The Link Newsletter _issue 3 Winter 2008

regional development centre

the link issue three winter 2008

inside: Incubating Success, Helping Local Businesses Compete and more . . .

Foreword

Contents

Welcome to our third issue of LINK, the newsletter of the Regional Development Centre (RDC) based at Dundalk Institute of Technology

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(DkIT). As we enter this period of economic

Foreword by

change, there is more uncertainty

Irene McCausland

than ever in the business world. Increasing numbers of highly experienced professionals working in the technology based sectors and who

Incubating

have identified opportunities in the

Success

Irene McCausland, RDC Manager

market, are making the move into their own innovative businesses. The risks of self-employment are not seen to be as high as before,

Helping

now that jobs in companies of all sizes are no longer as secure.

Local Businesses

Compete

The support of the RDC incubation facilities have helped many such businesses to grow and move on. It is not just the office space that proves so valuable, but access to timely and relevant advice, mentoring, tailored training as well as access to expertise and networking opportunities.

News in Brief

This autumn has seen new companies welcomed to our incubation units. Vennetics Ltd who specialise in software systems in the growing PC based telephony, chose the RDC because of the quality of the business support and advice at the centre and its ideal location on the Belfast-Dublin corridor. Dublin based company Ergo, have located their new software R&D facility at the RDC where they have access to the researchers and academic expertise of DkIT.

The Regional Development Centre (RDC) is a centre to promote innovation, technology transfer and enterprise in the wider region and is based on the DkIT Campus. The centre receives generous funding from the following organisations

In addition to supporting early stage entrepreneurs the RDC is working with existing SMEs to help them improve competitiveness. The centre recently completed a six month Business Growth Programme for nine owner-managed companies in the North East region. Our research centres continue to attract major funding and we are delighted to welcome Dr Tim McCormac as new Head of Research at DkIT, where he will further develop the research remit of the

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Institute.

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Regional Development Centre Dublin Road Dundalk Co Louth

T | +353 42 9331161



W | www.rdc.ie



F | +353 42 9331163 E | [email protected]

Great care has been taken to ensure that this information is accurate, but the Regional Development Centre, including its subsidiaries does not accept responsibility or liability for errors or information which is found to be misleading.

We hope that you continue to enjoy this and future editions of the LINK. If you have any comments or suggestions regarding the magazine, or if you would like to be included on the mailing list, please email [email protected]

We would like to take this opportunity to wish all our readers a Peaceful Christmas and a Prosperous 2009. Written & edited by Hilary Knight Communications +44(0)28 3888 1368

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Feature: Incubating Success

LINK Issue 3

Incubating

Success The Regional Development Centre (RDC) at DkIT, which was established in 1989 as one of Ireland’s first on campus Business Incubation Centres, has been a pioneer in the provision of support for early start entrepreneurs for almost 20 years. Today the RDC provides over thirty incubation spaces in both Dundalk and Drogheda for technology and knowledge based businesses in their early development phase. Business Incubation is a unique and highly flexible combination of business development processes, infrastructure and people designed to nurture new and small businesses by helping them survive and grow through the difficult and vulnerable early stages of development (Source: UKBI). A major EU Study has shown that 85% of all companies supported through incubation reach their fifth birthday. This is significantly better than the estimated survival rate of 40% for all new SMEs.* Following an investment of over €50 million by Enterprise

Ireland over the past five years, there are now twentyone Campus based incubation centres located throughout Ireland. Sectors supported by the RDC include Software, ICT, Creative & Digital Media, Renewable Energy, Assistive Living/Seniors technology, all areas in which DkIT has a particular expertise through its R&D activities. Sean MacEntee, Incubation Centre Manager explained, ‘Incubation is a process not just a place. The soft supports such as mentoring, specialist advice, access to researchers and networking are far more important than the quality of the office space. We are not just into real estate.’ ‘Entrepreneurs come in all shapes and sizes. If they meet our selection criteria, we will help them to realise their dreams. However, not everyone is ready to rent an incubation unit when we first meet with them. So if necessary, we can provide a dedicated “concept” desk for between three and six months. Indeed, we are also providing virtual incubation to some clients, who gain all of the soft supports and use of the facilities including a post box, without the bricks and mortar.’

Today the RDC provides over thirty incubation spaces in Dundalk and Drogheda for technology and knowledge based businesses in their early development phase. But as some of these companies explain, the advantages are far more than just office space. ‘Additionally, where an entrepreneur is likely to benefit, we will allocate them a place on our year long flagship business development programme, the Novation Enterprise Platform Programme.’ ‘We also run pre-incubation programmes where the business idea is still at an early stage and perhaps the market potential has not yet been established. These generally run for twelve weeks and operate in conjunction with Southern Regional College and Greenshoots Ltd in Newry.’ The RDC have also accommodated companies who seek to re-locate their R&D function away from their Head Office and close to an academic centre such as DkIT. One such company is Ergo, the Dublin based software development and IT support company which recently established a new software R&D facility in the RDC. As companies look to establish stronger links with the third level sector, this is likely to become a growing trend.

‘In the future, the growing focus by Government on attracting International IP to Ireland, is likely to present real opportunities to incubation centres such as the RDC to act as ‘base camps‘ for international entrepreneurs.’ Post–incubation is also seen as a growing need in Ireland. At present, projects can remain for a maximum of three years in the RDC and then must move into new premises. ‘In the UK, Science Parks play a strategic role in hosting companies when they exit from an incubation centre. These facilitate the clustering of similar technologies, which often leads to an acceleration of entrepreneurial activity and innovation,’ said Mac Entee. In this issue we look at a number of the incubation companies at the RDC and Millmount to include Go Europa, Vennetics, Armac Systems and SIMtone. For further information about incubation facilities please contact:

‘A separate location with a strong research emphasis such as the RDC, allows greater focus by the research team on their R&D remit, without the distraction of day to day operational issues,’ explained MacEntee.

Sean MacEntee, Incubation Centre Manager, Regional Development Centre, Dundalk Insitute of Technology, Dundalk, Co. Louth.

[email protected] www.rdc.ie *(Source: Benchmarking of Business Incubators: Feb 2002)

Feature: Incubating Success

Vennetics



Calling

The Go Europa Team are Seamus Crossan, Dundalk, Kevin Costello, Cavan, and Wojciech Kulesza from Poznan, Poland.

Powerful Ideas DkIT’s travel information project “i.dkit” provides the public with information on all public transport services to and from the campus and can be downloaded to most mobile phones. This is the brainchild of masters graduates from Poland and the region, whose mobile software company goEuropa has been based in the incubation units at the RDC for the last 18 months. Seamus Crosson, from Dundalk, Drogheda man Warren Cleland, Kevin Costello from Cavan and Wojciech Kulesza from Poland worked together on the “i.dkit” project to create PC and mobile phone software that reduces dependency on cars by providing detailed information on different travel choices.

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The i.dkit project was only the first step towards success for the four entrepreneurs whose company goEuropa has recently signed a contract with the main city transport company in Poznan, a region of 1 million people in Poland. goEuropa will deliver and manage a web-based passenger information system for public transport passengers, that is expected to get over thirty thousand hits daily.

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Wojciech Kulesza, Sales Director of goEuropa in Poland, said: “The recent rise of oil prices is encouraging consumers to consider alternatives to the private car, but this requires efficient and clear information on all public transport options available. As one of the selected UEFA Euro 2012 cities, Poznan has provided us with a platform to offer an innovative transport solution to other UEFA Euro 2012 cities.”

Seamus Crosson, goEuropa Director, said: ‘The consumer demand for easily accessible, instant and accurate transport and travel information can now be realised through information systems that are downloaded onto individual mobile phones. With a move towards larger screen mobile handsets and unlimited mobile internet consumer access, we project that 90% of our information will be accessed through the mobile phone within the next five years.” “The RDC is an ideal location for us as it is so central in the Dublin to Belfast corridor. The added advantage for us as a new business has been the business support on-hand and the great networking opportunities, the value of which you can never underestimate.” goEuropa along with DkIT, has recently won the Vodaphone ‘Inside Government Award’ which recognized the input of powerful ideas that come from the public sector to tackle tough problems within public services, in this case transport issues, overuse of private cars, and global warming.

www.goeuropa.eu

John Hamill, Director Vennetics

Vennetics is one of the latest tenants accepted to take up an incubation unit at the RDC in Dundalk. Incorporated in 2007, the software technology-based company specialises in systems for the growing sector of PC based telephony. John Hamill, from Vennetics spoke about their decision to locate in the RDC. “We had looked at locations in Dublin with clusters of software technology companies, but felt that DkIT offered a better location because of the support available at the centre and ease of access to both Dublin and Belfast. Two of our founders are from Dublin and one from Belfast with myself from Castleblaney, so this is central location for us all.”

“The business support here is very impressive and the atmosphere of the centre with so many technology based businesses and research facilities, is very conducive to business development and networking opportunities.” “When we expand further, hopefully we will be able to rent a bigger unit or additional units as they become available to increase our space. It’s good not to be locked into a long lease for our existing space, when we don’t know how quickly we may grow, or by how much future space we may require,” he added. “Our software engineers who live locally are also happy with the location, since they don’t have to commute into Dublin and their quality of life is improved.”

www.vennetics.com

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Feature: Incubating Success

The RDC also has an off-campus satellite incubation centre based in the historic Millmount Museum courtyard in Drogheda, which is a joint initiative of Drogheda Corporation, Louth County Enterprise Board supported by Enterprise Ireland and the International Fund for Ireland and DkIT. The eight units are currently occupied by three fast growing companies, all in the ICT and software sectors.

Winning Out

Michéal Armstrong Managing Director, Armac

Micheál Armstrong’s innovative business idea, was already in an advanced stage of development, when he moved into one of the units at the Millmount Development Centre in Drogheda. Micheál, a mechanical engineer in the aerospace and IT sectors, had spent two years creating a prototype software system for spare inventory provisioning with SR Technics based at Dublin Airport.

The company, Armac Systems developed a unique software system for the aerospace industry where overstocking of maintenance is common as the demand for inventory is very unpredictable. As a result millions of euros can be tied up in spare parts, which may never in fact be used. The innovative software calculates the lowest investment levels which guarantee the required service levels, thus saving huge costs. “I originally got business development support from the RDC, on their one-year business development programme NEPP,” said Micheál, “This coincided with a period of commercialisation of the company and we decided to move into one of the renovated units at the Millmount Development Centre in the historic Millmount courtyard shortly after this.”

“It is an ideal location as I live in Drogheda and we are only 20 minutes from Dublin Airport where we have access to our international clients.” “The company is growing very fast and we are now seeking larger premises to move into at the end of the three years here in Millmount. We have received a great deal of help from the RDC along the way, with business advice always readily available and will certainly be staying in contact. Apart from the original NEPP programme, they have helped us to participate in a research based Enterprise Ireland Innovation Partnership linked with mathematics academic Dr Kevin McDaid from DkIT and also our current EI Voucher Scheme, which is helping to look at a specific piece of research.”

David Tracey, managing director SIMtone looks at the new cloud platform technology with software engineer, Ian Hickey

Cloud Computing Software development company SIMtone has been based at Millmount Development Centre for almost three years, since the units were first available. The company specialise in ‘Cloud’ computing platforms, an innovative technology of the future, which stores the users software programmes and data in a virtual server and allows password access to their desktop from any machine, anywhere in the world, using the SIMtone client software. David Tracey, managing director of SIMtone explained, “The Cloud platform creates improved mobility for employees since they no longer have to take their own machine everywhere they go and it also reduces the risk of the loss or leakage of sensitive data.” “This is an ideal system for large employers who may have multiple employees all accessing their own computers and data stored all over the place. Updating systems is relatively easy, since the update only has to be carried out once in the Cloud server and all users have access to this,” he added. “It is a simpler, cheaper, faster and more secure system than any other similar solution and large international companies in the financial, communication and even education sectors are beginning to adopt this.”

Armac Systems have recently won the Irish Software Association Technical Innovation Award and were shortlisted along with Dublin City Council for the Inspired IT Awards for their Inventory Optimisation for Dublin City Council’s stores.

“We have had tremendous support from the team at the RDC who have worked with us on several specific business issues. We originally heard about their support by word of mouth. The location here is ideal since we are close enough to Dublin to attract experienced software engineers living there, as well as those in the Louth/Meath area. “In the future we would like to link more with the academic research facility at DkIT to undertake additional specific research to help our business to continue to grow,” said David. “We are currently looking at options in conjunction with the RDC to see how we can further this in the near future.”

www.armacsystems.com

www.simtone.net

Issue 3

Development Centre Drogheda

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Millmount

(front left) Ken Marr, Targeting Innovation, Sean MacEntee, Incubation Centre Manager and Liz Dullaghan, FÁS, with the participants from nine local SME’s in the Novation Business Growth programme.

Helping

Local Businesses Compete

Assisting local SME’s across the North East Region is integral to the economic brief of the RDC at DkIT

The Novation Business Growth Programme (NBGP), run by the Regional Development Centre (RDC) at DkIT and funded by FÁS under their “One Step Up” initiative, has helped local companies to receive highly individual packages of assistance. Nine local owner-managed SME companies in a variety of sectors from the North East Region joined the programme, which ran over a six month period. The programme successfully helped them to deal with a number of product, process and market development challenges, which were limiting their potential to expand and grow. It provided a menu of highly tailored individual assistance, focusing on the identification and implementation of a programme of change with real

outcomes for the company. The emphasis was very much on “learning by doing.” This was carried out in-house for each company by the RDC, along with trainers and consultants from Scottish firm Targeting Innovation. Four half-day workshops addressed specific management issues including the Selling Process, New Product Development, Team Building and Communications, and Finding and Protecting New Ideas.

“The challenges now facing SME’s are major and innovating new ways to do things faster, cheaper and better is what it is all about.” “There is no one set of rules that can address the differing needs of these growing companies. They all needed to tackle their individual problems and they appreciated the advice and expertise that we could offer them.”

Response to the programme by the companies has been very positive and all have welcomed the fresh approach adopted by the RDC.

“We made sure that the

The mentoring and consultancy which provided the one-to-one working in the company’s own premises, was deemed to be particularly helpful.

relevant to their needs.”

Sean MacEntee, Incubation Centre Manager at the RDC explained,

tailored programme of help that each company received was highly

“Several of the companies have now initiated collaborative R&D projects as a result of their involvement with the programme,” he added.

“With the strong working relationship and trust that has developed between the companies and the RDC, we have been able to channel in other technical supports from the wider Institute.” It is hoped to run a similar programme for local SME’s in 2009. Here we profile the stories of 3 of the participants : Bellurgan Precision Engineering, Dundalk, Brandt Technologies, Dundalk and Amray, Drogheda. Other companies that were supported on the programme were: - Shabra Plastics, Castleblaney - Eurolec Instrumentation, Dundalk - Royal Masterpeace, Navan - APT-Safelink, Balbriggan - Schiedel Chimney Systems Ltd, Carrickmacross - Uniblock Ltd., Dundalk.

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Profile: Three Local Businesses

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Engineering a Winning Formula Among the companies who took part in the business growth programme, were Bellurgan Precision Engineering, a Dundalk company who specialise in the manufacture of precision machine components employing 50 people and with sales of €6.5 million. Suzanne Carroll, managing director spoke about how the programme has helped her company. “We embarked on the programme thinking that we might develop a new Bellurgan product instead of manufacturing for other companies. In fact instead during the programme, we spent a lot of time looking at what we do and we reviewed and redefined this to really focus on what our service is. This was a really valuable process for us.” “We looked at the sectors that had the most potential for growth for our business. We identified both the cabin interior for aerospace

Radiating Success and outlined an action plan,” said William Johnston, director at Amray.

customers and the medical components in which we already have 10 years experience, as the sectors most likely for growth.” “Working with Arthur Slight from Targeting Innovation, we built a network of contacts in the UK and he carried out market research with those prospects,” she said. “We found that the one-to-one approach was so valuable to us in our busy business environment. Arthur worked with us at our premises and helped us identify a way to take our business forward.” “The workshops were a chance to meet the other participant companies and the Idea Generation workshop was very helpful in recognising what is a good idea and what isn’t,” she added.

www.bellurgan.com

A Shadowing Solution development companies. The NBGP programme helped Dermot to examine market opportunities and help the company to make decisions about whether to integrate a number of services and products offered to customers, or whether to market Shadow™ as a stand alone product.

“We are in a period of growth and our growing pains highlighted many procedures that were not working well, including customer relations to administration.

Drogheda based company Amray who specialise in providing radiation protection products for the medical sector, supply everything from lead aprons to full room protection. “When we joined the NBGP programme, the first thing that Sean MacEntee asked was, ‘What do you need for your company?’ Within the first session, we had looked at the levels of innovation in our company, established what it was we most needed help with

Our financial accounting systems and reporting needed updating and we recognised the need to appoint a financial controller, who is now in place.” “The programme gave us an experienced ‘ear’ to listen to our challenges and help us find the practical solutions to improve these,” added William. “Because the time was well spent and focussed specifically on our needs the solutions were really relevant too.”

www.amray.eu

Dermot Hannon, Director Brandt Technologies

Dermot Hannon, director with Brandt Technologies heard about the NBGP programme from the RDC team and found this programme a very helpful experience in a number of ways. The company have developed an innovative software application, Shadow™ which is a unique tool to test new software simultaneously across multiple machines, creating costeffective solutions for software

“The management training and seminars were excellent, the additional expertise of the Targeting Innovation consultant to help identify market opportunities was very welcome. Most of all the report that the consultant has produced will really help us to make some difficult and far-reaching decisions about future directions for the business,” www.brandttechnologies.com

News in Brief

More NEPP Seedcorn Winners

New NEPP Entrepreneurs

Our congratulations to Conor, Fintan and Deirdre MacCormac MCOR Technologies

Ardee based MCOR Technologies, participants on the RDC’s Novation Enterprise Platform Programme 2007/08 won the Intertrade Ireland All-Island Seedcorn Business Competition - Emerging International Category. Thirteen new participants on the 2008 NEPP programme take the plunge as they prepare for a boatbuilding challenge as part of a residential at the Four Season’s Hotel, Carlingford

Thirteen new participants were accepted onto this year’s Novation Enterprise Platform Programme (NEPP) at the RDC. The graduate entrepreneurs are all developing business ideas in innovative and knowledge based high tech and IT areas. They will receive training, oneto one coaching, advice and gain extensive networking opportunities. Participants have access to office space and specialist facilities at the RDC and some financial assistance is available through

the Commercialisation of R&D (CORD) Fund from Enterprise Ireland. Over 70 entrepreneurs have participated in NEPP, since 2001. 54 businesses have been established by participants resulting in total employment of 311 people and sales of €27million per annum. The NEPP programme is funded by the Department of Education and Science under the National Development Plan.

[email protected]

At the ceremony on Nov 27th held in Belfast’s Ramada Hotel, MCOR swept the top prize of €100,000. The company developed a 3D Printer, a device that builds three dimensional models from 3D computer drawings using standard reams of A4 paper, a process that is entirely unique, and one that is getting huge attention from around the globe. Following the recent launch of the MCOR Matrix, MCOR received over 1 million hits on their website . MCOR Technologies joins a growing list of regional and national seedcorn winners who

element design

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Paperclip challenge links students and enterprise

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The aim of the Paperclip Challenge was simple. Every student who entered received a paper clip and 3 weeks to trade up, using their sales and communication skills. The winner was Conor Moore who achieved a canoe in 7 trades. He traded a freezer bag sealer, 3 highlighters, luminous light-up pen, tin whistle, scooter, two collector edition LPs and finally a canoe. Conor won a Nintendo Wii. Student Enterprise at DkIT held the PaperClip Challenge in October.

The challenge is based on the famous story of Kyle MacDonald who succeeded in trading one red paperclip for a house.

Check out Kyle’s story at www. oneredpaperclip.blogspot.com/ A second Student Enterprise Intern Ronan Lynch, has joined existing Intern Mary Larkin. Together they will promote enterprise and entrepreneurship to students at DkIT through a series of fun challenges, information events and seminars. In the next edition, we will overview our initial research findings of a number of groups of first year students attitudes to starting a business from across the institute.

www.studententerprisedkit.ie

were participants on the NEPP programme, including: Sean Gallagher, Smarthomes, Micheal Armstrong, Armac and David Gillen, Blue Acre Technology.

www.mcortechnologies.com

New Head of Research at DkIT

Dr Tim McCormac Head of Research DkIT

Dr Tim McCormac has recently joined DkIT as the new Head of Research. Tim will be further developing the research remit of the Institute. This will be achieved by supporting the existing Research Centres and also enabling emerging researchers to initiate their research careers. The Research Office has recently announced a number of internal support measures to achieve these aims. Previously with the Institute of Technology Tallaght (ITT Dublin), Tim played pivotal leadership roles in the development of Research within ITT Dublin, in particular he was the project leader for ITT Dublin’s PRTLI Cycle 4 award of €10 million for the Centre for Applied Science for Health (CASH). Through this experience he will assist researchers across the four schools within DkIT to secure research funding from both national and international sources, with an emphasis on any future HEA PRTLI cycles.