The Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan T.D. today launched Enterprise Ireland’s new software strategy called "Best Connected - - The New Software Economy," which was produced with US IT research firm IDC. It is an adjunct for the much talked about "Smart Economy." Coughlan also announced that Dublin software company Accuris is to invest €1.5m in research and development with support from Enterprise Ireland. The investment will create 27 new high value jobs over the next 3 years. Accuris currently employs 51 staff in its Dublin headquarters and its offices in Malaysia and the US.
The new software strategy aims to drive the sector's revenues to over €2.5bn by 2013 by capitalising on changes in the global software market.
The “Best Connected©” Software Ecosystem from Ireland
is the tagline and the document says growing companies of scale requires a range of skills that extends beyond the purely technical. As software development becomes increasingly commoditised and fragmented, "success will depend on differentiation at the strategic level, which requires the development of high-level skills across the broad range of managerial and technical disciplines."
What is presented is not a strategy but is a promotional document with a set of aspirations. "Our vision is that by 2013, Ireland will be internationally recognised as having a ‘Best Connected’ software industry, delivering innovative solutions on a global scale,” the document says.
Ireland certainly has a reputation for the written word but unless we address the reasons for the failure to achieve the hopes for the sector of a decade ago, then the well-heralded new ambition will not be realised.
There are "facts" presented below on the current indigenous industry but they are likely dressed up. No such data should be taken at face value.
Last year, the biggest home-grown software company Iona Technologies, was sold to a US firm. Another firm Xsil won the Deloitte & Touche Fast 50 award in 2006 but subsequently went bust.
The usual pattern is a trade sale where the promoters cash out and Enterprise Ireland's claim of having 20+ clients who are in the "scaling category," is likely an exaggeration.
There is no Irish software firm with annual revenues of more than $100 million.
We at Finfacts just do a reality check as we do with the "world class knowledge" economy project and regrettably, what we see doesn't stack up.
Simply, the system is infected with spin over substance, not that we doubt the commitment of most of the people at the State enterprise agencies.
A copy of the report should be available on the Enterprise Ireland website at some stage.
Research undertaken by IDC for Enterprise Ireland, identified a New Software Economy, driven by the growth of the Internet and changes in end-user demands. According to Enterprsie Ireland, the New Software Economy "is characterised by demand for greater flexibility, global delivery and cost-effective solutions. The unique profile of Ireland’s software sector with its strong base of small flexible companies is particularly suited to these emerging trends. The strategy aims to position the Irish software industry to maximise its potential in this new market environment."
Launching the strategy, the Coughlan said: “Building Ireland’s Smart Economy is about establishing Ireland as an innovation hub. It involves building the innovation or ‘ideas’ component of the Irish economy and developing a high-value, research-intensive, multinational community alongside thriving innovative Irish companies.
“Enterprise Ireland’s new Software Strategy, reflecting the Government’s Smart Economy blueprint, sets out to achieve that precise model for the software sector. I am confident that this strategy will ensure Ireland’s software industry meets these new market opportunities delivering more highly skilled, sustainable and well paid jobs in our economy.”
Outlining the key points of Enterprise Ireland’s software strategy, Jennifer Condon, Manager of Enterprise Ireland’s Software Division said: “The key to Ireland’s competitive advantage in this new environment will be its networks. The global software value chain is becoming increasingly networked; partnerships and collaboration dominate. The Irish industry is already well connected with the multinationals, the third level sector and the international diaspora. Enterprise Ireland’s strategy will build on these existing networks and foster new connections between all elements of the industry. Our vision is that by 2013, Ireland will be internationally recognised as having a ‘Best Connected’ software industry, delivering innovative solutions on a global scale.”
Welcoming the Software Strategy for Ireland, Kathryn D’Arcy, Director of the Irish Software Association (ISA) said:
