21 September, 2003
© Beep Knowledge System and case owners, 2002-2003
Digital SMEs Cases
Timing of case
Roundstone decided to set up a website in 1995. Its website was placed online in 1996 and further developed in 1997. Most features, including e-commerce, were already in place in the initial website.
Geographic setting
Roundstone, a small fishing village in the Connemara area of County Galway,
western Ireland. About 50 miles from Galway.
Type and use of ICT
2 PCs operating on Windows:
2 Printers:
1 ISDN line
Site hosted with an external provider:
Service provider: Digiweb.ie
E-mail and E-mail programme: Outlook/Explorer
Internet
Databases
Word processing.
Graphic work for Ads etc.
Main contributors
the website was developed by Malachy Kearns (who had no previous ICT skills)
in cooperation with a Limerick University IT student. now the firm has
an internal IT specialist, Neil McKay (also an IT teacher) who undertakes
maintenance and development of the website and e-commerce.
Background
Roundstone Musical Instruments, a manufacturer of the traditional Irish
instrument known as the bodhrán, is located in Roundstone, Connemara,
County Galway, Ireland. Established in 1978 by Malachy and Anne Kearns,
the firm operates in a very small, but growing niche and the firm has
become the leader in its field. The Internet has also played an important
part in this development, especially in foreign markets. About 20% of
business is now conducted the website and the company received numerous
awards in recognition of its success on the web.
Roundstone did not have much money to spend on marketing and advertising, thus Malachy Kearns decided to use the Internet to promote his very traditional handicraft in new markets. The web site now appears in Irish, English, French and German. Export markets now account for 73% of sales.
Objectives
- Develop new markets in North America, Europe, Australia and Japan
cost effectively
- -Break down distance and time and language barriers more effectively.
Resources (apart from ICT)
The firm spent around 60,000 Euro (incl. 15000 Euro for software and 15000
Euro for skills) in order to adopt e-practices. Some financial support
was received from Enterprise Ireland
The firm has 14 employees, mainly instrument builders. Malachy Kearns designs and builds bodrans, runs the website and engages in public relations and the business aspects of the firm. The bodhráns are hand-decorated by a team of skilled artists.
The website was originally developed with Colm McGettrick from the University of Limerick. At first, Malachy Kearns had no computer knowledge, but he quickly acquired a good understanding of the potential of ITCs in operating and promoting his business--now he plays a key role in determining the content of the website. Neil McKay, who hails from Scotland, is the internal IT specialist and runs the e-commerce side of the business most of the time and taught his colleagues within the firm how to use computers and the Internet. There was no resistance to the adoption of e-practices in the firm, as the employees were open to learning new skills.
Activities
- company founded in 1978.
- In 1995, decision to put around 60% of marketing budget into developing
a website.
- In 1996 the firm set up its first website:
- By 1997, practically all of the features of the website were in place,
including e-commerce.
- In late 2001, videos and sound were added.
- In 2002, special offers and more products are to be added.
Outputs and results
- The website has become an effective and low-cost marketing tool with
worldwide coverage, facilitating an increase in company visibility:
- Important share of on-line business: 20% of the firm's business occurs
on-line
- Growth in customer base:
- Improved B2C customer relationship:.
- Increased sales: online sales have seen an increase of over 9% in
last 6 months
- Better Penetration of foreign markets: Foreign sales represent 73%
of sales .
- Public Recognition in Ireland: finalist for the Golden Spider Award
in 1997, profiled by Enterprise Ireland as a successful case in the
application of e-practices. Three-shamrock rating by Doras, the Irish
Internet directory.
- Awards: 1996 Top Ten Irish Sites Award winner -- Irish Independent Netwatch; Quatec's Website Design Award. Various other awards.
Lessons and conclusions
Roundstone presents an example of a small company engaged in a very traditional
activity which has adopted the Internet as a valuable marketing and sales
tool. The website has helped transform the firm's prospects from simple
survival to niche market success, marketing and selling its products throughout
the world, while significantly reducing travel (and thus, costs) in order
to promote product awareness. The company now earns over 70% of its turnover
from exports and 20% from the on-line business.
The most important discovery for Roundstone was that instead of being an impersonal means to communicate with customers, the Internet has "become a friend and a good business partner, 24 hours a day, 7 days a week." The Roundstone experience provides another example in which location no longer is a determinant of business success and how e-practices can allow even the smallest and most niche-oriented of firms located far from urban centres to compete in the global market.
Background
Roundstone Musical Instruments, a manufacturer of the traditional Irish instrument known as the bodhrán, is located in Roundstone, Connemara, County Galway, Ireland. Established in 1978 by Malachy and Anne Kearns, the firm operates in a very small, but growing niche and the firm has become the leader in its field. The Internet has also played an important part in this development, especially in foreign markets. About 20% of business is now conducted the website and the company received numerous awards in recognition of its success on the web.
Roundstone did not have much money to spend on marketing and advertising, thus Malachy Kearns decided to use the Internet to promote his very traditional handicraft in new markets. The web site now appears in Irish, English, French and German. Export markets now account for 73% of sales.
Background - Key Factor: improved consumer networks
While the company initially feared that e-mail/the Internet would be an
impersonal way of maintaining relationships with customers or attracting
new customers, it was found that it was a highly effective and low-cost
mechanism (and not as impersonal as first feared) in order to communicate
with customers located in different countries and time zones.
Background - Key Factor: improved marketing
The small company needed a more effective marketing tool, but with a very
low cost, to sell in international markets
Objectives
--Develop new markets in North America, Europe, Australia and Japan cost
effectively
--Break down distance and time and language barriers more effectively.
Objectives - Key Factor: improved consumer networks
improvement of customer relations cutting across boundaries of time zones
and geographic distance
Objectives - Key Factor: improved marketing
penetration of international markets, improvement of sales mechanism regardless
of time zone
Resources
The firm spent around 60,000 Euro (incl. 15000 Euro for software and 15000
Euro for skills) in order to adopt e-practices. Some financial support
was received from Enterprise Ireland
The firm has 14 employees, mainly instrument builders. Malachy Kearns designs and builds bodrans, runs the website and engages in public relations and the business aspects of the firm. The bodhráns are hand-decorated by a team of skilled artists.
The website was originally developed with Colm McGettrick from the University of Limerick. At first, Malachy Kearns had no computer knowledge, but he quickly acquired a good understanding of the potential of ITCs in operating and promoting his business--now he plays a key role in determining the content of the website. Neil McKay, who hails from Scotland, is the internal IT specialist and runs the e-commerce side of the business most of the time and taught his colleagues within the firm how to use computers and the Internet. There was no resistance to the adoption of e-practices in the firm, as the employees were open to learning new skills.
Resources - Key Factor: improved consumer networks
Outside assistance in setting up website
Resources - Key Factor: improved marketing
the website was developed with some external assistance from a University
of Limerick student. Now the company has an in-house IT specialist (something
which in the past would have been inconceiveable).
Activities
- company founded in 1978.
- In 1995, decision to put around 60% of marketing budget into developing
a website.
- In 1996 the firm set up its first website:
- By 1997, practically all of the features of the website were in place,
including e-commerce.
- In late 2001, videos and sound were added.
- In 2002, special offers and more products are to be added.
Activities - Key Factor: improved marketing
good knowledge of customer base allowed the firm to set up a well-targeted
website
Output and Results
- The website has become an effective and low-cost marketing tool with
worldwide coverage, facilitating an increase in company visibility:
- Important share of on-line business: 20% of the firm's business occurs
on-line
- Growth in customer base:
- Improved B2C customer relationship:.
- Increased sales: online sales have seen an increase of over 9% in
last 6 months
- Better Penetration of foreign markets: Foreign sales represent 73%
of sales .
- Public Recognition in Ireland: finalist for the Golden Spider Award
in 1997, profiled by Enterprise Ireland as a successful case in the
application of e-practices. Three-shamrock rating by Doras, the Irish
Internet directory.
- Awards: 1996 Top Ten Irish Sites Award winner -- Irish Independent Netwatch; Quatec's Website Design Award. Various other awards.
Output and Results - Key Factor: improved marketing
Customers come from all over the world
Lessons and conclusions
Roundstone presents an example of a small company engaged in a very traditional
activity which has adopted the Internet as a valuable marketing and sales
tool. The website has helped transform the firm's prospects from simple
survival to niche market success, marketing and selling its products throughout
the world, while significantly reducing travel (and thus, costs) in order
to promote product awareness. The company now earns over 70% of its turnover
from exports and 20% from the on-line business.
The most important discovery for Roundstone was that instead of being an impersonal means to communicate with customers, the Internet has "become a friend and a good business partner, 24 hours a day, 7 days a week." The Roundstone experience provides another example in which location no longer is a determinant of business success and how e-practices can allow even the smallest and most niche-oriented of firms located far from urban centres to compete in the global market.
Lessons and conclusions - Key Factor: improved consumer networks
Internet does not have to be an impersonal way of communicating with customers
and the firm has found it possible to integrate e-practices with their
personal way of doing business
Lessons and conclusions - Key Factor: improved marketing
even small niche-oriented companies in very traditional handicrafts can
succeed in the international market with the help of an effective website
targeted to its customers.
References and links
Enterprise Ireland, Irish times, Roundstone Musical Instruments (Malachy
Kearns, Neil McKay).
Contact Information
Organisation: Roundstone Musical Instruments
Name: proprietor Malachy Kearns
Address:
Roundstone, Connemara,
County Galway
Ireland
Telephone: +353 95 35808
Fax: +353 95 35980
E-mail: bodhran@iol.com
Web: http://www.bodhran.com
Contact Information
Organisation: Roundstone Musical Instruments
Name: IT specialist Neil McKay
Address:
Roundstone, Connemara,
County Galway
Ireland
Telephone: +353 95 35808
Fax: +353 95 35980
E-mail: bodhran@iol.com
Web: http://www.bodhran.com