In identifying the possible reasons for the overall increase in complexity, Irish respondents were more likely than any other national group to cite the effects of the economic recession. But given the impact of the credit crisis on their business environment and the sovereign debt concerns that followed, this should hardly come as a surprise.
Irish respondents were much more positive about the level of complexity that they might face in the future, with more than half suggesting that it would either decrease or stay the same, and only 10 percent predicting a very significant increase over the next two years. Of the 22 countries surveyed, only Italian respondents displayed more optimism.
As Irish based businesses look to future trends, the causes of complexity seem to have shifted from the economy to regulation and oversight. Almost half of respondents from Ireland identified non-tax regulation as one of their top two leading causes for complexity today, and just less than a third selected government oversight.
And while more than eight in 10 Irish respondents suggest that non-tax regulation will likely be a cause of complexity in the future (the highest proportion outside of Canada), they seem more likely to see tax policy as a potential source of complexity (77 percent) than ongoing government oversight (at 64 percent). It is worth noting that – with the exception of France and Brazil – Irish businesspeople were also the most likely to expect to see complexities stemming from information management in the future.
For approximately three quarters of Irish respondents, increased complexity has created a number of new challenges for their businesses: they now face more risks to manage (cited by 78 percent), they are having more difficulty competing (also at 78 percent), and 74 percent acknowledge the need for new skills. While risks such as increased cost, difficulties in making management decisions and increased time horizons for deals and transactions (at 66 percent, 66 percent and 70 percent respectively) were not among the top choices, the Irish did tend to display more concern than their global counterparts in these areas.
As one of the most globalized economies in the world, Irish respondents were very likely to see a potential for opportunities to be created for their business as a result of complexity. With 86 percent taking this view, the Irish seem far more positive than most other European countries such as the UK (71 percent), Italy, Switzerland or the Netherlands (each at 70 percent) or Germany (at 53 percent).
In identifying the potential opportunities that may present themselves, Irish businesspeople tended to focus on either making their companies more efficient (88 percent) or gaining competitive advantage (81 percent). Just over 70 percent said that they would focus on their strategy, either existing or future.
Irish respondents were also among the most likely (90 percent) of all global businesspeople to indicate that they had leveraged some form of improved information management in order to address the impact of complexity on their business, and almost 80 percent said that they had taken on some level of business reorganization in response to complexity.
Interestingly, while almost three quarters of Irish surveyed thought that they might take different or additional actions over the next two years, almost 90 percent still chose improvements in information management, and almost 80 percent continued to prefer some form of business reorganization.
Overall, the findings show that the Irish are dealing with moderate to high levels of complexity today, but generally expect many of the challenges to fall away over the next two years, making room for new challenges and opportunities.
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