As a new year begins, we asked the founders and chief executives of six indigenous technology companies about how business went last year and what they expect, and would like to see happen, in the year ahead. Here’s what they had to say
Bernie Cullinan, CEO, Clarigen(human resources management software)
What was 2011 like?
2011, overall, was a very positive year. We launched in the South African market in March. It is a fantastic market and one that is really ready to embrace technologies from Irish companies. We have made significant investment in the market and are very positive about it for next year.
The Irish market has been relatively strong for us also last year but we really are seeing the impact in the contraction of finance facilities for companies.
Biggest opportunity in the year ahead?
Definitely in the export markets, with our primary focus being South Africa and Britain. Our product helps an organisation take costs out of the people- management process, so even in a contracting economic situation, we bring an immediate bottom-line benefit.
We do think that reducing our dependency on euro-based markets is going to be increasingly important for ourselves and other Irish companies.
Greatest business challenge in 2012?
All businesses are based on people. Hiring the right talent is always the biggest challenge. The right hire makes a dramatic impact, especially when you are a small, growing company; the wrong hire equally has a dramatic impact that can really slow you down. Getting the right hires in 2012 is key.
Government changes to help support indigenous technology companies?
We have a wealth of super smart, high-impact innovative creation coming through the academic sector. There are many initiatives to ensure there is significant commercialisation of these innovations but there needs to be a greater push to incentivise the academic community to move across to support the full commercialisation of their inventions. At the moment, their reward comes from publications and citations and not commercial success.
Another area in which the Government can make changes is in bank financing. There are now so many unreasonable conditions attached to financing offers from the banks. The Government needs to understand what is being reported by the banks and force them to take a more reasonable approach which meets the needs of the sector, instead of accepting the figures being provided, which are not truly reflective of the restrictive conditional offers of funding being made which cannot be accepted.
Which global technology-related event in 2011 stood out for you personally?
There are so many that it is hard to single one out. Certainly the impact of technology on both the Arab Spring and the London riots in different ways had a very significant impact on particular sectors of society, but I think the single biggest impact was in the true, worldwide adoption of the “cloud”.
2011 was the year of cloud computing’s mainstream arrival, heralding the opportunity, especially for start-ups, to launch mainstream applications quickly and very cost-effectively. This is the single biggest opportunity for start-ups to get traction without the need for significant financing.
The very strong trend in 2011 of merging consumer and business applications will no doubt increase its impact in 2012 and beyond, which puts a much higher emphasis on front-end design, which we maybe are not as strong on as we need to be to compete globally.
Jerry Kennelly, founder and CEO, Tweak.com(online design and printing)
What was 2011 like for your business?
In February 2011, my team and I launched Tweak.com – which is changing the way entrepreneurs all over the world will access great design and print. It took four years of hard-core research and well over a million lines of code but thankfully our users love it!
Where do you see the biggest opportunity in the year ahead?
We have created a unique offering and our challenge in 2012 is to ensure that we capitalise on the creative and technical achievement – with a very strong sales pipeline, we’re well on our way.
And what will be your greatest business challenge in 2012?
When we’re faced with dozens of successful companies seeking to do business with Tweak.com, picking the right channel partners is definitely the biggest challenge. We can’t dance with every girl in the room!
What should the Government do in 2012 to help support indigenous technology companies?
There are three core skill areas which are damaging the potential for Irish-owned technology companies – software development, digital marketing and analytics, and frontline sales staff. If we don’t get our act together to create not just numbers of people with these skills, but highly talented individuals in these areas who are able to compete with their global peers, more Irish tech entrepreneurs will move closer to where those talent pools can be found.
What global technology-related event in 2011 stood out for you?
F.ounders in Dublin was incredible – what a range of global tech leaders hanging out in what must be the coolest tech event I’ve been to anywhere. Organiser Paddy Cosgrave managed it in his usual understated style – Bono was one of the “local lads” on the celebrated pub crawl.
Not just Guinness and bullshit, though. Some really solid friendships and business contacts made. And some of the smartest tech founders in the world in a no-bullshit environment. They were all gobsmacked by Mary McAleese’s razor sharp wit in the Áras. A major win for Ireland.
Joe Hogan, CTO, Openet(network service optimisation), Ernst & Young Entrepreneur of the Year 2011
What was 2011 like?
It was another good year for Openet. The new 4G wireless networks being built in the US have driven Openet forward to another strong year of growth.
Biggest opportunity in the year ahead?
The opportunity for Niall Norton and I to represent Openet and Ireland at the World Ernst Young Entrepreneur of the Year in Monte Carlo in June 2012 will be a good opportunity for us to attract more experienced and senior talent to Openet.
Greatest business challenge in 2012?
Openet has similar challenges to other software companies operating in Ireland. It has become increasing difficult to find qualified software engineers with the right experience, which in turn limits the growth of companies here in Ireland and pushes Irish software engineering jobs off-shore. We expect this problem to remain a challenge during 2012.
Government changes to help support indigenous technology companies?
Issuing stock options in privately held Irish tech companies used to be a strong way of holding key staff in place while the company grows. However, with the current high income tax rates being applied in Ireland, the retention effect is being reduced, which results in staff being lost. This in turn ultimately affects company growth. The Government needs to be more creative in terms of stock option taxation, particularly with respect to Irish-headquartered technology companies.
There needs to be thought put into retaining Irish tech companies in Irish ownership.
Too many have sold out in recent years, and few of significant scale remain. Tax incentives for holding stock long term in Irish private companies should be considered, to provide sufficient incentive to grow a company to scale before exiting.
Irish companies need to protect their intellectual property worldwide.
The Government, having removed the patent dividend scheme, should consider some form of direct support to Irish companies to encourage more broadly based filing, maintenance and defence of Irish patents worldwide.
Which global technology-related event in 2011 stood out for you?
The first commercial voice calls took place this year in the US on the new high-speed 4G wireless networks. This is significant because over the next 10-15 years, the current 2G mobile networks deployed worldwide will get switched off and replaced with new 4G networks. All our daily mobile voice calls will be over this new wireless network standard in years to come.
Connor Murphy, co-founder and CEO, Datahug(enterprise relationship management)
What was 2011 like?
2011 was a really busy and exciting growth year for Datahug. We brought great investors on board and are building a world-class team of engineers and sales executives. We are working with several leading global advisory, financial and technology customers and our product is managing over six million relationships a day.
Biggest opportunity in the year ahead?
Expansion into Britain and the United States. We’ve had strong interest across the professional services and financial sectors, and cities such as New York and London are an obvious next step in terms of sales and business development.
Greatest business challenge in 2012?
Growing our team and expanding overseas. The technology sector is booming everywhere but this means that recruitment is very expensive and time consuming. We currently have six open positions (three in Dublin) and are struggling to find the right people.
Government changes to help support indigenous technology companies?
I think the Government is doing a relatively good job supporting the sector. Enterprise Ireland is an outstanding organisation and has provided companies like Datahug with great support in terms of training and grants. Ultimately, I think the bulk of the practical support should come from the wider investor and technology community, as that is where value exists in terms of experience, “smart money” and practical advice.
The main changes I would like the Government to focus on are in the areas of education policy. At university level we need to adopt a Canadian model where students graduate with two years’ work experience due to six four-month internship modules. Companies like Twitter, Google and Facebook are queuing up for their graduates as they have proven skills and can hit the ground running.
At the secondary and primary levels, we need to introduce software development skills from the age of seven. A basic understanding of coding and development should be considered as the baseline for digital literacy. The Government can learn a great deal from the success of volunteer initiatives like Coder Dojo where computer clubs teach kids to code and build games and websites. These skills will guarantee the future success of the Irish economy and provide the kids involved with a globally applicable skill set.
Which global technology-related event in 2011 stood out for you?
For me it was the F.ounders conference in Dublin. It has been dubbed “Davos for Geeks” and put Ireland on the global technology map. Attendees from all over the world came to Ireland for three days to network, share and discuss the major issues of the technology sector.
As an Irish person, I was very proud of the great work the organisers and the Government did for the image of the country.
Dr Mazhar Bari, co-founder and CEO, SolarPrint(solar cell technology)
What was 2011 like?
SolarPrint made huge progress in 2011 in turning our core dye sensitised solar cell technology into a leading energy harvesting product (to enable wireless sensors) based on customers’ needs and specifications. The SolarPrint technology is the most efficient in converting indoor light into electricity to provide sufficient power to enable wireless sensors, such as temperature, humidity, motion, carbon dioxide, light etc.
Opportunity in 2012?
It will be a very exciting year for us and will be customer-focused. We start shipping prototype product to customers in the first quarter. We will continue building our performance and cost leadership in light energy harvesting technology for the building energy management industry.
Greatest business challenge?
We are on track to complete our product development targets in 2012 and continuing building our IP portfolio. Continued process development will be required in order to scale the production to sufficient volume to seed the market. Also, getting strategic investors to help grow the business.
Government changes to help support indigenous technology companies?
Encourage the formation of technology parks in order to develop technology clustering and building critical mass that will allow competitiveness on a global scale.
Provide more applied RD funding to innovative technology businesses. Universities should compete on an equal footing for State RD funding with companies. Define a clear vision for the cleantech technology sector to grow and lead on a global scale. Provide incentives and policies to promote investment and job growth for local start up companies.
Which global technology-related event in 2011 stood out for you?
The IdTechEx trade show and conference in Boston on wireless sensors and energy harvesting in November.
SolarPrint and Analog Devices co-presented a fully integrated wireless sensor system demonstration. Also, the death of Steve Jobs. I admired Steve and how he built Apple into a global brand.
Dermot Daly, founder and CEO, Tapadoo(mobile applications)
What was 2011 like?
It was great. We more than doubled our business in terms of size, income and profit. We took on a dedicated person for Android development, and hired a graphic designer, which has really increased our ability to churn stuff out. We’ve also had to add some contract staff to deal with peaks in demand. We’re lucky. We were quick to get in and specialise on an area where interest is still growing ; and this is all we do.
Biggest opportunity in the year ahead?
Some of the clients we built relationships with this year will likely take the work we did with them and sell globally. This will likely lead to an increase in demand for our services with their clients. In addition, mobile continues to be seen as a part in the social media jigsaw, which now reads “Facebook, Twitter, mobile”. We’re well poised to help clients enter the mobile sphere.
Greatest business challenge in 2012?
Our biggest challenge continues to be about finding the right talent. As a services business, we’re only as good as our recent projects, which we think of as being “hand-crafted”; we simply can’t afford sub-par quality nor do we have the luxury in being able to bring someone up to speed. We’re constantly on the lookout for new indigenous developer talent and, without this, growth will be difficult.
Government changes to help support indigenous technology companies?
Standards in computing education have dropped. I’ve had numerous conversations with peers in the industry and there’s a belief out there that computer science needs to be introduced at Leaving Certificate level. Every exceptional programmer I’ve ever met has been programming from a young age. I understand this would take some years to bear fruit but the idea of a knowledge economy is pointless unless we invest in education from an early stage. This needs to begin now.
Which global technology-related event in 2011 stood out for you?
The death of Steve Jobs was a really big thing. I was surprised at how much this had an effect on tech people worldwide. I’m sure “outsiders” saw the reaction as silly, and the rational side of me was surprised at the effect on me. However, there was a sense of loss around our office, and with our peers in the industry in Dublin.
Two of us from Tapadoo had been lucky enough to see his last WWDC keynote back in June and a Steve keynote was something special. I guess at different times in your life you have your heroes; we happened to lose ours this year.
