Editorial
If there is one thing that has become clear to The Hub while observing the digital media sector over the last four years is that Ireland needs to create strong indigenous companies that can trade globally to offset our reliance on multinationals ─ but how do we do this? Well, we need to work hard on two levels: we have to encourage more young people to venture into entrepreneurship and then we must build a culture that supports them in this risk that they take. So how do we do that?
A great phrase that The Hub heard in the US, where there is a strong and vibrant entrepreneurial culture, is: ‘There’s no such thing as failure ─ there is only feedback.’ One of the greatest barriers to developing a culture of entrepreneurship in Ireland is fear of failure ─ or the perception of having failed.
Time and time again, we see entrepreneurs retreat back to the safety of the workplace after the perceived failure of their start-up. Though they often can’t see it, their retreat is the greater loss as they take with them the hard-learned lessons and experience that could fire their next endeavour. |
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This is not surprising when you consider how little press coverage (outside of the business pages) went to Riverdeep’s remarkable reverse takeover of Houghton Milflin even though this was the second biggest takeover in Irish corporate history. On the other hand, Ryanair’s failed takeover bid for Aer Lingus continually made the front-page
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A question: Should job-losses always take precedence over and obscure job-creation in the news? If we are to encourage our young people to set up their own businesses (which is an absolute necessity if we are to retain our current economic prosperity), then we need to learn to celebrate success and see businessmen and women as role models and corporate leaders.
Another obvious barrier for entrepreneurs is access to finance, particularly in the nascent digital media sector. By ‘access to capital’, I mean access to equitable capital. It is this that makes the Government’s recent change to the Finance Bill with regard to the Business Expansion Scheme (BES) and the Seed Capital Scheme so important and relevant. This also makes the Irish Congress of Trade Unions’ negative stance on the matter baffling. |
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To elaborate: The ICTU seems to suggest that government grants and banking institutions should instead provide the necessary access to capital. This may be fine in principle but not in practice.
Why? First, because negotiating risk is an important lesson in any entrepreneur’s journey. At start-up stage, you don’t want to rely on the venture capital community. You want to remain a major stakeholder in your own company. Second, while direct Government grants to business are important, we would argue that on their own they create a ‘hand-out’ culture, which hinders innovation and business success in the long-run.
The BES scheme is not about tax avoidance. It is about giving successful individuals a reason to invest in a high-risk proposition. This is usually done through investment schemes established by financial advisors with track records for ensuring the success of their investments. This is a much different proposition to, let’s say, Enterprise Ireland who pay grants in a public-funding environment that is intentionally risk-averse. It is much more likely that a BES scheme will take a “punt” on a high risk, unproven venture (think YouTube, for example) then a public agency that is accountable to tax–payers will. And one need only look at the successful technology start-ups in the US to see how profitable a punt can be when it works.
As for promoting more flexible funding arrangements from banking institutions, this is a worthwhile proposition. For promoters of start ups, banks are a preferable option to seeking venture capital as the promoter takes the risk and retains more equity in their company. But the Irish banks’ lending conditions are onerous and inflexible at present – especially in the case of limited companies where owner-managers have to personally guarantee loans, making many of the benefits of limited incorporation null and void.
However, the ICTU, which is affiliated to the Irish Bankers Officials Association, could bring their influence to bear on the banks and instigate change. As with any culture, change needs to come from within and it is the employees of banks themselves who can bring that about – to the benefit of all. |
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Finally, we would underline the importance of risk and being right! To us, this is a two-way street - both for the entrepreneur and the investor. Negotiating risk is at the heart of successful entrepreneurship. You have to weigh up both financial and personal risk and make a decision on whether or not it is worth it.
The Hub recently sat in on a presentation to a UK delegation which came on a fact-finding trip to discover how Ireland had achieved its economic success, with particularly emphasis on the technology sector. We were astounded when a VC delegate insisted that there was a dearth of good, viable commercial technology ideas in Ireland. |
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When we asked him if his firm would have funded Youtube if the idea had been pitched to him four years ago, he agreed that they wouldn’t have ─ as there was no real business model there. Yet Youtube has been sold for $1.4 billion to Google. So, is it a dearth of good ideas in Ireland or a dearth of risk-taking investors?
The fact is it is neither. There are great ideas in Ireland and there are people willing to fund them. But entrepreneurs need to realise that an idea is not a business. And if it fails – as it often does – they need to try again and they need to be supported in their endeavours. Only then will we create an entrepreneurial culture that is self-perpetuating and self-sustainable, which is what we understand by ‘a knowledge economy’.
VIRTUAL WORLDS REVISITED
The Hub discussed Virtual Worlds previously in our January 2007 edition but it seems the topic is one that won’t go away easily. Between March 28th and 29th last month, the inaugural Virtual Worlds 2007 conference took place in the Jewish Heritage Museum in New York. Billed as “the leading event for Fortune 500 businesses seeking to understand and maximize marketing and business strategies within virtual worlds”, it brought together the new movers and shakers in this rapidly developing sector, together with the big media conglomerates. As well as the now ubiquitous Second Life, there were a number of other players vying for their place in the Virtual Worlds pantheon. Among them were Entropia Universe, There.com, Whyville and Sony Playstation 3’s Home, all hell bent on pushing the boundaries of the web into the third dimension… or the 4th dimension, if you are to believe MTV’s spin.
The Music Television Company, more popularly known as MTV, is calling its new cross-platform strategy "4D." Essentially, the approach will attempt to combine content from MTV Networks' television shows with fully 3D virtual worlds and allow viewers to interact with TV personalities and create content that becomes part of the shared experience. In the burgeoning spirit of User Created content, viewers will become users and vice-versa.
"We really believe that this is going to profoundly change the ways that brands like MTV interact with their audience," said Matt Bostwick, senior vice president for franchise development at MTV Networks' Music Group when talking to CNET.com. "There's no tight storyline you're following. It's an open experience." |
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Already, MTV has launched two branded virtual worlds, Virtual Laguna Beach and Virtual Hills. These take the story lines of their hit shows Laguna Beach and The Hills, respectively, and bring them into the 3D digital environment where users can meet the shows' stars, or "live" the virtual lifestyles based on the programme.
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So why are these virtual worlds becoming so popular now? Didn’t we do the Virtual Reality thing back in the nineties? Well, yes and no. The main difference between the relative failure of VRML (or Virtual Reality Mark-up Language) and what is happening now is mainly down to bandwidth. More and more people have faster and bigger connections now then they did in the nineties. |
Also, the explosion of freeware and the open source movement after the dot com crash brought about the Web 2.0 phenomenon and heralded a whole new array of innovations on the web. Virtual Worlds has just been one of them and the market leader is without doubt Second Life.
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The Hub’s feeling about Virtual Worlds was largely indifferent until we took a canter through a virtual Dublin (www.dublinsl.com) in Second Life. The initial feeling was spine-tinglingly similar to when we watched our first movie. (That was Jaws when we were six years old…but that’s another story!) There is something strangely captivating about watching your avatar slowly jog down an empty O’Connell Street, even if the vector graphics are a little blocky. |
It seemed somewhat akin to what Cillian Murphy’s character must have felt when he ran down an empty London main street in the zombie flick, 28 Days Later.
Certainly, the immersive quality of Virtual Worlds is what makes it comparable yet utterly distinct from the experience a viewer feels when they go to the movie theatre. Whereas the cinema is a passive experience which emotionally engages at its best, Virtual worlds are an active experience which can also play on the emotions. The same elements are present: fear, suspense, eroticism, playfulness, comedy etc. But there is one important addition: community. This is a factor which marks off Virtual Worlds as a peculiarly Web 2.0 phenomenon.
In the Digital Hub on the 24th of April, the Digital Media Forum, in tandem with eircom, are running a seminar entitled “Building your business in Second Life:. A guide to doing virtual business in a virtual world”. With nearly 5 million residents and an average of $1.6 million being spent daily, Second Life offers businesses a brand new opportunity for engaging with a global market and pushing their brand to the 18-35 year old demographic. The seminar will seek to showcase the opportunities for businesses in Second Life (and other Virtual Worlds) and help them to understand and maximize marketing and business strategies within virtual worlds in general. |
The seminar will also be the launch pad for the Digital Media Forum’s Virtual Worlds Network website (www.virtualworldsnetwork.com) which will provide a one stop shop for all information pertaining to virtual worlds.
Although still a relatively new phenomenon, Virtual Worlds are getting serious backing from the expected media conglomerates like Sony and Microsoft, but also from less likely quarters such as IBM. It is expected that we’ll soon see interoperable standards being developed and that a new form of VRML will be hard-coded into web browsers like Internet Explorer and Safari, allowing users to seamlessly move between 2D and 3D experiences over the web. Avatars too may well develop as the virtual representatives of users in a variety of different areas – such as over mobile phones and through online shopping experiences. With some Artificial Intelligence, who is to say that your avatar can’t greet and interact with customers and clients while you are away from the office?
One criticism of Virtual Worlds has been that it encourages people away from real social interaction and thus is potentially detrimental to society and individuals forming real relationships. However, The Hub would argue that television has long discouraged people from interacting socially as they sit glued to the box with their TV dinners. At least Virtual Worlds encourage you to communicate rather then simply grunt at your partner in a Homer Simpson manner while watching Top Gear. They also encourage a sense of playfulness and creativity that isn’t exactly supplied in the local pub. So it remains to be seen what the overall impact of Virtual Worlds will be as they grow their user base and become ever more sophisticated. One thing is for sure, we’ll be watching closely.
News
March 26th: Independent evaluation finds that Digital Hub learning programme is a remarkable success story of creativity and innovation in action
An independent evaluation of digital media learning programmes, which have been rolled out in schools and the community since 2002 by The Digital Hub, has found a marked increase in levels of digital literacy among participants. The evaluation was launched by Noel Dempsey TD, Minister for Communications, Marine & Natural Resources at an event in The Digital Hub on March 26th.
The Digital Hub’s learning programmes – delivered through the Diageo Liberties Learning Initiative (DLLI) – operates in 15 schools and 17 community groups in Dublin’s Liberties and beyond. The objective of the initiative is to bridge the ‘digital divide’ and ensure that the people of the Liberties can benefit from The Digital Hub being located in their neighbourhood.
Among the findings of the evaluation is that The Digital Hub’s learning initiative has raised the level of achievements among students who are academically weaker. The evaluation has found that The Digital Hub’s approach - which comprises a high level of targeted, professional education and development for teachers - has resulted in increased confidence among teachers who are using technology in the classroom.
As well as operating in local schools, the initiative is delivered in the local community of the Liberties. The evaluation found that much of the success of the programme is the involvement of local people in designing the courses themselves.
According to Philip Flynn, Chief Executive Officer, Digital Hub Development Agency, “the success of the community projects has raised the level of confidence and ambition among participants, and according to this evaluation, 46% expect to seek employment in the digital media sector, while 44% intend to go on to further education.
“The evaluation points out that the initiative is a model of best practice for schools and communities in tackling the “digital divide” using a creative programmatic approach. It has achieved positive outcomes for pupils, teachers, residents and community organisations.
“We have been aware since the beginning of the learning programmes that they are making a significant impact on local schools and the local community. Now we have evidence to back this up, and this will help us to continue and grow the programme.
To date, the programme has been mainly funded by Diageo Ireland, with significant support from the National Centre for Technology in Education (NCTE) among others.“A number of public and private sector organisations have partnered with us to deliver the programme. Without the support of Diageo Ireland and the NCTE in particular, we would not achieved this success. This evaluation provides them with proof of the value of their investment, while giving us the information needed to attract new partners.
“One of the findings of the report was that the public-private sector funding method used meant that the funding levels and resources that were able to put in place within the timeframe were far in excess of anything that an education or community initiative alone could have hoped to attract”, said Mr Flynn.
According to Michael Patten, Corporate Relations Director, Diageo Ireland, “the resources that we were able to provide through our funding meant that outcomes of the Diageo Liberties Learning Initiative even exceeded our very high expectations for the programme. We worked very well with the Digital Hub Development Agency and the findings within this evaluation report is a testament to this great work and partnership.”
A bursary to support talented and highly motivated students to pursue studies in digital media was also launched at the event. The William Burgess bursary has €100k committed over a three year period, and will provide support to talented and highly motivated students in digital media. The Bursary which has been set up in memory of William Burgess, former Chairperson of Digital Hub Development Agency, is funded by the family of William Burgess; Digital Hub Development Agency; FINEOS Corporation Limited; IONA Technologies; Irish Business and Employers Confederation (IBEC); IBM and The Ulster Bank Group.
February 23rd: The Digital Hub and Belfast City Council call for entries for Dare to be Digital 2007
The Digital Hub and Belfast City Council, with support from the Department of Enterprise Trade and Investment’s Building Sustainable Prosperity Programme, called for entries for Dare to be Digital, the premier computer games design competition for third level students.
The contest, which is sponsored in Ireland by Digital Hub Development Agency and Belfast City Council, is a competition for third level students on the island of Ireland, to design their own video game. Ten students will be selected to represent Ireland in the international Dare to be Digital finals, which is hosted by Abertay University in Dundee, Scotland.
The winning teams, which will be selected in early June, will spend nine weeks developing their game in Queen’s University, Belfast. During this time they will receive mentoring and support from the very best in the Irish gaming sector. At the end of the nine weeks, the team will travel to Dundee where their game will be showcased at the International Dare to be Digital Awards Ceremony, which is a highlight of the computer games industry calendar.
Michael Hallissy, Director of Learning, Digital Hub Development Agency said, “There are now more reasons than ever for teams to get together and enter Dare. The track record of previous participants shows how very highly regarded it is within the computer games industry. This is the fourth year that The Digital Hub has supported the competition, and the enthusiasm and standard of entries is increasing every year.”
“The Digital Hub houses five gaming companies – Havok, Pop Cap Games, Eirplay Games, Groove Games and Gala Networks Europe. As the preferred location for the gaming sector in Ireland, we are very keen to support the Dare to be Digital competition. These companies are having a significant impact on the international market, and it is essential that we work with these companies and the third-level sector to ensure that Ireland is best placed to take advantage of the growing gaming sector,” said Michael.
Brendan McGoran, Creative Industries Officer at Belfast City Council comments: “Dare to be Digital is an exciting opportunity to showcase local talent in the creative sector at an international level. Belfast City Council recognises that the creative industries is a major growth sector and contributor to wealth in the economy and initiatives such as this will provide a unique platform to harness individual talent, develop business ideas and further enhance the development of this exciting sector.”
Dare to be Digital has established an enviable reputation for producing high-grade talent. Teams from previous years have gone on to set up their own game development companies selling products to the world’s major publishers. Individuals who have taken part in Dare have also been snapped up by major international games companies such as Lionhead, Electronic Arts and Microsoft, as well as Dundee-based developers such as Realtime Worlds and Denki.
Contestants from last year’s competition are now working for Codemasters, BBC Scotland, Rockstar North, Electronic Arts UK and Electronic Arts Shanghai.
Applications for Dare to be Digital 2007 can be made via www.daretobedigital.com
t: 01 4806200
February 20th: Digital Hub will rely on community views as the project’s development accelerates
The Digital Hub Development Agency has said that the delivery of a new city quarter in the Liberties and Coombe area will be shaped by the views and input of the local community, as well as enterprise and public sector representatives.
Unveiling the Project’s Development Plan (today 20/02/07) – which is the blueprint for the delivery of the Digital Hub project over the next five years – the Agency’s Chief Executive, Philip Flynn said, “community, enterprise and public sector representatives have painstakingly agreed twenty-eight principles that will inform the shape of the Digital Hub Project as it rolls out. These principles range from providing education and enterprise opportunities for local people in the digital media sector to preserving the unique heritage of the buildings within the South West Inner City.
The plan sets out the aims of the project, as well as comprehensive targets, across three key headings: Enterprise & Research; Community, Education & Training and Property & Heritage.
“Over the coming months and years, as the delivery of the Digital Hub Project accelerates, we will be constantly referring back to the representatives from the community, enterprise and public sector for their views and opinions. This way, we can achieve a unique international centre for digital media research, innovation and enterprise development, while making the South West Inner City a vibrant place to live for the existing community and those who may choose to settle here in the future.
The Digital Hub Development Agency was established in 2003. The First Phase of the Project’s development - incorporating the completion of commercial arrangements for the major construction work, as well as implementing enterprise developments and learning initiatives – was delivered by the end of 2005. The Second Phase of the project commenced in 2006 and will be completed by 2012. This Phase will oversee the delivery of a complete city quarter based on digital media enterprise. The Development Plan will underpin this Phase of delivery.
“During the first year of Phase Two we oversaw a 44% increase in the number of companies locating at the project. There are now 76 digital media enterprises based at the project, ranging from new start-ups to international companies, including Zamano and Amazon.
“The growth of The Digital Hub in 2006 has consolidated our reputation, in Ireland and abroad, as one of Europe’s most desired locations for companies in the digital media sector. Approximately 25% of companies currently located in The Digital Hub are foreign direct investment. We expect this to rise significantly as the benefits of locating in The Digital Hub continue to attract international digital media companies.
“All the while, as we have been getting the project off the ground and implementing our enterprise aims, some of The Digital Hub’s greatest success has been at community level. In particular, a number of learning programmes are operating in 17 local schools and a number of local community groups in the Liberties. Digital Media education for the local community is a key delivery of the project, and we continue to deliver on this remit everyday,” said Mr Flynn.
Tune into Digital Hub FM
Digital Hub FM will be broadcasting on 94.3FM across inner city Dublin from its studio in The Digital Hub. Tune in every Friday from 10th November to 15th December 2006 and 26th January to 22nd June 2007.
Digital Hub FM will also broadcast live on the Internet. For more information on the wide range of programmes in Digital Hub FMs schedule and to listen live online visit: www.digitalhubfm.com
Events
April 18th: Podcasting, RSS and Blogging: How to make new media work for your business
Location: Digital Exchange, Digital Hub, Crane Street, Dublin 8.
Time: 9am
Price: EUR45 Members (EUR75 Non Members)
The IIA brings you this timely and topical half day seminar on New Media and its implications for business in Ireland. The event will focus on three aspects of new media - Podcasting, RSS (Really Simple Syndication) and Blogging. It will examine each of these media in turn and how they can be used as part of an organisation's business model and marketing mix. You will be taken through a step by step guide on how to get started. Case studies by VHI, O2, RTE and other leading organisations will illustrate the benefits they are experiencing by using new media and also the lessons learned.
More info: events@iia.ie Tel: +353 (0)1 542 4154
http://www.iia.ie/events.asp?eventid=130
April 19th: Internet Marketing for 21st Century Businesses
Location: The Clarion Hotel, Cork.
Time: 9am
Price: EUR90 (SME), EUR295 (Large)
This seminar offers ideas, tips, insider secrets and strategies for turning your website into a highly trained 24/7 global sales executive. Presented as a programme of the 2007 National Centre of Excellence, the seminar will teach you how to design and build effective internet marketing campaigns for sales lead generation. The seminar is non-technical and is aimed at owner-managers in the SME sector and senior marketing management in larger companies.
More info: seminars@praxisnow.ie Tel: 01-236 0076
http://www.praxisnow.ie/NCE.htm
April 24th: Using the Internet and Blogging to Increase Sales
Location: Mullingar Park Hotel, Mullingar.
Time: 2pm
Price: Free - Registration Required
The IIA brings you this informative half day seminar aimed at organisations that want to know more about developing their business through the Internet. You have a website but what does it really do for your business? Could you sell more products online? Are you taking advantage of the biggest market there is? Maybe it is easier than you think. Attending this seminar will mean you are informed of some top tips to get your website ready to generate more sales for you and will illustrate how the most recent phenomenon of blogging could provide a quick win for you to harness more sales from your Internet presence.
More info: events@iia.ie Tel: 087 292 3333
http://www.iia.ie/events.asp?eventid=133
April 25th: Voice over IP: IP Telephony for the Enterprise
Location: Alexander Hotel, Merrion Square, Dublin 2
Time: 6.30pm
Price: EUR25 Members (EUR35 Non-Members)
On the radio, on the Internet and even on TV there are ads for low cost residential VoIP services such as Skype. But what does it mean for business? VoIP now offers an entirely new level of clear, true voice quality, reliability, easier set-up and maintenance as well as security features for protection from fraud and other attacks.
More info: events@iia.ie Tel: 087 292 3333
http://www.iia.ie/events.asp?eventid=136
April 25th - 26th: Create and Innovate 2007 @ DCU
Location: The Helix, DCU, Dublin 9.
Time: 8am
Price: EUR350
CreateandInnovate is an Independent Creativity & Innovation Training Forum. It's also home to an online network fostering creativity and innovation in Irish and European Industry. This year, the CreateandInnovate Forum is a 2 day "MAKE & DO" business learning event and builds on the momentum of the successful Innovation Day Conference series run (by Investnet Ltd) @ DCU in 2005 and 2006. More on the topics and speakers can be found on the website.
More info: david@investnet.ie Tel: +353 1 7008508 Fax: +353 1 7007555
http://www.createandinnovate.net
April 27th: Innovate or Die
Location: Guinness Storehouse, Dublin 8
Time: 10am - 1pm (inc. Lunch)
Price: Free of charge on application
MJ Flood Technology, a leading provider of communications solutions hosts 'Innovate or Die', targeted at companies of all sizes, which seeks to address the key question of how to integrate emerging technologies into profitable business models. Industry leaders including Microsoft, CA, Vertical Communications, Citrix and Central Databank will provide practical advice in areas such as managed services, data protection and recovery, application management and improving customer contact in the face of increasing competition. The session will be conducted in a unique round table format, giving attendees a valuable opportunity to address their concerns in a fully interactive environment.
More info: events@mjf.ie Tel: 01 466 3537
http://www.mjf.ie/events-article.php?id=5
April 30th: Creating Accessible PDF Documents
Location: Engineers Ireland, 22 Clyde Rd, Dublin 4.
Price: 2pm
Price: EUR95 Members (EUR145 Non-Members)
Although using the PDF format is one of the easiest ways to deliver documents on your website, it can create significant difficulties for people with disabilities - undermining your efforts to create an inclusive web presence and to achieve full conformance. How can you continue benefiting from the convenience of PDF while ensuring that the documents you create are accessible? And how do you go about fixing the documents that are currently on your site?
More info: events@iia.ie Tel: 087 292 3333
http://www.iia.ie/events.asp?eventid=122
May 1st: Is Your Website Paying for Itself?
Location: Abbey Court Hotel, Nenagh, Co. Tipperary
Time: 1:45pm
Price: EUR20 Members & Non-Members
The IIA and Tipperary North County Enterprise Board bring you a half day seminar dedicated making your website pay for itself and are delighted to introduce eBay as the keynote speaker.
More info: events@iia.ie Tel: 087 292 3333
http://www.iia.ie/events.asp?eventid=137
May 10th: Irish Internet Association -- Internet Marketing Best Practices
Location: Engineers Ireland, 22 Clyde Rd., Dublin 4
Time: 9:30am
Price: EUR255 Members (EUr365 Non Members)
The IIA and Online-Marketing.ie present a full one-day course that reviews all the key techniques needed in order to execute a successful and effective Internet Marketing strategy. The course will include 4 distinct modules: Search Engine Optimisation; Pay Per Click (PPC) Advertising; Metrics for Marketing Success & Increasing Conversion Rates; E-Mail Marketing. The course is relevant to those with little previous experience of Internet or Online Marketing but with the desire to make it work for their business. Lunch is included in the course price.
More info: events@iia.ie Tel: 087 292 3333
http://www.iia.ie/events.asp?eventid=132