The digital economy is the real economy
3rd February 2010
Unless a digital strategy plan is aligned with economic recovery there will be no recovery, the new chief executive of the Irish Internet Association (IIA) Joan Mulvihill said.
Mulvihill took the reins of the IIA in November from the outgoing CEO Fergal O’Byrne. With a background in manufacturing and retail she believes the potential of the digital economy needs to be better communicated to all businesses in Ireland.
Mulvihill has a strong background within the Irish SME sector, having previously held the position of senior manager for Family Business Advisory Services at BDO Simpson Xavier. She also has extensive retail experience, having spent eight years in London and Amsterdam with the Kingfisher Group. She was at the forefront of managing one of the first transitions of a major UK retailer from high street to online and has also worked as a consultant to a number of new business start-ups.
Impact on Irish SMEs
As a result, she is deeply sympathetic to the plight of Irish SMEs in particular who are bearing the brunt of the current recession. She thinks the current economic situation in tandem with the ongoing march of technology means that it's a perfect time for businesses intent on survival see themselves through a digital lens.
“I think there’s an opportunity for everybody to ask themselves: what is my core competence? What is my business about and how do I deliver most effectively to my customers? If it means changing the medium, so what? Trinity College occupies a large real estate in the centre of Dublin but it is not a property business, it’s an information business.
“Why should businesses exclude themselves from the digital economy just because they operate from a bricks-and-mortar presence? Businesses need to ask themselves where can I use technology like the internet and mobile devices to be more efficient, bring in cost savings and reach customers more effectively. Yes, it may involve capital investment but not the kind of capital that building a warehouse or acquiring a fleet of rapidly depreciating cars and trucks would involve.
“What is putting ordinary business owners off digital? I think it is fear. There is a disconnect and they need to stop associating digital technology with pure play technology companies and instead realise these are practitioners, they are guys who make the stuff. The businesses in the economy however, should be the people using the technology to reach new markets or provide better services.
“The internet should be perceived by every business in Ireland as a more attractive way of reaching customers where they don’t have the overheads and get business efficiency and cost reduction for their business. Let’s extrapolate this into a business that in the past used to take bookings by phone, like a hotel. Most hotels today take their bookings over the internet. A lot of the business is happening 24/7, that’s how the wheels of digital commerce turning.”
Government should outline digital economy strategy
Mulvihill is adamant that the Government of Ireland needs to outline a digital economy strategy and action plan. “Science and Technology Minister Conor Lenihan recently unveiled a digital strategy for age inclusiveness that involved a €500,000 investment. A great thing to do but a quick win. The Government is under pressure to deliver but unfortunately is looking at making small gains rather than rolling out a larger, more comprehensive road map that involves a broadband strategy as a means of stimulating the economy. The small projects provide a sense of activity but don’t solve the overall problem.
“Here I am driving down the M50 and we are still digging it up. We need a strategy for the digital economy. We’re not rich now, but we weren’t in 1994, either. It seems to me to be a case of who strikes first, the industry or the Government?"
By John Kennedy
