1 in 5 Irish businesses invested over €100,000 in digital technology during pandemic

The pandemic has put a much greater emphasis on digital technologies and IT for Irish SMEs.

Research commissioned by Virgin Media and carried out by Amárach Research showed that 87% of businesses have invested in digital technologies over the past year, and 1 in 5 have already spent over €100,000, with nearly a third of businesses intending to invest that much over the next 2 years.

The research, which was carried out on 14^th and 15^th October among over 200 SMEs across the Republic of Ireland, showed that:

— Among the companies surveyed, main areas of investment are IT hardware or infrastructure (32%), IT software and applications (31%), followed by cloud storage or services (12%) and E-commerce and marketplace technologies (12%). 

— Over a quarter (27%) of SMEs surveyed said they’re selling more online this year than last year, and this trend is expected to continue. 

— 6 in 10 of all the businesses surveyed said they expect to have even more online sales a year from now than at present. 

— 38% of businesses – who have not yet put money into their IT infrastructure – expressed a view that to do so would increase their level of online sales.

This latest research coincides with Virgin Media announcing the 5 winning applicants of their Backing Business initiative, launched earlier this year in Munster, and each of which has successfully completed a digital transformation.  This is enabling them to offer greater levels of e-commerce functionality and virtual customer support.

The five winning SMEs who have benefited from the Backing Business Digital Transformation are: 

— Cork-based branded homeware company Fervor + Hue who offer an eclectic collection of select-piece furniture, soft furnishings, lighting, wall art and more. www.fervorandhue.com 

— Kerry-based company Grounded Pottery who offer hand-crafted, ceramic reusable travel cups with designs inspired by the Irish countryside. www.groundedpottery.ie

 — Limerick-based company Lucy Erridge – An artist working with watercolours to create paintings inspired by nature and wildlife. https://lucyerridgeart.ie/

 — Tipperary-based food company, Rívesci who produce award-winning hand-made condiments which appear on menus in cafés and bistros around the country. www.rivesci.ie

 — Waterford-based company, Dust + Rock, founded by Susan Furniss Radley, designer of the ‘Wrist Pocket’, a unique take on an everyday purse with added functionality and peace of mind due to its really clever design. www.dustandrock.com

Speaking on the announcement Robert Troy TD, Minister for Trade Promotion, Digital and Company Regulation said: “The last 18 months have been challenging for many of us, especially Ireland’s SMEs. Many have had to adapt and pivot their business models to address the ever-evolving needs of their customers during the pandemic. I’m delighted to see the transformative journey each of these five businesses have been on so far and wish them every success into the future. 

“Digital transformation will be a key part of our post-pandemic recovery. Indeed, the next decade will see a number of profound changes in our economy and society, but we know that adopting new technology can be daunting for enterprises. That is why one of my key priorities is to make the digital transition as accessible as possible to Irish SMEs – to continue to facilitate digital adoption and to make technology more readily available to SMEs. 

“Along with the continued rollout of the Trading Online Voucher Scheme and increased funding for digital transformation, we will be establishing a number of European Digital Innovation Hubs to assist SMEs on their digital journey as well as developing further awareness and training programmes to encourage enterprises of every size to think digital first.”

Secretary General of Digital Business Ireland, Lorraine Higgins said: “Empowering businesses to build and enhance their digital capabilities forms the core of our work at DBI, and we are proud to have proposed a campaign that values this. Through this initiative, five small businesses have elevated their e-commerce offering and expanded their online trading platforms – allowing them to reach new customers across global markets.”

Aidan D’Arcy, Director of Virgin Media Business said: “More than ever, a strong online presence and ability to trade is critical to ensuring your business can thrive in today’s world. Proper e-commerce functionality can help position your business on a global stage and, having just completed their own digital transformation, thanks to Virgin Media’s Backing Business initiative, these 5 businesses are now showcasing what can be achieved.”