LEADING IN DISRUPTION

Dana Farrugia

Lyndsey Grima caught up with Dana Farrugia, Tech.mt’s CEO, to discuss the accelerating digital revolution and where Malta stands in building and expanding its digital backbone. What’s the way forward for businesses, especially after being crucially hit by several external factors in the last few years, and how can Tech.mt help local businesses get back on their feet? Dana Farrugia shares her insight.

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It’s no secret that businesses have taken quite the hit in the last few years due to many external factors. So, what was the impact of these factors on businesses, and how are they adapting and evolving despite the challenges?

Malta’s tech sector has displayed extreme resilience in the face of the COVID-19 pandemic, given that it still registered growth. In addition, it displayed the fastest productivity growth over the past decade. This is mainly attributed to the investment in innovation, research and development that did not halt during the pandemic. In 2020, especially, the importance of digitalisation across all industries had gone from optional to mandatory. So, the past months were a game-changing risk, not just for adapting to the pandemic but also for adapting to a more digital future.

The tech sector has been the backbone of most of the other sectors during the pandemic who benefitted from the robust infrastructure and various incentives that Malta o ers in this regard. Therefore, it is good to note that in the first half of the year, the technology sector was one of three sectors that positively contributed to the economy despite COVID-19. The total GDP attributable to the ICT industry amounted to €1.1 million in 2020, a 15% increase over the previous year. This represents 9% of the nation’s GDP.

Whilst by no means is Malta immune to the global economic downturn, its economic performance throughout 2021 shows that it is well poised for a gradual but positive recovery. Indeed, major credit rating agencies rate Malta, as one of the strongest economies in Europe with minimal unemployment levels. Malta’s credit ratings vary between A- and A (high) with a stable outlook. Recent government and private sector direct investment have paved
the way for innovation to flourish. The pandemic has undoubtedly accelerated the need to adopt technology and digitalisation in operations. Diversifying our economy to create room for new niches such as AI, IoT and Blockchain technology will help cement our position
as a hub for innovation and technological advancement.

The need is to embrace this new norm, invest, diversify and ultimately come out of this pandemic stronger and as a technological leader on the world stage.

At Tech.mt, we understand the current position of technology companies and start-ups and the type of assistance they may require to expand their potential. Tech.mt has been strongly proactive in assisting businesses to apply for the proper grants and incentives offered by local entities and advising a clear direction towards their growth during these challenging times. It has also made sure that specific grants and funding schemes are re-dimensioned to ensure that these also cater for the local tech sector. Tech.mt has also been investing its time and resources in promoting Malta with specific foreign universities and partnering up with local education institutions to improve the influx of professionals in the market and meet the industry demand.

As the government rolls out incentives to fight the effect of the COVID-19 pandemic on businesses, these need to invest in digital assets that will help businesses become sustainable and future proof. Therefore, re-financing and business strategy modelling should include managing debt or re-allocating finances and investment in digital solutions that will become one of the most valuable assets once the pandemic is over.

Post-COVID-19, businesses will hit the ground running only if they have invested in the latest technologies to reach customers fast and if the business has established a robust digital presence. It is a path that would have been journeyed anyway, but now the pace must be accelerated substantially. Tech.mt is always available to assist businesses to fulfil their business goals. In addition, we continuously drive research and market intelligence on the global tech community, understanding market demand, consumer opinions and risks.

How do you think the leadership perspective has changed due to these hardships?

Dana Farrugia

Industry leaders had many tough decisions to take in the past months. Recognising that a company is facing a crisis is one of the leaders’ first steps. Although this is challenging, it is necessary during these extraordinary times. What is essential is to remain focused and take an optimistic viewpoint that will prevent any overreacting and secure a positive outlook ahead. In addition, by empowering the people around them, leaders will be able to make the right decisions across the board.

Despite these challenges, many organisations have found ways to thrive. The requirements for leaders in all industries have rapidly shifted, resulting in a widening gap between those leaders equipped for these new realities and those who are not. Thus, leaders need to think creatively about business strategy and manage people to navigate the next phase of COVID-19 to build a successful future. As the digital revolution accelerates, business environments are changing in significant ways. Suppose businesses want to keep up with the momentum of the evolving market and maintain alignment with their surrounding ecosystem. In that case, you will need to recognise the need for change as you think ahead. Business leaders must leap and become the knowledge-driven innovative entity they inspire to be.

How do you think a digitised culture will help businesses in the future?

Malta continues to build and expand on its already solid digital backbone. Home to several data centres, solid and reliable internet bandwidth and connectivity, together with 5G testing underway, Malta continues to position itself as having the capacity to continue attracting tech companies. International studies have recognised this, including Europe’s Digital Economy and Society Index for 2021, which positioned Malta in 6th position.

Locally we have a small but rich pool of innovative start-ups and small businesses, disrupting and reshaping the tech industry with their solutions. Many have successfully exported their solutions to foreign markets, retaining their operations in Malta. In addition, our educational institutions produce high-quality human capital because of the high share of ICT specialists and ICT graduates. The latest EU Innovation Scoreboard highlights Malta’s enormously increased performance (+14.9 % points), with solid performance increases recorded in 2018 and 2019. Malta’s full embrace of new technology is evident across all innovation dimensions assessed by the study. This augurs well for the future in the digital sector. Tech.mt has been instrumental in pushing policies and strategies for a more holistic digitalised society to be implemented. We will continue with our role of influencing said policies based on the feedback received from the industry.

“Locally, we have a small but rich pool of innovative start-ups and small businesses, disrupting and reshaping the tech industry with their solutions.

What makes Malta in its complexity an attractive place for investment?

The productivity increase over the past years reflects the firm basis of the tech sector and Malta’s attractiveness, including its skilled workforce, strong educational institutions, robust telecommunications infrastructure and various incentives that continue to bolster Malta’s attractiveness. From a technology and innovation perspective, Malta retains its attractiveness as a global hub with a skilled talent pool and progressive mentality to endure and transform toward a new norm. This is confirmed by the high rankings achieved in the European Innovation Scoreboard 2021 Study and Global Startup Ecosystem which has proven Malta as one of the top innovative and emerging ecosystems in Europe and beyond.

As per the Malta Competitiveness Report 2020, participation rates in education and training among the 25-34, 35-44, 45-54, and 55-64 age groups increased across all ages. Digital transformation is sustained if the economy’s core is also adapting to digitalisation.

Therefore, it is mundane that the public sector is an enabler of growth and the main driver. Digital education, reskilling, and upskilling are necessary through any digital shi s happening both in the present and future. Indeed, Malta has been classified as one of the EU Member States with the highest performance increase in human resources (+30.9%), measured on new doctorate graduates, population with tertiary education and lifelong learning (EIS 2021). On this front, Tech.mt has also continued to strengthen the academic interchange in technology and research by signing eight agreements with the University of Malta and eight partnering Universities in Italy.

Malta is well-positioned to capitalise on its current capabilities. Tech.mt will continue to play a vital role in ensuring that technology and digital platforms are exploited to their full potential, guaranteeing a digitally resilient and innovative economy.

“Tech.mt has a massive responsibility in pushing the reset button and creating an economy based on digital resilience and innovation.

In what ways is Tech.mt promoting Malta and local businesses?

Tech.mt aims to put Malta at the forefront of the tech industry on a European and global level. Thus, it gives more opportunities and exposure for local tech companies while attracting foreign entities to start up, operate, and trial their novel technologies locally. With the ambition to become the first port of call for all companies wishing to establish their base in Malta, Tech.mt is focused on establishing itself as a compounder and unifying force with a clear and targeted focus on technology. Furthermore, by organising networking events between start-ups and investors and establishing a solid rapport with international angel investors, venture capitalists, crowdfunding platforms, business accelerator programs and private equity firms, we strive to position Malta as a hub for quality and creativity in the Tech and Innovations industry. Tech.mt has been instrumental in encouraging businesses across industry verticals to go through digitisation and get their businesses online, mainly through informative webinars and extending its contact details to all businesses in need of advice, support and information about available grants to tap into.

With the pandemic exposing the digital divide across different segments of society, Tech.mt has also pledged its commitment to ensuring that those left behind continue to receive opportunities to cope with the digital transformation COVID-19 has brought to bear. Through its transformative and proactive values, Tech.mt continues to promote technology as a tool, a necessity to empower digital innovation, connect the digital supply chain and bridge the digital gap.

A proactive reach-out to businesses operating within the sector was held during 2021, reaching over 200 companies and relevant stakeholders during the past months. The primary recipients were local tech players from the private sector, other governmental entities, foreign investment o ices, trade promotion organisations, and businesses operating in other sectors but with the ambition to implement digital solutions. The drive to further consolidate communication with the industry was a calculated exercise to ensure that different segments were reached, from the prominent players to the small and medium enterprises and the start-up community.

At Tech.mt, we recognise that there is no one-size-fits-all for promoting Malta’s attractive attributes. It all boils down to our target audience. Each market or geographical region will have its criteria for making a host country attractive to invest in. We are also aware that competition for tech investment is enormous and that we are competing with other countries across the globe, whether they are larger economies or developing countries.

The Maltese government has also acknowledged the importance of the proper strategic tools in the digital sector as the key to shaping its competitiveness on a global level and has injected over €5 million in the entity to position Malta as the global technology hub of excellence. In addition, Malta’s accessible economic environment demonstrates a flexible working setting, offering numerous benefits to foreign investors searching for an attractive and reliable business environment.

“Tech.mt has been instrumental in pushing policies and strategies for a more holistic digitalised society to be implemented

What’s in store for Tech. mt in the not too distant future?

At Tech.mt, we continuously drive research and market intelligence on the global tech community, understanding market demand, consumer opinions and risks. This allows us to assist companies in distinguishing their brand from their competitors, commercialise their vision more sustainably, and become more resilient to this crisis. What’s next after COVID-19 is likely to be characterised by a blurring of market boundaries – of new collaborations to share risk, to co-develop and cooperate – and by more customer intimacy. These new relationships will be both resilient and responsive. Companies with leadership and agility through the COVID-19 crisis can build on their positive actions to create stronger customer loyalty.

Collaborative resource-sharing models do not only have the potential to improve enterprise resilience but also reduce risk. COVID-19 has shown all too clearly the deficiencies in linear, remote supply chains and just-in-time inventory management. The value chains were lean, but they weren’t flexible. By developing value networks, looking at reshoring, distributing dependencies and building clusters for research and development, companies can accelerate innovation and insulate the enterprise from shocks.

As organisations transition to this new phase, they must also consider what is to come beyond, as crises of this scale are sure to reshape the competitive landscape. On the other side of the crisis, the world may look very different, with different norms, rules, competitors, and value propositions. To remain relevant in this new world, companies must engage with multiple stakeholders to re-frame their future and build long-term value and a new value-based economy. Tech.mt has a massive responsibility in pushing the reset button and creating an economy based on digital resilience and innovation. The pandemic has been a wake-up call that we need to transition to a more digital economy. But, if we genuinely want to have a resilient and effective recovery, we need to bring all stakeholders from all levels to the table with the government to design the kind of future we want for our country, our economy and our people. And without any doubt, the future Tech.mt envisages is digital, and our team is well placed to assist local businesses to get all the help and assistance they need on their digital journey.

In the coming months, we shall continue to strive to deliver upon our mission to expand the local tech sector by assessing the market for niches and untapped potential, which the Maltese tech companies can tap into to advance, grow and internationalise. Furthermore, educate the tech sector in managing business growth, ensure readiness for potential investment and internationalisation. Finally, building a nurturing and supportive ecosystem is essential for the local tech industry to flourish and grow.

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