eWB Digital Transformation - Official Publication of the Western Balkans Digital Summit 2019 by CorD Magazine

eWB

Mariya Gabriel, European Commissioner for Digital Economy and Society • Houlin Zhao, Secretary-General of the International Telecommunication Union • Mihailo Jovanović Ph.D., Director of the Serbian Government Office for IT and eGovernment • Jorgovanka Tabaković, Governor of the National Bank of Serbia • Marko Čadež, President of the Chamber of Commerce & Industry of Serbia (CCIS), Chair of the EUROCHAMBRES Digitalisation Committee • Robert C. Martin, software engineer and instructor, Agile Manifesto co-author • Tatjana Matić, State Secretary of the Ministry of Trade, Tourism and Telecommunications • Nebojša Đurđević, CEO, Digital Serbia Initiative • Nebojša Jovanović, President of the Digital & E-Commerce Committee of the Foreign Investors Council (FIC) • Branka Anđelković and Jelena Šapić, of the Public Policy Research Centr • Željko Tomić, President of the NALED eGovernment Alliance • Majo Mićović, General Manager of Sky Express • Rade Matijević, Director, Špica Centar • Suzana Radović, Channel Sales Manager and Head of the Fujitsu Representative Office for Serbia, Montenegro and Bosnia-Herzegovina • Branko Milikić, CEO, Sixsentix Serbia • Goran Radosavljević, cluster IT manager for Serbia and Ljubljana (Slovenia), Crowne Plaza, InterContinental Ljubljana • Ilijana Vavan, Kaspersky Lab Managing Director for Europe • Vladimir Atanacković, Senior Software Developer, Office Software Solutions • Milan Lučić, Acting Director of the Serbian Business Registers Agency • Aleksandar Vratonjić Gligorijević, Director of TeleGroup Innovation, TeleGroup Ltd. • Milica Radović Mandić and Milica Nastasić, co-founders of @ITkonekt • Nihat Biševac, Mayor of Novi Pazar • Vidoje Petrović, Mayor of Loznica • Stana Đember, President of the Municipality of Čoka • Čedomir Božić, President of the Municipality of Žabalj

DIGITAL TRANSFORMATION

BORDERLESS DIGITAL WORLD

MARIYA GABRIEL, EUROPEAN COMMISSIONER FOR DIGITAL ECONOMY AND SOCIETY

DIGITAL TRANSFORMATION CHALLENGES

ROBERT C. MARTIN, SOFTWARE ENGINEER AND INSTRUCTOR; AGILE MANIFESTO CO-AUTHOR

DIGITALISATION HAS TRANSFORMED SERBIA OVERNIGHT

MIHAILO JOVANOVIĆ PH.D., DIRECTOR OF THE SERBIAN GOVERNMENT OFFICE FOR IT AND EGOVERNMENT

SOFTWARE TOUCHES EVERYTHING

“4 ‘I’S” FOR SUCCESS

WE CONTINUE TO SUPPORT DIGITAL TRANSFORMATION

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA (CCIS), CHAIR OF THE EUROCHAMBRES DIGITALISATION COMMITTEE

TATJANA MATIĆ, STATE SECRETARY OF THE MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

CONTENT

NEBOJŠA JOVANOVIĆ, PRESIDENT OF THE DIGITAL & E-COMMERCE COMMITTEE OF THE FOREIGN INVESTORS COUNCIL (FIC)

REGION’S FIRST INSTANT PAYMENT SYSTEM

JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA

THE IMPORTANCE OF DIGITAL SKILLS IN THE MODERN WORKPLACE DIGITAL SKILLS

PROVISIONING AND OPTIMISING ANALYTICS ENVIRONMENTS AT SPEED AND SCALE DELL

DEDICATION & KNOWLEDGE

MAJO MIĆOVIĆ, GENERAL MANAGER, SKY EXPRESS

eWB

NEBOJŠA ĐURĐEVIĆ, CEO, DIGITAL SERBIA INITIATIVE

ENCOURAGING INVESTMENT IN INNOVATION NECESSARY

HOULIN ZHAO, SECRETARY-GENERAL OF THE INTERNATIONAL TELECOMMUNICATION UNION

START-UPS DRIVE THE DIGITAL REVOLUTION

GREATER TRANSPARENCY FOR OPERATIONS IN THE REGION

MILAN LUČIĆ, ACTING DIRECTOR OF THE SERBIAN BUSINESS REGISTERS AGENCY

THE IMPORTANCE OF WORKING TIME MANAGEMENT

TOWARDS DIGITAL TRANSFORMATION IN SERBIA

APRIL BRINGS MARATHONS TO BELGRADE

RADE MATIJEVIĆ, DIRECTOR OF ŠPICA CENTAR

UNDP

SERBIAN DIGITAL ECONOMY IS ON THE INCREASE

TAKE A SMALL STEP FORWARD EACH DAY

DIGITAL ECONOMY AND SOCIETY

SUZANA RADOVIĆ, CHANNEL SALES MANAGER AND HEAD OF REPRESENTATIVE OFFICE SERBIA, MONTENEGRO, BOSNIA & HERCEGOVINA

DIGITAL TRANSFORMATION

GIG ECONOMY IN SERBIA: DEUS EX MACHINA FOR ECONOMIC DEVELOPMENT?

BRANKA ANĐELKOVIĆ AND JELENA ŠAPIĆ, OF THE PUBLIC POLICY RESEARCH CENTRE

NEW APPROACH TO SOFTWARE TESTING

BRANKO MILIKIĆ, MANAGING DIRECTOR, SIXSENTIX SERBIA

CONTENT

SERVICE

GORAN RADISAVLJEVIĆ, CLUSTER IT MANAGER FOR CROWNE PLAZA BELGRADE AND INTERCONTINENTAL LJUBLJANA

THE THREAT OF CYBERCRIME IS RISING FAST

BOJANA KRSTIĆ, DEPUTY DIRECTOR OF HOLYCODE

CYBER/DIGITAL SECURITY

ILIJANA VAVAN, KASPERSKY LAB MANAGING DIRECTOR FOR EUROPE

THE VANGUARD OF THE DIGITAL BANKING ERA

ŠABAC TABL@A HEADING TO THE U.S.A.

67 68 69

VIDEO AS A VIRTUAL BRANCH OFFICE

COUCHCOACH AMONG EUROPE’S TOP8 START-UPS

ADDIKO BANK

INNOVATIONS FOLLOW TRADITIONAL

TEAM LIKE ONE BIG FAMILY

NEW APPROACH TO CYBERSECURITY

IN STEP WITH CONTEMPORARY TRENDS

ŽELJKO TOMIĆ, PRESIDENT OF THE ALLIANCE FOR EGOVERNMENT, NALED

SMART

SYNCHRONIZED SECURITY IN A CONNECTED WORLD

WE’RE BUILDING A SMART CITY

NIHAT BIŠEVAC, MAYOR OF NOVI PAZAR

COOPERATION WITH THE STATE IS KEY FOR SMALL MUNICIPALITIES FACILITATING A NETWORK OPERATION

NETWORK SERVICE

NENAD KRSTIĆ, PRESIDENT OF THE MUNICIPALITY OF TRGOVIŠTE

DIGITALISATION - A WINDOW ON THE WORLD

STANA ĐEMBER, PRESIDENT OF THE MUNICIPALITY OF ČOKA

COUCHCOACH

WE SHALL MAKE AN APP FOR POTENTIAL INVESTORS

BOBAN JANKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF MIONICA

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGNER: Jasmina Laković EDITORIAL MANAGER: Neda Lukić, n.lukic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

TRANSLATION & EDITING MRP EDITORIAL Halifax Translation Services SALES MANAGERS: Biljana Dević, Nataša Trifunović, Vesna Vukajlović, Mihailo Čučković, OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs

WORLD EXPERTS ATTEND ITKONEKT CONFERENCE

DIGITAL TRENDS

ADOPTION OF ARTIFICIAL INTELLIGENCE

E-COMMERCE

VIDOJE PETROVIĆ, MAYOR OF LOZNICA

DIGITALISATION OF HERITAGE, OPPORTUNITY FOR TOURISM

ICTS

NB SHOP

DIGITAL TEACHING FOR 21ST CENTURY SCHOOLS

JAGODINA CITY ASSEMBLY

VLADIMIR ATANACKOVIĆ, SENIOR SOFTWARE DEVELOPER, OFFICE SOFTWARE SOLUTIONS

CREATED FOR THE NEEDS OF USERS

ONLINE SHOPPING TRENDS IN 2019

ČEDOMIR BOŽIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽABALJ

ON THE WAVE OF THE DIGITAL REVOLUTION

ALEKSANDAR VRATONJIĆ GLIGORIJEVIĆ, DIRECTOR OF TELEGROUP INNOVATION, TELEGROUP LTD.

WE’RE INFORMING CITIZENS ABOUT ESERVICES

FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić, i.novcic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

SPECIAL THANKS TO Office for Information Technologies and e-Government

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com

DIGITAL TRANSFORMATION

Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile:+(381 11) 2450 122

THIS PUBLICATION IS FREE OF CHARGE The views expressed in this publication are those of

MILICA RADOVIĆ MANDIĆ AND MILICA NASTASIĆ, CO-FOUNDERS OF @ ITKONEKT

the presenter; they do not necessary reflect the view of publications published by alliance international media

DIGITAL TRANSFORMATION

MARIYA GABRIEL, EUROPEAN COMMISSIONER FOR DIGITAL ECONOMY AND SOCIETY

INTERVIEWS

“We all need to be focused on answering the same question: how can we jointly ensure that the region benefits from these new digital opportunities” - Mariya Gabriel

EXCLUSIVE

Borderless Digital World

he impact of digital technology extends far beyond the digital sector itself. This is why we need a collaborative approach to policymaking on digital – notes European Commissioner Mariya Gabriel, speaking in the build-up to the Second Digital Summit of the Western Balkans in Belgrade. Last year’s First Digital Summit of the Western Balkans opened with the message that the “era of the digital integration of the region” is beginning. How would you assess progress on this front since then? - I have visited five out of the six Western Balkans partners since the first Digital Summit in Skopje in April last year and I’ve already seen real progress. The support and cooperation between the governments of the region is very good, and we are already seeing the first positive outcomes. My visits have also been extremely helpful to understanding where the EU can help most effectively in the implementation of the Digital Agenda for the region. Since last year’s Digital Summit, we launched the Digital Agenda for the Western Balkans in June in Sofia, which was endorsed by

all leaders of the region. We also made 30 million euros available for technical support for broadband roll-out by the Commission as part of the Western Balkans Investment Framework (WBIF). Another tangible example is the memorandum of understanding on the creation of a 5G corridor between Thessaloniki, Sofia and Belgrade, which was also signed last June. Other milestones include Montenegro becoming the first candidate country to join the EU Programme for Interoperability Solutions for Public Administration, Businesses and Citizens (known as ISA2) on 29th May 2018, as well as the more than 1,000 events held throughout the Western Balkan region during last year’s Code Week – three times the number held during the previous year. Those who will determine the “digital future” of the Western Balkans are now again gathering, this time in Belgrade. Why is it actually important to bring together in one place the creators of international and regional regulations, academic experts and representatives of the economy? How is the importance and scope of such a gathering reflected?

DIGITAL TRANSFORMATION

Security

Government

Innovation

Cybersecurity incidents rarely hit only one country – sharing knowledge is essential to preventing and addressing them

Public administrations need to lead by example and become enablers for businesses to improve economic activity

Start-ups play a catalysing role in innovation, creating new businesses and services in the process

- The digital world is by definition a borderless one. The impact of digital technology extends far beyond the digital sector itself. This is why we need a collaborative approach to policymaking on digital. And I don’t just mean that governments from the region and from the EU need to talk to each other; they also need to discuss with academia, with researchers, with industry, to ensure opportunities and challenges are fully understood. We need to ensure an inclusive approach, focused on our values and democratic principles. We all need to be focused on answering the same question: how can we jointly ensure that the region benefits from these new digital opportunities? As mentioned previously, we have made real progress in the last year in terms of strategy and developments - now we need to focus on making sure these strategic developments bring the real results that we want for citizens and businesses, and in particular on closing the digital gap between the region and the EU. Your message in Skopje last year was that the digital transformation process doesn’t make exceptions and that, accordingly, the EU and the Western Balkans will continue to strive together towards the digital revolution. A subsequent major step in this partnership was the adoption of the Digital Agenda. What are its key ambitions? - The aim of the Digital Agenda for the Western Balkans is to help the region benefit from the digital transformation taking place on their doorstep and to prepare for their potential future within the European Union. Aligning the two regions’ approach on international roaming is probably the highest profile measure - and I hope agreement will soon be reached between the Western Balkans partners on how to implement the roam-like-at-home approach that we benefit from in the EU - but it is far from th being the only one.

this vital infrastructure rolls out across the region. I have been encouraging partners in the region to come up with specific projects in this crucial area. Better high-speed networks lead to an increase in the number of digital products and services available to consumers - but with these also comes the need for higher levels of online security and trust. The number and size of cyber incidents that we are witnessing – both in terms of geographical spread and the variety

High-speed networks are as vital to today’s economic and social development as electricity, water or transportation networks were in the 19 and 20th centuries

For example, we are investing in broadband connectivity – with the €30 million in EU grants that I mentioned earlier. High-speed networks are as vital to today’s economic and social development as electricity, water or transportation networks were in the 19th and 20th centuries; broadband internet is the enabler of many innovative services, such as e-health, ‘smart’ cities and data-driven manufacturing. The money available under the Western Balkan Investment Framework (WBIF) will help accelerate the pace at which this

of sectors involved – show us that no country can face these challenges alone. For a digital society to work, there must be trust: trust that personal data is taken care of correctly, trust that sensitive business information is not leaked. A robust cybersecurity strategy is needed to give citizens and businesses the confidence they need to use the internet. It is a challenge that is common to all of us in Europe. As such, it requires a common response - coordinating our national cybersecurity strategies and increasing our shared cybersecurity capacities. This is what we’ve achieved in the EU with the political agreement on the Cyber Act, which includes a new mandate for ENISA and a new certification scheme. As the number of digital services grows, we also need to make sure that citizens are confident in using them. This means 9

DIGITAL TRANSFORMATION

improving their digital skills - not only as users, but also as potential creators – encouraging the development of coding in schools, for example. This is why we were pleased to see such a significant increase in the number of Code Week events taking place in the Western Balkans last year. And we are not just looking to boost the capacities of the next generation of coders; the Digital Agenda also supports national research facilities and

connects them with the digital European Research Area, giving the region’s current raft of researchers and engineers access to world-class training and collaboration.

Recent years have seen Serbian engineers and the Serbian economy recording progress in innovative fields, while there are a growing number of companies that are global champions in the areas in which they operate. Do you believe that closer cooperation with neighbours in the domain of innovation and innovative entrepreneurship will bring even better results for all? - Start-ups are the drivers of innovation. The digital economy has dramatically accelerated the speed of innovation, user adoption and information sharing, as technologies evolve faster and become more widespread than ever before. Start-ups play a catalysing role in innovation, creating new businesses and services in the process. This is why, last November in Sofia, we opened our existing EU networks, such as Start-up Europe, to cooperation with the Western Balkans. We will discuss possible best practises at the Summit this week (21st March) in Cluj, Romania. This will help the region’s companies and start-ups connect with, and learn from, their EU counterparts. Cooperation is important to allow start-ups to innovate and grow. We also need to do more to attract more women digital entrepreneurs. A recent EU study on Women in the Digital Age shows a worrying decrease in the number of women opting to study ICT-related subjects and taking up jobs in the sector. For every 1,000 female tertiary graduates in the EU, only 24 are graduates in ICT-related fields and only 25% of them end up working in digital jobs. This needs to change. One of the main problems that women face when starting a tech company is the lack of access to capital, despite the fact that investment in female-founded start-ups performs 63% better than exclusively male-founded start-ups.

Once the regional roaming agreement is in place, we can indeed start the process of lowering EU-Western Balkan roaming tariffs

The second digital summit, to be held in Belgrade, also brings the signing of the long-awaited regional agreement on roaming tariffs, equating to more favourable prices for the citizens of the six Western Balkan economies. On the other hand, what can we expect in terms of the abolition of roaming tariffs with EU members? This clearly cannot happen overnight – considering that negotiations for Union members themselves were long and complex. - There are in fact two issues related to roaming currently being negotiated: how to lower tariffs within the Western Balkan region and, as a second step, how to lower tariffs between the region and the EU. Once a regional roaming agreement is in place, we can indeed start the process of lowering EU-Western Balkan roaming tariffs. This will not happen overnight, but I know the political will is there, and the expertise and experience within the EU of having already gone through this process will be invaluable. What is clear that we cannot simply impose a reduction in 10

tariffs. We have to ensure that telecommunications companies in the region have a stable environment for their investments, with clear and harmonised legal frameworks in place. We need cooperation with telecoms operators to ensure the roll-out of broadband and prepare the region for future technical developments, including 5G. So, this obviously has to be handled with understanding and cooperation, with both national and regional authorities and the telecoms sector, including the role of regulators playing their part. For example, we need to ensure that prices for frequencies auctions are fair and reasonable, that permissions for building new infrastructure are harmonised across municipalities and regions, and that access to existing infrastructure and its reuse is made easier.

DIGITAL TRANSFORMATION

Can we expect even stronger support from the EU on this road? -Yes, indeed. We already include the Western Balkans in our existing networks and encourage relevant stakeholders to join. And startup organisations from the region are also organising themselves more effectively to take advantage of this access to our existing EU framework. A Western Balkans start-up network is currently being developed (alongside a similar one for start-ups from Central and Eastern Europe, within the EU). When it comes to regional cooperation in the digital domain, one of the most important topics is cybersecurity. The relevant government ministries recently announced the possibility of establishing regional training centres. In your opinion, what would be the benefit of such centres? - In order for a digital society to work, there has to be trust. This is why each economy needs a robust national cybersecurity strategy. At the EU level, this is based on the Network and Information Security Directive (NIS), and all the governments of the Western Balkan region are in the process of aligning their national strategies with the NIS directive, thus strengthening their cybersecurity capacities. But it is about more than just having an effective national strategy. As I mentioned before, the digital world is by definition borderless, and cybersecurity incidents rarely hit only one economy, which means that sharing knowledge and cooperating is essential to preventing and addressing them. The EU is preparing a programme to strengthen the cybersecurity capacity of the region and facilitate cooperation. I mentioned ENISA and the certification scheme, and we need to ensure that our Western Balkan partners are included in this cooperation.

economy? What were the impressions of companies that participated in last yearâ&#x20AC;&#x2122;s Digital Expo? - Events like the Digital Summit show a strong commitment from leaders that digital is a priority and is to be taken seriously. The participating companies have a great opportunity to not only show what they are doing, but also to connect with other companies and networks that can help them grow. It is important

For every 1,000 female tertiary graduates in the EU, only 24 are graduates in ICT-related fields and only 25 per cent of them end up working in digital jobs

Which other domains have the greatest potential for regional integration? - There are several areas where regional integration can help to speed up digital transformation. The harmonising of rules and procedures will help cut red tape and shorten the time needed to set up a company or trade across borders. Mutual recognition of electronic IDs will facilitate the lives of both citizens and companies in the region. And exchanging data between the regionâ&#x20AC;&#x2122;s governments using standard building blocks will enable and support the wider data economy. How significant are events like the Digital Summit for the

to increase cooperation not only within the region, but also globally.

Regional integration encourages the development of the digital economy and society, but also contributes to approaching the EUâ&#x20AC;&#x2122;s single digital market. What are the key steps that are necessary to make the Western Balkans even more effective in achieving this goal? - In the EU we have developed the Digital Single Market Strategy to ensure that the European Union is well-placed to attract investments, foster creativity and innovation, provide top-class public services and protect our businesses and citizens. Based on our experiences, there are many areas where I would see a real advantage for partners in the Western Balkans by working together more closely. For example, developing the vital broadband networks needed to underpin the digital society of the future can often be easier and cheaper when connecting across borders than within the country itself. A coordinated approach on spectrum policy, agreeing which frequencies should be reserved for which services, is another area where regional cooperation is beneficial, especially given the exciting potential offered by 5G. 11

DIGITAL TRANSFORMATION

But it is important to remember that the EU is essentially a partnership between equal partners, and that this is why it functions. In order for the region to grow, there is a need to continue to build trust between the economies. Increased cooperation will make the region stronger and speed up the digital transformation. Digital transformation also implies a labour market revolution, while demand for IT specialists is today growing faster than ever before. What is essential for the advantages brought by digital transformation not to be endangered by workforce shortages? - In 2017, some 25 per cent of major companies and 10 per cent of SMEs in the EU used big data analytics. Only one in five SMEs was highly digitised. When asked about the reasons for this limited digitisation, 72 per cent of employers cited “a lack of staff with the right digital skills”. This gap between what is needed and what is available is one of the key factors holding back the rapid development of a wider digital society in the EU. The situation in the Western Balkans is even worse. The opportunities to learn advanced digital skills related to technologies like artificial intelligence or cybersecurity are few and far between. But digital skills are needed for many jobs these days, and even these are sorely lacking in many cases. Nurses, farmers, teachers, lawyers… they all need digital skills of some form or other in their workplace, and skilled workers are very often increasingly hard to find. This is why we need to develop a comprehensive strategy for digital skills, at the national level but also at the European level. The European Commission has launched a number of initiatives in this area, all of which are open to the Western Balkan region. For example, the Digital Skills and Jobs Coalition was created to bring together a wide range of stakeholders – including EU member states, companies and education providers – to take action to tackle the lack of digital skills. And, in an effort to increase the number of young people with advanced digital skills, the Commission has also launched the Digital Opportunity Traineeships pilot project to provide cross-border traineeships for up to 6,000 students until 2020. The project started last summer and there are already almost 2,000 Digital Opportunity traineeships in cybersecurity, software development, big data analysis and coding taking place across Europe.

The European Commission praised Serbia for the results achieved in the digital transformation of public administration, as well as for adopting and efficiently implementing a set of laws governing this field. Do you believe that it is additionally important that the state is also helping in the digital transformation of the economy? This year is the first time that the Chamber of Commerce & Industry of Serbia and the state have subsidised the digital transformation of the SME sector, in an effort to accelerate their growth, but also to raise awareness about the essential nature of this process. How would you evaluate such an initiative? - By its nature, government plays an important role in helping to digitally transform the economy. Public administrations need to lead by example and become enablers for businesses to improve economic activity and for citizens to improve access to services. Government plays an essential role in helping to remove existing digital barriers, reducing administrative burdens and improving the quality of interactions with government. Leading by example is also important. We need to accelerate the roll-out of digital public services across Europe - while of course ensuring that citizens and businesses can trust the safety and effectiveness of these services. It is clearly important to also ensure that we do as much as we can to support the digital development or transformation of SMEs, including through digital innovation hubs. But this needs to come as part of a broader policy of support for smaller companies, including increasing networking opportunities for SMEs, start-ups, investors and accelerators. Focusing on the creation of a thriving ecosystem can multiply jobs, growth and investment. An example of how we do this in the EU is ‘Start-up Europe’, which coordinates the EU’s work to connect clusters and ecosystems across Europe and aims to bring stronger coherence between different EU initiatives. It links national and regional ministries, innovation agencies and other stakeholders. In my view, a stronger start-up ecosystem needs proper cooperation between all players in the country and the region. Founders, accelerators, academia, investors and government institutions should all work together for the benefit of all citizens.

We need to develop a comprehensive strategy for digital skills, at the national level but also at the European level. The European Commission has launched a number of initiatives in this area, all of which are open to the Western Balkan region

DIGITAL TRANSFORMATION

HOULIN ZHAO, SECRETARY-GENERAL OF THE INTERNATIONAL TELECOMMUNICATION UNION

INTERVIEWS

“4 'I'S” For Success I am confident that Serbia will continue on its path to creating a good environment for the development of the information society. To continue in a positive direction, normally countries need to consider what I call the ‘4 Is’: infrastructure, investment, innovation and inclusiveness

or this issue, ITU Secretary General Houlin Zhao speaks about overcoming the challenges of the digital revolution, essential conditions for the creation of the information society, the development of the concept of smart cities, internet accessibility worldwide and the new goals of the International Telecommunication Union. The digital revolution is changing the world fundamentally, bringing incalculable benefits to countries, but also an array of challenges. How important is regional and global cooperation to overcoming those challenges? - New technologies – from the Internet of Things to artificial intelligence to 5G – hold great potential for human progress. They are already enabling innovations in areas such as health, financial services, energy, transport and smart cities and communities. In fact, they will be essential for the realisation of every single one of the United Nations Sustainable Development Goals (SDGs). And the ITU, the United Nations specialised agency for information and communication technologies (ICTs), is at the forefront of this digital revolution. However, only by working together – across industries and across borders – will we bring the power of ICTs to all nations, all people and all segments of society. With the ITU’s large and diverse private sector membership and our academia members, I am confident that we will be successful in unlocking the full potential of ICTs to achieve the SDGs.

The ITU Plenipotentiary Conference 2018 (PP-18) in Dubai included the defining of the key directions of the activities of the ITU until 2023. Could you tell us more about this, as well as the ITU’s future role in achieving the United Nations Sustainable Development Goals (SDGs). - ITU Member States adopted new targets to be achieved by 2023 in five strategic areas: growth; inclusiveness; sustainability; innovation; and partnership. The new plan also outlines how the ITU will contribute to worldwide efforts to achieve the SDGs. ITU Member States at PP-18 reaffirmed a shared global vision of an information society, empowered by the interconnected world, where telecommunications/ICTs enable and accelerate social, economic and environmentally sustainable growth and development for everyone. I am certain that the new and revised resolutions adopted at PP-18 will help foster inclusive economic growth, and ensure that ICT can be a source for good for everyone, everywhere. The ITU participates in numerous initiatives related to the development of smart cities. Developed countries are increasingly active in this area, with investments growing year on year. What are your expectations when it comes to smart cities in developing countries? - My expectation is that cities in developing countries will take steps to use ICTs to achieve SDG 11 — to “make cities and human settlements inclusive, safe, resilient and sustainable” by 2030.

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Rapid urbanisation has created challenges such as air and water pollution, overcrowding, social inequality and traffic congestion, but new technologies, and the widespread use of mobile phones in cities in developing countries, give us an opportunity to address these challenges. The ICT infrastructure of a smart city must ensure openness and interoperability, and this can only be effective with common standards. The ITU recently developed standards ensuring the security of networks in urban areas. Our standards outline how smart grids can help build more controllable and efficient energy systems. We encourage innovations to be integrated into standards. And the ITU’s work on standards for 5G systems, which will help make smart sustainable cities a reality, is also underway. The transition to Smart Sustainable Cities, however, will call for extensive collaboration, drawing on a wide range of expertise from policymakers, regulators, mobile operators, manufacturers, small and medium enterprises (SMEs), academics and technical experts from all over the world. Is the worldwide availability of the internet growing at a fast enough pace? How many of the planet’s inhabitants still lack access? - For the first time in history, more than half of the world’s population is now using the internet. The challenge ahead of us is to bring the other half online, especially in the Least Developed Countries, so that everyone can benefit from ICTs in terms of social and economic progress. This is not happening fast enough, and we must do more to address the digital divide. Consider that in the world’s 47 least-developed countries (LDCs), four out of five individuals are not yet using the internet. Solving this issue is difficult, however. Many of those still offline live in rural, remote communities where connectivity is difficult, often because of the terrain, but also because the return on investment in those areas is often poorer than in urban areas. Also, many of those still offline lack basic digital skills, or internet services are not affordable, or the content online is not locally relevant or available in local languages. We need to work together and adopt an inclusive approach – between the public and private sectors, and across industries, if we want to address the digital divide. The ITU assists countries in building the necessary infrastructure

for connectivity, and in developing the policies, legislation, regulations and business practises to promote affordable and relevant internet services and content. The Serbian Government’s Office for Information Technology and eGovernment was awarded at last year’s World Summit on the Information Society, which included the ITU among its organisers, in the category of “creating a good environment for the development of the information society”. What is crucial when it comes to continuing in this positive direction? - I congratulate Serbia on this achievement and am confident the country will continue on its path to creating a good environment for the development of the information society. To continue in a positive direction, normally countries need

to consider what I call the ‘4 Is’: infrastructure, investment, innovation and inclusiveness. All countries have to extend infrastructure to those areas not enjoying these ICT services yet, but we also have to upgrade to the current infrastructure, with new technologies such as 5G. Investment is also quite important, because people want services with affordable prices, and industry may need to upgrade their systems. To attract investment, countries must nurture a good regulatory environment for that investment. The third ‘I’ is innovation. We cannot just continue doing business the same way we did in the past. We must have innovative ways to do business. Entrepreneurs are a rich source of innovation. Particularly in today’s environment, young people know technologies; they know the market; they know the challenges. So they can have a lot of marvellous, innovative ideas to help us extend the newer technology with local solutions to connect local

My expectation is that cities in developing countries will take steps to use ICTs to achieve SDG 11 — to “make cities and human settlements inclusive, safe, resilient and sustainable” by 2030

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communities. The ITU and its members should work hard to mobilise innovations from both major companies and SMEs, as well as from other social associations, while looking for new ways to do business. The last ‘I’ is inclusiveness. Hopefully, countries are working hard to ensure they don’t leave anybody behind. This includes working with groups like handicapped people, elderly people, children, and those who live in remote areas, who have difficulty getting connected. The ITU is among the largest and oldest global organisations. What were the greatest milestone moments in its more than 150-year history? How much have the activities of the ITU changed until today? - The ITU is the oldest international organisation in the United Nations system. Since our first milestone – the 1865 International Telegraph Convention, and the founding of the International Telegraph Union – ICTs have changed beyond all recognition from stand-alone telegraphs, to today’s ’smart’ communications that are embedded, often imperceptibly, in the environment around us. Standardisation has been integral to the ITU since the very beginning, and was indeed part of the raison d’être for establishing the ITU in 1865, when representatives of twenty European States first met in Paris to coordinate and set standards for the telegraph systems of Europe. In their simplest form, agreed standards represent a common way of doing things, and can help ensure interoperability. They may also set a benchmark for quality and common knowledge, as well as a set of market norms, and/or expectations of service. This has remained the same even during enormous technological change. The development of radiocommunications – including broadcasting; TV transmissions; satellite communications; and mobile communications, such as 2G, 3G, 4G and 5G – has seen constant technological breakthroughs throughout its history. Another milestone is when the ITU formally joined the United Nations as a specialised agency in 1949. ITU coordinated actions in recent years have been key

to enabling countries to implement their analogue to digital switchover in a timely manner, in allowing the general public to enjoy the benefits of digital broadcasting. More recently, developments like the push to broadband and the use of software-defined and cognitive radio systems are redefining the radiocommunications landscape. Private and state entities will continue working in partnership at the ITU, in the culturally innovative environment that they have successfully created together over a period of a century and a half.

For the first time in history, more than half of the world’s population is now using the Internet. The challenge before us is to bring the other half online, especially in the Least Developed Countries

What will be in the focus of this year’s AI for Good Global Summit, to be held in May? - The AI for Good Global Summit is the leading United Nations platform for global and inclusive dialogue on Artificial Intelligence. The Summit is hosted each year in Geneva by the ITU, in partnership with UN Sister agencies, XPRIZE Foundation and ACM. It brings together leading minds in AI, business, government, civil society and international cooperation. This year’s focus is on how AI can accelerate progress towards the SDGs. Participants will discuss how to ensure trusted, safe and inclusive development of AI technologies, and equitable access to their benefits.

To what extent is gender inequality present in the ICT sector today? How does the ITU advocate for progress on this front? - The gender digital divide persists in nearly every region of the world, and the ITU works to close this gender gap. The ITU works for gender equality in ICTs through events, training and with partners. We promote skills, access and leadership opportunities for women in the ICT sector through the EQUALS Global Partnership. We will next month lead global celebrations for International Girls in ICT Day on 25 th April. We encourage governments, private sector institutions, schools and partners to get involved and to host their own events to inspire girls to discover the exciting world of ICTs. I believe that it is only by working together that we can ensure men and women equally access the technologies that will enrich their lives.

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MIHAILO JOVANOVIĆ Ph.D., DIRECTOR OF THE SERBIAN GOVERNMENT OFFICE FOR IT AND EGOVERNMENT

INTERVIEWS

Great results have been achieved over the past year on the introduction of eGovernment, primarily in the development of services for citizens, but also in terms of preparations for the digitalisation of services for registered businesses

Digitalisation Has TRANSFORMED SERBIA OVERNIGHT

he concept of digitalisation has quickly begun yielding visible results. The entire government has approached its implementation in a unified manner and the effective adoption of laws and by-laws defining and regulating this area has been ensured. On the other hand, in parallel with the development of eGovernment infrastructure, new e-services have been offered to citizens and businesses. Furthermore, the continuous growth of the ICT sector has continued. All this has led to the fact that, in a period of just a year and a half, Serbia has been recognised at the regional and world level as a country that has been transformed “overnight” by digitalisation, says Serbian Government Office for IT and eGovernment Director Mihailo Jovanović. What are the most important introductions that have eased the operations of businesspeople? - Changes in ways of thinking, at least when it comes to registered

businesses, is reflected in the enforcement of amendments to the Law on Companies, with which the obligation for companies to use stamps and seals has been abolished. The law revoked the provisions of as many as 10 laws and 107 by-laws in which stamps are mentioned. No institution, bank or organisation has the right any longer to demand a stamp/seal from businesses or entrepreneurs, which eases daily operations and clears the way for complete digitalisation. With the aim of ensuring the most effective possible application of these legal amendments, the Office for IT and eGovernment has also established a contact centre intended for businesses, where all registered companies can report institutions that have demanded a stamp/seal from them. All reports are analysed by experts in this field, which form the basis for instructions to be sent to institutions regarding how to adjust to the abolishing of stamps/seals. Dozens of reports were initially received on a daily basis, but after six months they almost disappeared, which tells us that institutions have

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started fully respecting the abolition of stamps/seals, but also proves that this type of communication between the economy and the state is very effective. Now that a business stamp/seal is no longer obligatory, we are addressing improvements in the efficiency and simplification of administrative procedures for registered companies in Serbia, so the ‘ePapir’ project has been launched that will initially enable the optimising and digitalising of the hundred most common administrative procedures, with communication between companies and the state conducted via an “online counter”. The digitalising of services for businesspeople will simplify procedures significantly, shortening the time required to fulfil them by reducing the number of steps and costs, as well as reducing the space for potential corruption. Introducing the Unified Information System for Local Tax Administrations created significant benefits for businesses, citizens and the state. You’ve also announced plans for integration with the eCatastre, as well as additional improvements and new functionality to the system. What is this all about? - Local self-government units have, for more than a decade, taken care of property taxes and other sources of public revenues, within the framework of local tax administrations. This kind of decentralisation, which was carried out hastily, under the pretext of the autonomy of local self-governments, was actually a very bad move from the aspect of electronic evidence, the quality of data and the possibility for citizens, businesses and the state to have complete information from the entire territory of Serbia. Although the error was spotted quickly, numerous subsequent attempts to reunify the data ended unsuccessfully. However, at the initiative of Prime Minister Ana Brnabić, one of the most important digitalisation projects was successfully completed in 2018 – with the formation of the Unified Information System for Local Tax Administrations, the establishing of which was worked on intensively by experts from the Cabinet of the Prime Minister, the Office for IT and eGovernment and experts from all local tax administrations. We’ve enabled citizens and businesses to access information regarding their property taxes and other sources of public revenue, as well as enabling them to apply for the determining of property taxes for private individuals and legal entities via the Portal of the Unified Information System for Local Tax Administrations, lpa.gov.rs. The convenience of submitting applications for the determining of property tax electronically is particularly significant for businesses, as they must repeat this procedure each year. As of this year, they will have to submit an application for determining property tax by 31st March each year by electronic means exclusively. The portal also enables the electronic payments of property taxes using any credit card, including the Serbian Dina card, integrated eBanking and eMoney.

The state also benefits greatly from this system – when all information is contained in one place, it is possible to make any kind of query in real time. With one click you receive the tax effectiveness of each Local Tax Authority: taxpayer statistics, level of annual indebtedness, payment percentages, transferred debts from the previous year. Quite simply, statistics on the percentage of success in recovering payments completed in 2018 is now available for each LTA, but also the level of success of payment when taking into account transferred commitments. We are also working on the integration of the eCadastre with the Unified Information System of Local Tax Administrations,

which will enable data on tax returns to be generated and digitalised even with a public notary during the verifying of contracts on the sale and purchase of real estate. That data is then forwarded to the real estate cadastre, and from there is sent to the appropriate electronic applications for the local tax administration, i.e. the Republic Tax Administration. As of this spring, all tax solutions that the Unified LTA Information System starts generating will have a QR code, the scanning of which starts a simple process of instant payments. Finally, will also provide insight into tax solutions in electronic form via the portal.

No institution, bank or organisation has the right any longer to demand a stamp/ seal from businesses or entrepreneurs

When will citizens and businesses be able to use eGovernment services via their mobile devices? - The Office is working on the implementation of an electronic identification system aligned with the new Law on Electronic Document, Electronic Identification and Trusted Services in Electronic Business. The key is that – in addition to existing methods of electronic identification (at the basic level with an account and password, at the high level with a qualified electronic certificate) – a medium level will also be enabled, 19

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in the form of a dual-factor identification method (with an account and password, but also an additional channel of confirmation via a mobile device). In accordance with the Law on eGovernment, the Office is also obliged to establish the identity of a federation of state portals, which means that it will be sufficient for users to identify themselves on this new eGovernment portal and from there they will be able to use all the services of other state portals. Finally, we will also offer other providers of electronic identities the identity of a

federation – telecoms operators or commercial banks, for the mutual recognition of identities to allow us to enable their users to use eGovernment services.

Serbia received a unique record of citizens in electronic form for the first time at the end of last year. How demanding was the work required to establish this? - Statistics on citizens of Serbia have been managed in different ways and within the scope of different competencies over the past 70 years. This project represented one of the most demanding tasks within the framework of the public administration digitalisation project, or the establishing of electronic records with citizen data within the framework of the e-government system in Serbia. This means that citizens no longer have to carry certificates of citizenship from one counter to another, rather this electronic record is available to all state administration and local self-government officials, within the scope of the Central System of Records of the Ministry of State Administration and Local Self-Government. Within the framework of this system, data from three registries is maintained - birth, marriage and death – while a unique electronic record of citizenship has established as a fourth – registry of citizens. With this project, all electronic records of registries in Serbia have been completed for the first time. Following the establishing of records, we were confronted by very poor data quality, with many entries lacking a JMBG [unique citizen identification number], so we are faced by the significant job of improving the quality, which is being worked on by both the Ministry of Public Administration and Local Self-Government and the Ministry of Internal Affairs.

The system “Baby, Welcome to the World” allows parents – while still in the maternity ward – to register their children with the birth register, register their place of residence, apply for a health card and for parental allowance

More than 150,000 children have so far been registered through the system “Baby, Welcome to the World”, while the implementation of the second phase of the project enables applications for parental allowance. How much does this possibility mean to parents? - All eGovernment information systems made operational in the past year and a half have been monitored by detailed analysis of the results achieved. We have information confirming great savings, not only in terms of time, but also in terms of money spent while moving from counter to counter. The information system “Baby, Welcome to the World” allows parents – while still in the maternity ward – to register their children with the birth register, register their place of residence, apply for a health card and, as of last year, apply for parental allowance, and to do all of that in just 10 minutes, in communication with a healthcare worker. Everything is completed without a need to visit any counter - and parents previously had to visit as many as seven. 20

To what extent have inspection services in Serbia been using the eInspector platform so far and how are their experiences? When are all inspection services expected to switch to this way of working? - With the introduction of the eInspector information system, we’ve ensured better coordination between inspections, automation and more effective supervision, the standardisation of work, data accessibility for all inspectorates and, with all of that, a reduction in costs for businesses. Trial work has been launched for the first four pilot inspections - Sanitary Inspection, Market Inspection, the Inspectorate for Labour and the Administrative Inspectorate, which employ around 800 inspectors, and by summer the Office will include another 32 inspection services in the eInspector system. Now we can see with a single click what inspectors are doing in the scope of their regular or extraordinary supervision activities, how many companies they’ve visited, while those subjected to inspections can access all results of inspection supervision electronically, via the eGovernment Portal.

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INTERVIEWS

JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA

The NBS's IPS system enables the development of new, innovative payment solutions and services that will have an impact on the quality of the user experience

Region's First Instant Payment System

alf a year after the start of its implementation, Governor Jorgovanka Tabaković speaks in this exclusive interview about the results to date of the introduction of the NBS’s IPS, the opportunities it brings to citizens and the economy, and the way that digitalisation is shaping the banking sector. The instant payment system was introduced in Serbia last October – are you satisfied with its performance so far? How many payments have been realised in all? - As of 11th March, the total number of realised payments in the system was 1,688,627 and the average transaction time lasted 1.25 seconds. The average daily turnover value in March was around RSD 186 million. Of the total number of all messages, only 1.15% was denied, and this was largely due to the fact that the banks are still getting into a routine and their core systems are adjusting to ensure that participation in such a sophisticated system is stable and secure. I’d like to remind you that the NBS’s IPS is the first instant payment system in the region, and we are proud that it was launched one month before the Pan-European instant payment system (the ECB’s TIPS). What has this system brought to citizens and corporates, and

why is it important for the NBS? - The advantages of the instant payment system are an ability to make payments 24/7/365, including national holidays and weekends, the availability of money within seconds, and the option of initiating payments via different channels and all types of contemporary communication devices. Citizens and corporates no longer need to worry whether a particular day is working or non-working, what time of day it is and whether their bank’s branch office is open. The NBS’s IPS system enables the development of new, innovative payment solutions and services that will have an impact on the quality of the user experience – among citizens and corporates alike. By introducing the NBS’s IPS system, we have provided adequate infrastructure and an incentive to payment service providers, allowing them to enhance their business operations and services, and enabling payment service users to rely more on non-cash payment channels. When this option was launched, the NBS predicted that card payments would decrease by 30% over the next five years. What do these projections look like now? How has the card payment system been affected? - Relative to card payments, the advantage of instant payments at points-of-sale is that the money is deposited on the vendor’s

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account almost instantly, and not after a few days, as is the case with card payments. In this way, the vendor can manage liquidity more efficiently and plan business operations with more certainty. Also, instant payments allow the buyer to make purchases without having to carry a wallet or payment cards; all that’s required is to have your mobile phone with you and you can easily scan the vendor’s QR code or present your own. As for the impact of instant payments on the number of card payments, only time will tell how this will unfold once the banks start applying instant payments with large retail chains. While in some segments we are progressive, it seems we remain rather conservative in others. Participants in this year’s Kopaonik Business Forum again underscored that we will not be able to develop platforms for fast international payments until the Law on Foreign Exchange Operations is amended. What progress can we expect in this area? - The most recent amendments to the Law on Foreign Exchange Operations provided for a significant degree of liberalisation of capital flows, i.e. international payment transactions, mainly towards EU countries, which was also positively assessed by the European Commission. Thanks to the efforts of the NBS and the Ministry of Finance, amendments to FX regulations enable households and businesses to carry out international th payment transactions not only through banks, but also through e-money issuers – in respect of electronic purchase/sale of goods and services, and through payment institutions and the public postal operator. This laid the groundwork for the further modernisation of international payments and the development of digital operations. At the same time, I have to say that banks should also take further steps to upgrade their services, in order to enable citizens and corporates to submit international payment orders electronically, as well as documentation proving grounds of payment, i.e. facilitating determination of the payment code, all of which will ultimately contribute to faster and more efficient executing of international payment transactions.

in Serbia should adjust to new trends imposed by modern business. This process started some time ago and the NBS is creating preconditions and infrastructure for the digitalisation of market participants’ operations.We recently adopted a decision on so-called video identification, which enables client identification without them having to go to a bank’s branch, while ensuring the full security of the identification process. This means that the whole procedure of establishing a business relationship in the area of financial services can be shifted to the sphere of distance or online operations. We expect banks to continue working on new software applications and systems, building on those already operational worldwide, and it is the role of the NBS, as a responsible regulatory and supervisory authority, to support them on this path.

As of 11 March, the total number of realised payments in the system was 1,688,627 and the average transaction time lasted 1.25 seconds

How is the fourth industrial revolution affecting the transformation of the domestic banking sector? To what extent are Serbian banks active in terms of digital transformation of their business and are we keeping step with Europe and the rest of the world? - In the spirit of the development of digital technologies, banks

To what extent is it important for a bank to determine the level of digitalisation appropriate to its needs? - There is no doubt that, if they want to remain competitive, banks in Serbia, as in rest of the world, have to keep pace and rise to the challenges brought about by digitalisation by adjusting their operations to new trends in banking, new client profiles and new needs. New technologies improve the efficiency of operations and reduce costs, but they should be applied adequately, bearing in mind a bank’s size, structure and business policy. While the digital transformation process does open up new possibilities, we should not lose sight of the potential risks involved, because safety and soundness are of critical importance to the banking sector.

Have the millennials really brought tectonic changes to the banking system, or is the whole story about the generation that allegedly “hates banks” exaggerated? Can a new generation fully eliminate bank counters in the near future? - Every new generation should be an incentive for banks to adjust their operations to the needs of that particular generation, while not forgetting the needs of other consumers of financial services either. Our banking sector features an increasing number of services offered through digital distribution channels, not only through traditional business models and at bank counters. Our duty is to insist on compliance with regulations in the field of financial consumer services protection, as well as on the transparency of prices and the terms under which banking services are offered, and to improve trust and enable consumers to select the services that best suit their needs. 23

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BUSINESS

MAJO MIĆOVIĆ, GENERAL MANAGER, SKY EXPRESS

Dedication & KNOWLEDGE Top Products And Professional Staff Guarantee Data Protection

”I

CT security is one of the fastest growing ICT sectors in the world. The importance of protecting digital data and communications is no longer questionable, it is actually a critical factor in any development planning at modern businesses and public institutions that generate or process digital data, and in particular personal data”, says Majo Mićović.

Sky Express is one of the leading Serbian and regional companies in the field of ICT security, distribution and consulting. How much is this IT segment actually developed in Serbia, how hard is it to find experts? - In Serbia, this development is significantly slower due to lack of awareness of the importance of data protection. Thus, the market is much smaller, and therefore the need for ICT security staff. Sky Express, thanks to its relationship with the Evolution Equity Fund, and with the vendors of the world’s leading data protection solutions, has managed to attract a considerable number of educated, certified and experienced people and keep them in Serbia. Thanks to this, we were ready for GDPR, as well as for the requirements imposed on businesses by the Law on Personal Data Protection. The dedication and knowledge of our experts, and the top products we use, guarantee the protection of data.

that this is the only reason why companies in Serbia should seriously invest in data protection. Apart from high penalties, there are other factors: serious loss of client confidence, leak of business secrets and important information about the company, jeopardising the integrity of data on servers where they are stored because data becomes useless or worse, incorrect, misinforming the public about important data, misinforming employees and partners-collaborators. The simplest way is to perform initial pen tests, check the weaknesses, within the networks and from the Internet, consult experts and integrate an appropriate and economical solution.

The Evolution Equity Partners Fund will invest approximately €25 million in Serbia this year, primarily in ICT security, the gaming industry and agro-tech

In 2018, Serbia adapted to the EU General Data Protection Regulation with the new Law on Personal Data Protection. As a GDPR expert, what would you recommend to Serbian companies? - Although the strong penalty policy of GDPR is one of the major motives for the adoption of security solutions, I do not think 24

Cooperation between Serbia and Switzerland in ICT is more and more intense. As Chairman of the Managing Board of the Swiss-Serbian Chamber of Commerce, do you believe that the positive trend will continue, and that we can expect new investors? - ICT is certainly the most promising industry in the development of the trade relations of our two countries. The fact that the Serbian ICT economy exported more than €1 billion in 2018 testifies to the good instincts of the Serbian economy and the Government of Serbia to invest in this industry. The suggestion of our chamber and our ICT entrepreneurs is to stimulate not only the outsourcing of projects, but original creative entrepreneurship, which would grow in parallel with projects for foreign partners. The balance between these two business principles is the ideal combination for ICT business. As a representative of the Evolution Equity Partners Fund, I am pleased to announce our plan to invest approximately €25 million in Serbia this year, primarily in ICT security, the gaming industry and agro-tech.

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MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA (CCIS), CHAIR OF THE EUROCHAMBRES DIGITALISATION COMMITTEE

INTERVIEWS

During the course of 2019, there will be 25 new consultants trained and certified, 175 companies will receive digital maps, with 120 of them also receiving strategies for digitalisation

We Continue To Support

Digital Transformation

part from the fact that it digitised all services for the economy in recent years and, with 63 digital services on its ePortal, became the leader among the region’s chambers, the CCIS is also the first to embark on the digital transformation of the economy. The Chamber of Commerce & Industry of Serbia last year established the Centre for the Digital Transformation of the Economy. What has been done through the pilot project to date? - Already in the first year since its foundation, with the financial support of the German Organisation for International Cooperation (GIZ) and expert assistance of the Austrian Economic Chamber (WKO), we have trained 22 digitalisation consultants and certified them successfully with WIFI – the WKO’s accredited certification body. With their help, 40 SMEs received digital road maps (expert analyses), while 20 of them also received strategies for digitalisation. The initial step was to prepare a basic study on the state of digitalisation in the Serbian economy, which confirmed that SMEs in particular requires serious assistance in this process. Our response to the needs of the economy was to form the Centre for Digital Transformation, which will help companies to digitalise their operations faster and more effectively - by informing, advising and educating, proposing transformation and financing

models, supporting in the implementation of digital solutions and connecting with those who possess knowledge, technology, instruments and funds. What did the results of analysis show; which problems are our companies facing; why haven’t they progressed further on digital transformation to date, and what are the experiences of those who’ve completed your programme? - The results of the surveying of more than 340 companies – from the metallurgy industry, agriculture and services like tourism and logistics – showed that the level of the general digitalisation of operations is low, both in Serbia and around the entire region, that our companies aren’t sufficiently familiar with everything that’s implied by digitalisation, that they lack sufficient information and knowhow regarding processes and opportunities, sources of funding etc. It was shown that as many as 60% of those surveyed practically don’t do anything on their digitalisation, while the planned activities of others boil down to, for instance, procurement of basic software or creating a website. It is true that there are differences wheh we view the situation on the basis of sector. At the same time, the number that applied last year, in the first call to companies, was five times higher than planned for the first round of support, which suggests that smaller firms are also

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increasingly aware of the need to digitalise their operations and are interested in participating in this programme. With the help of consultants and the establishing of new business models, the majority have realised that they can increase their efficiency and competitiveness significantly, better utilise the opportunities provided by digital operations and adapt communications with customers and clients through swift technological changes. What is implied by the Digital Transformation Support Programme for 2019; which activities are being implemented and which are planned? - The plan is to train and certify 25 new consultants this year, a call for which was already announced in March. Our aim is for another 175 companies to get digital maps in 2019, i.e. the analysis of 120 experts and digitalisation strategies, and for 110 companies to implement technological solutions on the basis of strategy implementation. Digitalising the traditional economy isn’t a challenge only for Serbia, but for the entire region. When it comes to this goal, what role is payed by the Western Balkan 6 Chamber Investment Forum (WB6 CIF), over which you preside? - With a view to what we’re already doing in Serbia, the Chamber Investment Forum will, with the financial and expert assistance of the Austrian Development Agency (ADA) and Austrian Economic Chamber (WKO), launch the implementation of multi-year projects in the coming months that are aimed at introducing and developing dual education across the whole of the Western Balkans and furthering the digital transformation of the region’s economy. Already during this year and next, the creation of a unique set of services for all six Western Balkan chambers is envisaged, as well as capacity building among the chambers to support the economy in these areas as efficiently as possible. When it comes to the digitalisation segment, the first phase envisages the selection, training and establishment of a network of certified consultants who will be provided to assist the economies of the region in digital transformation processes – the creation of digital maps and strategies, and the implementation of technical solutions envisaged by these documents. A valuable foundation for the creation and implementation of future activities will be provided by a study that will analyse the situation thoroughly, determining the needs of, and obstacles faced, by the SMEs of the region on the road to faster digital transformation.

cent, while increasing digitalisation by just one per cent would cause employment in manufacturing enterprises to increase by 1.2% and productivity by 2.1%. Companies will be enabled by digital transformation to improve all segments of business through the use of modern technologies and innovations - from production, via administrative processes, to communication with consumers on local and foreign markets. Those who digitalise their operations on time will be more efficient and competitive, they will produce more and better quality, and products of higher added value, connecting more easily with customers and engaging in global supply chains... Serbia hosts the Second Digital Summit of the Western Balkans in early April. What significance does this gathering have for for the economies of Serbia and the region? - It’s actually the Digital Week of the Western Balkans that’s being held in Belgrade, but also in other Serbian cities. The summit will gather not only prime ministers from across the entire region

and other decision makers in this sphere, but also global experts and digitalisation professionals from European chambers and representatives of the business community. Within the scope of this summit, the Eurochambres Digitalisation Committee will also meet, with which we will discuss joint chamber projects aimed at promoting the application of existing innovative digital tools for companies and the creation of new ones. That will also provide an opportunity to present large, regional telecommunications and IT companies that provide solutions for the digitalisation of countries and economies, as well as for their networking to ensure that those associated will be as technologically ready as possible to conduct major projects of interest to the entire Western Balkans. Another special quality of this year’s summit is the participation of as many as 38 innovative start-ups from the region in the trade fair part. This is, for them, a chance to connect with large companies from the most diverse fields, which have capital and which – in complex processes modernisation and technological updating processes – increasingly rely on the ideas and projects of smaller, but more innovative companies.

The plan is to train and certify 25 new consultants this year, a call for which was already announced in March

What are the expected effects of digitalisation in the region? - Implementing the digital agenda for the Western Balkans, digitalisation, as one of the key pillars in creating a unified economic space, and the digital transformation of traditional industries, is of particular importance for the growth of Western Balkan economies. A study of digital transformation’s impact on the Western Balkan countries shows that a 10-per cent increase in the general level of digitalisation would cause a lasting increase in the GDP growth rate of the Western Balkan economies by up to one per

Digital Skills

The Importance Of Digital Skills In The Modern Workplace

A strong digital economy is vital for innovation, growth, jobs and European competitiveness. The spread of digital is having a massive impact on the labour market and the type of skills needed in the economy and society.

DIGITAL SKILLS

DIGITAL TRANSFORMATION

The Importance Of Digital Skills In THE MODERN WORKPLACE In the modern workplace, digital skills will be highly valued in the near future and digital skills will be vital. The digital age is expanding into all areas of our lives, and it is not just those who work in IT that will need to be alert to this change 30

nowing how to answer your emails, to access a company’s files on Google Drive, or to tweak a website’s code are all digital skills that are increasingly sought after in today’s job market.

WHAT EXACTLY ARE DIGITAL SKILLS? When considering the digital skills gap, this question is not asked often enough. Cornell University defines digital literacy as ‘the ability to find, evaluate, utilise, share, and create content using information technologies

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and the Internetâ&#x20AC;&#x2122;6. By this definition, digital skills are any art, architecture, and many more - require increasing skills related to being digitally literate. Anything from levels of digital skills. the ability to find out your high-score on Minesweeper It changes the way we learn by fostering online to coding a website counts as a digital skill. communities, by enabling personalised learning expeHowever, in the modern workplace, it is increasriences, by supporting the development of soft skills ingly impossible to point out which digital skills you may or may not need. There is no hard and fast rule about which jobs you will need to Excel for and which jobs you will not. Digital literacy is a language; the more digital skills you have, the better you can speak it. To the uninitiated, learning digital skills can make a person feel like they are entering a new country full of new customs. Digital skills come with their own set of sub-skills after all. The European Commission is promoting various initiasuch as problem solving, collaboratives aimed at increasing training Digital skills are any skills in digital skills for the workforce tion and creativity, and by making related to being digitally and for consumers; modernising learning fun. education across the EU; harnessIt is leading to the need for literate. Anything from the ing digital technologies for learning every citizen to have at least baability to find out your high-score sic digital skills in order to live, and for the recognition and validaon Minesweeper to coding a tion of skills; and anticipating and work, learn and participate in the analysing skills needs. website counts as a digital skill modern society. The full potential A strong digital economy is for improving education through vital for innovation, growth, jobs and European comICT in Europe remains yet to be discovered and this petitiveness. The spread of digital is having a massive is why the European Commission is developing policy impact on the labour market and the type of skills and supporting research to make learners fit for 21st needed in the economy and society. century life and work. It is changing the structure of employment, leading to the automation of â&#x20AC;&#x153;routineâ&#x20AC;? tasks and to the creation A NEW SKILLS AGENDA FOR EUROPE of new and different types of jobs. On 10th June 2016 the European Commission pubIt is leading to the need for more skilled ICT profeslished a new Skills Agenda for Europe, working tosionals in all sectors of the economy. It is estimated gether to strengthen human capital, employability and that there will be 500,000 unfilled vacancies for ICT competitiveness. It presents a number of actions and professionals by 2020. initiatives with the ambition to tackle the digital skills It is leading to the need for digital skills for nearly deficit in Europe. all jobs where ICT complements existing tasks. Careers The new agenda sets out to improve the quality and such as engineering, accountancy, nursing, medicine, relevance of skills formation, to make skills and quali31

DIGITAL TRANSFORMATION

new multidisciplinary digital skills is exploding. fications more visible and comparable and advancing Together with all stakeholders, such as Member skills intelligence, documentation and informed career States, industry, social partners and education and choices. Digital Skills and Jobs Coalition is the new flag training providers, the Commission will: ship initiative among a number of other initiatives that Address these challenges as part of a comprehensive were presented. The mid-term review of the Digital dialogue on the social aspects of Single Market strategy, published digitisation that engages all stakein May 2017, focuses on digital Digital literacy is a language; skills oriented actions, aiming to involved in all aspects the more digital skills you have, holders manage digital transformation of of work, education and training. the better you can speak it. To the Reinforce the role of industry our society and economy. uninitiated, learning digital skills and research organisations in the DIGITISING EUROPEAN INDUSTRY Grand Coalition and stimulate can make a person feel like they further commitment from industry On 18th April 2016 the European Commission published a Commuto take action. Improve the underare entering a new country full nication on Digitising European standing of skills requirements of new customs Industry, which introduced a set for new technologies, including of coherent policy measures as part of a Digital Sinwithin H2020, and promote the development of digital gle Market (DSM) technologies and public services skills and stimulate partnerships for skills within the modernisation package. A part of the Communication framework of the New Skills Agenda for Europe. is dedicated on digital skills. In particular, it calls for a human capital ready for the digital transformation ENGAGE DIGITAL INNOVATION HUBS with the necessary skills. (DIH) IN SKILLS FOR MID-CAPS AND SMES The digital transformation is structurally changing In some senses, digital skills make the workplace a the labour market and the nature of work. There are freer and simpler place to navigate. A lot of work can concerns that these changes may affect employment now be done from home, or on the move, but this also conditions, levels and income distribution. Alongside brings its own set of challenges. A consumer expects investment in technology, we need investment in skills more from a company knowing that technology has and knowledge, to be ready for the future. The need for made everything so much faster. 32

DIGITAL TRANSFORMATION

BUSINESS

DELL

Provisioning And Optimising Analytics Environments At Speed And Scale ESSENTIALS Dell EMC ELASTIC DATA PLATFORM offers a powerful and flexible approach using existing Big Data investments and containerisation technology, combines industry leading Dell EMC infrastructure and services with a unified Big Data-as-a-Service solution, accelerates time to insight – analytics environments can be provisioned in minutes rather than months – and enables users to work with the tools of their choice and the data they require through a self-service delivery model.

specific infrastructure, intelligent software and automation. • Workload-specific infrastructure—highperforming, cost effective scale-out storage optimised for analytical workloads • Intelligent software—enterprise-grade features and functionality using partner and open source solutions, such as BlueData for infrastructure abstraction and containerised workload deployment • End-to-end automation—automated workflow from initial request through to environment destruction • Enterprise Integration—integration into the existing enterprise Big Data environment, including ServiceNOW, Active Directory, and networking services

Overview Hadoop® deployments often begin on a small scale with bare metal servers and direct attached storage. As these systems grow, organisations often struggle to keep pace with business demand while avoiding pitfalls such as data sprawl, excessive governance or inelastic architecture. Delays can be costly, especially if it means data scientists are waiting for an environment to be provisioned rather than driving value in the quest for data monetisation. Solution Dell EMC offers its Elastic Data Platform, which provides greater scalability and security for analytics environments. The solution also helps keep costs in check by reusing existing big data infrastructure and software investments. The Elastic Data Platform extends and augments an organisation’s existing big data investments with workload34

Getting Started The Dell EMC Elastic Data Platform is a powerful and flexible approach to help organisations get the most out of their existing Big Data investments. Its scalability, elasticity and compliance support the ever-growing needs of business. Additionally, it provides fast and easy provisioning, simplified deployments, cost efficiencies and automated processing. To accelerate the time to value, our experienced consultants will work with your organisation to define the solution architecture and then integrate the Elastic Data Platform and Big Data-as-a-Service capabilities with your existing Big Data investments. The platform can be initiated in a matter of weeks and fully operational in as little as a three months, enabling higher data scientist productivity and increased opportunities for data monetisation at speed. Are you ready to harness the power of big data and analytics to transform your organisation? Dell EMC offers a comprehensive portfolio of Big Data Consulting services from strategy through to implementation and ongoing support. Contact us to learn more.

DIGITAL TRANSFORMATION

MILAN LUČIĆ, ACTING DIRECTOR OF THE SERBIAN BUSINESS REGISTERS AGENCY

BUSINESS

Greater Transparency For OPERATIONS IN THE REGION Establishing a regional portal of business registers will enable better interconnectivity between markets and strengthen competition

ntrepreneurs from Serbia and North Macedonia, but also foreign investors, have as of recently been able to take advantage of the regional portal of business registers – the Business and Financial Data Exchange (BIFIDEX, www.bifidex.com), via which it is possible to access unified business data and information relating to more than 500,000 businesses registered with the business registration authorities of Serbia and North Macedonia. What will the establishing of the Business and Financial Data Exchange regional portal mean to the economies of these two countries? How much data is available for now? Have other countries shown an interest in joining? - Services available via the portal provide insight into the basic profiles of registered companies (Basic Company Profile), monitoring of changes within companies and individuals (Watchdog service), and the identifying of companies on the basis of selected criteria (Find a Partner). The offer will soon also include more complex reports and analyses, but the end goal is the integrating of procedures for the cross-border registration of businesses, foreign branches, company headquarters etc. Given that this relates to official and updated statistics from registration institutions, we are convinced that the services provided will be beneficial to achieving greater transparency of operations in the region, better interconnectivity of the markets and strengthening competition. Interest in joining the portal has also been expressed by authorities from Slovenia, Bosnia-Herzegovina, Albania and Croatia, with which the scope of available services will be expanded, increasing the value additionally. The portal is otherwise one of the first results of the Initiative to Develop the Investment Climate, supporting the development of the private sector and promoting good governance in Serbia,

which formed the basis for the European Bank for Reconstruction and Development to support the strengthening of the institutional capacity of the Serbian Business Registers Agency. Since the beginning of last year, SBRA has been offering an e-registration option for sole proprietors. How popular is it compared to the “paper” registration of a business? How is the situation with the online incorporation of companies and what are the further plans for the e-registration system? - The electronic incorporation of sole proprietors and singlemember companies is a novelty for business people in Serbia, which has been utilised this year by about 400 companies and sole proprietors. On the basis of experience to date, we can say that it takes a year or two for users to accept the completion of applications online and the creation of electronic documents, e-signatures and paying fees online. However, we will soon also introduce the electronic incorporation of multi-member companies, so we are yet awaiting more massive use of the SBRA’s e-registration services.

The Serbian Business Registers Agency will also enable the electronic registration of financial leasing contracts in the coming period, which will ease the work of banks

How many e-services does the APR offer the economy today? What will you focus on in the period ahead? - Since 2016, financial statements have been submitted electronically, which significantly reduces the time needed for them to be compiled, processed and published. The same year saw the introduction of the system for the electronic issuance of construction permits, thanks to which Serbia leapt up the list of the Doing Business Index from 186th to 10th place worldwide. In addition to the aforementioned introduction of electronic registration of sole proprietors and companies, a central record has been established at the beginning of the year, which already contains entries on 124,000 beneficial owners. In the coming period, the SBRA will also enable the electronic registration of financial leasing contracts. 35

DIGITAL TRANSFORMATION

ROBERT C. MARTIN, SOFTWARE ENGINEER AND INSTRUCTOR; AGILE MANIFESTO CO-AUTHOR

Software Touches Everything

INTERVIEWS

Robert C. Martin, colloquially known as "Uncle Bob", is one of the world's most famous software engineers, among the authors of the Agile Manifesto, the mind behind several software design principles and an outspoken advocate of agile and test-driven software development and software craftsmanship

ight years after the famous quote and article by Marc Andreessen – Software is Eating the World – his statement and title seems truer than ever. Entire industries have changed and software is touching everything, from banks and the financial sector, to transport, education, the healthcare industry and agriculture. It has brought many opportunities that were unimaginable just a few decades ago, but also many challenges, like ethical questions and security. This is why software craftsmanship is also more relevant than ever before. One of today’s most influential software engineers and authors, Robert C. Martin, visits Belgrade this April to deliver a keynote speech at the IT Konekt conference, where software professionals and engineers from Serbia and the region will have a chance to see him live for the first time. Nowadays, you are travelling the world and sharing knowledge at different conferences, as well as in your books and videos. You are visiting Serbia for the first time in April, to deliver a keynote speech at the IT Konekt conference – and the whole community is really excited at the prospect of seeing you! What are some of your thoughts and expectations before you speak at a conference like this? - I always enjoy visiting new places and seeing new people. It

encourages me when people show such enthusiasm. It fills me with optimism. Back in 2001, you were one of the authors of the legendary Agile Manifesto. What drew you to that gathering? - I called the gathering. Or rather, Martin Fowler and I collaborated on calling the gathering. I was drawn to the idea by reading articles written by Kent Beck; and later by collaborating with Beck to create courses in Extreme Programming. Today, almost 20 years later, how do you compare the Agile movement with your predictions and expectations at the time? - We expected nothing. We were all pretty surprised by what happened instead. You are famous for your work within software engineering – with books like Clean Code, Clean Architecture, The Clean Coder... – but another huge impact of the Agile Movement and philosophy was also “Agile Beyond Software” – with incremental delivery, learning from feedback and responding to change becoming a cornerstone in other disciplines and industries, from education to even agile local governments.

DIGITAL TRANSFORMATION

By MILOŠ BELČEVIĆ

What do you think about this? Are you also interested in “Agile Beyond Software” and have you had experience of such projects? - I’m a programmer. It doesn’t surprise me that Agile-like concepts are applicable outside of software; but I don’t focus on that. For me, Agile is all about software.

in 2003 or so. There may be some incremental improvements coming; but the exponential craziness of Moore’s law is over. Without that wild growth to spur it on, I expect the software industry will settle down, choose a limited number of languages, platforms and frameworks, and become a stable and reputable profession.

How did you get started in programming back in the day? - I developed an interest in computers very early. I was 12. A neighbour worked at Teletype corp, and he brought me a box of 50 electrical relays. I hooked them up to my electric train transformer and began to play with logic. I rapidly learned enough electronics to be dangerous, and cobbled to get her several logic circuits. I collaborated with a good friend of mine at the age of 15 and built a binary four function calculator. I was hooked at an early age, and that hook is still firmly engaged.

In theory, algorithms and mathematical models lead to greater fairness, but in practise they often lead to greater inequality when they’re biased. (Cathy O’Neil wrote an interesting book about this, called Weapons of Math De-

What would your advice be for someone who wants to learn to code today? - There are so many paths. Python is a good language to start with. So is Lisp. The most important thing is to continue to challenge yourself. Keep solving ever more complicated problems. Learn many different languages. Most importantly, though teachers and tutors can help, always, ALWAYS, teach yourself. Learning is YOUR responsibility. Teachers are just helpers.

You’ve been part of the software industry since the 1970s, that’s almost half a century. How different is it today than during your early beginnings? Are there some things that have stayed the same? - The hardware has changed enormously. The software has changed very little. Oh, we have much better tools than we had before. I can sit in an airline seat at 30,000 feet while coding and testing a massive web system, but the software that I use to write that system is still nothing more than ‘if’ statements, ‘while’ statements, and computational expressions. Sequence, Selection and Iteration.

struction.) As programs become a more and more important part of our lives, what are some of the technical and ethical challenges here? And should they be regulated in some context; and if yes, how? - Software now touches every part of our lives, virtually every minute of every day. There is nothing you can do in modern society without software somehow being involved. So the ethics of software are the ethics of everything. It seems very likely to me that software will become ever more regulated. That regulation will spread from the currently regulated industries into the less regulated ones as we recognise our vulnerability to software errors and failures.

Do you have any wild guesses on how the industry will change in the next 20 or 50 years? - Less than it has. The hardware technology reached its limits

What’s the best advice you’ve ever received? - Never stand when you can sit. Never sit when you can lie down. If you lie down, go to sleep. Be honest.

Software now touches every part of our lives, virtually every minute of every day. There is nothing you can do in modern society without software somehow being involved. So the ethics of software are the ethics of everything

DIGITAL TRANSFORMATION

TATJANA MATIĆ, STATE SECRETARY OF THE MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

INTERVIEWS

Digital Transformation CHALLENGES "Investing in infrastructure is the biggest challenge for our accelerated digital transformation. We need essential funds that cannot be allocated from the budget and, as such, EU assistance would be of exceptional importance”

“S

erbia is committed to participating, along with other partners in the Western Balkans, in preparations for integration into the Unified Digital Market, which will enable better connectivity and incentives for the development of the digital economy and society. Enabling the use of digital solutions and services, regardless of borders and political differences, will contribute to improving people’s quality of life, which is the main purpose of the digital transformation of the economy and society,” says State Secretary Tatjana Matić speaking in this interview for CorD, noting that it is therefore very important that representatives of the Western Balkan countries committed themselves to cooperating during the past with the signing of the Declaration on Support to the Digital Agenda for the Western Balkans. “Alongside the Agreement on the Reduction of Roaming Prices, this also encompasses cooperation in the field of network development, digital security, the digital economy and innovation,” says Matić. Can we expect new financing models for the region to be established to enable the joint financing of major infrastructure projects, primarily the development of broadband networks? - Investing in infrastructure is the biggest challenge for our accelerated digital transformation. We need essential funds that cannot be allocated from the budget and, as such, EU assistance would be of exceptional importance. We have thus proposed new financing

models under the scope of which the countries of the region could connect and thereby jointly fund infrastructure projects. One of the first steps in implementing the Agenda was the signing of a letter of intent, together with Bulgaria and Greece, on the formation of the Balkan Corridor, i.e. on cooperation in the field of connected and autonomous vehicles. What does this project imply? - For the purposes of research in the field of connected and autonomous vehicles, several corridors have been formed in the European Union that will be used to carry out tests on highways, where a special task is represented by ensuring the border crossings of self-driving vehicles. The forming of the Balkan Corridor with Greece and Bulgaria is for Serbia, as the only country in the project that isn’t an EU member, an opportunity to participate in a process that will benefit industry, society and the environment, but also represents confirmation that we can realise benefits beyond the EU, through regional connectivity. This agreement also provides great recognition to our experts, researchers and operators, because this is a technically very complex project. The second digital summit in Belgrade should now lead to us signing the long-awaited agreement on mobile roaming tariffs for the six countries of the Western Balkans. What is specific about it? Can we additionally hope this is the first step towards new rules for roaming tariffs with EU members?

DIGITAL TRANSFORMATION

- The agreement within the scope of the Digital Agenda for the Western Balkans obliges the signatory countries not to exceed the maximum established retail and wholesale prices of roaming services. For example, during the transition period, any addition applied for regulating roaming services will not exceed 0.05 euros per minute, 0.02 euros per SMS and 0.025 euro per megabyte of information sent. This transitional regime will start being enforced on 1st July 2019 and will last until 30th June 2021. By 1st July 2021 at the latest, the maximum retail price for roaming in the Western Balkans will be brought to a pricing level aligned with the rules of “roaming like at home”, which are applied in the European Union. We hope the Agreement will be signed at the upcoming Digital Summit in Belgrade, provided political circumstances allow that – given that Belgrade has exerted great efforts for this agreement to be reached. However, the place and time of its signing are not as important as actual implementation, given that reducing roaming costs in the region is a step towards establishing such an agreement with the EU. Digital security is also among the priorities of regional cooperation. Can we expect the announced establishment of regional training centres for information security to happen soon? - It was agreed at a meeting of representatives of Western Balkans countries in Skopje this February to establish regional training centres for information security, in accordance with the available capacities of the countries. In Serbia, the Centre for the Protection of Privacy and Information Security in the Digital Space has been established within the Serbian Academy of Sciences and Arts, SANU, and one of our initiatives is to work within the scope of that centre to exchange experiences between the countries of the region in the field of products and new technologies.

of adults, at about 70%, but children also call, which is significant in that it shows that they themselves see a need to familiarise themselves with online risks. The Centre has established more than 1,420 cases, 158 of which are cases of more serious online endangering of minors, such as cyber-bullying, recruiting, pornography, abuse of social networking profiles, blackmail and threats, dangerous and fake games and addictions. The Centre also conducts education courses throughout Serbia, with 316 lectures have been held to date in 71 towns and cities. What are expectations like when it comes to the development of e-commerce in our country, given that the Serbian market is still rather suspicious of such forms of trading? - Although e-commerce in Serbia has been recording growth in recent years, it is still insufficiently developed. Considering the constant increase in the use of information technologies, the potential for the greater involvement of users in this kind of trade is evident. The number of regular e-commerce users rose to 30.9% in 2018, but the fact that 45.4% of internet users have never purchased or ordered goods or services online is unsatisfactory. Moreover, the majority of micro, small and mediumsized enterprises in Serbia are still not expanding their operations to the online market. With the aim of encouraging the faster development of ecommerce, we are preparing an Action Plan for the Promotion of Electronic Commerce for the period from 2019 to 2020, while in 2019 there are plans to introduce a new Law on Trade and to amend the Law on Electronic Commerce and the Consumer Protection Act.

The number of regular e-commerce users rose to 30.9% in 2018, but the fact that 45.4% of internet users have never purchased or ordered goods or services online is unsatisfactory

Serbia also gained its National Contact Center for the Safety of Children on the Internet two years ago, which is the first and to date only institutional mechanism in the region dealing with preventing, and responding to, the endangering children in the digital environment. How are the results of this institution’s work? - In two years of operations, the National Contact Centre has received more than 7,300 calls and online applications and inquiries. We are still being contacted by a slightly higher percentage

Are negotiations with company Alibaba continuing and when can we expect more information regarding these developments? - The Ministry of Trade, Tourism and Telecommunications has signed a Trust Agreement with company Alibaba, which obliges both parties not to publicise information on the course of cooperation negotiations. Upon the completion of negotiations, we will issue a joint statement on the results and further steps to strengthen cooperation, which for now envisages the launch of the Alipay electronic payment platform on the Serbian market and the promotion of Serbia’s tourist offer on the Chinese market. 39

DIGITAL TRANSFORMATION

BUSINESS

RADE MATIJEVIĆ, DIRECTOR OF ŠPICA CENTAR

Establishing working time management enables a company to glean objective and timely insight into hours worked, absences and other required categories

The Importance Of WORKING TIME MANAGEMENT

and automation of business processes. Establishing the pica Centar is one of the leading integrators of process of managing of working hours, with the applicasystems and solutions in the areas of Workforce Management (WFM) and Supply Chain Managetion of modern software solutions, enables an objective, transparent and timely insight into planned and realised ment (SCM), in which they successfully implement hours, absences or other categories and events that the modern solutions for time and access control, warehouse company wants to follow. management and support for mobile sales and management. In industrial production it’s the ‘job costing’, the monitorŠpica Centar is a part of the Špica Group, a regional group of companies: in Slovenia, where the headquarters of Špica ing of working hours by the cost centre or the type of work International is located, in Croatia, Bosnia-Herzegovina, that the employee performs at that place of work. In modern North Macedonia and Montenegro. It organisations there is a tendency to is also present in 24 countries of the HRM and Payroll software, Modern organisations have integrate EMEA region through a network of which completely eliminates human a tendency to integrate partners. The Špica Group employs factor errors, relieves employees’ more than 100 people in total. for other work, and provides time-management solutions time the company with traceability of the How does working time management with HRM and Payroll software complete process. increase a company’s productivity? - Firstly, in order to manage time, you have to measure it. If What is it on the market that sets apart the Time&Space you know that labour productivity is the ratio of production system for keeping track of time and access control, which achieved, or other measurable activities, to the number Špica has been developing, producing and implementing of worker hours, or hours worked, then you will not be for more than 30 years. surprised that solutions for recording, managing and analys- Time&Space is the only regional solution for working time management that has the official SAP certification ing working time are among the most important in leading for integration, which says a lot about the care with which world companies. New technologies and digitalisation of it has been continuously developed over the past thirty business have greatly influenced the change in the way the years. The solution is unlimited in its number of users, the companies work, especially in direction of optimisation

DIGITAL TRANSFORMATION

challenges do modern logistics meet in the supply chain? number of registration collection terminals, the number of What changes has this area brought to Industry 4.0? categories, or the types of report that a user can receive. - In addition to the SLA Award for a Logistics Project in Reporting is a very important process for decision 2018 – for the voice management solution in DC Delhaize makers. Regardless of whether the Time&Space solution – Špica is also the winner of the Honeywell Breakthrough is integrated with other solutions, reporting has always Partner prize for 2018. We are actively monitoring the inhad particular attention in our company. We are the only ones with a report generator that allows the user to design novations and trends in the field of logistics, and generally and create desired reports without in the field of solutions for optimizaany IT knowledge. In addition, we have The Time&Space solution has tion of supply chain processes. recognized the importance of using BI The fourth industrial revolution, been applied in more than solutions for decision support, so in nowadays generally called Industry the latest versions there is a built-in 4.0, has brought and still brings major 3,000 companies in the 27 data analytics module, so the data is changes. Let’s not forget that we are countries of the EMEA region well into talks about Industry 5.0, ready for use through other tools in the company’s ERP solution. either as an answer to Industry 4.0, The Time&Space solution has been applied in over or as a new concept. 3,000 companies in the 27 EMEA countries, where more The challenges faced by modern logistics in the than a million employees record their working hours each supply chain are numerous, processes and documenday at over 20,000 terminals. In Serbia, for example, we tation are digitised, which requires warehouses to be have one user with almost 9,000 employees, while another digitised. Špica offers advanced solutions that enable has more than 270 locations with real-time records on the efficient process automation in the warehouse, accurate company’s centralized server. information on actual stock status, just in time stocks, delivery management solutions, and advanced analytics You won a prize for the top logistics project in 2018. What applications.

DIGITAL TRANSFORMATION

BUSINESS

UNDP

Towards Digital TRANSFORMATION In Serbia The fast pace of technological change poses new challenges to nations worldwide. It is no longer sufficient to have computers in schools or to establish data exchanges between institutions

igital transformation of the national economy and state administration is high on the agenda of the Serbian Government. In August 2017, the Office for IT and eGovernment (ITE) was established to lead the implementation of the digitalisation agenda. In early 2018, together with the United Nations Development Programme (UNDP) and the UK’s Good Governance Fund, the ITE initiated the project “Serbia at your fingertips – Digital Transformation for Development”. In order to future-proof government capabilities for the provision of cost-effective, secure and citizen-centric e-services, as well as coordinated implementation of ICT policies, the project is building the ITE’s internal capacities to efficiently conduct the government’s digital strategy, assist public institutions in introducing e-services, building common ICT infrastructure and shared services, and maintaining close relations with the key stakeholders and the public. A year into the project’s implementation, a new strategy for eGovernment has been developed, the conceptual design for a new government Data Centre has been prepared, analysis of the government’s IT infrastructure (including

network, services and applications) has been carried out, and recommendations have been provided for future development and improvements. The focus over the next two years will be on establishing the foundation for the government Data centre, eGovernment policy, services and user engagement, all of which will lead to more efficient, transparent and accountable digital services. In parallel, and in order to increase the number of IT specialists on the labour market, the ITE and UNDP took over 700 individuals, with 400 more in the second cohort, through a re-qualification programme for junior programmer positions, held in eight cities across Serbia. With UNDP, the Government piloted the outsourcing of various models for IT training provisions for both employed and unemployed persons. Within the Serbian Digital Week International Day, in April 2019, the UNDP is hosting two sessions – the “Workshop for Innovative Leaders” and “Future of Digital Governance” – while participants in the WB6 Digital Summit in Belgrade will be able to engage with the first Innovation Champion at UNDP, Sophia the Robot, and to participate in the UNDP-hosted Digital Economy session.

DIGITAL TRANSFORMATION

UNDP

BUSINESS

Just as we waved farewell to the International Day of Open Data, celebrated on 2nd March 2019, the month of April is at our door with several marathons – including a digital one

April Brings MARATHONS TO BELGRADE

he Western Balkans Digital summit, the largest regional event dedicated to digitalisation, as well as the second Open Data Week in Serbia (1st-7th April), are two of the most important events in the digital arena in Belgrade this spring. If we compared progress in these two areas with the 42km race of the Belgrade international marathon, to be run on 14th April, we might conclude that we are still far from the finish line; however, the results so far provide us with a good tailwind to carry us through to the final goal – a modern, digital, transparent, responsive and citizen-accountable Serbia. Supported by the UK Good Governance Fund and the World Bank, the ITE and UNDP jointly implement the “Open Data - Open Opportunities” project, to create new development solutions in Serbia on the basis of open data. Behind the Open Data movement lies the notion that data collected by public institutions should be freely available to everyone, in a machine-readable format that a computer can process. This format allows further use of data and its re-publishing. Open data is recognised as key to creating new generations of entrepreneurs, innovative and advanced economies, smart cities, and more effective public institutions and services for citizens. The National Open Data Portal (www.data.gov.rs) was launched in Serbia in October 2017, while in March this year the Portal was modernised and redesigned. It currently has 436 open data resources, published by 25

public institutions. These files include data on air quality, consumption of medicines, traffic accidents, data on tax collection in Serbian cities, municipalities and many more. How is all this information used? Here are a few examples. A mobile application is now being designed in Sremska Mitrovica to enable citizens to find out, via their mobile devices, when electricity will be down on their street. In Bor, digital models of safe paths for pupils are being created to increase their safety in traffic. And lastly, all citizens in Serbia have for the last two years had access to the Mediately application, which provides information on all registered medicines in Serbia. During the Western Balkans Digital Summit in April 2019, the UNDP team is facilitating discussion on how Open Data can contribute to overcoming global development challenges, and hosting a session on Open Contracting. The gains of opening data in contracting is measured by budget savings and a better life for citizens. For example, open contracting in Ukraine led to $1.5 million in savings in just three months of implementation, while competitiveness was raised from two to three bidders per tender. These and many other topics await us on the Open Data marathon route. The ITE and UNDP joint project team’s plans for the next milestones on this journey are to enable more public institutions to open their data and, in parallel, to mobilise potential users to come up with new purposes for this information, benefiting individuals, businesses and local communities throughout Serbia. 43

DIGITAL TRANSFORMATION

NEBOJŠA ĐURĐEVIĆ, CEO, DIGITAL SERBIA INITIATIVE

INTERVIEWS

Start-ups Drive THE DIGITAL REVOLUTION “There is evidence in numerous reports that innovation comes mainly from startups, because they are small, flexible and unconstrained by large numbers of customers, legacy processes and rigid procedures”

“T

he Digital Serbia Initiative will focus in the period ahead on even more intensive support and strengthening of the start-up ecosystem,” announces Nebojša Đurđević, CEO of the Digital Serbia Initiative. Your organisation claims that Serbia could become one of the leaders in the digital economy of the 21st century. That sounds like an amazing but almost unobtainable goal. Is it realistic to aim so high? - In order to start a digital business – meaning to create, distribute and sell digital products and services – expensive manufacturing facilities and infrastructure are not required, nor are expensive distribution channels. All you need is an idea, knowledge and a few laptops. You can reach global markets by distributing your products and services via the internet. Accordingly, Serbia and other smaller countries that have an innovative and highly skilled IT workforce can compete and become leaders on global markets. What does Serbia have now as our best assets for Industrial revolution 4.0? How can we best use them to benefit society as a whole? 44

- We have highly skilled and experienced people working in the IT sector, as well as big players with strong domain knowledge in the various industries in which they specialise – including financial services, artificial intelligence and insurance. Some of our global leaders would certainly provide evidence of our ability to produce world class digital companies – we have Seven Bridges, Nordeus, Execom, Vega IT Sourcing, 3Lateral, HTEC and FishingBooker, to name just a few. When we look at the exports generated by the Serbian IT sector – reaching almost 1.2 billion euros in 2018, with annual growth of 26% – we should understand that we are mainly talking about business generated by companies that provide IT services to international clients. We also have another, smaller pool of IT companies that are developing and selling their own products and services. Both of these groups create great value for the economy – and we want them both to grow. However, we would like to have a better balance and increase the proportion of companies that own products and services. Why is that important? Well, if you mainly provide IT services to clients, the majority of your employees are likely to be IT professionals. On the other hand, if you’re developing your own digital products and services, you need other

DIGITAL TRANSFORMATION

professions and disciplines to a larger extent – you need more employees with backgrounds in business management, marketing, design and finance. So, there is a broader social impact with many more people included in the digital economy that brings high value-added jobs. Moreover, it is very important to start applying digital technologies in order to improve business processes and models in traditional industries. For example, in agriculture, the automotive sector or food processing, you can identify specific segments of the business model or processes that can be transformed using innovative digital solutions. In order for this to take place, you need domain experts – an agricultural engineer or a biologist that can identify the “pain point” that can be improved through digital technologies. Domain experts who understand the digital world can provide requirements and guidance to programmers to develop digital solutions. Extending digital technology into traditional sectors will have a further positive social impact. You view start-ups as the “main driving engine of the digital revolution in Serbia”. Why is that? - Global reports have shown us that, in both developed and developing countries, more than 50% of new jobs are created by start-ups. There is also evidence in numerous reports showing that innovations come mainly from start-ups, because they are small, flexible and unconstrained by large numbers of customers, legacy processes and the rigid procedures that large corporations need in order to ensure the consistent quality of products and services – especially when they have a mature product and large customer base. That’s why start-ups are really important; they come up with innovative ideas and, through cooperation with corporations that provide deep domain expertise and experience, can bring new solutions, products and services to the market. This benefits both sides.

are important for everyone, and not only those who will actually choose it as their profession? - When it comes to coding, you really need to start with the kind of algorithmic thinking that forms part of broader digital literacy. So, if you have a problem to be solved, you break it down into a finite number of steps that need to be executed. It is essential for all students to acquire that ability, that skill of algorithmic thinking, because – regardless of whether they’re going to become chemists, biologists, medical doctors or mechanical engineers – as domain experts they will need an understanding of this way of thinking in order to be able to identify opportunities to apply digital technology. We also need to improve business knowledge and develop skills that will help us shape digital products that are competitive on the global market. What are the future priorities of the Digital Serbia Initiative and what will be your main point of focus in the next few months? - Our priorities are quite closely tied to the development of the start-up ecosystem, as start-ups are recognised as the engine driving the development of the entire digital economy. We need to improve early stage start-up funding, including venture capital, business angels and crowd-investing platforms, as mechanisms. We have also identified the necessity of introducing tax breaks for both individuals and companies investing in start-ups. We will also be focusing on programmes for improving business skills and the knowledge needed to have a fundable start-up. Start-ups sometimes have a brilliant technical idea, but lack a good business model or the kind of go-to-market strategy that is crucial for success on the global market. By simultaneously strengthening both early stage funding options and the business knowledge and maturity of start-ups, we will enable strong growth in terms of the number of start-ups in the ecosystem and overall investment.

The Digital Serbia Initiative will focus on programmes for improving business skills and the knowledge needed to have a fundable start-up. Start-ups sometimes have a brilliant technical idea, but lack a good business model or go-to-market strategy

In order to make the digital economy functional, we need experts that must be educated. You claim that coding skills

DIGITAL TRANSFORMATION

NEBOJŠA JOVANOVIĆ, PRESIDENT OF THE DIGITAL & E-COMMERCE COMMITTEE OF THE FOREIGN INVESTORS COUNCIL (FIC)

INTERVIEWS

Encouraging Investment In INNOVATION NECESSARY A stimulating tax policy and assistance in developing products for the global market is a way for the state to support the transformation of the real sector

he government’s role is reflected primarily in the creation of a regulatory framework that takes into account the reality of the Fourth Industrial Revolution, and which is sufficiently flexible to make it easy for business models that have yet to be created to become operational, considers Nebojša Jovanović. Speaking in this interview for CorD, the president of the Digital & E-Commerce Committee of the FIC discusses how foreign investors see the development of digitalisation in Serbia and the key steps that will ensure faster progress. According to the latest edition of the FIC White Book, Serbia has made progress on reforms, but not to an extent that’s sufficient to ensure a sustainable and competitive business climate. Progress in the field of digitalisation has been estimated by foreign investors as being “moderate”. Is that actually good or bad news? - The past two years have represented a milestone in the context of strengthening the awareness of state institutions regarding their crucial importance in the process of further digitalising Serbia. This is accompanied by a tangible action plan that was initiated with the preparation of a legal framework for the use of electronic documents, including an advanced (not only qualified) electronic signature and remote client identification. Additional confirmation of positive developments is provided by the recent decision on video identification by the National Bank of Serbia, which enables financial institutions to identify new clients without them being physical present. We also expect the finalisation of by-laws that more precisely regulate the use of electronic signatures. Progress to date being evaluated as moderate is certainly not good news.

However, with the implementation of new laws, Serbia gains an opportunity to take a leading position in the field of digitalisation among the countries of the region, while the citizens of Serbia gain the possibility of more comfortably using new digital services. In which segments of eGovernment have the greatest shifts been recorded? - The Law on eGovernment was adopted during 2018, in order to unify regulations on the public administration’s use of information technologies, and with the aim of enabling citizens to gain simple access to a wider range of publicly available information. Significant progress was also achieved in linking databases of a large number of institutions through a unique information system. Through the linking of local tax administrations, citizens, businesses and the state, very easy access to unified information on property tax and other genuine public revenues from across Serbia has been enabled. Payments of administrative taxes via payment cards directly on the eGovernment portal has also been enabled. One positive trend is that an electronic document now has the same power as a written document. However, in practise it can often be heard that there is still resistance among some state institutions. What are the experiences of your members? - Time is needed for every technological innovation to be accepted generally. Even the acceptance of institutions is no guarantee that every individual agent will act in the same way. It still happens that some institutions seek a stamp on a payment order as confirmation that a charge has been paid, for example, for the issuing of personal documents and similar activities. There

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is also concern over the unobstructed practical use of electronic documents, due to a lack of legal precedence in accepting such documents. It is thus very important that by-laws regulating the use of electronic signatures precisely define the application and approach of the authorities with regard to electronic documents. Another important precondition is the systematic educating of public sector employees. Furthermore, the adoption of remaining by-laws for the Law on Electronic Documents is among the main messages of businesspeople. What other steps do you expect to be taken in the field of digitalisation to ensure progress is much faster? - It is realistic to expect the improvement of the law on payment services and the introduction of regulations similar to PS2 in the EU, which will enable a greater choice for the population and better access to financial and telecommunications services. Expanding both the services and information available through eGovernment is very important to the goal of further improving efficiency and reducing paper administration. A logical next step is to establish a digital identity system for citizens, which typically relies on blockchain technology and would enable the identifying of individuals with the help of a fingerprint and face or voice biometry, without the need for physical presence and without the use of personal documents.

society – economic networking, cooperation with commercial associations, academic institutions etc.? What could Serbia learn from the experiences of the leading countries in this process? - All players in the digital ecosystem are extremely interconnected and it is thus very important to network the economy between small (start-ups) and large systems (companies), in order to connect the best of both worlds – familiarity with technologies, agility and risk readiness – that leads to innovations with a stable system that has knowledge of the domain and the possibility of reducing the impact of risky business. Business associations like the FIC play a very important role in linking the interests of the economy in order to ensure a common impact with the aim of encouraging faster reform. It is important to mention the example of the Case Study Club, the organisation of students of the Faculty of Organisational Sciences that works closely with a large number of companies and helps identify innovative solutions. In your opinion, what kind of role should the Government have in initiating the transformation of the real sector? - The government’s role is reflected primarily in the creation of a regulatory framework that takes into account the reality of the Fourth Industrial Revolution, and which is sufficiently flexible to make it easy for business models that have yet to be created to become operational. It is necessary to encourage investment in innovation, through a stimulating tax policy, and to direct the economy towards doing business abroad more intensively and helping in the development of (digital) products that can be traded on the global market.

Companies from traditional industries also inevitability see the transforming of their business models as a prerequisite for survival in the new digital economy

Among FIC member companies, which industry is leading the way in the digital transformation process? How agile are companies operating in traditional sectors when it comes to changing in this direction? - According to the nature of things, companies in the IT industry utilise the benefits of new technologies the most and are therefore the most advanced in implementing digital transformation processes. They are followed by companies from the financial and telecommunications sectors. And companies from traditional industries inevitability see the transforming of their business models as a prerequisite for survival in the new digital economy.

When it comes to digital transformation processes, how significant is cooperation between different stakeholders in a single

Were foreign investors in Serbia ready to welcome new regulations in the field of personal data protection? - Financial institutions are at an advantage because, through local laws, they’ve already regulated a number of relevant areas in the field of information security and personal data protection, and thus it’s easier for them to harmonise with the new regulations. It is significant that a certain number of foreign investors from other sectors, primarily through group standards from their parent companies in the EU, have for years been aligned with the basic principles of personal data protection. 47

Digital Economy and Society

Digital Economy And 4th Industrial Revolution

Digital Economy and Society is a comprehensive strategic document, which represents the cornerstone of all-community change brought about by the so-called Fourth Industrial Revolution. This strategy aims to ensure the coordination of agendas covering all areas of the digital economy and the life of society, across the public administration, economic and social partners, the academic sphere and the professional community.

DIGITAL ECONOMY AND SOCIETY

DIGITAL TRANSFORMATION

SERBIAN DIGITAL ECONOMY Is On The Increase Digital Economy and Society is a comprehensive strategic document, which represents the cornerstone of all-community change brought about by the so-called Fourth Industrial Revolution. This strategy aims to ensure the coordination of agendas covering all areas of the digital economy and the life of society, across the public administration, economic and social partners, the academic sphere and the professional community.

very time a person or object connects to the digital world, they contribute to the explosive growth of a new shared global commons. The unprecedented opportunities and benefits from new infrastructure, applications and data are, however, paired with new problems to solve and dilemmas to manage.

The scope and focus of â&#x20AC;&#x153;Digital Economy and Societyâ&#x20AC;? covers all the partial aspects of technological development and the progressive digitalisation of all areas of life. It is a gradual change in society that is in principle linked to the use of digitisation and the internet, to the Internet of Things, to the development of robotics and artificial intelligence,

DIGITAL TRANSFORMATION

$1.2 trillion will be spent by companies worldwide on their to the huge amount of processed data generated by the digital transformation efforts and yet analysis suggests Internet of Things, services and people. Increasingly, it that only 1% of these efforts will actually achieve or will be necessary to take account of the links between exceed their expectations. industrial manufacturing systems, transport networks, The last three decades have seen rapid innovation in power systems, services, commerce, telecommunications information technology. Mobile phones, the internet and and raw material supply systems, as well as between social systems. This also applies to changes in the financial systems, the provision of financial services, etc. Recently, these systems have seen dynamic interaction which, thanks to the massive and global introduction of new technologies, changes the entire value chains, creates opportunities for new business models, as well as puts pressure on the flexibility of modern industrial production or increased demands on cyber security and interdisciplinary of access. The digital economy encompasses all aspects of digitalisation (including gradual automation) of the economy, society, and other areas. For this reason, it implicitly includes all existing initiatives such as Industry 4.0, Construction 4.0, Society 4.0, Work 4.0, Education 4.0, etc., but also all new potential initiatives such as Culture 4.0, Health 4.0, Agriculture 4.0, etc. Digital Economy and Society is made up of eight main objectives Digital Economy and Society high-speed digital delivery systems have revolutionised much of the world. aiming to achieve internal moderniis made up of eight main The EU aims to promote the developzation, a transition to a knowledge economy and the emergence of naobjectives aiming to achieve ment and dissemination of these new technologies, introducing a battery tional innovative, high value-added internal modernisation, a of rules to ensure customers and businesses. The main objective is to set up a functional and flexible legal, transition to a knowledge businesses have fair and affordable to networks and services, and financial and institutional framework economy and the emergence access to remove barriers to competition. to enhance competitiveness while of national innovative, high As one of the flagship initiatives helping to prevent the negative impact of Europe 2020, the EUâ&#x20AC;&#x2122;s strategy of digital transformation on society. value-added businesses to deliver smart, sustainable and Society has often struggled to inclusive growth, the Digital Agenda for Europe seeks to reach consensus on how to manage our global commons. optimise the benefits of digital technologie Existing institutions and norms may need to be redesigned to respond effectively to the fast pace of digital change SERBIA and its unfamiliar, distributed nature. The decisions made The Serbian digital economy is on the increase, ICT is today will shape the world for future generations. Colbecoming the wealthiest part of its economy, but most laboration and innovation are required to shape societyâ&#x20AC;&#x2122;s initiatives come from the private sector. While broadband collective destiny. is still in its early stage of development, Serbia is among While enormous resources are being spent on digital global leaders when it comes to mobile phone subscribers. transformation programs by the private sector, the results There is a lack of continuous and substantial financial are underwhelming. According to estimates, in 2018 over 51

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for the purpose of modernizing business in all business sectors; • Improvement of the legal framework; • Improvement of the human resources potential; and • Promotion of the Serbian information technology industry. As in the case of the previous strategy for information society development, ambitious goals are not supported by an appropriate action plan, due to which most of the anticipated activities have not yet been carried out. Action plan for the year 2018 of the Strategy for the Development of Information Technology Industry for the 2017-2020. Period adopted in January 2018 has quite a modest budget and does not meet the ambitious expectations of the Strategy. IT companies recognise the significance of the annou nced measures and t he government’s responsibi lity for establishing a system that will not only be a partner in digital transformation, but also its active promoter. The Economic Reform Prosupport for business, in the domains The significance of digital gramme for the 2017-2019 Period of research, pre-seed and seed phase. economy already became recognises the significance and The most important strategic document setting the development evident after the preliminary needs of the digital economy but, with plenty of reservations, antrends of digital economy in Serbia is statistical analysis nounces more modest measures the Strategy for the Development of Information Technology Industry for conducted by associates of the than the Strategy for the Developof the Information Technology the 2017-2020 Period Fraunhofer Society, in which ment Industry. In early 2017, according to The prominent strategic priorities computer programming is rec- the Economic Reform Program, the in this area are as follows: work began on a project involving • Development of successful inforognised as the the preparation of the Strategy for mation technology companies and greatest potential of Smart Specialisation of the Republic related products; of Serbia. The significance of digital • Improvement of the administrative the City of Belgrade economy already became evident environment suitable for IT industry after the preliminary statistical analysis conducted development; by the associates of the Fraunhofer Society, in which • Improvement of human resources potential; computer programming is recognised as the greatest • IT-based modernization of business in all business secpotential of the City of Belgrade, while other digital tors. In accordance with the abovementioned strategic economy activities, such as IT application in agriculture priorities, the Strategy anticipates the measures that or automation, are recognised as an important potential should be implemented in the following fields: for other regions. • Support for IT entrepreneurship and start-up projec ts; • Incentive tax policy; Source: Goran Pitić, FEFA · Department of Economics; • Support for entry into foreign markets; Nebojša Savić, FEFA · Economics, Digital transformation and Creative Production, Srđan Verbić, FEFA; eur-lex.europa.eu • Support for the application of information technologies 52

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SUZANA RADOVIĆ, CHANNEL SALES MANAGER AND HEAD OF REPRESENTATIVE OFFICE SERBIA, MONTENEGRO, BOSNIA & HERCEGOVINA

BUSINESS

Take A Small Step FORWARD EACH DAY Digitalisation is providing a new way - working from any point on the globe and I believe we are only at the beginning

market – we have highly educated and skilled employees belong to the Serbian ICT community for more than with very solid language, IT, social skills, with a positive 20 years, and I am very proud of this. The Serbian ICT and creative attitude toward work and discipline. I was industry is the fastest growing Serbian industry; it is the surprised when I learned that NTT Data, Japan Telecom, healthiest one and more than solid one; it is developing has an entity in Novi Sad with over 70 engineers. There by itself, and it’s finding their way for global success. Still, is also Japanese startup developing advance speech the industry is clean, sustainable and can grow further recognised AI, NEC, Hitachi, Fujitsu with biometric pat– not only in gaming, or software industry - outsourcing ent and it’s liquid cooling system which spares 40% of is still on the beginning and can attract talents from mienergy spending, ICL, Fujitsu Global Delivery Center, who croelectronics, civil engineering, HR industry, marketing, is outsourcing technical support for art, architecture. Fujitsu global services. By starting working in Fujitsu, I got Fujitsu is a Japanese global I know that our modest and honthe opportunity to learn more about est Japanese friends would never Japan, the most digitalised country in integrator and producer for mention, but I don’t want to miss the world! Their superior technology superior ICT solutions. In this opportunity and to remain all is inspiring; still, their unique culture is very different from all others, and Japan, Fujitsu is a 1st service about donations coming from Japan to Serbian people. We should always their business approach is honest, provider, and globally, remember it. modest, without pressure and human Fujitsu is on 5th place Fujitsu is a Japanese global intetouch related. grator and producer for superior ICT JBAS is young business alliance, solutions. In Japan, Fujitsu is a 1st service provider, and still with very strong and strategic leadership by Mr Goran globally, Fujitsu is in 5th place. Still, besides advanced Pekez, President of Board and energetic, creative and entechnology, we in the company are the proudest of the thusiastic Executive director Ms Danijela Cabarkapa. The company culture of transparency, trust and honesty. primary objective is setting up the foundations of business For this culture, Fortune magazine recognised Fujitsu association gathering Japanese business society in Serbia five times as “the most admired for” company. Fujitsu and supporting and improving the business environment products are recognised as solid, reliable and robust. We in Serbia through experience and knowledge sharing, constantly educate and do knowledge transfer to our education projects, technology demonstration, Japanese local partners to win new technologies, together with investors attracting and many other ongoing activities. big countries. We implemented Kaizen idea – “Each day Last year I was elected, and I became the first HiTech do a small step forward”. This was our objective, and we group president of JBAS. Last month I was elected and achieved it. After it, business is naturally following and became Member of the Board of JBAS. I am proud and sustainably grow. happy to contribute. Japanese companies recognised our 53

DIGITAL TRANSFORMATION

BY BRANKA ANĐELKOVIĆ AND JELENA ŠAPIĆ, OF THE PUBLIC POLICY RESEARCH CENTRE

GIG ECONOMY IN SERBIA: Deus Ex Machina for Economic Development?

In developing countries like Serbia, digital platforms play the role of a thriving labour market. They bring together skilled but underemployed youth from Serbia with a wide range of clients from all over the world. One popular narrative describes the platforms as 'deus ex machina', which mitigates against the brain drain by providing flourishing economic opportunities. However, is this really the case?

silent revolution, supported by globalisation and digital transformation, has been taking place in Serbia for a number of years. This revolution is reflected in the rise of global labour platforms that have changed the nature of work. The emergence of platforms as new business allows unfettered access to skills and talent around the world. In this new digital era, Serbia found itself at the very top of

the world – measured by the percentage of digital workers on platforms in relation to the country’s total population and total workforce. If digital work entails changes brought to the domain of work by digitalisation and digital technologies, as many researchers and scholars today claim, understanding the profiles and socio-economic status of digital workers from Serbia appears to be important.

DIGITAL TRANSFORMATION

Who, then, are the digital workers from Serbia? Why do they work on global digital platforms? What is their socio-economic status within society? What can Serbia gain from this new phenomenon? Seeking these answers, the Public Policy Research Center, an independent think tank deliberating on the future of work in Serbia, carried out the first exploratory research in the field of digital work in 2018. The results, published in late February 2019, provide an opportunity to advance discussion about successful digital transformation on the occasion of the Western Balkan Digital Summit.

is engaged in sales and marketing, clerical and data entry, and professional services. Surprisingly or not, analysis shows that women in the digital work populate sectors traditionally regarded as female-dominated, such as writing and translation.

DIGITAL WORK AS A WAY OUT FOR SERBIAN MILLENNIALS “Hi everyone, I am looking for a job and I could start working soon. I worked as a secretary in a call centre, while I’m a certi-

DIGITAL WORKERS IN ANALOGUE WORLD: THEIR SOCIO-ECONOMIC STATUS IN SERBIA In general, digital workers earn more than their counterparts in the traditional economy. Their average gross income is about USD1,200 per month, compared to Serbia’s average gross salary of USD680 in July 2018, when the survey was conducted. The cost of the average consumer basket in the same month totalled around USD700. However, digital workers’ earnings vary: the best earners are most often in the IT sector and the creative and multimedia

fied make-up artist. I’m a historian by education. Please RT.” This is a post recently published on social media. Aside from re-tweets and support, some offered practical advice, suggesting several digital labour platforms as places to find work. This is not an isolated case. As the PPRC’s research shows, the main motivation for joining digital platforms includes access to better-paid jobs, sources of extra income and an inability to find work in the offline world. Most digital workers from Serbia work on platforms that offer various types of work (e.g. Upwork and Freelancer), followed by those specialising only in one area, such as foreign language lessons (DMM Eikawa, ABC Tutor) or designing (99 Designs). Young people aged between 26 and 35 who are highly educated, with university degrees in economics, design, marketing, architecture, philology and engineering, make up the majority of digital workers from Serbia. More than 60% of the PPRC’s sample holds either a B.A., M.A. or Ph.D., while almost a third have a high school diploma. They most often provide services in the field of software and technology development (30%), writing and translation (29%) or in the creative and multimedia industry (22%). A significantly lower percentage of digital workers from Serbia

industries. These workers comprise a third of the sample and earn an average of $1,960 per month. In contrast, the remaining two-thirds of the sample earn less – an average of $800 gross monthly. Women’s earnings in digital work reflect the gender pay gap present in offline work. More than 50% of female digital workers surveyed earn $600 gross per month, compared to more than 50% of men who earn $1,000 per month. Regardless of their monthly cheque, the majority of Serbia’s digital workers (around 83%) work a total of up to 40 hours per week. This reflects similar patterns of working hours in other European countries. Digital workers are not subjected to standard 9am – 5pm working hours, which gives them the freedom to choose their own working schedule. It further allows most of them to combine work on these platforms with other obligations. In this vein, digital work is a harbinger of positive change in certain domains of decent work, such as decent pay and work-life balance. These positive features of digital work are, on the other side, accompanied by high job insecurity and a relative absence of social insurance coverage. In digital work, short-term contracts are widespread and prescribe only the level of fees, means of 55

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payments, sanctions in the case of failure to complete a job, and mediation instance in the case of dispute. The possibility for digital workers from Serbia to be hired as employees or under service contracts does not exist, because the platforms are not registered as employers in Serbia. As such, the only viable option offered by local legislation in Serbia is the registration of a business entity. Those who opted for such a solution in most cases decided to register as entrepreneurs, and in only a few cases to establish companies. Almost a third of surveyed digital workers regulated their legal status in this way. Most digital entrepreneurs are men, with women representing only 18%. Two-thirds of digital workers who earn less and are newcomers to the platform market do not have an appropriate alternative. Legislation in Serbia has yet to accommodate this emerging form of work. Solutions to date have been centred around the traditional employer-employee relationship, in which rights and protection derive from established employment. In order to gain full access to the national social protection system, digital workers in Serbia have two options: establish employment in the offline world or register their own business entity, as previously mentioned. More than half of the surveyed digital workers (54%) have another job or are registered as entrepreneurs. In this way, they gain access to the entire social protection package – healthcare, pension, insurance in the case of disability and unemployment insurance. Digital workers who are employees in the offline sphere are in an advantageous position to entrepreneurs, as they are entitled to paid sick and holiday leave, and absences from work. Entrepreneurs generally enjoy these rights, but they are unpaid. For the remaining 46% of the surveyed digital workers, who are neither employed nor run a business, access to the social protection system is considerably more tangled. Due to the nature of the healthcare system in Serbia, digital workers who operate under the radar are in most cases insured – either through registered unemployment status at the National Employment Service or through the insurance of their parents (if aged under 26) or their spouses. Yet the biggest challenges remain in the domains of pension and disability insurance, and unemployment insurance coverage. Digital workers who are registered as members of the unemployed or inactive population in the offline world, despite their digital work, do not 56

exercise these rights. In other words, their years of services on platforms are not recognised by the system. This lack of adequate solutions undermines the sustainability of the current design of Serbia’s social protection system. Some European countries, such as France and Belgium, anticipating increases in the number of freelancers, including digital workers, have reformed and adapted social protection systems. In these countries, freelancers enjoy the same protection as employees. At the same time, the issue of allocating social protection costs between workers and (non-existent) employers requires a higher engagement of the state, which is expected to play an increasing role and to assume part of the responsibilities of employer in terms of providing social security benefits. WHAT CAN SERBIA GAIN FROM DIGITAL WORK? Like other developing countries, Serbia is characterised by weak economic growth, low wages, high unemployment and a limited supply of jobs for highly-skilled professionals. Under these circumstances, digital workers from Serbia are willing to accept fluctuations embedded into digital work, as they primarily value flexibility and earning opportunities. Nonetheless, they are exposed to the eroding security of employment and social security, leading to them consequently bearing the high costs of transferring risks and responsibilities onto themselves. Serbia has two strong motives to focus its attention on defining appropriate solutions that would reconcile the need to protect the individual rights of digital workers and enable them to contribute proportionately to their own development and well-being in society. The first motive is to preserve professionals that are in high demand globally. The digital labour force possesses globally demanded and highly-prized skills, and they can decide to leave Serbia if their needs are not addressed. The other is the long-term goal of Serbia to build a competitive knowledge-based economy. Seeking solutions that will create an environment conducive to digital workers’ prosperity is a milestone on this road. The well-being of all workers, as well as the quality of employment in the digital age, must take into account the growing importance of autonomy and automation in relation to the social character of work, but not at the expense of solidarity, social justice and equality.

DIGITAL TRANSFORMATION

BRANKO MILIKIĆ, MANAGING DIRECTOR, SIXSENTIX SERBIA

BUSINESS

New Approach To SOFTWARE TESTING The era of digital transformation of DevOps demands the rethinking of software testing methodologies and tools

ixsentix Serbia is a leading provider of the nearshore software testing services. Our unique risk-based testing approach and QACube visual analytics for DevOps, provide business with unprecedented quality and transparency across software delivery projects for faster time-to-market.

What are all the services that Sixsentix Serbia offers clients? - The company is on a mission to change the software development industry in order to improve software quality and DevOps performance. Our delivery model is flexible for large scale, complex or speciality testing services with the right combination of onsite, nearshore and blended resources. The result is effective and efficient software QA, where and when it is most needed, with the testing outcomes at significantly lower costs and scalability to help our customers to keep pace with digitalisation. These customers include some of the largest global banks, financial services, insurance, telecom providers and others.

Only the critical defects caught early in the testing process help and eliminate rework costs and provide assurance of a smooth and successful Go Live . Software QA needs to follow a risk-based approach to test planning, in which the most effective test cases are deployed in the right priority to achieve the desired risk-based coverage. This is precisely what we offer. The Sixsentix Software Agile Testing (SWAT) includes a proactive, innovative and fundamentally different approach, which enables our customers to assess their aggregated risk coverage from the business, technical, performance and compliance perspectives and, thus, improve greatly the feedback cycle to mitigate any project and product risk.

You expanded your team significantly last year. Tell us something about the profiles of your candidates, employment plans and how you handle difficulties during hiring process? - At the moment there are 170 employees at Sixsentix Serbia, 240 across all locations. For the last three years we’ve tripled the number of employees in Serbia, and we plan to continue this trend by hiring 50 more employees in 2019. Apart from master’s degrees in IT and Mathematics, the ideal educational Companies developing software today are confronted by background and experience of our candidemands for faster deliveries, dates’ is in banking, financial services and with the simultaneous imperaOnly the critical defects caught tive that products work without telecom, given that most of our clients error. How does this trend imearly in the testing process help and come from these industries. It is not pact the area of testing? always easy to find experienced, top eliminate rework costs and provide - Enterprises are undergoing a QA Managers in Serbia. We bridge that assurance of a smooth and successful gap by growing specialists through our massive digital transformation and business processes had alGo Live. Software QA needs to follow a SWAT University - we invest heavily in ready grown so complex that we and developing our own people, risk-based approach to test planning, training could no longer test everything. as they truly are our greatest asset. We in which the most effective test With a traditional approach, are active when it comes to cooperation clients are running out of time, cases are deployed in the right priority to with the University of Novi Sad and are money and resources, and still planning to cooperate with the University cannot meet their testing objec- achieve the desired risk-based coverage. of Belgrade in the future, along with tives for high software quality. This is precisely what Sixsentix offers expanding our Belgrade office. 57

DIGITAL TRANSFORMATION

BUSINESS

GORAN RADISAVLJEVIĆ, CLUSTER IT MANAGER FOR CROWNE PLAZA BELGRADE AND INTERCONTINENTAL LJUBLJANA

INNOVATIONS Follow Traditional Service New technologies have optimised and automated certain processes within the hotel, thereby simplifying the fulfilling of customers' wishes

mployees simultaneously gained the opportunity to focus additionally on the guest and provide them with more than they expect.

How does digitalisation shape the operations of tourist facilities today? - Modern trends in hotel operations dictate the essential need to be visible on all online sales channels, but also on social networks. It is then also important to invest constantly in services that will save time for the guest – from creating a reservation via mobile, via checking in to the hotel, to entering the room and enjoy the comforts within it, selecting additional contents etc. In order to perfect your digital service, it’s essential that you monitor and adopt guests’ preferences - they very happily accept if you offer them a service they’ve already used.

How much does Crowne Plaza rely on utilising the benefits provided by information technology? - Crowne Plaza is committed to following trends and investing in new systems, primarily as part of a serious international chain, and then because of the profile of our guests – 80% are foreigners and almost 100% are business guests. Moreover, when you’re part of a large hotel group you have the freedom to suggest innovations for an existing or new hotel. If the idea is shown to be of high quality, it will be supported by the group and applied to hotels where it is possible for it to be sustained. Given that our parent company, Delta Holding, has several hotels in its portfolio and it building new ones in parallel, we have the opportunity to take a technological step further with each one and to offer something different. As a result of such an approach to technological solutions and digitalisation, one of our hotels has been declared the hotel with the best internet service in Europe.

It is important to invest constantly in services that will save time for the guest – for reservations, checking in and entering the room...

Is the hotel market in Serbia lagging behind global trends when it comes to digital transformation? - The offer of individual hotels in Serbia doesn’t lag behind Europe. Of course, worldwide – especially in the U.S. and highly technologically developed countries of Asia – the offer is better, as more is invested in new digitalisation programmes and they are freer to test and launch new solutions ... As such, it is natural that some solutions first appear and are tested on these markets , after which their implementation begins in Europe. What’s good is that not a lot of time is needed to progress from a pilot programme to wider, with advanced programmes very quickly available to all. When it comes to the InterContinental Hotels Group, we don’t have such barriers, because we operate on all continents through 14 brands and a development system, so digital innovations are also developed equally and are available to everyone at the same time. 58

How does the fact that millennials are becoming the dominant consumer group worldwide impact on innovations in the hotel industry? - This is the challenge confronting us in today’s operations. On the one hand are the young people who rely on devices and are massively “connected”, online and following trends, and if they’ve had a nice experience in another hotel due to some innovation, they expect that with us too. On the other hand are guests who still want a more traditional service, primarily personal contact with staff. It is necessary to reconcile these two tendencies and create a high-quality service for all. Among our employees there are also members of the millennial generation, which makes us very competitive and contemporary. We follow trends while simultaneously working on increasing the quality of our traditional service.

DIGITAL TRANSFORMATION

BOJANA KRSTIĆ, DEPUTY DIRECTOR OF HOLYCODE

BUSINESS

Team Like One BIG FAMILY This Belgrade-based nearshoring company is currently cooperating with 25 international clients

n just five years, Holycode has developed from a three-member team to employing almost 130 developers.

supply and the support to employed developers. We take care of employee satisfaction on daily basis and we work like one big family.

What was the founder’s vision when Holycode was launched in 2014? - The founder’s vision was to show to other start-ups that through the development of the team working on their own project you can build a good, stable and reliable team that will contribute in the best way to the product development that they are involved in. Holycode was established as an IT Hub and an intermediary between young educated people and promising projects from Switzerland and other parts of Europe with the idea of liberating clients of the burden of taking care of all administrative duties, procurement and

What are all the services you offer to clients? What is so specific about your business model? - We specialise in nearshore software development, therefore developers, when hired choose the position actually a client they want to work for. They are integrated within organisational structure of the client they have opted for, and then clients continue to view them as part of their own company, that is, one team works exclusively for one client from our remote offices. Our developers attend all the meetings and are involved in Holycode’s and clients’ decision-making

processes. This model is being applied to all 25 clients we are currently cooperating with. Apart from the recruitment and team organisation, we provide all the necessary equipment, teambuilding and business trip organisation and enable communication between remote teams and the clients. We monitor Holycode staff satisfaction as well as clients’ satisfaction. We also provide the possibility of organising customer support teams.

Cyber/Digital security

Protection Of Online Identity

Digital security is the protection of online identity. Criminals are finding new ways to operate and steal information from digital users for their own personal gain. Digital security is an all-encompassing term which includes the tools you can use to secure your identity, assets and technology in the online and mobile world.

CYBER/DIGITAL SECURITY

DIGITAL TRANSFORMATION

THE THREAT OF CYBERCRIME Is Rising Fast Although they are often used interchangeably, there is a difference between the terms cybersecurity and information security. They both have to do with security and protecting computer systems from information breaches and threats, but theyâ&#x20AC;&#x2122;re also very different. One has to do with protecting data from cyberspace while the other deals with protecting data in general

DIGITAL TRANSFORMATION

of hacking tools and programmes on the internet also igital security is the protection of online idenmeans there is also a growing threat from less skilled tity. Criminals are finding new ways to operate individuals. The commercialisation of cybercrime has and steal information from digital users for made it easy for anyone to obtain the resources they their own personal gain. Digital security is an need to launch damaging attacks, such as ransomware all-encompassing term which includes the tools you can and cryptomining. use to secure your identity, assets and technology in the More and more websites use your email address as online and mobile world. your username to sign-in, making it a lot easier for hackers Digital technology is changing the way in which society to gain access. They only need to guess your password, is operating and the ways we live our lives. Everyday, there is new ways to work and to play, new methods of interacting with one another. As our digital footprint grows exponentially, we are forming our own online identities. The tools you can use to protect your identity include anti-virus software, web services, biometrics and secure personal devices you carry with you everyday. Devices such as a smart card-based USB token, the SIM card in your cell phone, the secure chip in your contactless payment card or an ePassport are digital security devices because they give you the freedom to communicate, travel, shop and work using your digital identity in a way that is convenient, enjoyable and secure. The threat of cybercrime to businesses is rising fast. According to because they know your username is one estimate, by McAfee, the damWhether it is through your email address. ages associated with cybercrime So what if someone gets access now stands at over $400 billion, up growing use of smartphones, to your Facebook account? No big from $250 billion by 2016. In a bid to social media, e-commerce deal. You can just reset your passstave off e-criminals, organisations or other means, we are word and that’s that, right? are increasingly investing in ramping Wrong. Many websites now offer up their digital frontiers and security all putting our personal a “sign-in with Facebook” option. With protocols, however, many are still put information on internet access to your Facebook profile, off by the costs, or by the bewildering more and more someone could also access all sorts range of tools and services available. of other services. Whether it is through growing Even worse, you may have used the same password use of smartphones, social media, e-commerce or other on other accounts (banking, email, government sites), means, we are all putting our personal information on which means the person who got your Facebook passinternet more and more. We are living in a time of unword might be able to access those accounts too. And if precedented connectivity, and it is easy to forget that someone gets into your email account, they could change there are dangers out there, on the internet, on social your password at virtually every website by sending a media, in the apps we use every day. reset link to that email address. As the internet evolves, it is becoming ever more inWhen any aspect of your digital security is relaxed, all terconnected (sometimes in ways we don’t know or think of your personal information - your credit cards, bank acof). In the push to make things easier online, sometimes counts, email accounts, your whole identity could be at risk. we make things more dangerous. Typically the bad guys are not crafting some attack just While well-funded and highly skilled hackers pose for you. They generally send out millions of generic attacks a significant risk to your business, the wide availability 63

DIGITAL TRANSFORMATION

easier for a hacker to gain access to each of your accounts. Let’s say your favourite social media site got hacked and your password was stolen. Now those hackers have the password to all of your accounts on every website. Writing your passwords down, on paper or in a file/ email, leaves you vulnerable. If someone finds that paper, or you lose your notebook, your accounts could be at risk. If you keep a list of your passwords in a Word doc or an email, you could be vulnerable too. If someone accesses your computer, they could find easily that list. If you don’t think you can remember all your passwords without writing them down, you should use a password manager program. Most websites offer a “forgot password” option where a password reset link is emailed to the email address listed on your account. This is a great, secure way to get into your account should you forget your password. Where it becomes a vulnerability is if an attacker gets access to the email account listed for password resets. The attacker could reset your passwords to every online account you have, have access to those accounts, and you’d be locked out. A good way to insulate yourself is to have a second email address which If you avoid the most common From time to time it might you use as the password reset email errors, and create a strong password, be convenient to share a address for your most important acyou will put yourself in a better place counts (banking, government, etc.). to keep your personal information password to one of your Use your primary email for social safe and secure. accounts with someone media and e-commerce (which are From time to time it might be convenient to share a password to one of else. This could lead to your easier targets for hackers), but use your 2nd secure address for banking your accounts with someone else. This password(s) unintentionally and could lead to your password(s) uningovernment sites only. (or intentionally) ending up tentionally (or intentionally) ending up It is not just criminal attacks that in the wrong hands. Also, that person mean businesses need to be more in the wrong hands might start using your password with invested in cyber security than ever their own accounts. If their password gets discovered by before. The introduction of regulations such as the GDPR bad guys, it could end up on the “common passwords” list means that organisations need to take security more they use to crack accounts, leaving you vulnerable. seriously than ever, or face heavy fines. With all the websites we visit each day, each with their The GDPR has been introduced by the EU to force own password requirements (include a capital, lower case, organisations into to taking better care of the personal number, special character, etc.), it can be very tempting data they hold. Among the requirements of the GDPR to create one password that meets all of those requireis the need for organisations to implement appropriate ments and then use that same password for every site. technical and organisational measures to protect personal While this makes it a lot easier for you to remember data, regularly review controls, plus detect, investigate your password for each website, it also makes it a lot and report breaches. in hopes someone, or many people, will fall victim to them. One way a hacker can obtain your passwords is by simply trying multiple times on one site. They would simply log in, again and again. This works if the password is common, e.g. “password” or “password1”. Generally these attacks fail, but do work a certain percentage of the time on accounts with a poor password.

DIGITAL TRANSFORMATION

ILIJANA VAVAN, KASPERSKY LAB MANAGING DIRECTOR FOR EUROPE

BUSINESS

New Approach TO CYBERSECURITY The point isn't to guarantee the complete prevention of cyber incidents - it’s about raising the price of attacks for attackers, making an attack unaffordable, and not worth their while

ost enterprises are on a path towards digital transformation, while over half CISOs agree that this is the tech trend that will have the greatest impact on their organisation’s IT security, according to the results of research conducted by company Kaspersky Lab. There’s an inconvenient truth in the business community. As many business decision-makers are only too aware, hardly a week seemingly goes by without a data breach of some form being reported to the press, while we continue to witness major breaches that impact on thousands of people worldwide. We discovered last March that the data of 87 million Facebook users had been shared. Then, last June, Ticketmaster revealed that the login information, payment data, addresses, names and phone numbers of almost 40,000 people had been breached. And this was followed, in early September, by hackers breaking into the systems at British Airways, impacting 380,000 transactions. When breaches happen – even if on a smaller scale than the examples cited above – they have brutal consequences. With new regulations like the GDPR taking hold, fines are also a big fear factor for business leaders. According to reports, Facebook’s fine for its part in the Cambridge Analytica scandal could have been 1.4 billion dollars in the post-GDPR world – a harsh sum even for a global giant like Facebook to fork out. Likewise, for small businesses too, the prospect of paying up to four per cent of their annual turnover as a fine isn’t a fun one.

greatest impact on their organisation’s IT security over the next five years. Digital transformation widens the surface of attack, giving cybercriminals more opportunities to find weaknesses, creep into systems and leak or exploit data. Cloud adoption, the increasing mobility of workforces, and the rise in the use of digital channels are all contributing factors here, increasing the risks. And this isn’t the only factor that CISOs are up against. What if a malicious insider – an employee perhaps – was to single-handedly work against a company, or even combine their efforts with those of an external attacker? This sort of threat could be especially difficult to identify and prevent in advance. How to adapt? - If breaching an organisation promises to bring substantial gains to the attackers, and those gains exceed the resources they need to organise the attack in the first place, then as far as the criminals are concerned, their efforts are easily justified. It is becoming increasingly clear that businesses can no longer live in the prevention only paradigm. That mindset is simply outdated and out of sync with how businesses operate today. The point is not about guaranteeing the complete prevention of cyber incidents - it’s about raising the price of attacks for attackers, making an attack unaffordable, and thus not worth their while. When it comes to minimising the impact of targeted, highly elaborated attacks - detection and a comprehensive, timely response should be the priority. It’s all about getting your perimeter and security team ready to immediately address any attempt to interfere with your organisation’s network. An average breach costs a large enterprise up to $1.23 million — but this cost will drop to a minimum if the necessary measures are taken, or even to nothing at all. That sounds like a sensible business decision.

An average breach costs a large enterprise up to $1.23 million — but this cost will drop to a minimum if the necessary measures are taken

Are cybersecurity breaches unavoidable? - According to our survey results, almost nine-in-ten (86%) CISOs believe that breaches are inevitable. Most enterprises are on a path towards digital transformation, with over half (52%) agreeing that this is the tech trend that will have the

DIGITAL TRANSFORMATION

BUSINESS

ADDIKO BANK

The Vanguard Of The Digital Banking Era We are witnessing a transitional period brought about by digital transformation, leaving us with a choice between two possibilities: adapt to the digital environment and enjoy all of its benefits, or remain passive observers. The era of digitalisation has conquered the world of banking, so banks need to change their traditional market approach and adapt their services to the needs of current and future clients

New communication channels between banks and clients have brought innovative products and services. The transformation of technological structures is a strategy that banks employ to position themselves in a broad digital world. Vast penetration of mobile phones has generated a profound change in client behaviour, with a growing focus on the virtual world, while simultaneously enabling consumers to keep in touch with global trends. As ever-more clients adapt to digital interaction, the 24/7 availability of financial services has become essential. Everyday communication has to be equally as user-friendly as that which takes place via social media. Digital products and communication channels have gained a more important role than initially envisaged. Tools needed for the completion of business transactions, besides their basic functions, have an impact on raising the percentage of newcomer clients, and also consolidate the relationship and sense of loyalty with existing clients. The combination of these tools with advanced analytical techniques represents new communication channels in personalising the relationship between bank and client. Addiko Bank has recognised this potential as a market opportunity and stepped boldly step forward into the world of digital banking. Vojislav Lazarević, Addiko Bank Serbia CEO, notes that the bank is constantly engaged in accelerating and digitalising its internal processes, in order to enable clients a better experience and smoother communication with the bank. “Digital transformation is being conducted both internally and externally, and it’s in the focus of our attention as a necessary precondition for the future of modern banking. The bank can almost fit into the palm of your hand and into your pocket, as you can do everything you need via an application on your mobile phone,” says Lazarević. Addiko Bank recently presented mKredit (mLoan), a new product that perfectly demonstrates the perspective of the banking world – via a mobile phone, a client can file a cash loan application 24/7. Mirko Španović, Addiko Bank Deputy CEO, pointed out that 66

Addiko is the first bank on the market to enable the approval of cash loans and overdrafts via a mobile phone, without the client having to visit a branch office. “Our clients now have the possibility, at any given time of the day, be it during a weekend or bank holiday, to file a cash loan application and receive payment on their account. The communication process between the two has been continuously upgraded towards the active use of digital channels, which is evident by the fact that approximately 50 per cent of Addiko Bank clients have so far activated the eBanking or mBanking service. Our core idea is to offer our clients fewer carefully selected products and services that will perfectly fit their needs” said Španović, adding that Addiko Bank is in a continuous quest for innovative solutions in digital transformation, which has ensured its leading position in digital banking across the entire region. The long-term market presence of Addiko Bank in Serbia, Montenegro, Bosnia-Herzegovina, Croatia and Slovenia has helped us understand consumer habits and needs and, accordingly, made it possible for us to offer solutions that keep pace with the modern lifestyle by being available anytime, which is a valuable advantage nowadays.

DIGITAL TRANSFORMATION

VLADIMIR ATANACKOVIĆ, SENIOR SOFTWARE DEVELOPER, OFFICE SOFTWARE SOLUTIONS

ICTS

ŠABAC TABL@A Heading To The U.S.A. Šabac-based start-up NaopaCo is among the four winning projects of the competition of the Chamber of Commerce & Industry of Serbia and America's EastHub

abl@a was presented to investors in Miami in February, within the scope of the EastHub Accelerator.

How does Tabl@a function? - Tabl@a takes care of when you or loved ones need to take medicines, even when your pets need to have their treatment. Apart from that, it also monitors how much medicine you have left and alerts you when you need to stock up, helps you locate the nearest pharmacy and send an SMS to check that it has the medicine you need, while there are also many other functionalities. It also contains a complete database of medicines for humans and other animals, with all instructions and medicine compositions. We are proud of the ease of introducing a medicine to therapy by simply reading the barcode on the box. You can enter complete therapies for all family members into the application, and when you receive a notification that they need to take their medicine you can notify them by SMS with a single click, meaning that they don’t need to install the application. You recently presented yourself within the scope of the EastHub Business Accelerator in Miami, Florida. What are your plans for the U.S. market and your further development? - At the competition of the Chamber of Commerce & Industry of Serbia and EastHub from the U.S., our idea was one of four singled out – among 120 presented – to be launched on the U.S. market. In order for us to prepare better and more seriously to perform in the U.S., in February we participated in the EastHub Accelerator in Miami, and passed through training and seminars, as well as our first presentation to serious investors. We are planning the most serious possible performance on the domestic market and in the U.S., and then in the countries of the region and perhaps Russia.

VIDEO As A Virtual Branch Office Empathy Suite (by Purpleview) combines all the functions for video consultation that are required for the optimum activation of your clients via the Internet

he product allows for ad-hoc communication: a single click is all that is needed to use any of the functions. Customers may choose to remain anonymous, no preparation is required, and no software needs downloading – ANY browser is supported with no additional plugin. Alongside a trustworthy contact, the ability to collaborate is crucial:, to view documents for example, to fill out forms, to sign them or surf a website together. It may also make sense for consultant and client to view the consultant’s screen together, to share the contents of applications or to use them together. The complete process is covered by this solution – from video identification to contract preparation and digital signature. Some of functions are: Video and text chat, Document sharing/transfer, Image sharing, Form sharing/and filling, Desktop sharing, Digital signature, Two-way file transfer, Co-Browsing, Video Ident (complete solution for Video Identification of clients). We are ICTS DOO Belgrade – a leading provider of video chat solutions for the Western Balkans. Our clients are banks and insurance companies in Serbia, Croatia and Bosnia. From video banking solutions to video damage estimation for insurance and the Video Ident solution, we provide full planning, installation and maintenance, together with the vendor of Empathy Suite – Purpleview GmbH. Interested? Contact us: ICTS DOO Belgrade - +381 11 7854 556 office@icts.rs; www.icts.rs 67

DIGITAL TRANSFORMATION

BUSINESS

NB SHOP

Created For The Needs Of Users If you deal in sales or are planning to do so, an online shop is a simple way to increase your sales and reach new customers. NB SHOP eCommerce solutions is created in accordance with the needs and desires of each individual retailer, on the one hand, and adapted to the ever-more demanding rules of the online market, on the other

numerous marketing services NB SHOP is a domestic online (Google, Facebook, Kupindo, sales platform that offers its eKupi etc.), this platform adusers a wide range of tools dresses the needs of retailers that streamline work, save within the shortest possible resources and enable successtimeframe, with huge savings ful managing of online operaof time and resources, allowtions. NB SHOP is an original ing retailers to direct their solution created according to time and attention towards the needs of the market, and the further development and in such a way that itâ&#x20AC;&#x2122;s tailored expansion of their operations. to every single type of sales Utilising the NB SHOP online business (sporting equipment, sales platform helps retailers toys, clothing and footwear, avoid problems they face on watches, jewellery etc.). The a daily basis. The NB SHOP platform is localised and opplatform is easy to use and erates on over ten markets organise; retailers have the (Serbia, Montenegro, Slovenia, opportunity to easily manage Croatia, Bosnia-Herzegovina, the products and content on North Macedonia, Switzerland, their web shops, which is all Bulgaria, Romania etc.). A fully contained in a detailed User integrated and automated sysManual in Serbian language. tem that suits both retail and The NB SHOP platform has a wholesale businesses, it has comprehensive order managedeveloped functionalities that ment process, with optimised cover the entire sales process, product search, simple ordering, and reservations, billing from simple products search, through orders and payments, warehouses which would ship the products, automated to deliveries to end customers, which is enabled by the delivery services contact, and shipments status tracking, systemâ&#x20AC;&#x2122;s high degree of automation and the standardisaall the way to product deliveries to tion of business processes. Thanks to Together with their partners, end users, and transactions invoicintegration with over 30 ERP business systems (SAP, Microsoft Navision, NB SHOP is a fully enclosed ing. This allows the retailers to use the platform to track their orders, Tradis, Luceed, MIS, ASW etc.), more eco system that has one statuses, payments and other inforthan 25 payment services (Banca Intesa, UniCredit Bank, Komercijalna purpose; the most efficient mation relevant to their operations, and track reports in real time. You Banka, WsPay etc.), over 20 courier implementation and can find more information at www. services (D Express, Postexpress, City, Bex, Overseas Express etc.), and performance of a web shop nbshop.rs 68

DIGITAL TRANSFORMATION

SMART

BUSINESS

Synchronized Security In A CONNECTED WORLD identity if a file is malicious or benign. Firewalls connect multiple technologies – deep learning, IPS, sandboxing, etc. – to stop malicious traffic. Yet these two pillars of our cybersecurity defences work in isolation, unconnected from one another. While this approach has resulted in strong individual solutions, it misses the bigger picture: as both technology and cyberthreats become ever more connected, point security products, no matter how good they are, can only ever have limited impact.

onnectivity is one of the defining characteristics of the 21st century, permeating every aspect of our lives. From the words we speak, “can I connect with you to discuss?”, to how we listen to music, with web-based music platforms and wireless speakers; and even to the way we maintain relationships, connecting to friends and family across the world through social media platforms. Everything is connected. Connectivity is also fundamental to our IT infrastructure. We absolutely depend on it for both our business and personal lives. We build our networks to enable all the different elements of our lives to link up, to be part of a system rather than work in isolation. Unsurprisingly, today’s enterprising cybercriminals have enthusiastically embraced connectivity. They use a range of connected techniques in their malware attacks: a phishing email leads to an initial foot in the door, followed by a malware infection through exploitation of a known or unknown defect, then an escalation of privileges or a lateral movement across the network to spread the infection across different devices. A single compromised device can mean your network and connectivity are held hostage or used for malicious intent. SEEING THE WOOD FOR THE TREES Unfortunately, cybersecurity has struggled to see the wood for the trees when it comes to connectivity. Technology companies have focused on creating products that focus on one specific part of the problem, yet don’t connect with each other. Endpoint protection products connect a range of data points to

CYBERSECURITY AS A SYSTEM Individual point security solutions no longer represents a realistic long-term solution. Organisations need a layered approach to security, one where products connect and share information. It’s time for Synchronized Security. Synchronized Security is cybersecurity as a system. Security solutions connect with each other in real time via a Security Heartbeat™, working together to combat advanced threats. This automation enhances your defences, responding automatically to events, so you can mitigate risk and slash the time and effort spent managing IT security. Only through connecting the big cybersecurity dots in this way can you create a system that transcends point challenges and enables you to create long-term security strategies that work for your business. Synchronized Security is built on three pillars: Discover, Analyse and Respond. These pillars enable security components to become more than the sum of their parts by working together to stay ahead of the attackers. By working together, security solutions can detect, analyse and respond automatically to incidents and infections. This slashes response times and enables IT security to switch from being a business cost to a business enabler. Smart d.o.o. - regional distributor for Sophos since 2003. www.smart.rs 69

DIGITAL TRANSFORMATION

BUSINESS

COUCHCOACH

COUCHCOACH Among Europe's TOP8 Start-Ups This innovative application allows you to comment on a coach's decisions during a match and suggest changes and timeouts, while you receive points on the basis of the success of your assessments

he CouchCoach application enables basketball fans to try their hand as a coach’s “first advisers”. Cooperation was launched recently with the most important European basketball competition, Euroleague, as well as with the regional ABA and ABA2 leagues, and Basketball League of Serbia and Basketball Association of Serbia. The founders of the start-up are Nenad Nikolin and Nikola Krstić, while the professional team behind this project includes sports journalist Zoran Šećerov, sports journalist and writer Vladimir Stanković, business analyst Dejan Vujić, sports commentator Vladimir Kuzmanović and basketball coach Milan Ristić. CouchCoach has also found itself among the eight most promising European start-ups after its remarkable performance at the recent 5th B2B Software Days in Vienna. The app functions by fans suggesting a starting line-up to the coach, then during the actual match they can seek for players to enter or leave the court. When the team is performing poorly, it is possible to suggest that the coach request a timeout, while they can also like and dislike the coach’s changes and tactics. All actions are calculated according to a unique algorithm, depending on events unfolding on the court, and the calculating of points for each fan at the end of the match is such that it shows how good the user is as a “coach from the couch”, i.e. as the “first adviser” of the coach. For example, if you suggest that a player enters the court and the coach makes that change, you get points whenever the team scores a basket and lose points whenever they concede.

The latest version of this app recently became available via the Apple and Google stores, while the founders say that they are gaining ever more followers every day and have high expectations ahead of the finals of club competitions. Among the first coaches to accept the opportunity to find out what fans propose via this app are Phoenix Suns coach Igor Kokoškov, Mega Bemax coach Dejan Milojević, and Aragats coach Vladimir Glavinić. Great support to this work has been provided by the Association of Basketball Coaches of Serbia, led by its president, Ivan Jeremić. The project has been supported by Innovation Fund Serbia, while plans for this year include the implementing of a round of seed investment worth a million euros. The founders expect this app to expand to other continents and leagues over the next few years, primarily to the U.S. and Eastern markets. Given that this start-up is experiencing accelerated expansion, the accepting of new collaborators is currently underway. The application was implemented completely in-house, while the platform’s stable operation was achieved thanks to the use of the Coming Cloud service. The business model is based on the B2B model, but founders have announced that the new version will also contain a B2C component, especially for competitors wanting to try out additional functionalities. Expansion of megastore offers is underway, with the development of the CouchCoach online store and its own brand. Available to purchase for now are the products of basketball clubs Red Star, Partizan and Žalgiris, as well as basketball literature authored by Vladimir Stanković. https://couchcoach.me/

The project has been supported by Innovation Fund Serbia, while plans for this year include the implementing of a round of seed investment worth a million euros. The founders expect this app to expand to other continents and leagues over the next few years, primarily to the U.S. and Eastern markets

DIGITAL TRANSFORMATION

ALEKSANDAR VRATONJIĆ GLIGORIJEVIĆ, DIRECTOR OF TELEGROUP INNOVATION, TELEGROUP LTD.

BUSINESS

On The Wave Of The DIGITAL REVOLUTION With the formation of the TeleGroup Innovation Centre, this company has expanded its portfolio of services, with a focus on innovation

ince its founding in 1992, TeleGroup has grown into a system that encompasses a number of subsidiary technology companies specialising in the development and implementation of IT solutions for business and the construction of IT, telecommunications and electrical power infrastructure. Why did you decide to establish your Innovation Centre under the auspices of the TeleGroup system, and how will it function? - The formation of the TeleGroup Innovation Centre is a product of the TeleGroup team’s activities in the domain of digital transformation services on the Serbian market. Considering that great changes seek a new perspective on that which is essential, so TeleGroup decided to catch the wave of the digital revolution to work intensively, with me and my team, on expanding its portfolio of services, with a focus on innovation. We gradually crystallised our route to investment and formed the TeleGroup Innovation team, which today deals with innovations in the Belgrade co-working space of the ICT Hub, relocated from the company’s headquarters. The team’s work is based on two pillars of activity. The first is directed towards our business users, who are aware that they can’t traverse the path to digital transformation by themselves. They recognised in us the value, expertise, energy and capacity to work together with their internal teams on the development of new business models. The second pillar is to improve our internal company processes based on the creation of values that we, as individuals, generate within the scope of the TeleGroup system, which numbers ten subsidiary companies in different branches of industry.

company can innovate, change its business model and introduce new products or services, all with the aim of realising strategic goals like increasing customer satisfaction, reducing costs, increasing efficiency etc. Technology is merely a tool in these processes – in no way is it the intention in and of itself. That’s why our work only makes sense if it involves people from all essential levels of an organisation and starts from the top, i.e. from senior management. What are your further plans for the development of the Innovation Centre and what will you be working on during the period ahead? - Given that the notion of digital transformations only recently became present on our market, it is easy to spot the gap between the essential need of businesses to adapt to the conditions of the digital economy and the readiness to enter the “round” of digital transformation, which carries with it an unprecedented amount of experimentation and non-deterministic work on operations. Considering that such an approach to work brings with it plenty of risk, the doors to processes that essentially transform businesses inline with the digital economy are often still locked. On the other hand, via the TeleGroup Academy for Digital Transformation, which we established as a free programme for students and which has already been traversed by individual representatives of our customers, we see potential in the process of transforming domestic companies into digitally-aware businesses. These young people represent exactly the kind of personnel we see as being part of our team tomorrow, but also as individuals who will provide a contribution to empowering the generations that will bring fundamental changes to domestic companies in the post-digital era.

It is easy to spot the gap between the essential need of businesses to adapt to the conditions of the digital economy and the readiness to enter the “round” of digital transformation

Why is understanding business processes a key element in the process of digitally transforming operations? - Our job is to work with customers to find ways in which a

Network Service

Facilitating A Network Operation

Network Service â&#x20AC;&#x201C; a capability that facilitates a network operation. It typically is provided by a server (which can be running one or more services), based on network protocols running at the application layer in the Open Systems Interconnection (OSI) model of the network. Some examples are domain name system (DNS), dynamic host configuration protocol (DHCP), voice over internet protocol (VoIP), etc.

DIGITAL TRANSFORMATION

ŽELJKO TOMIĆ, PRESIDENT OF THE ALLIANCE FOR EGOVERNMENT, NALED

INTERVIEWS

In Step With CONTEMPORARY TRENDS The development of eGovernment has become an important topic, while the previous two years were very important for completely rounding off the regulatory framework

he NALED Alliance for eGovernment was founded in July 2016, when it brought together 20 companies from the ICT sector with the aim of improving the regulatory framework for the development of eGovernment and eBusiness, cutting costs and red tape for citizens and businesses, as well as strengthening the capacity, efficiency and transparency of public administration. There are today 62 members, including companies from finances, trade and other sectors, as well as local self-government and academic institutions. The work platform of the Alliance is the Strategic Framework for the Development of eGovernment, which NALED submitted to the Government of Serbia as a recommendation in June 2016. What would you single out as the most important achievements of the Alliance’s work, and what are the priority activities you’re planning in the coming period? - The development of eGovernment has become an important topic and the previous two years were very important for rounding off the regulatory framework. Our recommendation was adopted to establish the Office of IT and eGovernment, as a body to coordinate the work of the competent institutions, and the Coordination Council for eGovernment of the Government of Serbia has been formed. We’ve also received two reformist laws - the Law on eGovernment and the Law on eBusiness - and through participation in the drafting we managed to have all the recommendations of the Alliance included in the provisions. With the support of the Good Governance Fund of the UK Government, NALED prepared

12 bylaws for the Law on e-Business that are crucial to the development of eServices and our initiative saw has abolishing of the obligation for the economy to use stamps/seals as of October 2018, which is of great significance for encouraging the faster development of eBusiness. Among the great works undertaken in this area, I would also highlight our participation in the drafting of the eGovernment development programme for the 2019-2021 period. We are actively involved and want to this year successfully complete the drafting of an information security law, archive material law, regulations on office-based operations and categories of registry materials, the establishing of an eRegistration, a state eArchive and a new system for the management of documents. You once compared the development of eGovernment with a moving target. How successful has Serbia’s ‘aim’ been to date? - The development of eGovernment is a process that can never be completed due to the advancement of technology. We are now in the phase of establishing services that imply two-way communication between the state and citizens, but primarily for the purpose of obtaining documents. The most successful states today use eGovernment to engage citizens and industry in the creation of public policies. A positive thing is that, after establishing foundations for the development of eGovernment, we can skip more steps by relying on the experiences of those countries. Likewise, it is good news that the state has dedicated considerable resources to the development of eBusiness, and we’re on track to receive a World

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Bank loan of $50 million, which confirms that we are ready to invest in order to keep pace with modern trends. The previous year was marked a major milestone – the stamp was consigned to the history of the Serbian economy. When will the state also cease to use stamps? - Official statistics show that in the first five months following the abolition of the obligation to use stamps, entrepreneurs reported 122 cases when individual officials requested a stamp after 1st October last year. If we consider that the majority of complaints arrived in the first two months, we can conclude that this situation is improving. With insight into complaints, we’ve seen that civil servants are still concerned about the reactions of other institutions in the case that they accept a document without a stamp. For example, at banks there is concern that a court will not challenge a contract that isn’t stamped, while private companies fear that an inspection could cause them a real problem if they come across a document lacking a stamp. This is why it’s crucial that these bodies show in practise that they’re familiar with the new legal solution and for them to be its promoters, and to advance in the next step to working with electronic documents as soon as possible. Do you expect a law on electronic archives to be adopted soon, which would serve to reduce and simplify the maintaining and storing of the documentation of the economy and state institutions? - We expect the adoption of a law that will enable the electronic archiving of business documentation during this year, because it is very important for the financial and administrative unburdening of the economy and state institutions. Due to the obligation to store business documentation, large firms spend more than 150,000 euros annually on the leasing of warehouses, engaging of labour and fire protection measures. This impacts in particular on companies, but also municipal administrations, that have frequent interaction with citizens and businesses or take care of the functioning of institutions. For example, the Administration for Joint Services of the Republic Bodies has 70 kilometres of archives. NALED has sent dozens of recommendations for improving the existing draft law on archival material. The new law would not lead to a shift if, for example, it contained the provision that “businesses are obliged to maintain documentation until the archive is able to take it over”, given that we already now know that the

archives have a problem fulfilling such an obligation. Experience to date shows that the majority of business documentation has no cultural-historical significance. The possibility of digitalisation and electronic storage would mean a significant reduction in the costs to the economy, while it would not reduce the basic purpose of protecting archival material, which is in the general interest. Testing that you carried out with the Office for IT showed that local governments in Serbia need to improve the safety of citizen data. Which guidelines should they follow? Is it planned for such testing to become a regular practise? - The Alliance for eGovernment and our members Asseco SEE, Comtrade, IBM, KPMG, SAGA, SBS and SAP, last year tested, gratis, the capacities of 10 local selfgovernments in terms of information security and the protection of personal data and defined recommendations that are now being implemented by the Office for ITand eGovernment, together with municipalities and cities. Testing showed that local governments are primarily vulnerable to potential internal abuses of information and that it is necessary to improve information systems, the capacities of IT staff and data management procedures. It is planned that the Office for IT, as the competent body for ensuring the security of the information systems of local governments, will secure resources for further improvement, especially in smaller municipalities. The conducting of regular testing, as well as education, is also planned.

Civil servants are still concerned about the reactions of other institutions in the case that they accept a document without a stamp

Speaking at the Serbian-Korean Forum on eGovernment and Smart Cities, you stated that it’s essential for our local governments to follow global investment trends in smart technologies. Can Serbian cities and municipalities secure the resources for such endeavours; and does this recommendation apply to less developed communities? - Statistics on the application of smart technologies show that up to $100 billion is invested annually in smart city solutions worldwide. Our cities and municipalities need to find ways to secure funding for such investments, because estimates suggest that investments in smart technologies bring a value four times the level of resources invested, leading to major savings and improvements in efficiency in areas such as traffic flows, environmental protection and cleanliness, and energy efficiency. It is important for cities that have the possibility for something like that to keep pace with trends that will later be followed by other local governments, in accordance with their possibilities. 75

DIGITAL TRANSFORMATION

NETWORK SERVICE

Facilitating A NETWORK OPERATION

Network Service – a capability that facilitates a network operation. It typically is provided by a server (which can be running one or more services), based on network protocols running at the application layer in the Open Systems Interconnection (OSI) model of the network. Some examples are domain name system (DNS), dynamic host configuration protocol (DHCP), voice over internet protocol (VoIP), etc.

rganising the many users, applications, services, and systems within a network can be a complex process. Directory services are software systems which help to make that process easier to execute. Directory services store and organise information whilst also providing various types of access to this information to end users. Some of the functions of directory services are as follow It is necessary to create, edit and remove user accounts. In a large organisation, it’s important each person has their own set of login details both for security reasons and for legal reasons. For example if multiple people were using the same account, it could mean the new employee has the same level of access to information and features as the CEO. If the CEO saves file and documents in a folder and someone else removes them, that’s obviously a big problem and for this reason and many others, it’s always advised to create an

account for each person. Account management good practice would also suggest to keep a log of all account activity such as times of login, IP address of login, changes to password, changes made to any account files etc… Passwords should always be stored in encrypted format and there should only ever be one person who has admin access to create and remove accounts. AUTHENTICATION MANAGEMENT Authentication management is the process of identifying a user when they try to log on to a network system. When they enter a username and password, the system checks that that set of credentials exists in the database and if it does, the user is given access to the system with the appropriate level of privileges that have been assigned to that user. Where sensitive data is being held and transferred, it’s

DIGITAL TRANSFORMATION

important that this information can’t be accessed by the public, which is why accounts are needed. Additional security measures can include security questions or puzzles to login (which can’t easily be guessed or automated by a computer) or two factor authentication which involves identifying a user based on something a user knows AND something they psychically posses. A good example is a bank card – in order to withdraw cash from an ATM, a user needs their personal card and they must also know their pin code. DNS (DOMAIN NAME SERVER) This is server that matches domains names to IP address. Domain names only exist because it makes it easier for us humans to remember website locations and read at a quick glance. It also helps businesses for branding purposes. If you visit google.com in a browser, what you’re effectively telling the browser is “send me to the IP address for google.com”. Your computer then contacts your ISP’s DNS server and the DNS server says “google.com is located is located at 173.194.39.78”. You’re then sent to that address. DNS is also a database system so if one DNS server doesn’t know how to translate a domain name, it can ask another one and so on until the correct IP address is retrieved.

having to connect to an outside line and go through a traditional telecommunications company. This saves the business money and time. Businesses often manage other telecommunication systems in-house such as: Email today is a large part of communication between users and business and business to business. Sending and receiving messages electronically speeds up communication. Email servers send, receive, store and filter data. Simple Mail Transfer Protocol (SMTP) is a standard used for email transmission and together with DNS servers and MX (mail exchange) servers, they figure out how and where to send email based on the ‘to’ email address.

Passwords should always be stored in encrypted format and there should only ever be one person who has admin access to create and remove accounts

ACTIVE DIRECTORY Active directory is a directory service, developed by Microsoft for Windows domain networks. It provides services such as account management, authentication management and domain services. Active directory contains all the components necessary for the creation of user accounts and user authentication. It also provides permission features and group policies which dictate what users can and cannot access through their account. Users can be grouped by status, department, job role etc… You can also use active directory to ‘name’ a computer or server by linking the IP address to a name as active directory can store an address list of all connected computers and servers. In business, active directory is by far the largest directory services solution and has been since the 90’s. As of 2015, Over 90% of Fortune 1000 companies use it. Telecommunication is a system traditionally used to carry voice or data over long distances. Nowadays, many businesses have internal digital telecommunication systems that use VOIP. It can be managed by a network which enables one telephone to connect to another within a network without

IRC (INTERNET RELAY CHAT) Similar to texting, this is used in a lot of social media platforms today for instant chat and can be used quickly and easily by users to communicate with other users within various departments in a business or outside of a business.

DISCUSSION BOARDS Also known as forums, these provide users with a platform to create threads (topics of discussion) and add comments in response to other people. Discussion boards can be used to provide help and support to users, to enable users to share ideas and tips or simply to discuss interests and hobbies.

REMOTE ACCESS Remote access is useful for technical support or working from home. If a user requires technical support, remote access enables tech support to log in remotely to that user’s device and fix the problem. This means for example that a company in London could hire a company in China to provide technical support if the company in China can remotely log in to devices in London. If staff want to work from home but need access to their 77

NETWORK SERVICE

DIGITAL TRANSFORMATION

computer at work, remote access would also enable them to do work on their office computer from their home computer. SOCIAL NETWORKING Most of us are familiar with social networking but there are dedicated social networks designed for business use too in internal networks. Social networks provide features similar to discussion boards, IRC and email.

In business, active directory is by far the largest directory services solution and has been since the 90’s. As of 2015, Over 90% of Fortune 1000 companies use it

FILE SERVICES File servers are servers that enable users to store and share files on a network. The transfer of files is usually performed using the File Transport Protocol (FTP) which is a standard network protocol used to transfer files over a network. Some of the services a file server provides are as follows: File transfer – This allows users to transfer different types of files over a network such as downloading information from the internet. File sharing – If a user wants to share a file, they can set permissions on the file so that only a specific user/s can access the file. They could also grant a specific user access to all files within a certain folder or sub folder. These files can be shared in a local network or on the internet. APPLICATION SERVICES Application services are used within a network for a variety of tasks, some of which can be seen below: » Database Database applications allow users to access information stored in databases. They provide structure and organisation 78

for information which enables users to quickly and easily retrieve information they need. This information can then be stored and manipulated on the users own computer which doesn’t affect the original database information. » Shared Resources This is any resource that can be shared by many users on a network e.g. a networked printer or scanner. » Storage Space Disc space or storage space is the quantity of capacity a user has available on a computer or network to store data such as documents, images & videos. » Web Browsers Internet browsers such as Google Chrome, Safari, Firefox and Internet Explorer all provide ways to access the internet and access any websites research, business, entertainment, pleasure etc.. » VoIP (Voice Over IP) Using IP phones, users can make phone calls over the internet, if users are on the same network these calls can be free. » Smart Phones Apps or applications have become a part of daily life for most of us. They enable us to quickly and easily communicate, share information and browse the web whilst also enabling us to edit documents and media locally, on our phones. eCommerce, finance and banking apps are also becoming increasingly important in business as more and more people have come to demand real time communication and information. Today, orders can be placed and received regardless of where employees are located thanks to mobile apps, smart phones and mobile networks.

DIGITAL TRANSFORMATION

JAGODINA CITY ASSEMBLY

BUSINESS

Digital Teaching For 21ST CENTURY SCHOOLS The local self-government will continue to support contemporary teaching methods

ith awareness for the importance of education, and as preparations for the challenges of the digital era, we strive in all segments to support the implementation of information technology in primary and secondary schools in Jagodina, according to the City authorities. Digitalising the country at a quick pace tops the list of priorities of the Government of Serbia, and a key role along that journey will be played by local authorities. What were the most important activities in the field of digital transformation implemented by the City of Jagodina’s administration in the previous period? - The City administration has, since 2007, been a user of the eZUP information system, which enables information to be obtained ex officio, and this has enabled citizens to obtain requested documentation in a much simpler way. Moreover, since the start of this year, private individuals and legal entitled have been able to submit applications and gain insight into their tax liabilities via the internet.

puter equipment that is technically able to monitor and support new information systems. There are ever more institutions applying innovations in education in Jagodina. The Bosko Đuričić Primary School recently became a participant in the major regional programme “School for the 21st Century”, thanks to which students learn to programme microbes. Tell us more about this project. - The Boško Đuričić Primary School was among the first 20 schools in Serbia to become part of the regional project “School for the 21st Century”, which is designed and implemented by the British Council and which aims to develop digital skills, problem-solving skills and critical thinking among pupils. Under the auspices of this programme, the school received training for ten teachers who will ensure the implementation of this project in the teaching system and 30 microbe devices, i.e. laptop computers that children can program on and which they can use for all school subjects in order to solve everyday tasks. Digital textbooks for first and fifth year pupils have also been in use at this school since the beginning of this academic year.

The Boško Đuričić Primary School was among the first 20 schools in Serbia to become part of the regional project “School for the 21st Century”, which is designed and implemented by the British Council and which aims to develop digital skills, problem-solving skills and critical thinking

What will be in focus during this year? - The focus during 2019 will be on the introduction of services via the eGovernment portal and preparations of the necessary documentation are underway. When it comes to this portal, citizens can already take advantage of virtual registrar services, where they can use a prescribed procedure to obtain copies of certificates of birth, marriage and death, confirmations of citizenship and international certificates of birth, marriage and death. Furthermore, working is continuously being undertaken to improve the level at which city administrations are technically equipped, which means the procurement of more modern com-

What are further plans like for the digitalisation of teaching in other Jagodina schools? - Given that education is the right way to prepare children for the challenges of new times, when digital literacy will be of great importance, the Jagodina local self-government secures all the necessary conditions that will enable digitalisation, both through the equipping schools with the latest computer equipment and through support in all segments implied by new information technology advances. E-diaries are in use in all Jagodina primary and secondary schools, which enable teachers to maintain records of pupils in a fast, simple and reliable way. 79

DIGITAL TRANSFORMATION

BUSINESS

VIDOJE PETROVIĆ, MAYOR OF LOZNICA

We're Building A SMART CITY Smart technologies have brought benefits to Loznica residents in the areas of traffic safety, car parking, green energy etc

nderway at present is the replacing of street lighting with smart lights, which – instead of operating on time relays – will turn on and off automatically, at dusk and at first light.

Energy efficiency is one of the areas in which the applying of smart technologies brings great savings, which is why cities and municipalities are increasingly opting for such investments. How is the project of replacing Loznica’s street lights with new smart LED lighting progressing? How long will it take for the effects of this replacement to be felt? - It is certain that the applying of smart technologies brings great savings, which is why our city has decided to replace mercury and sodium street lighting with LED lighting. In the last year we’ve replaced most 125 and 250 watt mercury bulbs on the territory of the city. The replacement of sodium lighting of 70 and 125 watts is underway. We will very soon have replaced a third of street lighting, which will certainly bring significant savings on electricity consumption and reduce budget allocations for street lighting. We estimate that the entire investment will pay off in four years, when allocations for electricity will be maximum of 35 per cent of current allocations. The cost of electricity consumption, without maintenance, now totals 88 million dinars.

projects that have come to life here, including: the creation of Ebook contents and forwarding that to young people via the internet, e-payment services for parking, the application of green energy solar systems - at the Lagator leisure and recreation institute. Moreover, we’ve also invested in new technologies in the field of traffic safety – electronic speed indicators have been installed in the vicinity of nurseries, schools and other public institutions, aimed at warning drivers to reduce their speed and behave more responsibly in traffic. We’re also investing in the development of eGovernment, in order to ease the issuance of documents for citizens. Investments in the area of smart city systems aren’t small, but they mean a lot in terms of raising the quality of our services for citizens. As a serious local self-government, we must also find possibilities for these kinds of investments.

Investments in the area of smart city systems aren’t small, but they mean a lot in terms of raising the quality of our services for citizens. As a serious local self-government, we must also find possibilities for these kinds of investments

Do you also plan to invest in some smart city systems in the period ahead? In your opinion, how desirable are such investments in smaller communities; and, on the other hand, how challenging is it to secure resources? - Many cities today have the intention of becoming “smart” through implementation of the “smart city” concept. Loznica strives to modernise continuously, so there are already several smart city 80

Loznica has long been among the leaders in terms of the digital transformation of local government. What are your most significant achievements in the previous period? - Loznica was among the first local selfgovernments to start implementing the eZUP information system, under the Law on General Administrative Procedures and in accordance with the data of the Serbian Government’s Office for IT and eGovernment. We’ve concluded an agreement on the joint acceptance of payment cards at POS terminals of the counters of the City Administration and installed five such terminals. Apart from all of that, we are also the first local self-government to implement the “Register of Addresses Update” project. We were also among the four local self-governments to launch implementation of the second phase of the project “Baby, welcome to the world” - relating to applications for parental allowance.

DIGITAL TRANSFORMATION

NIHAT BIŠEVAC, MAYOR OF NOVI PAZAR

BUSINESS

Digitalisation Of Heritage, OPPORTUNITY FOR TOURISM Thanks to the Virtual Museum project, three-dimensional models of individual items and some archaeological sites will be presented on the Ras Museum’s website

ovi Pazar is steadily progressing with the implementation of digitalisation in all fields. Mayor Nihat Biševac announces new activities.

For Novi Pazar, which has been proclaimed an extraordinary European destination and boasts the beauty of diversity and interweaved cultures, the project of digitalising cultural heritage is of great importance. How is this task progressing in the Ras Museum, to enable cultural goods to be preserved for future generations, but also to be an asset for developing cultural tourism? - It could be said that Novi Pazar itself is a small open-air museum. By digitising the Museum’s collection, it becomes available to every part of the world, which is in line with one of the main tasks of the museum - education and dissemination of knowledge. In 2018, thanks to the funds of the Ministry of Culture and City of Novi Pazar, the project “Virtual Museum” has started. The plan is to present on the Museum web site three-dimensional models of individual items and some of the archaeological sites or parts of them. In addition, the Museum is working on the digitisation of books, the oldest manuscripts, and the magazines Novopazarski zbornik and Sopoćanska viđenja.

tion of an electronic clerk’s office, which follows all the legal provisions of the Law on General Administrative Procedure in the field of electronic communications. For this project, the City was awarded first prize in the area of “Efficiency and Effectiveness” under the project Improving Good Governance at the Local Level. The second project is the introduction of an electronic assembly. The Electronic Assembly is operational, resulting in faster and more efficient work. Novi Pazar is one of five Serbian local governments in which e-Parliament software financed by UNDP will be put to use.

Novi Pazar is one of five Serbian local governments in which e-Parliament software financed by UNDP will be put to use

The city administration itself is very active in making practical use of digitalization. Among the first in Serbia you have introduced an electronic assembly, and now you plan to further improve the system. What is this about? - Last year, the City of Novi Pazar implemented two major projects in the field of ICT related to good governance principles and transparency. The first is the implementa-

What advantages can digital transformation bring to the textile industry, which is the driver of economic development in the Novi Pazar region? In your opinion, how much are business people interested in investing in new technologies? Does the local administration help them, and how? - They are interested in investing in new technologies, in the procurement of new printing, sewing and tailoring machines, wastewater treatment plants ... The equipment required is mostly newer generation, automated and requires specialized software, and therefore improves business. Providing support to the textile industry in cooperation with domestic and foreign donors, ministries, embassies or other national and regional institutions is a must. So far, in line with the needs of the textile industry, they have been working on solving waste water problems, communal infrastructure, harmonising curricula in vocational schools with the needs of the labour market, and purchase of full equipment and specialised software for practical teaching in the Secondary School of Textile and Clothing Design. 81

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BUSINESS

NENAD KRSTIĆ, PRESIDENT OF THE MUNICIPALITY OF TRGOVIŠTE

Cooperation With The State Is KEY FOR SMALL MUNICIPALITIES Thanks to the support of the Office for IT and eGovernment, Trgovište has also joined the eZUP and “Baby, welcome to the world” systems

he town and municipality of Trgovište, situated in the extreme southeast of Serbia, covers an area of 370km2 immediately alongside the border with Macedonia. The town itself is home to around 2,000 inhabitants, while the municipality has a total population of slightly over 5,000 inhabitants. One of the major problems it faces, like all other underdeveloped communities, is the emigration of young people. Thanks to a recent donation of the Office for IT and eGovernment, which provided computers, Trgovište has also joined the ‘eZUP’ and ‘Baby, welcome to the world’ systems. How significant is cooperation with state bodies when it comes to Trgovište’s road to digital transformation? - The Municipality of Trgovište’s cooperation with state bodies, first and foremost the Office for IT and eGovernment, is very significant on our road to digital transformation. The first segment of cooperation with the Office is reflected in the donation of computers to the Municipality of Trgovište. The second segment, which is also much more important, is raising awareness within the leadership of the Municipality regarding the importance of building and using IT infrastructure – both among those employed by the local self-government and also among citizens.

In your opinion, in which areas can new technologies prove most useful for the development of small communities? How do you cope with the lack of resources? - The main goal of the leadership of the Municipality of Trgovište is to create conditions for the creation of new jobs that thereby reduce the departures of young people. With the application of new technologies, we can present our potential for attracting investors and creating new jobs in a quick and simple way. We try to compensate for the lack of financial resources by participating in public calls for projects, both at the level of the Republic of Serbia and cross-border cooperation programmes with Bulgaria and [North] Macedonia.

With the application of new technologies, we can present our potential for attracting investors and creating new jobs in a quick and simple way

What are the further plans of the local self-government when it comes to introducing elements of digitalisation? - The Municipality of Trgovište, in cooperation with the Office for IT and eGovernment, has enabled the Republic of Serbia’s eGovernment system for delegated affairs. We are exerting great efforts to raise awareness about the importance of using this system among citizens. Further plans relate to the introduction of eGovernment in areas of the source competences of the local selfgovernment and local public enterprises and institutions, for the comprehensive benefit of citizens, other institutions and businesses.

DIGITAL TRANSFORMATION

STANA ĐEMBER, PRESIDENT OF THE MUNICIPALITY OF ČOKA

BUSINESS

DIGITALISATION - A Window On The World The Sanad branch of Čoka Primary School Jovan Popović is one of 2,000 educational institutions in Serbia that joined the Digital Classroom project for pupils of the first and fifth grades

anad’s first graders attend classes in a modern way and with electronic textbooks, which they combine with classical ones, so their learning has become even more interesting, and audio and visual effects help them to focus their attention. All this was realised thanks to a competition of the ministry, which provided the funds. The benefits are many, since in this way children are also interested in new technologies. Through the Digital Classroom Project, the state seeks to modernise classes in rural schools so they do not lag behind institutions in larger cities. The Sanad branch has 84 pupils, and the school Jovan Popović has a total of 300. When you see the children’s joy because of the fact that they acquire knowledge in this way, then you are sure that as a society and a state you are going in the right direction - says Stana Đember, President of the Municipality of Čoka.

levels of government, and to participate in competitions, monitor opportunities and the like. How important is such an approach when it comes to implementing new technologies? Do you plan to compete for new digitalisation projects? - Čoka supports everything related to digitalisation. We are members of the Standing Conference of Towns and Municipalities, as well as members of NALED, we follow and support the Office for e-Government, and we will certainly participate in some future projects in the domain of digitalisation. This position is also supported by the Čoka institutions, of which we are founders. We are grateful to the ministries for every opportunity to participate in such competitions.

Attracting funds from all levels of government is one of the priorities of the local government, and Čoka will seek to participate in coming ministry competitions in the domain of digitalisation

What are the benefits of a digital classroom and how many students are interested in e-learning? How important is the fact that a small school in a small town keeps up with the modern trends? - The importance of digitalisation is immeasurable, and the Municipality of Čoka fully supports this process. That’s why we decided to compete for the funds and join the Digital Classroom project. The small school in Sanad has a large window into the world, and that is the key to all our aspirations. Although we are small and ruined, we use all the possibilities of digitalisation, which is extremely important to us. In one of the previous interviews you pointed out that, since the budget of the municipality of Čoka is modest, it is one of the priorities of local government to attract investment from all

How is land consolidation in Čoka progressing and what will the successful completion of this job mean in providing better conditions for new investors? What are the prospects for forming an industrial zone? In what ways are you trying to support existing businesses in your municipality? - Land consolidation is a serious project, responsible, but also for our municipality the only way to overcome many problems and obstacles in the life and work of our community. We started this process at the end of 2017, and today I can state freely and responsibly that land consolidation is going in the direction we intended. It is still too early to summarise the results, but it is clear that the contractor and the Commission for land consolidation have been working responsibly. Also, everything is completely transparent to the participants, which is one of the key factors in its realization. The industrial zone will be defined through land consolidation, and we are always prepared to provide space for serious investors under the legal norms. 83

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BUSINESS

BOBAN JANKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF MIONICA

We Shall Make An APP FOR POTENTIAL INVESTORS With a database of all available sites and buildings, investors will be able to acquaint themselves with the programmes and advantages on offer

fter innovation in the field of improving the offer for tourists, Mionica is planning to also promote its investment possibilities with the help of new technology.

You recently launched a tourist app Visit Mionica, which was on show at the tourism fair in Belgrade. What information can tourists access with this app? - For us, tourism is one of the primary branches of development, since we have many tourism resources and attractions, natural potential, cultural heritage apart from our accommodation and gastronomical offer. When we add to that our proximity to the capital, all conditions are filled for tourists and investment in this field alike. We are making efforts to follow the trends, so this year we have launched the tourist app “VisitMionica” for smartphones running iOS and Android platforms. This app provides an innovative and modern visual display of all important locations a visitor can see and visit in our municipality. It also generates all the important information a tourist may need at the location in question. In this way we can inform a prospective tourist about the entire tourist offer and provide services at the destination itself. Experience until now has shown that the app has a huge effect on raising the quality of service at the destination.

most modern towns and municipalities in Serbia. One of the important links of development and improvement is the introduction of information and communication technology into all segments of business. We have made a comprehensive analysis of all available locations and buildings that may be interesting for potential investors, and turned it into a database with which we plan to develop a new app intended for potential investors. Through this app, anyone interested will have a detailed display and information on the municipality itself, local economic development, industrial zones, plots for investment, available buildings, workforce and of course the programmes and benefits on offer for investors.

Thanks to the VisitMionica app, visitors can see all of the salient tourist sites and receive important service information

Are you planning similar actions in promoting Mionica as a good place to invest? Are you planning to use ICT to provide extra convenience to businesspeople and how? - Information technology is now something without which no-one in the world can imagine modern business, and its application is very important for us to stand shoulder to shoulder with the 84

How far have you come in introducing the ‘48-hour system’ in Mionica and what benefits will it bring residents of your municipality? - With the help of the ‘48-hour system’ we are trying to meet everyone’s expectations in solving all kinds of problems – municipal, infrastructure, administrative and so on. This system has the function of making the local government more effective and available to all residents and visitors to our municipality, 24 hours per day all year round. This is a high-quality model that gives positive results, and we are still perfecting it in accordance with problems in the field, the actual needs and desires of our citizens. In this way a double advantage is created: municipal residents have an open local government ready to reach out to them in a variety of situations, and on the other hand all of the institutions and municipal organs receive feedback from the field and know the best ways they can contribute to development and assistance to their fellow citizens.

DIGITAL TRANSFORMATION

ČEDOMIR BOŽIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽABALJ

BUSINESS

We're Informing Citizens ABOUT eSERVICES Through the use of various digital tools, local government officials in Žabalj strive to improve their work on a daily basis. In order to complete these endeavours successfully, they need to undergo continuous improvement

his municipality of the South Bačka District, at the very heart of Vojvodina, is progressing on the introduction of electronic services, and municipal president Čedomir Božić notes that it is very important for further progress that citizens be informed about the benefit available to them. Year’s end 2018 saw the Government of Serbia realise another major “digital goal” with the full implementation of eZup information system nationwide, with the inclusion in this system of all local government units. How are your experiences? What kinds of benefits do your municipality’s citizens gain from the exchange of data ex officio? - This information system is important to our efficient functioning, because exchanging data between all public administration bodies is conducted electronically, which is a major step in the automating of administrative procedures. All citizens – through the faster and more efficient work of our bodies – can regulate their obligations simpler and without waiting. The process of joining the eZup system required civil servants receive training and specialisation, which is also beneficial to them. I must point out that, in the implementation of the eZup system, the Ministry of State Administration and Local Self-Government provides unreserved assistance through various training courses for employees. We strive to direct citizens towards E-government through various methods, such as public informing via the municipality’s official website, but also directly, in order for them to get what they need faster and more efficiently. The impressions of citizens are positive, but I’m of the opinion that much more work needs to be done in order for the implementation of this system to be utilised in the true sense of that word.

Which areas of the work of your local government do you plan to improve through the use of new technologies? - The Municipality of Žabalj is very transparent in its functioning, and we strive to advance the activities prescribed by the Statute of the Municipality on a daily basis, primarily with respect for the laws and basic principles of the functioning of a local selfgovernment. We’re working intensively on the modernisation of our administration, through various digital tools that ease the work of staff and the general public’s accessibility to information of public importance. Alongside other segments of E-government, we’ve also integrated unique software into our official web platform that enables citizens to establish direct communication with the President of the Municipality, as well as with all departments of the Municipal Administration. The idea is to solve the problems and various administrative issues of citizens as efficiently, quickly and concisely as possible. Moreover, with the idea of improving the functioning of the Municipal Council, and based on the Statute of the Municipality, we’ve designed a municipal sub-website that relates exclusively to the work of the Municipal Council, the organising of electronic sessions and the creating of a unique electronic database containing all materials necessary for the functioning of the executive authorities – legal acts, activities, essential information etc.

We’ve designed a municipal sub-website that relates exclusively to the work of the Municipal Council, the organising of electronic sessions and the creating of a unique electronic database containing all materials necessary for the functioning of the executive authorities

How important is the education of employees to the modernisation of your work? - It’s very important. Civil servants of the Municipality of Žabalj regularly attend various educational seminars covering the areas in which they are engaged, improving their knowhow and learning new application practises in their professional work. 85

Digital Trends

Adoption Of Artificial Intelligence

To stay ahead of the curve and increase conversions in the coming years, it is needed to get better at producing custom, conversational content â&#x20AC;&#x201C; particularly audio and video content â&#x20AC;&#x201C; to share with your better-targeted audience. There is still plenty of room for mastery of these tactics, and debates still to be resolved over accountability, trust, and technologyâ&#x20AC;&#x2122;s responsibility to society at large, but the shockwaves of their disruption are slowing.

E-COMMERCE

DIGITAL TRANSFORMATION

Online Shopping TRENDS IN 2019 The future of ecommerce has arrived. And yet, many of the “new” realities are anything but. Old problems stalk the halls — where to sell, balancing acquisition with profitability, how to build an audience, and Amazon. Staying ahead of the curve is critical, but separating fact from fad isn’t easy

lectronic purchasing (e-purchasing), automates and extends manual buying and selling processes, from the creation of the requisition through to payment of the suppliers. The term e-purchasing encompasses backoffice ordering systems, e-marketplaces and supplier websites. In the emerging digital era, businesses increasingly use electronic systems for more efficient, predictable, transparent and secure management of their supply chains. E-purchasing systems provide up-to-date information on the status of buyers’ needs. They allow the establishment of an agreement with a seller to automatically ship materials when a buyer’s stock reaches a low point. This also applies to the solicitation phase where buyers can track incoming offers prior to supplier selection. Electronic purchasing provides predictability as sellers know what to expect and can review an order’s progress, often

in real time. Also, the status of the goods can be followed in real time. A product will show as having been delivered, accepted and processed for payment without the seller having to call and request information from accounting staff. Transparency and accuracy is facilitated, with data exchanged and stored electronically instead of through paper-based documents. IMPLEMENTATION GUIDANCE Setting-up and implementing an e-purchasing system demands intervention in a number of areas. Technology alone does not ensure successful adoption of the initiative. All players in the supply chain need to make necessary changes to the way they work, which requires top management commitment and support, as well as change management. Where existing buying practices and procedures contradict the objectives

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of the new initiative, implementation of an electronic system requires re-engineering of existing purchasing processes. It is very important to determine the level of integration between e-purchasing solutions and existing information systems, including the financial management system for processing online payment to suppliers/sellers (e-invoices). Performing a Business Process Analysis (BPA) may be appropriate. Furthermore, continuous measurement of the benefits delivered, through pre-identification of key performance indicators (KPIs), is vital to sustain the business case for such systems. End-users’ uptake and training are key factors in ensuring that that they will view e-purchasing as the preferred way to buy goods. E-purchasing systems require various buyers/sellers systems to have the electronic capability to exchange in-

E-Signature. Furthermore, UNECE, through UN/CEFACT, has adopted a number of relevant recommendations. In particular, Recommendation 26 and Recommendation 31 provide model agreements between trading partners for enhancing the legal security of their trading relationships. They also discuss the necessary adaptation of national legislation to favour Electronic Data Interchange (EDI) in international trade transactions, including the use of e-signatures. UNECE Recommendation 32 provides a Code of Conduct for the exchange of electronic trade documentation. Electronic procurement, usually simply referred to as “eprocurement”, is a term used in professional purchasing and e-commerce for B2B transactions – that is to say business to business. It isn’t about ordering goods from individual custom-

formation and electronic documents. This entails common standards. XML (eXtensible Markup Language) is emerging as the basis of such standards. The XML standard defines the content in communication and in the selection of general trade data format. Development of an e-purchasing system in an open environment will enable it to be linked to other systems for interoperability and this simplifies its upgrading. Because of the legal nature of order and payments, the system must have mechanisms for identifying and authenticating the user who places the order (e-signatures). The use of electronic technology in international trade transactions needs an enabling legal and regulatory framework at both international and national levels. Many countries involved in international trade have already passed legislation adapting their legal systems to the developments of electronic commerce. UNCITRAL has developed a Model Law on Electronic Commerce , a Convention on the Use of Electronic Communication in International Contracts and a Model Law on

ers, but rather communication between businesses. E-procurement isn’t targeted at private customers shopping in a web shop, but instead at companies using a digital solution to regulate purchases between one another. There are several advantages to using this modern purchasing solution, with the automation of several parts of the process saving a considerable amount of time for the

E-purchasing systems require various buyers/sellers systems to have the electronic capability to exchange information and electronic documents

companies involved. In the course of digitization, many areas within companies have changed. Back office processes in particular can be carried out more efficiently with digital solutions. This also includes purchasing. The fact that e-procurement plays an increasingly important role is also because some goods and services, such as software or web services, can only be purchased digitally anyway. In most cases, electronic procurement is based on so-called ERP systems. Enterprise resource planning systems are software solutions specially designed for companies, which support business processes and simplify merchandise management. 89

DIGITAL TRENDS

DIGITAL TRANSFORMATION

To stay ahead of the curve and increase conversions in the coming years, it is needed to get better at producing custom, conversational content – particularly audio and video content – to share with your better-targeted audience

Adoption Of ARTIFICIAL INTELLIGENCE

here are many new digital marketing trends and strategies that are evolving in the current high-tech, Internetconnected era and businesses now need to use them to succeed in their efforts because what worked for you last year may not work this year. Here are eleven key digital marketing trends for 2019. ARTIFICIAL INTELLIGENCE: Artificial intelligence will take over the world! Or at least the world’s simpler jobs. AI can analyze consumer behavior and search patterns, utilizing data from social media platforms and blog posts to help businesses understand how users and customers find their products and services. PROGRAMMATIC ADVERTISING: Programmatic advertising means using AI to automate ad buying so you can target more specific audiences. Real-time bidding or auctions, for example, is a type of programmatic ad buying. CHATBOTS: This AI-based technology uses instant messaging to chat in real-time, day or night, with your customers or site visitors. By 2022, chatbots will help businesses save over $8 billion per annum, especially in the banking and healthcare industries. PERSONALIZATION: With the availability of data like purchase history, consumer behavior and links clicked, custom content has never been easier. In fact, 96% of marketers believe that personalization advances customer relationships. VIDEO MARKETING: Live video is gaining popularity, with a large number of businesses using it for interviews, product demos and “behind the scenes” glimpses of events, life in the office, how products are made, etc.

INFLUENCER MARKETING: Influencers can be anyone from celebrities and Instagram or YouTube stars to well-known bloggers and journalists who help spread the word about your business or product through their social channels. SOCIAL MESSAGING APPS: Social messaging apps can be very useful in sending messages to customers directly, as they allow personalization (another trend) and add value to the users’ experience. You’re actually able to market to customers using messaging apps now! VISUAL SEARCH: Visual search can take the user experience to a totally new level. With visual search, users can upload an image to conduct a search and get more specific results. MICRO-MOMENTS: Micro-Moments is a “new consumer behavior,” as termed by Google, that delivers your marketing message clearly and concisely in a way that is of interest to the consumers – all within a span of seconds (otherwise, they lose their attention and are onto the next article!). VOICE SEARCH & SMART SPEAKERS: Voice search plays an important role in providing all the relevant information that people are searching for through audio content. Artificial Intelligence is getting smarter and the number of errors made by voice assistants like Alexa, Siri and Google has reduced. SOCIAL MEDIA STORIES: With the growing popularity of social media “stories,” it is important for marketers to consider this format in their digital marketing strategy. Savvy marketers can even make use of live video, one of the most profitable social rollouts to date, to promote engagement and brand awareness.

DIGITAL TRANSFORMATION

MILICA RADOVIĆ MANDIĆ AND MILICA NASTASIĆ, CO-FOUNDERS OF @ITKONEKT

World Experts ATTEND ITKONEKT CONFERENCE

MILICA RADOVIĆ MANDIĆ

BUSINESS

MILICA NASTASIĆ

The “Month in IT” project will encompass conferences in five cities, while organisers expect more than 4,000 people to participate in Belgrade alone

Tkonekt, the growing regional IT community, brings together the entire IT scene once a year in one place – at the central ITkonekt event. After 2018’s “Week in IT”, this year sees this event grow into the “Month in IT” project. According to organisers, the idea is to show the size and importance of the IT industry, as the fastest growing industry in Serbia and the Balkans. This year also sees one of the world’s most sought-after IT lecturers – Robert Martin, aka Uncle Bob – coming to Belgrade. IT professionals will have an opportunity to hear the man who invented the agile approach to software design on 13th and 14th April. Uncle Bob has been engaged in programming since 1970 and has, over the course of nearly half a century in the IT sector, published several dozen professional books and articles that are obligatory reading for IT professionals around the world, remind th organisers. In parallel with these conferences, which are intended for senior programmers, th employment fairs will also be held, in which th participation is free.

employers and the ways they do business, to see what it looks like to work at IT companies today, to have fun and win valuable prizes. Which lecturers will programmers have the opportunity to hear at the ITKonekt conference in Belgrade? - One of the most sought-after IT lecturers in the world, Uncle Bob Martin, will travel to Belgrade this April! IT people in Serbia will be able to hear his lecture in our country for the first time during the ITkonekt event at the Belexpo Centre on 13th and 14th April. This is the first time that Uncle Bob Martin is coming to our region and to Serbia. Almost all IT people in our country wish to hear this IT legend live. This is a unique opportunity for Serbian IT experts to attend the lecture of a man that has been dubbed by many around the world as the best lecturer they’ve ever heard. Given that the conference is intended for experienced programmers, we’ve also th tried to bring many other experts from the world’s largest IT companies, such as Oracle, Microsoft, Amazon etc. Interest is high, with 70 per cent of tickets already sold. th

During April, ITkonekt will tour Novi Sad (6 April, Master Centre), Belgrade (13 and 14 April, Belexpo Centre), Niš (20 April, Officers’ House) and Kragujevac (24 April, Hotel Kragujevac), and will even reach Zagreb (14th April, Hotel Sheraton)

Following last year’s “Week in IT” event, ITKonekt is this year organising the “Month in IT”. What will this programme encompass and in which cities? - During the course of this April we are organising conferences in five cities, under the auspices of the “Month in IT” project: in Belgrade, Novi Sad, Niš, Kragujevac and Zagreb. Last year we brought together more than 5,500 IT experts in three cities, while this year we expect more than 4,000 people to attend in Belgrade alone. Detailed information is available via www.itkonekt.com, and we also invite all interested parties to apply. At this ITKonekt event they will also be able to acquaint themselves with the best IT

A job fair is also being held, in parallel with the conference. Which companies have so far confirmed their participation? - Some of the companies that will be represented at ITKonekt in Belgrade include CalidusCloud, United Cloud, Grid Dynamics, Endava, Daon, GoDaddy, Quantox Technology, Saga, eFront, Avista Eastern Europe, Symphony, Holycode, Prodyna, Enjoying, LearnUpon, Tradecore and others. All of these companies have prepared special surprises for visitors. This will be a unique opportunity for all those interested to familiarise themselves with the Serbian IT scene in one place. 91

Fujitsu Representative office Belgrade; Omladinskih brigade 88b: office.serbia@ts.fujitsu.com