Irish firms may miss €415bn EU Digital Single Market

An overwhelming majority of Irish businesses are not prepared for a multi-billion euro regulatory change coming down the tracks next year, according to new research.

The EU Digital Single Market is an attempt by European authorities to combine 28 national digital markets into just one.

This, they suggest, could contribute €415bn to the European economy boosting jobs, growth and competition.

While estimates of this sort are open to question, the regulatory changes planned around data protection, telecoms, copyright and other areas is likely to be a major opportunity for Irish businesses if they’re adequately prepared.

A wide-ranging survey carried out across 16 countries suggests just a tiny fraction of Irish and European companies are ready for its introduction at the end of next year, however, with 92% indicating otherwise.

Perhaps of even greater concern, half of business haven’t even heard of the EU’s proposed Digital Single Market.

Europe's #digital transformation hinges on multiple improvements to network infrastructure https://t.co/4okkXoKKzs pic.twitter.com/umFCeV3DDY

— BCG Henderson Institute (@BCGhenderson) December 3, 2015

“So far, business leaders are failing to grasp the enormous impact the impending Digital Single Market will have upon their company.

"It’s a genuine concern that many bosses appear to feel no immediate pressure to prepare their organisations for Europe’s shift towards an increasingly digitally-based economy,” Ricoh Ireland general manager, Gary Hopwood said.

“By starting to streamline, digitise and standardise their processes now, forward-thinking businesses will be in good stead to develop a distinct competitive advantage.

"This is a necessary step if we are going to create homegrown digital giants, both here in Ireland and across Europe, that can compete on the global stage traditionally dominated by American, and increasingly Chinese, companies.”

The majority of the 1,360 business leaders surveyed across 16 EU countries felt the single market would lead to additional business for their company and envisioned increased access to new markets.

A quarter of decision-makers didn’t see any benefits for their company as a result of the proposed changes, however, with 40% warning that they’re unprepared for the wave of new competition it will introduce.

Almost an equal number of firms are fretting over perceived cost increases while at the same time more than a third feel they don’t have adequate resources to capitalise on opportunities it could present.

One of the main changes agreed as part of the Digital Single Market to date is the decision to end roaming charges by 2017.