Blog | Digital Intention v Digital Growth
Introduction
Being online doesn’t automatically equate to digital growth. While just having an online presence is essential for businesses in the modern economy, it is not a guarantee of success or efficiency.
As highlighted in our report, Ireland’s Digital Readiness Monitor, one in three websites in Ireland currently have a low or very low level of sophistication. This is despite the existence of various government grants and programmes designed to support digital advancement.
The discrepancy suggests that while digital intention exists, actual digital execution remains lacking due to challenges such as limited financial resources, lack of digital skills, and competing business priorities.
Many businesses struggle to navigate the complexity of available solutions, lack the time to implement digital tools effectively, or remain uncertain about the return on investment.
Additionally, concerns around cybersecurity, compliance, and poor digital infrastructure further hinder adoption, leaving many businesses unable to fully capitalise on the support and funding available from both public and private bodies.
The Role of Websites in Digitalisation
A company’s website and associated technologies serve as a useful proxy for measuring an organisation’s degree of digitalisation. A well-developed website often signifies a company’s commitment to leveraging digital tools for communication, customer engagement, and overall business operations. However, our reports – Ireland’s Digital Readiness Monitor and the .ie Domain Profile Report 2024 – indicate that while many Irish businesses recognise the importance of digitalisation, they have yet to fully optimise their digital presence. This gap presents an opportunity for businesses to rethink their digital strategy, ensuring they harness the full potential of available technologies.
Overcoming the ‘Death of Distance’ with Digital Technologies
Digital technologies hold the potential to overcome the traditional limitations imposed by geography, effectively reducing the ‘death of distance.’ For Irish businesses, both rural and urban, digitalisation can open new markets and allow for greater access to customers, suppliers, and talent pools beyond physical boundaries. E-commerce, cloud computing, remote working, and digital marketing are just some of the tools that businesses can leverage to expand their reach and competitiveness. However, despite the vast potential, digital inequalities persist across different demographics and business sizes.
The Digital Divide: Location, Size, and Sector Challenges
There is evidence of a digital divide based on location, size, and sector, with micro-SMEs (businesses with fewer than 10 employees) particularly affected. According to Eurostat, rural areas across the European Union are lagging in digital literacy. The situation in Ireland reflects this broader European trend. In rural Ireland, only 35% of residents report having above-basic digital skills. The figure rises slightly to 37% for people living in Irish towns and suburbs, but significantly higher at 46.5% for those in cities. These statistics highlight a need for targeted initiatives to bridge the digital skills gap, ensuring that all Irish citizens, regardless of location, have the necessary competencies to thrive in an increasingly digital world.
SMEs and the Benefits of Digital Adoption
When you dive into the .ie Domain Profile Report 2024, you see that a significant portion of the .ie domain database comprises businesses of all sizes, ranging from startups and SMEs to larger corporations. Encouragingly, many businesses are actively embracing digitalisation, recognising the substantial benefits it can offer. Efficiency, productivity, and cost savings are among the primary advantages, and for SMEs in particular, digital adoption can be a game-changer. SMEs represent 99.8% of the Irish economy, making their growth and success critical to the nation’s overall economic health. Given that many SMEs operate with limited resources, integrating digital solutions can streamline operations and facilitate expansion, especially for businesses looking to scale through exports.
Supporting SMEs on Their Digital Transformation Journey
For time-strapped SMEs, leveraging digital tools such as automated customer service, data analytics, and online sales platforms can significantly enhance their ability to compete on a larger scale. While some progress is being made, a concerted effort is required to ensure that these businesses receive the necessary support to navigate digital transformation effectively.
.ie’s Role in Ireland’s Digital Future
At .ie, our mission is to elevate Ireland’s digital identity by providing the Irish online community with a trusted, resilient, and accessible .ie internet domain. As the national domain registry, we work closely with strategic partners to promote and invest in digital adoption and advocacy initiatives. Our commitment extends beyond simply managing Ireland’s domain infrastructure -we actively engage with stakeholders to drive digital progress and ensure that Irish businesses, organisations, and individuals have the tools they need to succeed in an increasingly digital landscape.
Closing the Digital Gaps for a Stronger Economy
As Ireland continues its journey toward full digitalisation, closing the gaps in digital literacy, infrastructure, and business adoption must remain a priority. By working together -government agencies, digital advocates, community leaders etc. – we can create an environment where businesses of all sizes can thrive online, contributing to a more competitive and digitally advanced Irish economy.
Solutions to help navigate your Digital Journey
- Obtain your .ie domain – as one of the safest domains in the world it will ensure it protects your brand and your customer when engaging with you online. Websites with a .ie domain were protected from 660 potential cyber-attacks in 2024.
- Upskill and receive support from Tech Hub Ireland – Get free expert guidance and practical advice on digital tools that will drive growth and productivity for your business.
- Speak to your Local Enterprise Office – the new Digital for Business and Grow Digital Voucher is there to help alleviate some of the challenges when identifying how digital solutions can help your business thrive in a digital world
- Identify supports and funding – go to the National Enterprise Hub and Grow Digital Portal to help understand what supports are available to you from government agencies.
- Read more about the key technologies which can enhance your online presence:
• Ireland’s Digital Readiness Monitor
• .ie Domain Profile Report 2024
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As the trusted national registry for nearly 330,000 domain names, .ie protects Ireland’s unique online identity and empowers people, communities and businesses connected with Ireland to thrive and prosper online. A positive driving force in Ireland’s digital economy, .ie serves as a profit for good organisation with a mission to elevate Ireland’s digital identity by providing the Irish online community with a trusted, resilient and accessible .ie internet domain. Working with strategic partners, .ie promotes and invests in digital adoption and advocacy initiatives – including the .ie Digital Town Blueprint and Awards for local towns, communities and SMEs. We provide data analytics and dashboards built by the .ie Xavier team to help with data-led decision-making for the public, registrars and policymakers. The organisation is designated as an Operator of Essential Services (OES) under the EU Cyber directive, and we fulfil a pivotal role in maintaining the security and reliability of part of Ireland’s digital infrastructure.