- New BearingPoint Institute report shows leveraging emerging tech, like cloud and mobile, can drastically improve business differentiation and profitability
- Ireland’s internet economy expected to be worth €21.1 billion by 2020
- BearingPoint announce joint initiative with the Innovation Value Institute to help Irish businesses formulate digital strategies
Dublin, 11th December 2014 – Irish businesses must take greater advantage of new digital technologies to grow their operations, according to a new report released by leading European management and technology consultancy, BearingPoint.
BearingPoint made the comments today as it announced that it has teamed up with leading IT think-tank, the Innovation Value Institute (IVI), to help Irish businesses develop long-term digital strategies.
The development comes following a number of recent studies which show that while Irish consumers are spending heavily online, most are buying from international, rather than Irish, retailers.
Irish people are estimated to have spent €6 billion online in 2014, according to a recent study.1 In 2013, the Government estimated that Irish online shoppers spent only €1.1 billion on Irish goods and services.2
Publishing its digital strategy report, "Leap into the connected digital economy", BearingPoint said Irish businesses need to integrate digital thinking into their business model if they are to retain and grow their markets.
BearingPoint Institute figures suggest that the online market will constitute 20% of the entire world market by 2030. Currently, Ireland’s internet economy is worth 5% of GDP, and is estimated to grow to 10%, or €21.1 billion, by 2020.3
The report claims that the convergence and mass adoption of new technologies is creating a new digital environment, where businesses are investing in new skills and looking to their digital-focused partners to provide technological insight and value to their operations.
While the report outlines the consistently strong value of physical stores (consumers can see, touch and test products), through innovative use of emerging digital technologies, businesses can offer bespoke, personalised services, resulting in new customer experiences.
The BearingPoint Institute report highlighted how car manufacturers – through the use of integrated digital services like music streaming, automatic traffic updates and anti-theft tracking – are embracing a combination of new technologies to enhance customer experience.
However, there is concern that an unwillingness to adapt to new technologies, or a general ignorance of them, may be holding back Irish businesses.
The report cited Blockbuster, Kodak and EMI as businesses that had failed to adopt a meaningful digital strategy in the face of internet-born competitors, suffering considerably as a result.
Michael O’Dwyer, Partner at BearingPoint Ireland, said:
"Irish businesses can forge an entirely new digital environment using technologies like big data and cloud computing. These are widely available and widely regarded, and can have hugely transformative effects on a business, particularly in delivering new value to customers. We are confident that the know-how delivered by our new partnership with the IVI will be of huge benefit to Irish businesses in this regard."
“Adoption of these new technologies drives up not only productivity and efficiency, but profitability. An innovative Ireland that embraces this new digital economy will not only remain relevant, but encourage business creation and attract continued foreign investment,” O’Dwyer said.
Martin Delaney, General Manager at the IVI, said:
“We are excited about the collaboration with BearingPoint and believe our mix of academic research with BearingPoint’s hands-on digital knowledge gained from working with digital leaders across Europe will help define the digital adoption roadmap which will significantly help Irish organisations accelerate their digital readiness.”
Founded in 2009, the BearingPoint Institute is an incisive, authoritative voice on business-critical topics, bringing together the finest minds from both within and outside the BearingPoint organization. We strive to:
This is achieved by offering practical, real-world advice from:
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9200 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success.
The Innovation Value Institute (IVI) was established in 2006 and is a not for profit research center based in Maynooth University. IVI has built a thriving international consortium which now includes over 100 global organisations - including Chevron, EasyJet, NTT Data, Lloyds, Central Bank of Ireland, Astra Zeneca, BCG, BP, BNY Mellon, Cisco, EY, SQS, to name a few. Our focus is in supporting organisations’ efforts to leverage the maximum benefit of their investment in information and technology. We build our research output round a capability management paradigm. We are supported financially by the Irish Government, the EU and our members.
For more information please visit: www.ivi.ie