have IT lead our businesses?’” The answer is yes, and here’s five reasons why.

1. Digital makes people more productive

“From large companies’ point of view, technology and the internet are more relevant than before to their business strategy. IT has moved from something that is an expense or cost centre to something that is core to the business,” says Rellis. “At the end of the day companies are run by people and people work in businesses. The whole productivity message is how do you make every person, whether 10 people or 1,000, more productive.”

He adds that there’s a definitive move by businesses in the direction of unified communications, and businesses themselves are making greater use of collaboration technologies such as SharePoint.

2. It will be to your favour when the upturn comes

Ronan Harris, director of sales at Google, says that if Irish owner managers make the right choices now, particularly in terms of digital business, the world will be their oyster when the upturn comes. “We’re probably entering the biggest recession of our generation. We’re actually in it. We’ve seen downturns before but nothing of this scale. However, one of the things that’s fundamentally different this time round is that things are digital. People have phenomenal and exponentially more access to information and tools to boost their decision-making ability than ever before. That’s something that’s fundamentally different"

As economic conditions get tougher, Harris says that businesses that can should be investing in their digital processes and services. “Companies that have enough capital to invest and innovate now will survive the next few years and have a great opportunity when the upturn comes.

“Necessity breeds invention. Smart companies right now will be investigating digital channels. They will be looking to shorten the cycle of feedback from customers that, in turn, informs the cycle of product development. They will be agile enough to use digital channels to reach out into new markets.”

3. It prioritises value over price

Realising that things are different in the digital context this time around gives companies the opportunities to react in a different way than in the past. “The first thing that’s different is we have better-informed consumers. Consumers and businesses will deeply research any spending they are going to do,” says Harris.

Reassuringly expensive brands will become a thing of the past in this new climate. “If I’m a business owner I will research the product that I want. I won’t go for the top tier or top brand anymore, rather for the best technology. I can search for what’s out there that is sufficient to meet my needs. Once defined, I will look for where can I get the most competitive price with the confidence in the organisation I’m buying from. Once upon a time hotels didn’t have to compete to fill rooms or restaurants to complete bookings. Now the balance has shifted to the people. They can write and compare reviews and shop around based on price. One of the outcomes of irrational exuberance is the focus of the customer has shifted. When it comes to the online world, people will expect an experience that is commensurate with or better than when they visit a high-street retail store. If they don’t get what they want quickly enough or at the price they want they will go somewhere else and others will capture that relationship,” says Harris.

4. It helps you become more efficient

One of the fastest-growing players in the digital business world is Facebook, with over 175 million subscribers. The company, which has established a new EMEA headquarters in Dublin resulting in 70 new jobs, believes that successful digital strategies begin within the business.

The director of online business at Facebook’s EMEA headquarters, Colm Long, describes the process. “Facebook’s philosophy is to think about efficiency a lot and leverage technology to do things internally first. Trying to solve a particular problem could involve an internal tool or downloadable technology rather than hiring 10 people.

“The idea is to roll up your sleeves and think beyond your immediate role. This has a positive impact and provides everyone with a sense of ownership. We don’t have conversations about what size we’ll get to as a business. We see success more in user growth.

“We’re making good inroads in our business model to leverage a compelling commercial strategy. The engagement opportunity is to work with brands. Two thirds of Fortune 500 companies use Facebook to market everything from products to recruiting new workers.

“It began as just one person in a marketing department setting up a profile on Facebook to a proliferation that is seeing companies and entrepreneurs really make an impact in terms of engagement.”

Long cites the example of an IT worker who recently relocated to Dublin, was a little lonely and wanted to meet like-minded people. “He set up a profile on Facebook saying he wanted to throw a party. It had a viral effect and eventually 700 people turned up at the Purty Kitchen.”

5. It broadens markets

The proliferation of broadband in Ireland has resulted in some 1.2 million subscribers, and that figure is growing. One of the newest entrants to the broadband market is Meteor, which is rolling out its 3G broadband network across the country.

The director of sales at Meteor, Sean McGrath, says that more and more Irish businesses looking to be more efficient and productive will make use of mobile broadband as a way of beating the recession.

“The growth of mobile broadband in Ireland has been phenomenal, enabling businesses to work anywhere, stimulating and boosting productivity,” McGrath explains.

“Speed is also becoming key to businesses that want to be able to work seamlessly while on the move; as technology advances this will become more prominent.” Increased competition in the mobile broadband market benefits businesses as it means more competitive pricing. Mobile providers also have a huge range of services that can assist business managers and increase productivity while keeping costs as low as possible.

In 2009 McGrath says mobile broadband is set to take an even more pivotal role in delivering increased productivity potential to Irish businesses.

“The ability to be able to respond to emails immediately, access real-time company data, surf the web for information either on laptops/PCs or on mobile handsets all while staying on the move can deliver a tangible benefit to any business. Employees who can be productive at home, on the road, in customer premises as well as in the office are going to be in a position to deliver more value to the company and its customers.

“Companies that take advantage of mobile broadband technology can gain a considerable advantage over their competition and put themselves in the best possible position to excel,” he says.

Benefits for SMEs of being a digital business:

·     New channels such as social networks allow for greater interaction of your brand with customers

·     Through greater information-sharing, management and workers have a more transparent view of how the business is functioning at all times

·     Communications tools from mobile broadband to instant messaging ensure greater collaboration between workers

·     Digital channels can shorten cycle of feedback from customers and speed up new product development.

By John Kennedy

View the Digital Business Owner Manager Guide