Research on the current status of IT and eBusiness
in small to medium sized Irish companies

Introduction.

The findings of a 2003 study into the IT and eBusiness status of small to medium sized Irish companies are outlined below. More detailed information is available by clicking here (pdf 149kb). The study also examined the IT eBusiness issues the companies faced and makes recommendations on how they should address them.

Being based on day-long discussions between experienced, professional consultants and the senior management of each of 96 companies it gives a unique insight into the realities of the IT situation in those companies and a very good indication of the situation in other similar Irish companies.

Summary of Conclusions.

• 47% of the companies visited were classified as being at serious risk due to IT weaknesses. Most of these companies lacked a formal policy in relation to virus protections and other IT management issues. Worryingly, in a quarter of these companies the risk arose from having no, or completely inadequate, virus protection and/or data backup procedures in place.
• In over 75% of the companies IT strategy and IT vendor selection skills were classified as poor or very poor. Technical skills were also generally weak however user skills were regarded as Average to Excellent in the bulk of companies.
• Almost all companies had the opportunity to make IT improvements at little or no cost. The detailed report outlines the most common opportunities in this regard.
• 26% of the companies were running 30% or more of their business processes on bespoke software. The consultants were concerned about the level of bespoke software as off the shelf products can often be a far better option in the longer term.
• 38 % had opportunities to get significant benefits with moderate to high IT investment.
• Only 22% were gaining significant benefits from the use of websites. The consultants felt that many more could gain benefits from their website.
• In 95% of cases, one day with a consultant proved adequate to identify the key IT issues facing the company.

Summary of advice for Companies.

• Take the time and effort to develop a clear strategy for IT investment.
• Put systems in place to ensure the above strategy is implemented.
• Establish a formal IT management policy, covering backups, security, etc.
• If you do not have an IT professional on the payroll, set up a formal technical support relationship with a local company.
• Do not skimp on IT training, but rather develop a structured plan for it.
• Think twice before paying someone to develop bespoke software.
• Think of your website as a vehicle for customer service as well as a potential source of direct revenue.
• Get more value from your web sites by using one or more of the various simple measures listed in the full report.
• Consider using some of the measures listed in the full report, to get much more business benefits from your existing software. Do not go off and buy new software until you have at least considered such measures.
• Consider using an independent consultant when drawing up an IT strategy, IT management policy or planning a major IT investment

Background to Study.

During 2003, Enterprise Ireland commissioned BSM Ltd, a Galway based consultancy company to visit Irish companies for one day each. The consultant’s main job was to carry out an IT/eBusiness audit on each of the participants and to offer them advice on how to address the issues identified. As a secondary task the consultancy company, BSM Ltd, was also asked to report to Enterprise Ireland on the IT status of the first batch of companies visited. .

The companies involved were almost all manufacturing or internationally traded service companies with between 10 and 150 employees, who had applied to receive these day-long visits.

Participating companies were not charged for the visits, which were supported by the Information Society Fund with the assistance of the Department of Enterprise Trade and Employment.

Note: Applications for these free one-day visits have now closed and it is unclear whether and when they will reopen. If they are, this will be announced in our fortnightly eBusiness eZine to which you can subscribe by clicking here.

Click here for a more detailed report (PDF 149kb)