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Upc report on ireland's digital future
 

Upc report on ireland's digital future

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Upc report on ireland's digital future

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    Upc report on ireland's digital future Upc report on ireland's digital future Presentation Transcript

    • The UPC Report on Ireland’s Digital Future Driving Economic Recovery Researched & produced bywww.upc.ie 3
    • Designed by
    • UPC Report on Ireland’s Digital FutureContentsForewordDana Strong, Chief Executive, UPC Ireland 2Executive Summary 4Introduction 6Chapter 1: Life Online 9Chapter 2: The Digital Consumer 24Chapter 3: The Digital Business 33Conclusion: Towards a Digital Future 45© 2012 UPC Ireland and Amárach Research, the content of this report may be usedand republished freely once The UPC Report on Ireland’s Digital Future is credited.
    • Foreword Driving Economic Recovery The shared goal of transforming Ireland into The report puts current online consumer spending at €3.7 billion and a knowledge based society and a competitive forecasts it to rise to €5.7 billion, an increase of more than 40% by economy is critically dependent on our 2016. It also predicts a doubling of Ireland’s ‘Internet economy’ by 2016 capacity not only to deliver a world class digital bringing its total value to €11.3 billion. A challenge for Irish businesses infrastructure but also on our ability to maximise will be to ensure that these increases are met by Irish based productivity engagement with that infrastructure. and innovation with a corresponding benefit for jobs and the economy.For the past 3 years, UPC has been a key change agent in Ireland The evidence is clear. Ireland is well capable of grasping theleading a surge in broadband adoption and raising awareness of the opportunity presented by new media, digital developments, broadbandbenefits of going digital for households and businesses. and the Internet and this will contribute to restoring the health of our economy. In turn, all stakeholders must play their part in theThis independently conducted research, commissioned by UPC, is development of our digital economy to create jobs growth, economicpart of our continued contribution to transforming Ireland into a growth, and enhanced competitiveness.global digital leader. The report presents findings of surveys across asample of the Irish consumer and business population. It provides a I would like to thank Amárach for their research expertise andcomprehensive snapshot of Ireland’s current position and seeks to look everyone who has participated in this groundbreaking report forahead to the future where digital uptake can drive economic recovery Ireland. UPC is proud to be playing its part in delivering the digitaland create new jobs which will underpin national competitiveness. future and we will continue to work with Government, business and society in general to ensure that we all collectively realise this potentialThe Internet is clearly having a profound impact on the way we live for Ireland to succeed to the maximum extent possible.and work. The Amárach research shows that Irish society is ready andconfident for the digital future. Ireland performs well in many criteria Why not help us track Ireland’s progress? We would like to invite allin comparison with OECD and EU indicators. Consumer investment in individuals and businesses to participate in the UPC Digital Index atdigital products and services is strong and is equally matched by the www.upc.ie/digitalindexskills to use them.Crucially, Irish businesses are already making strong progress towardsthe digital future and they are very aware of the opportunities itpresents for efficiencies and growth. Most telling is the firm belief onthe part of the majority of companies that getting their online strategy Dana Strongright will translate into real and significant revenue growth. Chief Executive Officer, UPC Ireland2 UPC Report on Ireland’s Digital Future
    • €11.3Bn Projected Value of the Irish Internet Economy (Ireland 2016) €5.7Bn Projected Online Consumer Spending (Ireland 2016)€3.7BnOnline Consumer Spending(Ireland 2012) UPC Report on Ireland’s Digital Future 3
    • Executive SummarySeize the Future The SurveysIreland is in the middle of a revolution – a digital revolution. For all UPC commissioned Amárach Research to carry out two, parallelthe economic difficulties and challenges we have faced in recent surveys in August 2012: the first was an online survey comprisingyears, the story of digital technology in Ireland is a story of success. 1,000 adults aged 16 and over, representative of Ireland’s population;Comparisons with other countries show that Ireland is on par or and the second comprised a telephone and web survey of 201even ahead of OECD and EU nations when it comes to several key IT decision-makers in Irish SMEs and larger corporations, with quotasmeasures of digital adoption. to ensure a cross-section of companies by size. The surveys were carried out on an entire market wide basis and included customersIreland’s future progress towards the digital future will help us solve of all telecommunications providers.some of the economic problems we now face. Improving access tohigher broadband speeds in households and businesses opens up new Life Onlineopportunities for citizens, consumers, employers and employees. By Already, 8 in 10 adults use the Internet in Ireland, up from fewer thanseizing the digital future, Ireland can secure a higher standard of living 5 in 10 in 2007. Indeed, broadband take-up in Ireland matches the EUthrough faster economic growth, as well as tackling the scourges of average at two thirds of homes.unemployment and emigration through the creation of new jobs, new The Internet is now a vital part of our everyday lives, and shapes howservices and new businesses. we work, relax, learn and shop. Internet users spend 156 minutesThe Size of the Prize (2.6 hours) online on a typical weekday, rising higher at the weekend. OnIf Ireland simply follows the trend in other countries at a similarly average there are two or more people using broadband in every home,advanced stage of digitisation, then the Internet’s contribution to our with two or more devices connected at the same time – as smartphoneseconomy will grow from about 3% of GDP at present to 6% by 2016. become more common, more people and devices will be connected.That’s an increase in the value of Ireland’s digital economy from under Shopping and social networks are the most popular online activities,€5 billion this year to over €11 billion in 2016, creating new jobs and while a third of adults already use the Internet at home for worknew businesses along the way. purposes. 6 in 10 workers are expected to work from home some orAs for jobs potential, raising the level of digitisation in Ireland to that of all of the time by 2016.our nearest neighbour, the UK, would reduce the numbers unemployed The Irish are digital optimists, and look forward to a host of newin Ireland by nearly 18,000; with even bigger reductions possible if the services that will enable them to study, shop, work and share fromlevel rose to that of the leading Scandinavian countries. the comfort of their home in future. Indeed, half of all adults would be interested in running their own business from home at some stage, facilitated by digital technologies.4 UPC Report on Ireland’s Digital Future
    • The Digital Consumer The Digital BusinessThe impact of digital technology on the Irish economy is significant. Ireland’s digital revolution is not just good for consumers, it’sAlready there are 2.6 million online shoppers in Ireland, who will spend good for business. It appears that Irish businesses have ‘moved€3.7bn in 2012 across a range of product and service categories. Irish on’ from the recession, with 8 in 10 now optimistic about theirconsumers will spend €5.7bn online by 2016, or 7% of all consumer growth prospects for the next 2 years. Two thirds expect to expandspending in the economy. in Ireland in the coming years, and nearly half plan on expanding abroad. Furthermore, a majority of businesses intend hiringSome 8 in 10 Internet users use the web to research products they are new staff in the next 2 years, with a strong emphasis on IT andinterested in buying, but then buy them locally in Irish shops. It goes digital skills.the other way too: 6 in 10 Irish Internet users use their local shops to Digital technology has delivered productivity increases and costresearch products they are interested in, but then buy them online, savings to a majority of businesses. One key area for futureoften at significant cost savings. improvement is the application of digital technology to employeeThere are significant opportunities for Irish businesses – including engagement and management. Already, 6 in 10 companies enableretailers – to respond to these trends. Over 6 in 10 online shoppers their staff to work from home to varying degrees during contractedwould buy from an Irish website if they knew about one that matched hours – a practice that is expected to grow.equivalent offers from international sites. The UPC Digital Business Index – also created for this study –The UPC Digital Consumer Index – specially created for this study – tells us that 3 in 10 Irish businesses are ‘Digital Leaders’, while 1 in 7tells us that some 30% of Irish adults are ‘Digital Leaders’, while 8% are ‘Digital Laggards’; with the balance falling into the category ofare ‘Digital Laggards’: the balance are what we call ‘Digital Followers’. ‘Digital Followers’. We have much to gain from the digital future in terms of higher standards of living, a better quality of life, improved consumer welfare, greater business productivity and lower unemployment. This report shows the road ahead to the digital future: together we must take the next steps. UPC Report on Ireland’s Digital Future 5
    • IntroductionWhat is the one service in your home that you couldn’t live without? From a European standpoint, the EU has identified a number of DigitalThe number 1 choice, for over a third of Irish adults in 2012, is Agenda targets (EU Targets) aimed to “help reboot the EU economy andbroadband. Number 2 is electricity (for over a fifth of adults), enable citizens and businesses get the most out of digital technologies”.1with television in the number 3 position. These findings are a More locally, the Irish Government recently published its Nationalremarkable indication of how embedded the Internet has become Broadband Plan which aims to better the EU’s broadband speed targetsin our daily lives (leaving aside the matter of how broadband could during the lifetime of the current government.2work without electricity!).But even more remarkable is just how quickly the ‘digital revolution’ EU Digital Agenda targetshas happened in Ireland, and how much more we have to look forward By 2013to in the years ahead. This report is designed to help Irish citizens and Basic broadband for allbusinesses prepare for the digital future. We think you will be surprisedand inspired by the findings from our research and by the changes By 2015we can expect in how we live, work and play. The good news is that, 50% of population to buy onlinedespite the tough economic challenges we face, Ireland is well placed 33% of SMEs to make online salesto be a winner on the road to the digital future. 60–75% of the population to use the Internet regularlyOur SurveysUPC commissioned Amárach Research to carry out two, parallel By 2020surveys in August 2012: the first was an online survey comprising 30Mbps for all citizens1,000 adults aged 16 and over, representative of Ireland’s population; 50% of population to subscribe to 100Mbpsand the second comprised a telephone and web survey of 201 ITdecision-makers in Irish SMEs and larger corporations, with quotas Ireland’s National Broadband Plan targetsto ensure a cross-section of companies by size. 70Mbps for 50% of populationThe key findings from both surveys are explored in the rest of this report. 40Mbps for 70-85% of population 30Mbps for 100% populationDigital Targets for a Digital FutureThe importance and benefits of being digitally connected and engagedalong with having access to high speed broadband services are 1 EU Digital Agenda scoreboard for Ireland: https://ec.europa.eu/digital-agenda/en/globally recognised. Given this, there is growing interest in measuring scoreboard/ireland 2 ‘Delivering a Connected Society: A National Broadband Plan for Ireland’, Departmentthe performance of countries in terms of digital trends and their of Communications, Energy and National Resources, http://www.dcenr.gov.ie/NR/economic and social impact. rdonlyres/1EA7B477-741B-4B74-A08E-6350135C32D2/0/NBP.pdf6 UPC Report on Ireland’s Digital Future
    • The good news is that Ireland rates very favourably not just among its The comparative picture for Irish businesses is, if anything, even moreEU counterparts but also at a global level. Irish consumers are broadly positive.equal to their OECD and EU counterparts when it comes to measures The percentage of businesses (employing 10 or more) with broadbandsuch as the percentage of households with broadband – in fact Ireland in Ireland is slightly over the OECD average (90% vs 88%), as is thehas already met the first of the EU’s Targets, universal broadband. 3, 4 proportion of employees using the Internet at work. The biggestIreland also compares very well in relation to other indicators such as (positive) gap in terms of these businesses relates to selling online,the percentage of Irish consumers who shop online (slightly above the where Irish businesses are nearly 30% more likely to sell online thanOECD average and significantly in excess of future EU Targets). the OECD average.With respect to the availability of high speed broadband services the most International targets and comparisons are an important indicatorrecent Akamai State of the Internet report shows that Ireland ranks 15th in of Ireland’s progress. There have been several efforts to gauge thethe world – and 9th in Europe – in terms of average measured broadband progress of nations towards the digital future:speed 5. The Akamai report shows that Irish households are surfing faster »» IBM and the Economist Intelligence Unit have published a reportthan advanced markets such as the UK and Germany. Indeed, in the two on Digital Economy Rankings 20108 which places Ireland 17th inyear period from Q2 2010 to Q2 2012, the share of residential broadband the world, based on a composite score across six indices, includingsubscribers with contracted download speeds greater than or equal to broadband speeds as well as consumer and business digital10Mbps tripled: from 7.3% to 22.9%6. As a result, not only has the first adoption.of the EU Targets been met but with 35% of Irish households alreadytoday able to receive 150Mbps7, Ireland is well on its way to meeting its »» The World Economic Forum’s Global Information Technology Reportambitious targets as set out in the National Broadband Plan. 20129 ranks Ireland 25th in the world in terms of a Networked Readiness Index (derived from economic, social, political as well as technological measures).3 Available from the Organisation for Economic Co-operation and Development (OECD): http://www.oecd.org/sti/Interneteconomy/ieoutlook.htm Both reports help us track our digital progress and the strength of our4 National and Rural Broadband Plans: digital economy. http://www.dcenr.gov.ie/Communications/Communications+Development/ National+Broadband+Scheme/National+Broadband+Scheme.htm and It is important to stress, however, that Ireland still has some way to go in http://www.dcenr.gov.ie/Communications/Communications+Development/ terms of securing the maximum benefits for its citizens and businesses Rural+Broadband+Scheme/ from digital technology. One indication of the ‘digital gap’ is measured5 Akamai State of the Internet: http://www.akamai.com/stateoftheInternet/6 ComReg’s latest commentary: http://www.comreg.ie/publications/quarterly_report_ q2_2012.583.104195.p.html 8 IBM/EIU: http://www-935.ibm.com/services/us/gbs/bus/html/ibv-digitaleconomy2010.html7 UPC Press Release http://www.upc.ie/pdf/UPCbreaksIrishInternetSpeedBarrier.pdf 9 WEF: http://www.weforum.org/reports/global-information-technology-report-2012 UPC Report on Ireland’s Digital Future 7
    • by Booz & Company’s Digitisation Score10. Their measure is a compositeindex, derived from national data for the ubiquity of digital servicesand products, affordability, usage and broadband speeds, etc. AlthoughIreland scores well in terms of its Digitisation Score – putting it in theadvanced group of countries among the 150 surveyed – we clearly haveroom for improvement. Booz estimates a score of 47 for Ireland whilethe highest scoring nation is Norway at 6411.The crux of the Digitisation Score is that it shows a clear relationshipbetween higher scores and higher economic growth – and lowerunemployment. The Booz analysis of the links between digitisation andthe wider economy shows that among digitally advanced countries likeIreland, every 10 point increase in digitisation scores increases GDP percapita by 0.62%.Furthermore, an increase of 10 points in digitisation reduces a nation’sunemployment rate by 0.84%. To put this in context, simply raisingIreland’s digitisation score from 47 to the equivalent UK score of 54(a 7 point increase) would reduce the numbers unemployed in Irelandby nearly 18,000 – based on the Live Register in September 201212.10 Booz & Co: http://www.booz.com/global/home/what_we_think/digitisation/megatrend11 Booz & Co article on Digitisation and Prosperity: http://www.strategy-business.com/ article/0012712 Central Statistics Office: http://cso.ie/en/releasesandpublications/labourmarket/8 UPC Report on Ireland’s Digital Future
    • 1 | Life Online» 8 in 10 adults use the Internet in Ireland, up from fewer than 5 in 10 in 2007» Broadband takeup in Ireland matches the EU average at two thirds of homes» On average there are two or more people using broadband in every home, with two or more devices connected at the same time» Broadband users spend 2.6 hours online on a typical weekday» Shopping and social networks are the most popular online activities» A third of adults use the Internet at home for work purposes» Half of all adults would be interested in running their own business from home at some stage in the future UPC Report on Ireland’s Digital Future 9
    • Cast your mind back five years to 2007. It was the height of the Celtic Connected NationTiger in Ireland, following a decade of remarkable growth, and we But before we look ahead to the digital future, let’s take a closer a look athad one of the highest standards of living in Europe. Nowadays we the digital present. The UPC consumer survey shows that Irish people areare painfully aware of what has been lost since the peak, but we are confident users of digital technology already. Indeed, there is widespreadperhaps less aware of what we have gained. Take digital technology ownership of a range of technologies, as summarised in Fig 2:- the table below contrasts the % of Irish adults owning and usingeach technology then and now (Fig 1). Digital Technology in the Home % Fig 2: Digital Technologies at Home: % of Irish Adults %Fig 1: % of Irish adults owning and using digital technology Laptop 85since 2007 Digital Camera 75 Landline Telephone 71 % of All Irish Adults* 2007 2012 Flat Screen TV 70 Internet at Home 48 78 Paid for TV Service 67 Broadband at Home 24 65 Ordinary Mobile Phone 64 Shopping Online 15 59 Smartphone/iPhone 61 Banking Online 18 42 WiFi 60 Mobile Phone 90 98 MP3/iPod 57 Smartphone 5<** 34 PC 50 HDTV 45 Using Social Networks 10<** 52 Portable Games Console 37* Sources: ComReg & Amárach Research data ** Amárach estimates GPS Device 37 Internet Enabled Games 29Despite a decline in consumer spending, falling house prices and rising Tablet/iPad 19unemployment, Irish consumer adoption of digital technologies has eReader 17risen steadily through the recession. Consumer investment in digital Home Surveillance System 10products and services - and the skills to use them - tells us something Smart TV 5very important about the shape of the recovery when it comes,namely that Ireland’s next phase of economic growth will be driven 3D TV 4more by ‘clicks’ than by bricks. 0 20 40 60 80 10010 UPC Report on Ireland’s Digital Future
    • Ownership and adoption is not evenly distributed, however, and some European context, the chart below (Fig 3) shows the percentage ofsignificant differences emerge from our study: households with broadband across the European Union. Average take- up runs at 67% in the EU, with Ireland just slightly below at 65%.»» Laptop ownership declines with age, after peaking among 25–34s Among those with broadband at home, almost half in our survey»» Landline phone ownership rises with age, peaking among over 55s (49%) say that broadband access is more important than having a»» Smartphone ownership is highest among 25–34s, and higher for telephone, and 1 in 5 (19%) say broadband is more important than TV men than women (rising to 31% of under 25s). Though only 1% considered their home broadband more important than their car!»» HDTV ownership peaks among 45-54s One of the key reasons for the appeal of broadband is that it enables»» Internet enabled games peak among under 24s; tablets/iPads multiple users in a household to benefit from the technology at the same among 35-44s time. Indeed, our research shows that only 1 in 4 broadband users is theBroadband is a key enabling technology facilitating a diverse number sole user in their household; while among the 76% with multiple users,of digital devices in the home. To put Ireland’s performance in a there are typically two or more other users as well (Fig 4).Household Broadband Europe %Fig 3: Broadband take-up: % of Households having a Broadband Connection %10080 European Union – 27 countries6040 United Kingdom Slovak Republic Czech Republic Luxembourg Netherlands Lithuania20 Germany Denmark Romania Portugal Hungary Slovenia Bulgaria Belgium Sweden Norway Estonia Austria Finland Iceland Cyprus Greece Ireland Poland France Latvia Spain Malta Italy 0 Source: Digital Agenda for Europe: https://ec.europa.eu/digital-agenda/en/scoreboard UPC Report on Ireland’s Digital Future 11
    • Fig 4: Number of Broadband Users in the household One key gap in evaluating broadband speed sufficiency is that a significant minority of Irish broadband users simply don’t know their Five or home broadband speed. Indeed, almost 1 in 4 (23%) home broadband more Yes 13% users is unsure of the speed they are supposed to have at home (rising 24% to a third of under 25s). The picture that emerges from our research shows future room for improvement: typical broadband speeds are, on Four Number Two Only user balance, not considered sufficient for the future. 19% of users 42% No 76% Digital Time Use Three 26% Inevitably, access to and usage of digital technologies have resulted in profound shifts in how Irish people spend their time. In the UPC consumer survey we asked broadband users about the amount of time they spend accessing the Internet a) on a typical weekday, andOf course, it is not just people who connect to broadband in the b) on a typical weekend day. The answers by demographic groups arehome - it’s devices as well. The average broadband household has summarised in minutes per day in Fig 6 below.two devices connected at the same time, rising to three devices inhouseholds containing 16-24 year olds, and falling to under two Fig 6: Minutes per day spent onlinedevices in broadband households among over 55s. Weekend Increase at Weekday Day WeekendSpeed Check All Adults 156 167 11But we are only at the beginning of a user and device explosion. The 15-24 179 187 8average number of users and devices connected to broadband in Irish 25-34 173 189 16homes will grow sharply in the near future, thanks to smartphones, 35-44 155 166 11tablets and the emergence of the ‘Internet of things’ (e.g. your fridgeconnected over the web to your online shopping list). This raises a 45-54 147 160 12fundamental question about broadband capacity. 55+ 133 140 7 Higher Income 152 166 14In our research we asked broadband users whether the speed of theirbroadband was a) sufficient for their current needs and b) sufficient Lower Income 159 168 9for their likely future needs (Fig 5, on facing page). At present some69% of home users consider their broadband speed to be sufficient.However, looking to the future, only 44% of home users expect theirexisting broadband speed to be sufficient for their likely future needs.12 UPC Report on Ireland’s Digital Future
    • Fig 5: Sufficiency of Broadband Speeds: Present & FutureYes No Don’t Know 3% Only 44% 17% 28% Is your Sufficient broadband for future 44% speed likely needs? sufficient? 69% 39% of people feel their broadband speed is sufficent for future needs UPC Report on Ireland’s Digital Future 13
    • 69% 63% Use Soclal Networks 55% Bank online 44% Read the news Use On Demand TV 33% Play games14 UPC Report on Ireland’s Digital Future
    • Fig 6 indicates that age is an important driver of time spent online, The Broadband Explosion UPC Insight though at an average of over 2.6 hours per weekday it is clear that The consumption of data and content has exploded around the world Internet usage now occupies a lot of people’s leisure and work time. and no less so in Ireland. Data from INEX shows an 800% increase Accessing the Internet at home is the main way in which people access in total traffic per month in Ireland since 2009. While all forms of the web. On a typical weekday, consumers say that over three quarters data consumption are going up, the largest driver of this increase is (79%) of their access takes place at home, only 13% at work and the coming from the continuing massive growth in video viewing across balance while out and about (e.g. via their mobile phone). Nowadays, the web – from professional output to self-published content. In meeting these changing demands, UPC is enabling consumers to Irish people use the Internet for a wide range of activities and services, access increasing volumes of content at higher speeds and at a ranging from entertainment to work to simply keeping in touch. Fig 7 constantly reducing cost per megabit ratio. The market has been shows the proportion of adults who use broadband at home for responding to affordable broadband and UPC is leading this change. each activity. Fig 8: Ireland Year-on-Year Traffic Growth – Petabytes* Fig 7: Online Activities and Services used at Home 40 % 30 Shopping online 70 20 Social networking 69 10 YouTube 68 0 Sept 09 Sept 10 Sept 11 Sept 12 Search/research 63 Banking 63 65% News 55 Irish households have a broadband connection Music 46 70% On demand TV 44 Reduction in the price per Mbps in UPC’s service since 2010Skype/video conversation 39 Movies 33 50 Mbps Sports 33 The entry level speed for UPC broadband customers Games 33 1.4 Gbps Instant Messaging 30 The record breaking consumer Irish Internet speed set by UPC iTunes 25 (September 2012) Streaming TV 24 Total Users: source Comreg quarterly reports (www.comreg.ie) Education 23 Peering Traffic Volume: source INEX (www.inex.ie) Streaming radio 21 Total Traffic: assumption that 20% of total broadband traffic is INEX peering while Betting 14 remaining 80% is Transit * 1 Petabyte = 1 million gigabytes 0 10 20 30 40 50 60 70 80 UPC Report on Ireland’s Digital Future 15
    • Of course, there aren’t enough hours in the day to fit in all of theabove activities. Sure enough, many people are now doing different Fig 10: Media Multi-Tasking: EU countries % incidenceactivities in tandem with one another. Some 3 in 10 in our consumer % 80survey are surfing the web while watching TV. And young people are 70leading this trend (Fig 9). 60 50Fig 9: Media Multi-Tasking in Ireland: % using laptop/tablet/ 40 30smartphone all the time/almost always, while watching TV 20 Ireland 10 % NO HU HR UA RU UK RO GR CH DK BG EU RS SK NL CZ TR DE BE FR PT PL SE AT ES SI IT FI 050403020 54 69 10 30 43 44 31 27 13 58 0 Total 15–24s 25–34s 35–44s 45–54s 55+ 56 66 59Indeed, the Irish generally are leading the way, as the incidence of 62 58 47 48 58what some call media multi-tasking in Ireland is already above the EU 59 60 62average as reported in a recent IAB Europe survey (Fig 10). 71 62 53 31We can expect media multi-tasking to grow in future as more users 37 41with more devices - linked to faster broadband - enjoy the benefits of 52 53a more interactive TV experience, enhanced by the capabilities of real 47 55time participation, feedback and commentary via Twitter etc. Source: IAB Europe: http://www.iabeurope.eu/research/mediascope-europe/ media-multi-tasking-means-more-active-consumers-bulletin.aspx16 UPC Report on Ireland’s Digital Future
    • Gaming Partner % 80 70 60 50Digital Entertainment »» Nearly 1 in 5 (17%) have used their TV to view Facebook 40Television, as we have seen, is still the dominant leisure time activity (27% of under 25s) 30in the home for most Irish people. But television is no longer confined »» Nearly 1 in 2 (44%) use On Demand TV (such as RTÉ and TV3 Players) 20to the television set. In our survey we found that significant minoritiesof adults use their TV - or a device connected to their TV - to access a One activity that has traditionally combined the television set with 10 71 21 14 21 1range of web services: another device has been gaming. 1 in 3 (33%) of all those with 0 Alone At home with friends Other players in Ireland Other players abroad Other broadband in the home use the Internet to play online games. Most»» Nearly 1 in 4 (23%) have used their TV to watch YouTube play alone or with other household members, but over a third play (35% of under 25s) with players elsewhere in Ireland or even abroad (Fig 11).Fig 11: Online Gamers: Players and DevicesGaming Partner % Device Used %80 2570 206050 154030 1020 510 71 21 14 21 1 0 0 Alone At home with friends Other players in Ireland Other players abroad Other XBox 360 Playstation PC Laptop Nintendo Wii Nintendo DS iPhone/smartphone Other N/A Dont knowDevice Used %25 UPC Report on Ireland’s Digital Future 1720
    • The Digital Viewer – On Demand UPC Insight Working from Home Of course, people use the Internet at home for work purposes as well -There is an ongoing proliferation of information devices in Irish and the incidence is quite remarkable, as illustrated in Fig 12.homes. Consumer bandwidth and content requirements are growingconstantly and this is being driven primarily by an explosion in videocontent, ranging from the use of iPlayers to all other streaming, Fig 12: Incidence of Working from Homeviewing and downloadable content.These trends are also impacting across wider society as socialnetworking communities grow specifically around TV and onlinecontent. TV itself is being totally transformed where the advent of Do you useOn Demand TV is changing habits by putting viewers in full control the Internet For what at home activities?of their personal TV schedule. They can watch whatever they want, for work?whenever they want it.Since launching our free On Demand TV service, UPC has gleanedsome unique insights into this “anytime” phenomenon.8m Yes 34% Check Emails 89%The number of views of UPC On Demand content in 5 months No 40% Work on reports/77% Don’t Know 26% presentations 56%The percentage of UPC’s On Demand capable customers who have Planning/scheduling 48% Skype with colleagues/used the service since launch clients 21%45% Research 3%of the 8 million views of On Demand TV to date are views of Other 6%domestic Irish TV A third of adults in our survey are already working from home to70% varying degrees, rising to 46% of 35-44 year olds. Although mostThe proportion of Irish households with a pay TV subscription are using it for ‘bandwidth-lite’ activities such as checking email, a minority are also using it for more collaborative work such as video- conferencing and report preparations.18 UPC Report on Ireland’s Digital Future
    • Knowledge vs Benefits All of us use many different technologies – and most would struggle to explain how they work, even though we benefit every day from their capabilities. In our research we asked consumers to rate a) their knowledge of digital technology, and b) the benefit from digital technology on a scale of 1 to 10, where 1 is low and 10 is high. Fig 13 summarises the overall findings, and points to a clear difference between knowledge and benefits. Fig 13: Digital Technology: Knowledge & Benefits Rating of Rating of knowledge benefits of digital from digital technology technologyA recent report by IDC forecasts that mobile workers will represent 57% of the total Irish working population – or 1.4 Low 11% Low 4%million workers – by 2016*, driven by the communications tools Medium 42% Medium 30%and channels now increasingly available. This future dynamic High 47% High 67%between home and work is a theme we return to in Chapter 3when we explore how Irish businesses are responding to thedigital opportunity.* Source: IDC Report for O2 Ireland: http://www.o2online.ie/o2/uploads/pdfs/terms/business/O2-7801-G-Joined-Up-IDC-Inserts.pdf UPC Report on Ireland’s Digital Future 19
    • There are a number of demographic differences in relation to thedigital knowledge/benefit gap, as summarised in Fig 14.Fig 14: The Digital Knowledge/Benefit Gap – Mean Scoreout of 10 Digital Digital Digital Knowledge Benefits K/B Gap TOTAL 6.2 7.2 1 15-24s 7.2 7.7 0.5 25-34s 6.6 7.3 0.6 35-44s 6.2 7.3 1.1 45-54s 5.6 6.9 1.3 55+s 5.3 6.8 1.4 Higher Income 6.3 7.2 0.9 Lower Income 6.0 7.1 1.1 » Nearly 3 in 4 agree the Internet allows them to make smarter purchasing decisions (rising to 77% of 35–44s)The gap is bigger for some than for others, but most people clearlyfeel they benefit from digital technologies, indicating a generally » Nearly two thirds agree the Internet opens up new career,positive, even optimistic outlook on the contribution of digital educational and social opportunities (rising to 69% of under 25s)technology today and in the future. » Over half agree they wouldn’t be able to buy many of the things they want without the Internet (rising to 60% of 25–34s), and 4Digital Optimists in 10 say they wouldn’t be able to afford many of the things theyGiven the positive dynamic in consumer adoption of digital technology want without the Internet (also higher for 25–34s)– despite weak domestic demand – we might assume that Irish people » Over 4 in 10 (44%) agree their family life is better because ofare optimistic about the digital future. Indeed they are, and not just the Internet (rising to 50% of 35–44s)the future. In our survey we asked people about the impact of digitaltechnologies on their lives today – whether they agree or disagree » Nearly 4 in 10 (38%) agree they wouldn’t be able to do theirabout the different impacts of technology. The responses overall are job without the Internet (rising to 45% of 25–34s)very positive (Fig 15).20 UPC Report on Ireland’s Digital Future
    • Fig 15: Life Online: Impact of Digital Technology Nowadays Fig 16: The Digital Future: Likelihood and Appeal Disagree Agree Likelihood of future outcome Appeal of future outcome Unlikely Likely Unwelcome Welcome The Internet allows me to make 7 smarter purchasing decisions 13 73 People will get more of their shopping 58 delivered to their home after ordering The internet opens up new career it online, including groceries 15 8 49 opportunities, educational opportunities, social opportunities 64 People won’t need to go to the 21 22 cinema or rent DVDs. They will pay to 51I wouldn’t be able to buy many of the watch movies using online services 27 things I want without the Internet 52 available via broadband 35 My family life is better because 23 19 of the Internet 44 Faster Internet services will have 48 improved my life 10 26 60 I wouldn’t be able to afford many ofthe things I want without the Internet 41 People will be able to work abroad 24 and not have to leave Ireland because 45 28 technology will enable them to stay I wouldn’t be able to do my job 19 without the Internet 38 at home while doing their job 49 My internet speed at home isnt fast 46 31 People won’t need to physically go to 40enough for all my family requirements 28 universities/colleges because they will be able to do all course work online 33 % 0 10 20 30 40 50 60 70 80 34 29 People won’t need to go to work in 39Irish people look forward with considerable optimism to the future offices because they will be able to 28effects of digital technologies. work from home most of the time 41In our survey we asked people to consider a range of possible future % 0 10 20 30 40 50 60trends driven by technology. They were asked to say a) to what extentthey thought each trend is likely or unlikely to happen; and b) whetheror not they would welcome each trend in the future. The results aresummarised in the chart on the right (Fig 16). UPC Report on Ireland’s Digital Future 21
    • »» Home Shopping: the majority (58%) of consumers think it likely In terms of expected and welcome futures, over half of Irish that people will use the Internet to do more shopping, with adults (53%) think it likely that ‘the adoption of better digital deliveries to their home, while almost half (49%) would welcome technologies will speed Ireland’s economic recovery’. An even such a scenario. bigger majority (63%) would welcome the digital-led recovery.»» Home Movies: just over half of all adults (51%) expect that movies via broadband will replace going to the cinema, though fewer When asked, more people were interested in availing of lifestyle, welcome this development (35%). learning and employment changes if technology made it possible»» Faster Services: just under half of all adults (48%) expect faster (Fig 17). Internet services to improve their lives in future, and even more The most popular change is that of working from home for 1 to 2 days (60%) would welcome such improvement. per week. Over 6 in 10 (62%) of all adults are interested in such an»» Migration: under half (45%) of people in Ireland think it likely that arrangement, rising to 67% of 25–34s. This is followed by the prospect we will be able to become ‘virtual emigrants’, using technology of running your own business from home: attractive to half the to work abroad but stay at home, while nearly half (49%) would population (51%). Moving to the countryside while still working from welcome this. home also has broad appeal for 43% of all adults (and even more so»» College: some 4 in 10 (40%) think it likely that future students will among 25–34s). do all their course work online.»» Working: 4 in 10 (39%) think that office work will become a thing of the past, with the same proportion welcoming such a trend.One interesting demographic difference that emerges in our studyis that over 55s are typically more positive and welcoming about thepotential changes that the digital future might bring – suggesting thatthe ‘generation gap’ in relation to technology will soon be gone.22 UPC Report on Ireland’s Digital Future
    • Fig 17: The Digital Home: Interest in Future Services One area that will see considerable change being driven by digital Not interested Interested technology is that of health care and medical services. Half the population (51%) is open to diagnoses and treatments by foreign 15 Working from home 1 or 2 days a week experts, delivered via digital technology, rising to 57% of over 62 55s (inevitably a key target market). 20 Running your business from home 51 Exploiting the full capacity of the web to create fulfilling lives and Receiving full medical 23 satisfying work is not all a one way street. Our assessment of future diagnoses/treatment by world class health/medical experts in different 51 scenarios included the idea of ‘digital mentoring’ – enabling people to hospitals and centres around the world use their skills and experience to coach and advise young people and Getting further qualifications from an 25 even businesses in Ireland and in other parts of the world. There is Irish university 50 very considerable interest in this idea: with 45% of adults expressing Using your skills/experience to an interest. This type of initiative is indicative of the transformative 24coach/advise young people in other parts potential of the web, and another sign of how Ireland’s economic of the world or even business/ organisa- 45 tions like ones you have worked in recovery might come about. Learning a foreign language by receiving 26 lessons via Skype from a native speaker 45 Getting further qualifications from a 30 European University 44 Moving to the countryside while still 29 being able to work from home 43 % 0 10 20 30 40 50 60 70 80 UPC Report on Ireland’s Digital Future 23
    • 2 | The Digital ConsumerThe previous chapter examinedtechnology usage and time spent onlineby Irish consumers. In this chapter wefocus on money. » 2.6 million Irish online shoppers will spend €3.7bn in 2012 » Travel related spending and clothing and footwear are the biggest purchases » 8 in 10 Internet users use the web to research products but buy in local shops » 6 in 10 Internet users use local shops to research products but buy online » Over 6 in 10 online shoppers would buy from an Irish website if they knew about it » Irish consumers will spend €5.7bn online by 2016, or 7% of all spending » 30% of Irish adults are ‘Digital Leaders’, while 8% are ‘Digital Laggards’24 UPC Report on Ireland’s Digital Future
    • Online SpendingFig 18 summarises the current state of play of the online market in Our estimates for the value of online expenditure are derived fromIreland. Irish consumers will spend €3.7 billion online this year. Just to answers to our consumer survey. We asked consumers to estimateput that in context, total consumer spending is forecast to reach €80.9 their average monthly expenditure online. The average stands atbillion in 20121, which means that nearly 5% of all consumer spending €116 per adult per month, rising from €61 per month among 15-24will be online this year – compared to less than 1% in 2007. year olds to €168 per month among over 55s.We have profiled the market by age group – and it tells us somethingvery interesting about the distribution of digital spending power. For Online spending is driven by travel and hotels – as shown in the nextexample, 15-24s represent just 15% of the adult population but nearly chart (Fig 19) – though other items also figure prominently, especially20% of Internet shoppers. However, when it comes to spending power, clothing/footwear, and books and music.their combined spending is just over 10% of the total. On the otherhand, over 55s make up 28% of the population but just 14% of Internetshoppers. But their spending power is over 20% of the total.Fig 18: Online Consumer Spending by Age Group Internet Online Share Share Share Population Shoppers 000s expenditure of adult of Internet of online Age Group 000s 2012* 2012** €m 2012*** population Shoppers spending 15–24 553.4 509.1 €371.8 15.4% 19.8% 10.1% 25–34 733.5 669.0 €926.5 20.4% 25.1% 25.2% 35–44 700.0 604.8 €721.6 19.5% 22.5% 19.6% 45–54 586.3 418.9 €622.9 16.3% 15.9% 16.9% 55+ 1,017.8 369.2 €746.1 28.3% 14.2% 20.3% Total 3,591.0 2632.9 €3,680.5 100.0% 100.0% 100.0% * QNHS CSO ** Amárach Survey *** Amárach Calculations1 ESRI Quarterly Economic Commentary, Autumn 2012: http://www.esri.ie/UserFiles/ publications/QEC2012AUT_ES.pdf UPC Report on Ireland’s Digital Future 25
    • Fig 19: Items Purchased Online in past 6 months Clicks & Bricks % of adults Though nearly 5% of all Irish consumer spending is now online,Travel/hotel related bookings 61 95% is not. However, a significant proportion of offline spending Clothing/footwear 53 is influenced by the web, even if that is not where the transaction Books 51 ultimately takes place. Indeed, most Irish Internet users use the web to help find better deals and to inform their purchase Music/CDs MP3 tracks 29 decisions; ‘always’ in the case of 41% of all users, and ‘often’ in Movies/DVD/film rental 28 the case of an additional 50% of users. Electronic goods (e.g. ipod) 26 Medical/health related 21 Some consumers use the web to research products and choices online Toys/baby products 19 but ultimately buy offline in local stores, perhaps because it is more Electrical goods (e.g. toaster) 19 convenient (‘clicks and bricks’). Consumers also research products Groceries 19 and choices in local stores and then buy online, perhaps because it is cheaper (‘bricks and clicks’). The chart on the next page (Fig 20) Perfumes/cosmetics 18 summarises this situation: 8 in 10 (80%) Internet users research online Flowers 10 and buy local, while 6 in 10 (58%) research local and buy online. Furniture 7 How does this impact on different markets and sectors? The table on Tickets/concert tickets 1 the next page (Fig 21) shows the channel preferences of consumers Other 4 who have purchased online in each category over the past 6 months, 0 10 20 30 40 50 60 70 80 in terms of whether they prefer to buy in a shop or prefer to buy online, or have no preference.Perhaps not surprisingly, price is a key motivation for Ireland’s 2.6 Clearly a number of markets have effectively gone ‘virtual’: bookingmillion Internet shoppers (45% of the total). The importance of price for flights, buying music and ordering movies, to name the most obviousshopping online falls slightly with age, while convenience (32% of the from the chart. Others still show a strong preference for ‘bricks’:total) rises with age. A better range or selection is important too (21%). clothing, groceries and furniture for example.26 UPC Report on Ireland’s Digital Future
    • 67% Fig 20: Clicks vs Bricks Yes No Don’t Know 5% 5% 15%Of people prefer to buy Research Researchmusic online online 37% locally but 58% buy locally buy online 80% Fig 21 Doesn’t Prefer to matter Prefer to buy in a or no buy online shop preference Travel/hotel related services 87% 2% 11% Music/CDs/mp3 tracks 67% 12% 21% (e.g. iTunes) Medical and health related 60% 14% 26% (e.g. insurance, equipment) Movies/DVDs/film rentals 59% 16% 25% (e.g.iTunes) Electronic goods (e.g. iPad) 48% 19% 33% Flowers 48% 19% 33% Books 42% 28% 30% Electrical goods (e.g. toaster) 40% 37% 23% Perfumes and cosmetics 35% 33% 32% Toys/baby products 30% 30% 40% Clothing/footwear 19% 55% 26% Furniture 19% 53% 28% Groceries, food or alcohol 16% 55% 29% UPC Report on Ireland’s Digital Future 27
    • If You’re Irish Not shown is the percentage shopping across a mix of Irish/There are, though, some interesting differences when it comes to the international websites, which is the experience of nearly half ofprovenance of websites themselves, specifically in relation to whether shoppers in categories like baby products and cosmetics. Nevertheless,a website is Irish or international. Fig 22 shows the location of websites there are some stark differences. When it comes to groceries, timingused by shoppers in each category. is everything so a ‘local’ site is vital to ensure fresh produce is still fresh when it arrives. On the other hand, the more digital a productFig 22: eTailers: Irish Vs Foreign Websites or service becomes then the less important would appear to be a Irish Website International website site’s provenance. Hence music and movies are predominantly being 65 purchased via international websites.Groceries/food/alcohol 11 Over 55s tend to have a bias towards Irish websites – though it is by no 46 Medical/health related 12 means uniform across all categories. Nevertheless, this is important 44 given their share of total online spending noted above. Of course, Flowers 15 many consumers may feel they simply have no choice about where 33 to buy products and services online. As Fig 23 shows, when those who Furniture 17 purchased from international websites were asked if they knew of any 30 equivalent Irish websites selling the same products, between half and Travel/hotel 19 three quarters said no or simply didn’t know, depending on the category. 23 Electrical goods 23 But sizeable minorities in most categories were aware of alternative, Toys/baby products 17 Irish websites selling the products or services they were buying. They 23 chose not to ‘buy Irish’ mainly because of price, but also because 17 Clothing/footwear 25 of perceptions about range and choice. Curiously, price tends to be more motivating to middle aged shoppers (35-44s and 45-54s), while 7 Perfume/cosmetics 29 range is more important to younger (under 25s) and older (over 55s) 13 shoppers. Electronic goods 31 However, a key finding for Irish website operators is that the majority 12 Books 42 (61%) of those not aware of equivalent Irish sites when shopping would purchase from an Irish site if they knew about it. 9Movies/DVD/film rental 47 8Music/CD’s/MP3 tracks 47 % 0 10 20 30 40 50 60 70 8028 UPC Report on Ireland’s Digital Future
    • Fig 23: Deal or No Deal: Reasons for Choosing Irish Bank & Switch Aware of Irish Site No Yes Don’t Know Spending nearly €4 billion online would not be possible without access to payment and banking systems. Over three quarters (78%) of Irish 17 49 34 Internet users use Internet banking, ranging from 58% of under 25s to Travel/hotel related services 86% of 35-44s. 21 39 40 Toys/baby products Fig 24 shows that Internet banking is used for a variety of ecommerce activities, including money transfers, bill payments and mobile phone 31 37 32 Clothing/footwear top-ups. 34 31 34 Books Fig 24: Main Internet Banking Activities % 31 26 43 Music/CDs/MP3 tracks View bank balance/management 97 Money transfer 86 32 21 47 Movies/DVD/Film rentals Bill payment 85 % 0 20 40 60 80 100 Mobile top-up 67 Reason for Choosing Savings 61 International Site Account opening 29 Price 55 Setting up direct debit/standing order 1 Credit card application 1 Better/broader product range 32 Purchased insurance/travel insurance 1 Viewed statements 1 Easier to search for/ 5 Loan application 1find individual products/services Other 2 Better/easier to use web site 4 0 20 40 60 80 100 Better delivery/return terms 2 There are few significant differences by age in relation to the type of banking activity, though bill payment is more common among 35–44 Other 3 users of Internet banking. This latter point is important, not least % 0 10 20 30 40 50 60 because thirty-somethings and forty-somethings are under the UPC Report on Ireland’s Digital Future 29
    • greatest financial pressure due to dependent children and high levels Indeed, 35–44 year olds are the age group most likely in our survey toof borrowings2. use the web to switch in the majority of categories – in keeping with their wider financial priorities and pressures. Furthermore, men areAnother consequence is that Ireland’s financially stressed consumers are significantly more likely to use the Internet to switch in virtually all themore willing than ever to switch suppliers for meaningful savings. Needless categories covered in our survey.to say, the Internet plays a key role in switching behaviour, with Fig 25showing the percentage of Internet users who have used the web to switcheach type of service provider in the past 3 years.3 Consumer Preferences UPC Insight Increasingly, Irish consumers favour online interaction forFig 25: The Big Switch: Using the Internet to Switch Provider purchases of goods and services. It’s also a convenient way for % people to make personal changes to their account administration Car insurance 56 requirements and overall it saves time and resources. UPC Electricity/gas provider 40 changed its business model to meet the needs of customers Mobile phone network 40 who prefer to interact online. Home insurance 39 Broadband provider 38 31%Landline telephone provider 27 of all UPC customers purchase their products via our TV service provider 22 online channel Main bank 18 47% Refuse collection 1 choose to manage their UPC account online Health insurance 1 19% Other 1 of our digital cable customer base use the remote record app N/A None 22 150,000 0 10 20 30 40 50 60 Number of customers who have downloaded information and support videos to help them in setting up their services in the past 15 months2 For more information about the financial circumstances of Irish consumers see Amárach’s monthly Economic Recovery Index: http://www.amarach.com/resources/ economic-recovery-index.htm3 More detailed information on consumer switching behaviour is available from the National Consumer Agency: http://corporate.nca.ie/eng/Research_Zone/Reports/ switching-behavour-aug-2012.html30 UPC Report on Ireland’s Digital Future
    • The Size of the Prize could be online in the UK by 20224). Ireland will undoubtedly follow thisWe have established the significant scale of Internet shopping in trend, as consumers embrace the digital future and the better valueIreland today. But we are only at the beginning of a major shift in and choices it will bring.consumer spending patterns. Fig 26 shows Amárach’s forecasts for But we must add a note of caution: there is no guarantee that Irishthe value of online spending to 2016. Despite weak growth overall, product and service providers will benefit from this increase in onlinethe value of spending will grow from under 5% of total expenditure to spending. As we have seen, Irish consumers are open to shopping7% by 2016; an increase of €2 billion per annum in the value of online online at Irish sites, but it is not necessarily their ‘default’ choice.spending by the end of the forecast period. Therefore it will be vital for Irish businesses to scale up as appropriate for the opportunities that lie ahead, in a timely and convincing manner.Fig 26: Online Consumer Spending UPC Digital Consumer Index€Bn Value of online spending Share of total consumer spending % In order to measure our progress we need a benchmark against which 6 8 we can compare future performance. In this regard we have created a UPC Digital Consumer Index which will track progress towards the 5 digital future, for individuals and for groups. 7 4 The Index is based on answering the following five questions for all those with broadband in the home: 3 6 »» whether or not you have wifi at home (score 0 if no, 20 if yes) »» average broadband download speed (scores 0, 10 or 20 depending 2 on speed) 5 1 »» whether or not you ever do work from home (score 0 if no, 20 if yes) €3.7Bn €4Bn €4.5Bn €4.9Bn €5.7Bn »» how often you use the web to help with shopping (score 0 if rarely, 0 4 10 if occasionally, 20 if regularly) 2012 2013 2014 2015 2016 »» average amount of time spent online on a typical weekday (scoresAlready, some markets such as the UK have seen online spending rise 0, 10 or 20 depending on hours)to double digit figures relative to total retail sales (with forecasts bythe Economist Intelligence Unit suggesting that a third of retail sales 4 EIU Retail 2022: http://www.eiu.com/ UPC Report on Ireland’s Digital Future 31
    • The Index is based on the combined scores derived from the answers Fig 27: UPC Digital Consumer Index to these questions, with the range running from a minimum of zeroto a maximum of 100. From this we have identified three groups using Total 61.4the UPC Digital Consumer Index: 15-24 73.3»» Digital Leaders: those who score 70–100 25-34 70.9»» Digital Followers: those who score 30–60 35-44 61.7»» Digital Laggards: those who score 0–20 45-54 59.8Based on the above, our analysis shows that just 30% of the adult 55+ 49.6population are Digital Leaders in Ireland, while 8% are Digital Laggards. Male 60.9The balance – 62% – are Digital Followers. The table on the right Female 62.1(Fig 27), shows the average Index scores by different demographicgroups derived from our consumer survey. Higher Income 64.9The table tells us that only two demographic groups – under 25s and Lower Income 58.325-34s – are in the Digital Leaders category (though individuals in allother groups are as well), most segments are in the Digital Followers Digital Leaders 30%group. Fortunately no one demographic group can be categorised as Digital Laggards 8%Digital Laggards! Digital Followers 62%You can measure your own UPC Digital Consumer Index by answeringa few simple questions on our special website: www.upc.ie/digitalindexWhy not see how your family scores?32 UPC Report on Ireland’s Digital Future
    • 3 | The Digital BusinessThese are tough times for Irish businesses.Weak consumer demand means challengingdomestic markets and the need to focus overseasfor growth. It wouldn’t be surprising to see‘recession-fatigue’ setting in among Irish SMEsand larger corporates. But this is not the case. » 8 in 10 businesses are optimistic about growth prospects for the next 2 years » 55% of all businesses intend hiring new staff in the next 2 years » Two thirds expect to expand in Ireland and nearly half will expand abroad » Nearly half of all businesses have observed an increase in online feedback and/or complaints from customers in recent years » Digital technology has delivered productivity increases and cost savings to a majority of businesses » 6 in 10 companies enable their staff to work from home during contracted hours » Nearly 3 in 10 Irish businesses are ‘Digital Leaders’, while 14% are ‘Digital Laggards’ UPC Report on Ireland’s Digital Future 33
    • Growth Optimists But there is one interesting difference: companies with someThe UPC survey of 201 decision-makers and managers responsible employees who work from home as part of their regular workingfor IT among a cross-section of Irish businesses shows a high degree hours are much more optimistic than those who don’t – 86% vs 72%of optimism about future growth prospects. We asked them about (combining good and very good prospects). This theme of the work-growth prospects for the next 1-2 years; the answers are summarised home interface is one we will return to later.in Fig 28. The fact is that business sentiment is extremely important – it influences everything from intentions to hire, to plans to invest to ambitions forFig 28: Growth Prospects for the next 1–2 years expansion. Take the first of these: recruitment. Over half (55%) of the businesses in our survey expect to hire new staff over the next 1-2 years, Very Good Good Poor Very Poor only 3 in 10 say they won’t be hiring. And as Fig 29 shows, IT skills will be a vital qualification of most of those who will be hired. Total 15 65 17 3Business Type Fig 29: Recruitment Plans & IT Skills B2B 15 69 15 1 Both 26 56 16 2 Intend to Importance B2C 6 67 21 6 Hire New Staff of IT Skills in Next 1–2 for Recruits % 0 20 40 60 80 100 YearsJust 1 in 5 businesses view their prospects as poor, 4 in 5 say they aregood. Inevitably the outlook varies by business type: those focusingon consumers (B2C) view the future as more challenging than those Yes 55% Extremely Important 40%focused on businesses (B2B). Nor do the differences stop there: Irish- No 30% Important 44%owned businesses are more optimistic than foreign-owned businesses. Don’t Know 15% Not Important 15%Business size (in terms of number of employees) does not influenceprospects – those in SoHos (under 5 employees), SMEs (5-250employees) and corporates (250+ employees) are equally optimistic.34 UPC Report on Ireland’s Digital Future
    • Hiring intentions rise to 67% of those businesses whose staff work Fig 30: Digital Technologies in Irish Businessfrom home (compared to just 37% among those who don’t). Hiring %plans are higher among SoHos and SMEs than among corporates Company supplies smartphones to staff 79– though a majority of businesses in all three categories intend Company supplies laptops to staff forhiring. Ownership (Irish/foreign) doesn’t influence hiring plans, but 77 use outside officeB2B focused businesses are more likely to hire in future than B2C Intranet for staff 70businesses. Customer email/ezine 65Why such confidence and optimism in the face of a still gloomy Business website 53economy? The answer, as with consumers, is that businesses havemoved on. Just as we noted in Chapter 1 the extraordinary adoption of Business Facebook page 50digital technologies by Irish consumers despite the recession, so also CRM system 46are Irish businesses adapting to the new digital realities that they face. Online staff training 43Fig 30 shows the current usage of digital products and services inIrish businesses – indeed, many are now ubiquitous throughout the Linkedin account 38business community. Extranet for customers 33Mobility is a clear driver of technology provision – e.g. smartphones Business Twitter account 33and laptops – while internal and external communications are similarlyimportant. Even relatively ‘new’ technologies such as social networks Data analytics 33(e.g. LinkedIn) and mobile apps have significant penetration across Online ordering/purchasing service for customers 32Irish businesses today. Online ordering/purchasing 32 services for suppliers Mobile phone apps for business 22 Business blog 21 0 10 20 30 40 50 60 70 80 UPC Report on Ireland’s Digital Future 35
    • There are, of course, significant differences in the adoption of digital Online competition doesn’t necessarily mean competition fromtechnologies by different types of businesses. Though not all the abroad. While those affected (the 1 in 5 businesses referred to above)differences are obvious. Larger businesses, for example, are more likely see slightly more pressure coming from overseas, the majority seeto have intranets, operate CRM systems and provide online training competition coming from both local and overseas sources. This is anfor their staff. However, smaller businesses are significantly more likely important point in relation to our discussion of Irish vs internationalthan larger businesses to have a Facebook page for their business, use websites in the previous chapter.twitter and even write a blog. The barriers to entry in relation to mass It would appear that the ‘problem’ with falling barriers to entry (viacommunications have fallen in an age of social media and Web 2.0 and online competition) is that it is easier for new entrants and start-ups toIrish SoHos and SMEs are grabbing the opportunity. do just that – hence the higher pressure on smaller businesses. Indeed,The scale of digital adoption by Irish businesses is impressive. As of 2012: businesses are already experiencing significant changes to the way their customers interact with them, thanks to digital technology.»» One quarter of employees (26%) on average are provided with Fig 31 shows the incidence of specific changes to the online behaviour standard mobile phones by their employers of businesses’ customers over the past three years.»» Over one third (36%) are provided with smartphones»» The same proportion are provided with laptops by their employers Fig 31: Changes in Customer Behaviour Online %»» 1 in 7 (14%) are provided with tablet/iPad devices More complaints/»» Three quarters (76%) of employees have access to the Internet 47 customer feedback at work More online purchases 40»» 7 in 10 businesses allow their staff to use the Internet for personal purposes More social media commentary 34 about your businessOf course, investing in digital technology is not just a ‘good’ thing to Customers use webdo: for many businesses it is a ‘necessary’ thing to do simply in order 32 to get better dealsto survive. Already, 1 in 5 Irish businesses is seeing some shrinkage intheir revenues due to online competition. SMEs are nearly three times More use of online resources 1as likely as corporates to be experiencing revenue pressures fromonline competition. While those selling mainly in the Irish market are None/Not relevant 19twice as likely to feel the pressure as those selling abroad. 0 10 20 30 40 5036 UPC Report on Ireland’s Digital Future
    • Nearly half (47%) of all businesses have observed an increase in Fig 32: Digital Adoption Scorecustomer feedback (and not all of it positive) in recent times. This rises High Low Mean Score (10.0)to a majority of foreign owned companies (56%), but even 45% ofIrish owned businesses have witnessed the trend. Maximising productivity 72% 28% 6.71Some 4 in 10 businesses have seen an increase in online sales of Delivering customer service 69% 31% 6.5their products and services (driven, no doubt, by the level of online Minimising costs 66% 34% 6.63purchases analysed in the previous chapter); rising to 50% of those inB2C markets. Managing staff 63% 37% 6.14Only 1 in 5 firms say there has been no change in the online behaviour Maximising sales 60% 40% 5.83of their customers – or it is not of relevance to their business. This rises Managing suppliers 59% 41% 6.02to 23% of those with poor growth prospects, which begs the question,have they been paying attention to their customers in recent times? Managing the supply chain 54% 46% 5.69 Training and development of staff and recruits 54% 46% 5.84Digital GrowthWhat will drive growth and job creation in the future? Clearly, digital Managing recruitment 47% 53% 5.43technology will play a crucial part. But it is no longer about simply 0 20 40 60 80 100acquiring the technology. As we’ve seen, many technology-basedproducts and services are now common place in Irish businesses. Clearly the IT decision-makers in our survey feel that they areRather the key challenge will be to maximise the value of digital performing better on some measures than on others. Boostingtechnologies throughout businesses, both internally and externally. productivity and serving customers does well relative to HR-focusedOne indication of the digital potential is shown in Fig 32, in which activities such as training and recruitment. Not surprisingly, there arebusinesses score their performance out of ten in relation to the significant differences across the business community in terms of theiradoption of digital technology around each of nine operational digital performance.applications. We have calculated a Digital Adoption Score (an ‘average of the averages’ across nine statements illustrated in the previous chart) by type of company. This tells us that the average Irish business achieves just over 6 out of 10 in terms of their average performance across nine applications (internal and external). That certainly leaves room for improvement, and it is clear from Fig 32 that, while some types of UPC Report on Ireland’s Digital Future 37
    • businesses do better than others, there are relatively few ‘stand out’ »» Suppliers: here the corporates in our survey do better – scoringbusiness types when it comes to digital adoption. their use of technology to manage suppliers higher (6.3) thanNote, it is their self-reported performance we are recording, some may SMEs (5.9)actually be doing better – or worse – than they think. »» Supply Chain: foreign owned companies score higher applyingThat said, those with staff who work from home some/all of the time digital to their supply chain management (6.4) than Irish ownedas part of their contracted hours appear to do considerably better than firms (5.6)others. Note also that foreign owned firms do better than Irish owned, »» Training: as with staff management, those firms with staff workingthough the superior performance of SoHos suggests that indigenous from home score higher applying digital technology to staffbusiness might succeed in closing the gap sooner rather than later. training and development (6.3) than those without (5.2)Taking each of the nine areas of digital technology adoption in turn, »» Recruitment: though all firms have room for improvement, thosewe find that: with good growth prospects report a significantly higher level of adoption for the management of recruitment (5.6) than those with»» Productivity: those with ‘home workers’ score considerably higher poor prospects (4.7). in terms of adopting digital technology to maximise productivity (7.3) than those who don’t have staff working from home (5.8) It is clear from our analysis that those firms adopting digital technology to the benefit of their staff are already reaping significant»» Customer Service: those companies with good growth prospects benefits. Indeed, nearly 6 in 10 (59%) of the companies we surveyed score higher on using digital technology to deliver customer already have permanent staff working from home to varying degrees service (6.7) than those with poor prospects (5.9) during contracted hours. Among such companies, an average of 16%»» Costs: SoHos are better at using digital technology to minimise of their staff work from home, though there is considerable variance costs (6.8) than larger corporates (6.5) as illustrated on the following page (Fig 33).»» Staff: those with staff working at home use technology more Companies with poor growth prospects have fewer staff working from effectively to manage staff (6.6) than those without (5.4) home than those with good prospects.»» Sales: companies with good growth prospects do better at using Among firms with staff working from home, over half contribute the digital technology to maximise sales (6.0) than those with poor cost of broadband usage at home by their staff, with smaller firms prospects (5.1) more likely to adopt such an arrangement.38 UPC Report on Ireland’s Digital Future
    • 25%Fig 33: Home Working: Incidence * 50% of companies have up to % working one day or 5% of staff working from home* more from home 6% 50%+ 1 Day 25% 14% 20-50% 2 Days 24% of staff that work from home Companies with permanent staff Yes 59% 11% 11-20% 3 Days 18% do so one day per week No 41% 18% 6-10% working from 4 Days 6% home 50% Up to 5% 5 Days 9% 6 Days 1% 7 Days 3% 1% Dont know Varies 14%*Base: Those companies whose staff work from home. UPC Report on Ireland’s Digital Future 39
    • Path to Recovery Fig 34: Expansion Plans for next 3 YearsClearly Irish businesses are well down the path to the digital future– out of necessity as much as desire. This is very good news forIreland’s economy; for recovery will mostly be driven by increasesin productivity, investment and employment facilitated by digital plans to plans totechnology. expand to expand to customers customersAlready we can discern some of the new ways of working, selling and in Ireland abroadperforming that will help businesses survive and thrive in the yearsahead. For example, 40% of businesses in our survey expect that moreof their staff will work from home in the future. It’s even higher amongthose whose staff already work from home (47%) in comparison tothose that don’t (30%). Likewise, those with good growth prospects Yes 65% Yes 45%also anticipate more staff working from home (41%) than those with No 28% No 49%poor prospects (35%). Don’t Know 7% Don’t Know 6%Beyond new ways of working, businesses will have to innovate in termsof how they sell, what they sell and to whom they sell. The businesses Expanding sales will be challenging enough in the weak economicin our survey have ambitious plans: nearly two thirds (65%) expect environment likely to prevail for some time in Ireland – and even into expand the number of customers they have in Ireland over the our larger export markets. So securing sales growth against a difficultnext three years, while just under half (45%) expect to expand their background will require a range of initiatives and innovations by Irishcustomer base abroad over the same period (Fig 34). businesses if they are to succeed. The good news is that they know thisThose seeking domestic expansion include corporates (69%), those and are prepared to do so.already selling both at home and abroad (74%), and 83% of those The next chart (Fig 35) shows the relative importance of potentialwhose businesses have been affected by online competition already. initiatives by businesses over the next 2-3 years. We have differentiatedThose expanding abroad include companies with staff working from between initiatives affecting sales, and those affecting customerhome (55%), foreign-owned businesses (58%), and those already services. Obviously sales are important in terms of winning customers,selling outside Ireland (73%). and service in terms of keeping them. All the initiatives involve the adoption and use of digital technologies.40 UPC Report on Ireland’s Digital Future
    • Fig 35: Importance of Business Initiatives over next 2–3 Years Importance to sales Important Not important Importance to customer service 28 29 Better use of CRM 62 57 36 Improved website 35 54 55 48 Offer more offline 42 44 products/services online 44 51 48 Launch/expand social media 35 41 54 Offer new digital 50 34 products/services online 36 53 51 Move to cloud computing 32 32 56 Develop mobile apps 55 31 for customers 31 60 50 40 30 20 10 0 % % 0 10 20 30 40 50 60Two initiatives in particular stand out: the better use of CRM, and The same goes for the other potential initiatives. Though minoritieswebsite improvements. In both instances, the majority of Irish firms consider them to be important for future sales and customer service,see them as important to both future sales and future customer most don’t – either because they feel they are sufficiently invested inservice. Although most firms see these initiatives as important, those such initiatives, or they simply aren’t sure about the potential valuewith better growth prospects and those that are smaller see them as of the initiatives to the business. However, given the value of Irishkey to future success. consumer spending online over the next few years, the case for some of the initiatives will become clearer. UPC Report on Ireland’s Digital Future 41
    • Sizing the Prize Fig 36: Intention to Initiate Growth Boosting InterventionsWhat is the growth potential for Irish businesses if they ‘get it right’? % Partnership withIn our research we asked businesses to say how much ‘extra’ revenue 46 technology specialistsgrowth they could achieve – beyond what they will likely achieve anyway Tax incentives forover the next three years – if they got their online strategy ‘right’. 38 digital investmentA minority are unsure, but a larger minority have some inkling of the Access to superfast 35 broadband speedssize of the prize. In fact almost one in four (23%) businesses think theycould achieve an extra 5% growth on top of their current prospects Advice on online sales 32 opportunities in Irelandwith the right online strategy. A further 18% reckon it could even be an Technical supportextra 15% on top of their current growth prospects for the next three 31 for digital capacitiesyears. Here, those businesses with poor growth prospects actually Advice on online salesforesee a much bigger growth prize from getting it right compared to 30 opportunities outside Irelandthose with good growth prospects. Access to employees with 26No business is an island – especially when it comes to digital relevant digital skillstechnology. We asked businesses what interventions they consider 0 10 20 30 40 50most likely to boost their growth beyond expected levels over the nextthree years. The results are summarised in Fig 36 – clearly partnership UPC Digital Business Indexwith specialists in digital technology is considered the most likely In order to measure the progress of businesses towards a digital-ledsource of added growth, followed by tax incentives that take some of recovery, we need a benchmark against which we can compare futurethe risk and uncertainty out of digital investment. business performance.Likewise high speed broadband is viewed as an important contender For this, we developed a UPC Digital Business Index, which we createdfor added growth: especially among those with staff working from based on answers to the following five questions for all Irish businesses:home (37%), and those businesses on low broadband speeds –under 8 Mbps – at 51%. »» whether or not your business engages in ecommerce (score 0 if no, 20 if yes)The message is clear: Irish businesses are ready for the digital future –and they are prepared to invest even more in the services, skills and new »» whether or not you have staff working from homeways of working that will help contribute to Ireland’s economic recovery. (score 0 if no, 20 if yes)42 UPC Report on Ireland’s Digital Future
    • »» average broadband speed (scores 0, 10 or 20 depending on speed) Fig 37: Digital Business Index Digital Leaders 31%»» your digital adoption score for productivity (score 0 to 20) UPC Insight Digital Laggards 14%»» whether or not your customers are buying more of your products Digital Followers 55% online (score 0 if no, 20 if yes)We have created an Index based on the combined scores derivedfrom the answers to these questions, with the range running froma minimum of zero to a maximum of 100. We have identified threegroups using the UPC Digital Business Index:»» Digital Leaders: those who score 70-100»» Digital Followers: those who score 30-69 Staff»» Digital Laggards: those who score 0-29 working Foreign from home owned B2B 68.2Fig 37 shows the average Index scores by different firmographic 59.3 59.1 Goodgroups derived from our business survey. Growth Corporates ProspectsThe distribution of scores across our sample of businesses tells us 58.2 58.2that just over 1 in 5 (31%) of Irish businesses is a Digital Leader, while Sales Mix of14% are Digital Laggards. The balance of 55% of businesses are mainly outside salesDigital Followers. Ireland locations 58.6 56.8 SalesAs with the UPC Consumer Index, no one business segment is in the Irish All Businesses mainly in owned 56.4 IrelandDigital Leaders category (though undoubtedly individual firms in all 55.7 55.8the groups may well be) - most are in the Digital Followers group. Onlythose with no staff working from home come closest to falling into the SMEs B2CDigital Laggards category. 55.3 Sohos 54.7 54.9You can measure your own UPC Digital Business Index by answering afew simple questions on our special website: www.upc.ie/digitalindex Both B2B Poor Staff and B2C Growth not working 54.5 Prospects from home 48.9 39.1 UPC Report on Ireland’s Digital Future 43
    • Enabling Business UPC Insight For an open economy like Ireland, having a powerful broadband Case Study: 11890 network is essential to national and international success. 11890 is the only Directory Enquiries service in Ireland to provide customers with a free Broadband enables connectivity, commerce and a better quality text-back that includes a link to a map with the of life for Irish citizens and industry. It attracts foreign direct Directory Enquiries exact location of your enquiry listed on it. investment and supports indigenous growth - from global data New colour: 100% Cyan 50% Magenta centres to local garden centres. It carries vast amounts of Call 11890 Ltd employs 73 staff across its call centres in Dublin and vital business information, global accessibility and content for Galway and contributes €3.5 million to the Irish economy annually. thousands of businesses the length and breadth of the country. In 2010 the company signed a multi-million euro contract with UPC Business. The contract involves UPC hosting all of Call 11890’s » 1 in 5 companies with new or expanded FDI in 2010 and 2011 services including bandwidth for Internet and data traffic and chose UPC to deliver their network services. the trafficking of all 11890 directory enquiry calls across UPC’s » UPC itself is a large FDI investor with its €500M investment network. in next generation infrastructure, directly employing over 800 “The telecommunications solution provided people and a further 700 indirectly throughout Ireland. by UPC has enabled 11890 to enhance our day to day service and crucially provides us with the flexibility to grow our service locally here in Ireland. As a consequence of the savings made since 2010 we have been able to honour our commitment of pledging to create on average 2.5 new jobs for every additional 1,000 calls we receive per day. Since moving to UPC, we have also won business with the Department of Communications and the French Embassy based on our infrastructure. Over the past two years we have created an additional 9 jobs which we are very proud of in the current economic environment.” Nicola Byrne, Managing Director, Call 11890 Ltd44 UPC Report on Ireland’s Digital Future
    • Conclusions – Towards A Digital FutureEurope is on a journey towards the digital future and Ireland plans Broadly speaking there is a positive impact on GDP per capita fromto be at the forefront of that journey. As we saw in the introduction, increased e-Intensity. Moreover, the Internet Economy in the G20we already perform very well on many indicators in comparison with economies surveyed by BCG is expected to nearly double by 2016,other OECD and EU countries. Indeed, Ireland has already surpassed, growing at a far faster rate than G20 GDP over the same period.by some margin, a number of the EU’s future Digital Agenda Targets Indeed, the Internet Economy’s share of total GDP for ‘Players’ likeand this before work has commenced in earnest with respect to the Ireland will rise from about 3.0% of GDP to nearer 6.0% by 2016.Government meeting the targets as set out in the National Broadband Most of the increase in the Internet Economy is expected to comePlan (which are even more ambitious than the EU’s). from an increase in online consumer spending: a trend evident in Ireland, as reported in Chapter 2.By achieving these goals, there is a real opportunity for Ireland tosecure a higher standard of living and lower level of unemployment To put these trends in perspective, a doubling in the share of GDPthan will be the case if we lag behind. of Ireland’s Internet Economy between 2010 and 2016 would equate to an increase in the value of the Internet economy from €4.7 billionThe Digital Multiplier in 2010 to €11.3 billion in 2016 (using IMF forecasts for GDP6). AlsoHow do we measure the scale of the opportunity? Perhaps the as noted in the Introduction, even modest gains in the level ofmost useful in terms of sizing the prize for digital success is Boston digitisation of Ireland’s economy can reduce unemployment byConsulting Group’s analysis of and forecasts for the Internet Economy5. tens of thousands over time.The chart overleaf (Fig 38) shows their perceptions of Ireland mapped Clearly, digital technology will play a growing (maybe dominant)in terms of GDP per capita versus the BCG e-Intensity Score. The latter role in securing economic growth, improving productivity in ourmeasures each country’s level of enablement (the amount of Internet businesses and the creation of new jobs in Ireland. But we cannotinfrastructure that it has in place), expenditure (the amount of money take such gains for granted. As noted in this report, Irish consumersspent on online retail and online advertising) and engagement (the are switching and as a consequence, the share of online spend isdegree to which businesses, governments and consumers are involved growing. Irish businesses can potentially benefit from this trend, butwith the Internet), several aspects of which have been explored in this this is not guaranteed. Our report, nevertheless, shows a high degreereport. Ireland is what they call a ‘Player’ when it comes to the Internet of optimism among Irish businesses, fuelled by the operational andEconomy, doing well but still some way behind the ‘Natives’. revenue generating benefits of digital technology.5 BCG: https://www.bcgperspectives.com/content/articles/media_entertainment_strate- 6 IMF World Economic Outlook database: http://www.imf.org/external/pubs/ft/ gic_planning_4_2_trillion_opportunity_Internet_economy_g20/ weo/2012/02/weodata/index.aspx UPC Report on Ireland’s Digital Future 45
    • Fig 38: Developed Markets Score Significantly Higher in BCG’s e-Intensity Index BCG e-Intensity Score 200 l South Korea Denmark l l Sweden l UK Netherlands l Iceland l 150 Japan l l Finland l Norway l USA l Hong Kong l Germany l l Switzerland Luxembourg France l l Singapore l Australia New Zealand l Canada Belgium l 100 Czech Republic Slovenia Spain l l Austria l l IRELAND l l l United Arab Emirates Estonia l Poland l Portugal l Israel l l Hungary l Italy l Slovakia l Greece Turkey l Russia l 50 Malaysial l Brazil Argentina l l Chile l Saudi Arabia China l l Columbia l Venezuela Morocco l Mexico l l South Africa India Nascent Natives Players Laggards Aspirants l l Egypt Natives l Indonesia 0 20 40 60 80 2010 GDP per capita ($ thousands)This report has captured Ireland’s digital economy and society We have much to gain from the digital future in terms of higherat a vitally important moment. Despite years of recession, Irish standards of living, a better quality of life, improved consumerconsumers and businesses have embraced digital technologies and welfare, greater business productivity and lower unemployment.services and benefited enormously already. But we have some way This report has shown the road ahead to the digital future: togetherto go before we realise the true potential of digital technology. we must take the next steps.46 UPC Report on Ireland’s Digital Future
    • UPC Tech Box A Digital World For Everyone UPC InsightEnabling Business Digital Agenda for Europe which includes UPC supports the EU’s The Magic Desktop is located at www.magicdesktop.ie About 11890 increasing trust and security, delivering ultra-fast broadbandFor an open economy like Ireland, having a powerful broadband 11890 is the only Directory Enquiries service in Ireland to provide speeds, enhancing digital literacy, skills and inclusion andnetwork is 100% essential to national and international success. customers with a free text-back that includes a link to a map with the developing ICT solutions for social challenges.Broadband enables connectivity, commerce and a better quality of exact location of your enquiry listed on it.life for Irish citizens and industry. It attracts foreign direct investment Digital Inclusion Call 11890 Ltd employs 73 staff across its call centres in Dublin andand supports indigenous growth - from global data centres to local Digital technology drives the modern world: fact. Regardless Galway, contributes €3.5 million to the Irish economy annually.garden centres. It carries vast amounts of vital business information, of culture or country, the television, telephone and Internet In 2010 the company signed a multi-million euro contract with UPCglobal accessibility and content for thousands of businesses the unites and connects people. Our business connects thousands of Business. The contract involves UPC hosting all of Call 11890 Ltdlength and breadth of the country. customers to the digital world. services including bandwidth for Internet and data traffic and the»» 1 in 5 companies with new or expanded FDI in 2010 and 2011 chose trafficking and all 11890 directory enquiry calls across the UPC’s Internet Buttons is located at www.Internetbuttons.ie Building Digital Confidence services. UPC to deliver their network network.»» Building digital large FDI investor with its is at the investment UPC itself is a confidence and inclusion €500M heart of our The telecommunications solution provided by UPC has enabled corporate responsibility strategy. In Ireland, for the past five years in next generation infrastructure, 829 employees and €309M us to enhance both our day to day service and crucially provides UPC has been actively involved in Safer Internet Day. This year, the in revenue us the flexibility to grow our service locally here in Ireland. As a company launched the UPC Magic Desktop, an innovative piece of consequence of the savings made since 2010 I have been able to software which will help parents by encouraging children to play honor my commitment of pledging to create on average 2.5 new and learn in a safe computing environment. We also introduced jobs for every additional 1,000 calls it receives per day. We also Internet Buttons, which is designed to simplify Internet access since moving to UPC have won business with the Department of for digital novices. Communication and the French Embassy based on our infrastructure Find out more by downloading these free services. provided by UPC. Over the past two years we have created an additional 9 jobs which we are very proud of in the current economic environment. Nicola Byrne, Managing Director, Call 11890 Ltd UPC Report on Ireland’s Digital Future 47
    • About UPCUPC is the European division of Liberty Global Inc., the world’s second Mark of approvallargest cable operator. Through its UPC operations, Liberty Global offers In September, UPC was named a finalist in the ninth annual Chamberstelevision, broadband, Internet and telephone services to approximately Ireland Corporate Social Responsibility Awards and at the same time its20 million customers in 13 countries. parent company, Liberty Global announced its inclusion on both the Dow Jones Sustainability World and North America indexes.UPC is one of Ireland’s leading long-term multinational investmentpartners. Through its parent company, UPC has invested in excess of www.upc.ie€500m in upgrading its cable infrastructure to a world class fibre networkthat is capable of delivering new and innovative services to Irish consumers About Amárachand businesses. This investment in its infrastructure represents UPC’s long Amárach Research is an independent market research agency,term strategic commitment to Ireland and the company’s contribution to providing a full range of research services to its Irish and internationalhelping the country secure its digital future. clients. Amárach specialises in turning information into insight; andUPC TV, broadband & phone services insight into foresight.Approximately one-third of all Irish homes are UPC customers. UPC is the Amárach’s experienced team of 30 directors and executives manageleading broadband and TV innovator. UPC was the first provider of “triple- online, face-to-face and cati surveys (through its call centre); asplay” services in Ireland and the first to offer speeds of up to 150Mbps with well as qualitative research including focus groups, in-depths andan entry level of 50Mbps. In 2012, UPC pioneered the launch of Ireland’s ethnographic studies. The agency also delivers a world class field-onlyfirst true On Demand TV service, offering customers the benefit of seven service to universities and international agencies.day catch-up TV from the RTÉ Player and 3player, over 1,400 hours of thebest box sets and series and Movies On Demand. Over nearly 25 years, Amárach has pioneered innovative research techniques and reported on digital and technology trends since theThe UPC Business division provides tailor-made telecoms services earliest days of the Internet.to meet the needs of all businesses from SMEs to multinationals, andservices both the public and private sector. UPC Business is committed Amárach invests heavily in understanding current Irish consumer andto supporting the communication and entertainment needs of business business trends, and shares numerous, free reports and presentationscustomers. via its blog and slideshare sites, linked via its main website.The company’s national contact centre is located in Limerick and its www.amarach.comHQ is based in Dublin. UPC is locally-managed and employs over 800people and has created a further 700 additional jobs for Irish contractors.48 UPC Report on Ireland’s Digital Future
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