Telecommunications & eCommerce 2023

CONTENTS

11 JOVAN VELJKOVIĆ, LOGO DOO COMPANY PRESIDENT WE GIVE MODERN TECHNOLOGIES MEANING

06 SERBIA’S DIGITAL TRANSFORMATION: A STORY OF INNOVATION AND GROWTH COMMENT

08 MIHAILO JOVANOVIĆ, MINISTER OF INFORMATION AND TELECOMMUNICATIONS WE’RE DEVELOPING INTELLIGENTLY AND PRUDENTLY

IMPRESSUM

EDITOR IN CHIEF

Neda Lukić n.lukic@aim.rs

ART DIRECTOR

Branislav Ninković b.ninkovic@aim.rs

PHOTOS Zoran Petrović

COPY EDITOR Mark Pullen mrpeditorial@mail.com

12 GORAN MEDIĆ, EXECUTIVE GENERAL MANAGER, INOVA GEOINFORMATIKA ADVANCING TOGETHER WITH CLIENTS

13 MILAN PAUNOVIĆ MscEE, GENERAL MANAGER, MOBYCORE EMBODYING VALUES AS THE ESSENCE OF SUCCESS

16 ZORANA MILIDRAG, PRESIDENT OF THE E-COMMERCE ASSOCIATION OF SERBIA (ECS) PREPARE ON TIME TO SURVIVE THE NEXT BIG WAVE

PROJECT MANAGERS

Biljana Dević

b.devic@aim.rs

Mihailo Čučković

m.cuckovic@aim.rs

Renata Šteković Zagorac

r.zagorac@aim.rs

Bojana Nikolić

b.nikolic@aim.rs

OFFICE MANAGER

Svetlana Petrović

s.petrovic@aim.rs

14 MARKO BOSANAC, PRESIDENT OF THE MONTOP GROUP CONNECTING SERBIA WITH THE REST OF THE WORLD

19 MARKO ČUČUROVIĆ, LOGISTICS DIRECTOR, CITY EXPRESS DOO SYNONYMOUS WITH QUALITY AND SPEED

FINANCE

Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR

Maja Vidaković m.vidakovic@aim.rs

DIRECTOR

Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PUBLISHER Ivan Novčić i.novcic@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica

TELECOMMUNICATIONS & E-COMMERCE 2023

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ISSN: 2560-4465

All rights reserved alliance international media 2022

The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

22 VIKTOR VARGA, BUSINESS DEVELOPMENT MANAGER, UNICOM-TELECOM GOOD PROTECTION IS PRICELESS

25 TRADITIONAL BANKS VERSUS FINTECH PROVIDERS FEATURE

28 LET SCIENCE WORK FOR US NOVELTIES

32 WHAT IS 6G & WHEN TO EXPECT IT FEATURE

34 E-COMMERCE CONTINUES TO GROW IN THE EU FEATURE

24 PREDRAG RADOVANOVIĆ, DIRECTOR, PRINTEC INNOVATION - A GREAT DRIVER

26 JIN LI, PROFESSOR OF MANAGEMENT AND STRATEGY, AND PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF HONG KONG ALIBABA AND THE FORCED RESTRUCTURING

Serbia's Digital Transformation: A Story Of Innovation And Growth

The digital transformation of Serbia is heading in the right direction, with positive developments in various sectors and great efforts exerted among both foreign and domestic players. However, there are still challenges needing to be addressed. With continued efforts and forward thinking, Serbia can further strengthen its digital economy and create a society that’s more inclusive, vibrant and prosperous

Afew years ago, the phrase “everything is heading in the right direction” was commonplace and expected in many areas of life. However, in today’s world of global and local turmoil, it’s refreshing to see that at least one important process - digital transformation - is still progressing well. This is particularly true for countries in which digital transformation and the development of Economy 4.0 represent crucial areas of their overall effort to create a more inclusive, vibrant and wealthier society. The fact that this is even true for countries starting from a modest position, like Serbia, is good news and something extraordinary.

This special edition provides us with the chance to learn a lot in this regard. Despite the global turmoil hindering the ICT sector, the Serbian government believes that this industry will continue to grow, with more people, businesses and exports set to break records in the coming years. This is indeed good news, but is also a result of joint efforts among foreign and domestic companies investing in Serbia.

The national innovation system in Serbia is expanding, becoming more complex and spreading more evenly across the country. This is tremendously important when we consider that the knowledge,

finance and knowhow were concentrated in Novi Sad and Belgrade for many years, leaving other regions lagging behind. While Serbia is still awaiting its first unicorn, it is expected that there will soon be 1,000 Serbian-born start-ups, which would be a significant achievement given that this number was estimated at be between 200 and 300 for several years. According

in the trade sector, where – according to our interlocutor Zorana Milidrag, President of the E-Commerce Association of Serbia, digitalisation and automation will soon become a question of survival.

The Ministry of Information and Telecommunications is leading two other processes that underpin this crucial transformation. The first relates to the

There is a need for more digitalisation and automation in traditional sectors of the economy, as well ethical considerations around the use of AI in public services and across the economy

to our interview with Information and Telecommunications Minister Mihailo Jovanović, we are indeed heading in the right direction when it comes to reaching more start-ups.

However, one area where progress remains fragile is in the process of digitalising and automating traditional sectors of the economy. While some large companies are moving swiftly in this direction, many SMEs are either failing to grasp this complex process or lack the strength to traverse it successfully. Workforce shortages are the main driving force for the introduction of digital solutions in almost all sectors, including logistics, administration and production. These processes will be particularly crucial

successful development of e-government services, which help both citizens and businesses receive better, faster and more accurate services. The second relates to the introduction of high-speed internet connections to Serbia’s rural areas, making these places more liveable, attractive for business and closer to all government services.

Of course, each of these processes is complex and requires a lot of forward thinking. One such issue is the ethical use of AI in public services and across sectors and industries. The government has taken considerable effort to address this concern, but more discussion of the consequences of this change is required.

We’re Developing Intelligently And Prudently

The digitalisation process has brought dramatic change to the structure of Serbian exports, but also to the daily conducting of jobs among citizens, businesses and the public administration. The Government of Serbia is continuing to encourage these trends, both in the development of telecommunications and the innovative eco-system, but also in the area of e-government

Digitalisation and education have, at the initiative of Prime Minister Ana Brnabić, been two key priorities of the Government of Serbia since 2017. This says plenty about the expectations of the state and the extent to which it recognises the digital age as an opportunity for us to position ourselves on the ICT market as a country of good opportunities, both for life and for doing business, says Serbian Information and Telecommunications Minister Mihailo Jovanović, speaking in this CorD interview.

Over the course of the past decade, We’ve made accelerated investments in infrastructure, reforms and the building of an environment for doing business, in the belief that investing in knowledge and creativity will lead us to the goals we’ve set for ourselves. That investment very quality started to yield returns, because the ICT sector became Serbia’s largest net export branch. In the last 10 years, The exports of our ICT sector, i.e., exports of our ideas, solutions and intelligence, have increased more than sevenfold over the last ten years. The export of ICT services reached a value of almost 2.7 billion euros in 2022, representing an increase of approximately 40% compared to

the previous year, while the surplus exceeded 1.5 billion euros. The ICT sector thereby became the sector of our economy that has by far the largest export surplus. Its exports were almost four times less in 2016, for example, amounting to a value of 760 million euros.

“The most recent results in 2023 also indicate a tendency for further growth, such that exports of the ICT sector in January and February were up 44% compared to the same two months of 2022. Such a result is an indicator that exports of our

ICT services are experiencing exponential growth, and we expect it to reach 10 billion euros by 2030,” says Minister Jovanović.

Despite foreign and domestic companies in Serbia having the same status when viewed from the legal aspect, what would be the primary source of such excellent export results? Is it primarily the result of the arrival of foreign investors or consolidation in the sector of Serbian-owned SMEs? This result is a consequence of both factors – the decision

of the world’s top ICT leaders (Microsoft, Oracle, IBM, Rivian, Luxoft, Cisco) to establish their own development centres in Serbia and other foreign investors who base their development on IT technologies. (Continental), but also on the emergence and growth of a large number of small and medium-sized enterprises operating in the ICT sector.

The start-up scene in Serbia is considered as having grown significantly, but we have still yet to receive our own “unicorn”, unlike neighbouring Romania,

ETHICS

New and advanced technologies often carry risks, but the Government of the Republic of Serbia leads a responsible policy that enables the further development of AI, with the respecting of all ethical principles

for example. Do you see a shift towards such a scenario?

The Republic of Serbia is slowly but surely approaching its goal of becoming a regional leader of innovation, science and technology. Over the course of the previous five years, we have constructed, commissioned and fully utilised the capacities of four science and technology parks in Belgrade, Niš, Novi Sad and Čačak, and just a few days ago we also launched operations at the new building of the BioSense Institute in Novi Sad – in the form of the European Centre of Excellence for advanced technologies in the digitalisation of agriculture. The plan is to expand the science and technology parks in Belgrade, Niš and Čačak and to build another new one in Kruševac and an Innovation District in Kragujevac. Alongside this, another 18 innovation centres are being supported by the Government of the Republic of Serbia and five more are currently under construction in Arilje, Novi Pazar, Kanjiža, Bajina Bašta and Loznica. As of recently, our county’s start-up ecosystem also became visible on global data platform DealRoom. Our young people have endlessly creative and profitable ideas. In the future we should work on better protecting intellectual property. There are also companies that are on the right track to becoming unicorns in Serbia, but that all requires time and continuous support, which the Government of the Republic of Serbia is providing. I think it’s much more important that a growing number of suc-

PROTECTION

Our young people have endlessly creative and profitable ideas. What we should work on in the future is better protecting intellectual property

cessful start-ups exist that are making appearances on the international market and are fighting against fierce competition to carve out a place for themselves. Our next goal is 1,000 startups, which should be relatively easy to achieve at the current tempo.

The Serbian state recently launched an important investment project in a high-speed internet network covering underdeveloped and less populat-

SUCCESS

The exports of our ICT sector have increased more than sevenfold over the last ten years… We expect them to reach a value of 10 billion euros by 2030

the Republic of Serbia, while it is expected that the full implementation of this project will result in 99% of villages in Serbia having internet connection speeds exceeding 100Mbps by year’s end 2025. Bringing the internet to rural settlements is important due to the availability of e-government services, the launching of businesses and the possibility for digital nomads to work in any part of Serbia. We will thereby make living conditions in urban

institutions as a great success of the Serbian Government. It is today impossible to imagine the life of citizens without services such as ‘Baby, welcome to the world’, e-NurserySchool, e-Enrolment of children in primary and secondary schools, e-Prescription, e-Scheduling for ID cards and passports, automatic verification of health cards or communication with local government via the Portal of the local tax administrations. We

ed parts of Serbia. How much can this help in the development of these parts of Serbia and in promoting the possible immigration of digital nomads who opted for areas that are preserved ecologically?

It was last December that we launched implementation of the Project to construct broadband communication infrastructure in rural areas of the Republic of Serbia, with the aim of bringing new generation network coverage to all households in Serbia. The first stage of the programme encompasses the installing of approximately 4,700 km of fibre-optic cables and will cover approximately 700 rural settlements, close to 120,000 households and approximately 730 schools. High-speed internet connections installed to date cover 75% of the territory of

and rural areas of our country equal and provide all citizens with equal opportunities to work, access education and succeed!

According to the latest United Nations report, Serbia ranks among the world’s top 10 countries when it comes to progress achieved in the field of electronic administration over the last two years, while the World Bank’s latest global report monitoring progress in the field of digital transformation ranks us 4th in Europe. What are the further strategic steps that the government should take in order to preserve and improve upon this position?

E-governance has been introduced in the right way in the Republic of Serbia and that has been recognised by citizens, businesses and international

already have 1.9 million citizens who’ve registered their personal accounts on the e-government portal ‘eGrađana’ [e-Citizen], while as many as 600,000 of them use the mobile application ConsentID, with which they are able to log in to state portals in the most secure way and use an electronic Cloud signature. We are focused on connecting e-Government with businesses, so I expect e-citizens to be able to start accessing the services of banks and telecommunications operators very soon. Likewise, it is important that eGovernment infrastructure services be placed in the function of the services of the Open Balkan initiative, such as unrestricted access to the labour market.

Artificial intelligence has started being introduced in

We are focused on connecting e-Government with businesses, so I expect e-citizens to be able to start accessing the services of banks and telecommunications operators very soon. Likewise, it is important that eGovernment infrastructure services be placed in the function of the services of the Open Balkan initiative, such as unrestricted access to the labour market

the work of public services in Serbia and has met with divided opinions. How involved is your ministry in that process, which is attracting the care and attention of governments worldwide.

Considering that the Ministry of Information and Telecommunications deals, among other things, with the development and application of information and communications technology, but also with information security and data protection, the implementation of AI in the public administration is something that we are involved in and that I believe will contribute to improving the work of the public administration, to the benefit of all citizens.

We have good practice examples from the world’s most developed countries of ways in which the implementation of AI in the public sector resolves pressing issues in various sectors, such as healthcare and energy.

In our country, we have the example of the Electric Power Industry of Serbia (EPS), which utilised machine learning to successfully predict electricity production and procurement needs with the minimal possibility of error, which results in huge savings in its operations.

Along with the use of AIbased solutions comes the question of the impact of its use on the rights of citizens, which is the main reason opinions are divided on this topic.

One of the steps the Government has taken in that direction is the adoption of ethical guidelines on the use of reliable and responsible artificial intelligence. My ministry participated in the drafting of this document, the purpose of which is to provide a framework and direct the work of all elements of the AI ecosystem in Serbia for the benefit of people, with strong

We expect 99% of villages in Serbia having internet connection speeds exceeding 100Mbps by year’s end 2025. Bringing the internet to rural settlements is important due to the availability of e-government services, the launching of businesses and the possibility for digital nomads to work in any part of Serbia

reference to the importance of protecting freedoms and rights, like the right to privacy and the right to protect personal data.

New and advanced technologies often carry risks, but the Government of the Republic of Serbia leads a responsible policy that enables the further development of AI, which is – according to the predictions of all the world’s most relevant expert and scientific groups – the technology of the fourth industrial revolution that will contribute the most to economic growth, with the respecting of all ethical principles.

The Government of Serbia adopted the Draft Law on Elec-

law, our country will introduce electronic invoices that will, by definition, be sent by the telecommunications operator, while citizens who want to receive invoices in paper form will be able to request them from their operators. With the introduction of electronic invoices, we save time and speed up the work of the operator, but we also save on paper and trees that are felled for invoices each year. This law also stipulates the obligation for prepaid mobile phone users to register, which will contribute to improving security for citizens. Citizens will have the possibility to complete this registration online in an extremely simple way and avoid queuing. Operators have 12 months to introduce the registration of prepaid users.

We heard at last year’s Telfor telecommunications forum in Belgrade that an independent commercial 5G network in Serbia is not expected to be up and running before 2025. What is the reason we are lagging so far behind the countries of the region and the EU?

tronic Communications. What are its most important innovations when it comes to citizens and companies?

The Draft Law on Electronic Communications introduces significant innovations to the Republic of Serbia’s telecommunications market. Some of the novelties brought by this law include the mandatory introduction of invoices for services provided in electronic form and the enabling of conditions under which operators can more fairly and efficiently share existing infrastructure – all with the aim of providing end users with even better and more diverse services. With the application of this

If we take into consideration the fact that over 99% of our households are covered by the mobile signal of at least one operator, and that over 95% are covered by the signals of two or even three operators, we can’t speak of us lagging behind the neighbourhood when it comes to the availability of mobile services to citizens and businesses. On the contrary, Serbia currently has better mobile signal coverage than some EU member states.

We are expecting the Law on Electronic Communications to be adopted, after which 12 months will be required to organise the 5G auction, with respect to all the new instruments that this new Law introduces.

We Give Modern Technologies Meaning

Since its very first day, LOGO has endeavoured to provide its clients with a complete range of solutions, services and products reqired by a business user. LOGO’s integrated solutions save both time and money

At this time when technologies are changing on an almost daily basis, the market is bringing new challenges that can only be handled successfully by the best. It hasn’t always been easy for LOGO either, but the company’s team didn’t give up because they are building the future in line with their vision. And speaking in this CorD Magazine interview, company president Jovan Veljković reveals just what kind of future they want.

How long did you need to become one of the region’s ICT industry leaders?

LOGO is a company that has been dedicated to its vision for a full three decades, while building a connected, smart and secure future. The modest beginnings of our founders, on foundations of core values like initiative, innovation, tenacity, excellence and integrity, have enabled us to reach the position we occupy today. With stable growth in the number of employees and the engaging of top experts, we achieved significant increases in annual revenues, which – in return – has enabled us to research and invest in new technologies.

Your innovative solutions are used in telecommunications, energy, the judicial system, education, healthcare... but that’s also offered by others, so what

Two successfully completed pilot projects on the European market represent the first time LOGO has stepped beyond the borders of the former Yugoslavia

distinguishes your company among the competition?

With a sense of pride in our knowledge, quality and expe -

rience, we design, implement and connect the communication, security and energy potential of our clients and society as a whole. With our solutions, we strive to give meaning to modern technologies. In contrast to the majority of our competitors, we have possibilites to provide our users with an in-house E2E service and solution.

On the basis of data from one of the projects, we can clearly illustrate the benefits of system integration that’s obtained through the broad scope of our portfolio. With the integrating of the technical protection system, audio system and wireless voice and data transmission system, we made it possible for our client to make a 25% reduction in the number of employees required for supervision tasks. The integration of these systems represents an important step towards a more efficient and modern way of managing facilities.

LOGO is known for its large, national projects. Have any of them stood out in terms of volume or importance? Are there any announcements of similar large jobs that are of general importance?

We are extremely grateful for all the opportunities we’ve so far had in our business. One project that’s close to our hearts is the opening of the Experience Centre at our new premises. Further to this, I would add that our colleagues have invested more than 35,000 working hours in order to realise our vision. According to a remark made by one of our longstanding foreign partners covering the EMEA region, LOGO has set up a cutting edge Experience Centre in the area of weak current. We work constantly to generate new business opportunities. From the past year, we would single out in particular two pilot projects on the European market that we completed successfully, because they represent the first time LOGO has stepped beyond the borders of the markets of the former Yugoslavia. On othe basis of one of the successful projects, we decided to make a big move: opening a company in Germany. We are ready for new challenges and have set ourselves the goal of turnover from new foreign projects exceeding ten of our revenue streams already during this year.

Advancing Together With Clients

INOVA Geoinformatika’s software solutions are used by more than 400 domestic and foreign companies, local governments and state administrations, while the company is most recognisable for its software package for planning, designing, maintaining and managing telecommunications networks and systems

Clients believe in us because our partners are the strongest global companies in the domain of technical software and databases, and because our technical support is at their disposal 24/7 - reveals INOVA Geoinformatika Executive GM Goran Medić, as well as explaining the importance of adapting solutions to the needs of users.

It was two decades ago that your company brought something totally new to the market in the form of CAD2GIS, while five years ago you also introduced BIM technology. Where is INOVA today?

- When it comes to the TeleCAD-GIS software solution that’s meant for users in the field of telecommunications networks and systems, INOVA is today recognised not only on the regional market, but rather also on the world market. By keeping pace with the accelerated tempo of the development of technology and the growing need for effective solutions in the field of telecommunications infrastructure, we work continuously to improve our software solutions, and in particular on adapting them to the demands of foreign markets.

How would you explain the fact that not a single significant user has discontinued cooperation with you in two decades?

- Our users hail from various fields and include different types of organisations, from state institutions that manage infrastructure systems and spatial planning as a whole, to construction contractors at the local level. As such, we strive to adapt our solutions to all requirements and to improve their quality constantly,

in order for us to retain existing clients and gain new ones. Throughout the entire existence of our company, not a single user has discontinued cooperation with us; on the contrary, they are increasing in number constantly. This motivates us to work continuously to advance the

solutions that we’ve have been offering to the market for 20 years already.

You are most recognised on the international market for your software package for planning, designing, maintaining and managing telecommunications networks and systems. What is the most sought after in our country?

- When it comes to client demands, the situation is similar on the territories of the Republic of Serbia and Republika Srpska. Our biggest clients on the local and regional markets are also companies that deal with telecommunications infrastructure, regardless of whether that relates to planning, designing, maintaining or managing telecommunications systems. Moreover, we have also developed solutions for the areas of transport and electric power infrastructure, because the need for that emerged in the meantime, so we also cooperate with major companies in these fields, and we view these needs as challenges to which we can respond adequately, according to all capacities.

The trust that clients have placed in us for two decades is the greatest source of motivation for our team to work continuously to improve all existing software solutions and adapt them to the requirements of existing clients and the needs of new markets that are opening up to us. Our technical support is available constantly to all users, who work together with us – through their participation and feedback – to improve our solutions. It is on these foundations that we base our development and future plans, striding towards new successes together.

Throughout the entire existence of our company, not a single user has discontinued cooperation with us; on the contrary, they are increasing in number constantly

Embodying Values As The Essence Of Success

Thanks to its uncompromising professional and business integrity, Mobycore has succeeded in positioning itself as one of the leaders of the domestic telecommunications market. Quality and efficacy are values that this company strives to represent in all aspects of its operations

We’ve so far focused on the field of telecommunications, power supply feeds and security, while we are now directing ourselves towards improving and advancing products and services, so we are developing new partnerships in that direction, the standout among which is with Chinese company H3C - announces Mobycore GM Milan Paunović in this CorD interview.

What are the core values and key advantage of your company that distinguish you among related and similar companies?

- Integrity represents an essential value of our company. Uncompromising professional and business integrity is a value that we insist on in our relations with partners, but also internally within the company, both between management and employees, and among employees themselves. Furthermore, quality and efficacy are values that we strive to represent in all aspects of our operations, which is why the market recognises us as a reliable partner. I would emphasise that the values of our company aren’t a goal in and of themselves, but rather we embody those values and that is the essence of our success.

Mobycore offers various services in accordance with the requirements of customers, including turnkey solutions. What interests your customers the most?

- Our customers are interested, first and foremost, in professional services in the installation and setting up of telecommunications equipment, project design, intervention services in servicing networks and systems, as well as in the delivery of the high-quality equipment of world-renowned manufactur-

is the essence of our success

ers that we have been representatives of for many years: NEC, Ruckus, HP, IPS, A10, HITACHI, H3C. Thanks to our cooperation with various equipment manufacturers and distributors, as well as the providing of services that can be adapted to meet the specific needs of every customer, we are always ready to respond swiftly to the requests of every customer, efficiently and with minimal costs.

You have so far focused on the field of telecommunications, power supply feeds and security. Do you plan to expand your

operations, enrich your range of products and services, forge new partnerships etc.?

- The current focus of our company is directed towards improving and advancing products and services that are already included within the scope of our product range, and we are also developing new partnerships in that direction. Our latest partner is Chinese company H3C, which offers a complete portfolio of digital infrastructure products for telecommunications operators, the government and public sector, the financial sector, healthcare, education, transport and manufacturing, as well as in energy and construction. The equipment of H3C is characterised by its high quality and fast delivery times.

What is a Telco Vehicle? For whom is it intended, what purpose does it serve and how much is it in demand?

- We designed the Telco vehicle independently and produced it in Serbia. It finds its application in wireless telecommunications networks as a quick solution for establishing a signal in mobile telephony for large events, expanding network coverage and increasing capacity, but also in the case of force majeure happenings, when it is necessary to quickly re-establish a signal. The Telco vehicle contains pre-installed telecommunications equipment for signal coverage and transmission, and it is thus also possible to assemble and disassemble it in one location during the course of the same day. This product has found its application in all mobile networks in Serbia, as well as in some networks in Bosnia-Herzegovina and Montenegro. Strengthening our market position in the region is also our current priority.

MILAN PAUNOVIĆ MSCEE, GENERAL MANAGER, MOBYCORE

The values of our company aren’t a goal in and of themselves, but rather we embody those values and that

Connecting Serbia With the Rest of the World

Montop Pro is the instigator of the project to develop the latest, cutting-edge optical telecommunications networks in Serbia, while it also participates actively in works aimed at bringing broadband internet to the country’s rural areas and its company goal is to participate in other infrastructure projects to an even greater extent

It was in April this year that we launched works and we are currently engaged in the second part of the project to construct 900 km of fibre-optic networks in 165 locations – on the geographical map of Serbia - says Montop Group presidents and Montop Pro founder and CEO Marko Bosanac, revealing how the expansion of internet connections is impacting on the country’s development.

Is Serbia lagging behind economically developed countries in terms of internet coverage?

- If we take into account the fact that only Scandinavian countries had average internet coverage exceeding 90 per cent in 2021, while Germany, France and Italy only had up to 30 per cent coverage, Serbia – with 41 per cent of its territory covered by the internet – was in the intermediate class. Our country now has 75 per cent of its territory covered by high-speed internet access, which shows that, in just two years, we’ve drastically improved the situation compared to 2021 and are currently among the leading countries in Europe.

The state administration’s determination to also position Serbia in the group of leading countries when it comes to the application of e-solutions has also been confirmed through the

We take care of planning for personnel, their professionalisation and education, as well as advancing the organisation of work and the long term sustaining of motivation

report of the World Bank, in which Serbia is currently ranked 4th in Europe. Furthermore, the United Nations has evaluated Serbia as being among the world’s top 10 countries when it comes to the development of e-government, which confirms that we are undoubtedly on the right track.

Fibre-optic infrastructure currently reaches more than half of Serbian households. Can we expect broadband internet to be introduced to rural areas in the period ahead and why would that be important?

- Absolutely – yes. The Ministry of Information and Telecommunications of the Republic of Serbia has devised a plan to

introduce high-speed internet to more than 700 villages by year’s end 2025, installing 4,700 kilometres of fibre optic cables for this purpose and connecting more than 120,000 households and over 700 schools. Thanks to this endeavour, 99 per cent of our country’s rural communities will gain internet access.

When it comes to the advantages, there are many. Introducing internet connections to rural communities enables access to e-government services, the implementing and organising of education based on the model of urban schools, and additional support for local manufacturers and farmers in the sense of enabling the use of e-commerce channels.

What do you consider as having been the most important factors in your company’s success to date, but also when it comes to the realisation of future plans?

- Our company is an active participant in the project to bring broadband internet to Serbia’s rural areas, with that project divided into three parts. We intend to remain engaged in this area in the future, but we are also nurturing ambitions to participate to an even greater extent in other infrastructure projects that are important for the development of our country, and beyond.

As the climate for doing business changes, so technologies, material resources and capital become available to us. We thus reach the basic principles of a knowledge-based economy, which clearly shows us that people who possess knowledge are a key factor of future success. We will certainly take care of planning for personnel, their professionalisation and education, and advancing the organisation of work. Last, but by no means least, comes motivation and the sustaining of that motivation over the long term. That is the only way, by taking care of employees and each other, that we can plan long-term development and raise the level of our personal and company targets and accomplishments.

ZORANA MILIDRAG, PRESIDENT OF THE E-COMMERCE ASSOCIATION OF SERBIA (ECS)

Prepare On Time To Survive The Next Big Wave

In order for you to achieve seamless e-commerce operations, it is necessary for it to be backed by a very complex and ordered system. That's why we, as the E-Commerce Association of Serbia, work primarily to educate consumers on what expectations and requirements they should have of retailers, while we simultaneously educate retailers on improving the process

We can today speak about e-commerce as a traditional sales channel, because the circumstances of the pandemic resulted in both the number of retailers and consumers reaching, over the last three years, the kind of scale that would be expected to take ten years to achieve under normal circumstances, says E-commerce Association of Serbia President Zorana Milidrag speaking in this CorD interview.

One new trend is the symbiosis of sales channels, which is why we increasingly hear the term omnichannel, in reference to the providing of a seamless online shopping and customer service experience regardless of the sales channel. Likewise, the previous trend of huge growth in e-commerce is now being replaced everywhere around the world by an e-commerce stabilisation trend and the identifying of the right ratio for each retailer in terms of the percentage of sales they want to realise through digital channels and through physical channels, explains our interlocutor.

The European standard for the participation of e-commerce among represented retailers in key markets stands at between 20% and 30%, while ever more retailers are opting to pursue digital expansion and enter new markets with just one or two sales outlets while placing their focus on digital, such that this percentage then reaches up to 90%. “When it comes to discussing Serbia’s e-commerce market, the E-Commerce Association of Serbia is currently in the final stage of mapping and creating its latest report, while official National Bank of Serbia data show that 41.9 million payment card

transactions were created online for the purchase of products and services in 2022,” says Milidrag.

This amount represents growth of 35%, or in excess of 10 million more transactions

than in 2021. The total value of completed online payment card transactions leapt 51.24% compared to 2021, which brings us to a figure of 1.2 billion euros. It is estimated that payments by card account for approximately eight per cent of the total market, according to which we reach an unofficial market value estimated at around 15 billion euros for 2022, with the footnote that this is currently only an estimate, notes our interlocutor.

Who represent the strongest and weakest links in our digital business system and why?

- People are actually both the strongest and weakest links in digital business. I believe that this sounds contradictory initially, but digital business is actually a process that is both established by people and used by people. As such, I can state unreservedly that the strongest link is the increasing understanding of the benefits of e-commerce among consumers and the fact that they can make maximum use of e-commerce for all repeat purchases or exploring the market, even if they end up making the purchase in a physical store. A question that clearly imposes itself is why someone would today spend hours seeking something in physical shops when they can do it online in just a few minutes.

On the flip side, the weakest link is also represented by people – people who still think they can do business in the same way that they achieved success 20 years ago or, even more problematic, who think they can actually equate the development of their e-commerce channel with “the neighbour’s son will create an online shop type of operation for me”. Although I advocate that digital business isn’t nuclear physics, I must say that trivialising

AUTOMATION

Automation is important not only due to sales processes, but rather also due to logistics processes. Labour force problems will only be overcome by those that automate their logistics, data and sales

digital business brings companies more harm than good. When we mature as a market and start approaching digital transformation as the most important project for the future of companies, we will then have real change and understanding for the value of this new way of doing business.

To what extent are major platforms like Ananas, Shoppster and others really on the road to becoming our veritable homegrown Amazons?

- Personally, I have great respect for people who deal with marketplaces, as a form of e-commerce business. E-commerce is extremely complex in and of itself, and when we add more unknowns to that nonlinear equation, it becomes clear that only brilliant minds have a solution. Major global companies that engage in this type of business required more than ten years to achieve profitability, while in our country these companies are additionally struggling with the educating of small retailers who sell via their channels, the harmonising of various laws due to the complexity of the system, technology and the small market that doesn’t enable the scaling up of business.

As an e-commerce association, we strive to assist them through the educating of small retailers and the ‘Karavan’ project in which we tour Serbia nationwide, together with the Chamber of Commerce & Industry of Serbia, Ananas and MtS, while we will also be joined in the future by more relevant companies. The E-Commerce Association is currently dealing with the formation of taskforces that will have several key tasks, one of which will be the amending of the law to enable even simpler operations for these kinds of new business models.

In which sectors is e-commerce most strongly represented today, and where do you see great room existing for the further development of the market?

DEVELOPMENT

Plenty of room still exists for the further development of courier services in our region, but the progress achieved in just a few years has been huge

MATURITY

When we mature as a market and start approaching digital transformation as the most important project for the future, we will have real change and understanding for the value of this new way of doing business

If we, as a region, want a competitive market, we will have to create long-term regional cooperation in a form like that of CEFTA and open up to crossborder e-commerce. The countries of the region, as individual markets, are too small for serious development and real e-commerce capacities

- E-commerce is currently most strongly represented in the sectors of fashion and technology, but I advocate the thesis that there’s nothing that can’t be sold via the internet – there are only poor presentations that cause mistrust and thus reduce one’s power to sell something. If individuals who have purchasing power today spend an average of five hours per day on their mobile phones, and the same number of hours spent browsing physical shops each month, or five hours a week watching TV adverts, the maths is clear: it is much easier to reach one’s customers via digital channels than

any other way represented to date. It’s up to you to fight for some of that attention and to convert consumers.

I expect the next big wave of e-commerce development to come in response to the inevitable need to overcome the ever-growing problem of shortages of adequate workers. We are increasingly able to see physical operations becoming completely digitalised in their processes, so they require the minimum commitment from their human resources. This way of organising is the future, but such a form of operating a business requires time to harmonise all processes, data and technology. The ones that will survive are those that prepare on time and are ready for the next big wave. I spoke prior to the pandemic about the fact that companies need to prepare themselves for digitalisation because this is a process that cannot happen overnight, and that’s how it turned out: many companies didn’t succeed in adapting to the new situation and sustained great losses due to their lack of adaptability. Automation is important not only due to sales processes, but rather also due to logistics processes. Labour force problems will only be overcome by those that automate their logistics, data and sales in a timely manner.

You believe that it is partly also due to the efforts of the E-Commerce Association that we today have a better market and better laws and infrastructure, advanced retailers and more educated consumers. How impor-

From the perspective of the ECS, what are the most important future changes to this market that you’d like to see? Are they in the domain of legislation or in the educating of retailers or consumers?

for all is essential to understanding how that background mechanism functions. A clock is just a “mirror” of a timepiece.

If we, as a region, want a competitive market, we will have to create long-term regional cooperation in a form like that of CEFTA and open up to cross-border e-commerce. Each of the countries of the region, as individual markets, are too small for serious development and real e-commerce capacities.

In parallel with the development of e-commerce, we have also seen the development of numerous courier services, both state-owned (like Post Express) and private. Alongside them, there are also global digital platforms for the delivery of food and goods. To what extent are these businesses related and how much do they contribute to the further development of e-commerce?

tant to this was cooperation with the state and how much was it down to cooperation between the actual stakeholders and their lobbying power?

- I believe that it can only be great for the individual over the long term provided that the overall situation is good. It is precisely on these foundations that the E-Commerce Association of Serbia emerged, as a body that can contribute to furthering cooperation between the private and public sectors, with the aim of advancing our market for all of us. The E-Commerce Association cooperates with businesses – both with its members and those who aren’t yet members but want to contribute to the development of the digital economy.

On the other hand, it is equally important to us that we have cooperation with all relevant ministries, and it has been demonstrated to date that this type of cooperation is essential for both parties, and we’ve always received great support and understanding. Other associations and non-governmental organisations, and the outstanding support of the media – without which we would not be able to educate the population – are also important to us.

People often think that they can’t change anything, but you’d be surprised by the power to change possessed by an individual and an organisation that actually tries to change something.

I believe that it can only be great for the individual over the long term if the overall situation is good. It is precisely on these foundations that the E-Commerce Association of Serbia emerged, as a body that can contribute to cooperation between the private and public sectors, with the aim of advancing our market for all of us

- The most important changes that we are working on as the E-Commerce Association of Serbia, together with our collaborators from the governmental and non-governmental sectors, relate primarily to the educating of consumers regarding the expectations and demands they should have when it comes to retailers, while at the same time we are educating retailers about the improving of the process. In order for you to achieve seamless e-commerce operations, it is necessary for it to be backed by a very complex and ordered system. A web shop represents a mirror of a company’s business. When some segment of a company’s business isn’t functioning, that will firstly be noticed through their web shop. That’s why education

- E-commerce, or retail sales conducted via the internet, forms only one part of the digital ecosystem. Dealing with e-commerce to the extent that you consider it sufficient merely to establish a web shop is like arranging the window display of a physical shop without sorting out the range of products or hiring sales staff, and then also putting a curtain in front of that window display. Only those who pay equal attention to addressing all parts of the digital ecosystem will prove successful in e-commerce. Delivery is one of the five key elements of the digital ecosystem. It is actually believed that those with better services in terms of delivery and payment methods will have an advantage in the future. Courier services develop in accordance with the needs of their clients, which is why we today have parcel machines and payments by card among some courier services. I must say that plenty of room still exists for the further development of courier services in our region, but the progress achieved in just a few years has been huge. Deliveries aren’t dependent only on courier services, but rather also depend on the packaging process of the vendor, the level of integration with the retailer and, of course, business volume. The customer will certainly be ever more demanding when it comes to digital, so retailers and courier services will have to work together to advance and satisfy those needs.

Synonymous With Quality And Speed

Twenty years of experience, commitment, education, organisation and innovation with just one goal - for every package entrusted to them to reach its destination. The key to City Express's success is the expertise and motivation of its staff, with a special emphasis on teamwork and a fighting spirit

Marko Čučurović talks to us about the Out of Home option, an ideal solution for a group of recipients that cannot be properly served by home delivery, but also about other trends in courier delivery, and explains what his company does to satisfy both clients and package recipients.

You were the first private courier company, the first to introduce software solutions for preparing shipments and generating reports... Always the first, always the best?

- Since 2007 we have been part of Austrian Post group, and since 2016 we have a new visual identity. We have a new logo that symbolises the strength of the parent company, shown by a postal horn and the speed of the highway. The regional recognition of our new visual identity was the basis for strengthening our position on the local market, and for harmonising the quality of services with the highest standards of the group.

Austrian Post has raised quality and introduced new services through a large investment in modernising all the company’s departments. With modern logistics software, electronic tracking of shipments, automation of package processing and constant investment in our staff, the level of service has been massively raised. That is why we can freely say that City Express is synonymous with quality and speed, the leader of the package delivery market in Serbia.

The API allows customers to quickly and easily integrate with our courier service, saving them both time and money

You are able to easily connect with clients and integrate software through API integration. Who is this service for?

- API integration allows customers to quickly and easily integrate with our courier service through software tools, allowing them to save time and money. In addition, API integration allows customers to avoid manual data entry, which reduces the risk of errors and speeds up

order processing. It also allows clients to better track their shipments, giving them greater control over their business. In short, API integration can help customers improve their delivery processes and increase their customer satisfaction, which can lead to higher revenues and better business overall.

You continuously provide new benefits to clients, which is one of the reasons for their loyalty. Can you announce any new services?

- Our main focus is on establishing diversity in our Out of Home services, with emphasis on a strong network in large cities and strong residential areas with the support of our partners – petrol station chains, retail stores and outlets with a variety of content, opening our own Parcel Shop facilities and a network of parcel machines. This is how we became number one in network density.

Although they complement each other, Out of Home networks should be seen as a new market niche, as a new network to be served, constantly attracting new users. The main advantage of the Out of Home concept is the availability of the package to the recipient even after the end of the courier service’s working hours, with the possibility of being picked up at the desired time and location. This solution is not only what the recipient needs, but there is also a solid demand for it among senders, and the plan is to soon introduce payment of the fee and transport services by payment card.

Good Protection Is Priceless

The crown jewels of any organisation are the data and resources that reside on information systems in digital form. So a modern business cannot run successfully without digital security. That is why Unicom is here, the first registered commercial centre for the prevention of security risks in ICT systems in Serbia

We easily accept all the positive sides, but unfortunately we are not sufficiently aware of the risks that these changes bring. From small entrepreneurial firms to multinational companies, almost all aspects of business rely on technology – we no longer issue paper invoices, we sign with digital signatures and we swing a digital stamp. As these processes are improved, as the level of digitalisation increases, so does the “attack surface” and the risk of abuse grows. This can have a very negative impact

Unicom has a wide range of training on its cyber exercise platform aimed at both beginners and experienced seniors in the field of IT and information security, but this is only part of what this company offers. There is a whole set of services that target the most prevalent security risks.

The development of digitalisation has brought us many benefits, but also new risks that demand a higher level of digital security. Is this one of the imperatives of modern business?

- Digitalisation has improved all areas of society so much that most of the time we are not even aware of the speed of change.

on a business, from financial losses and reputational damage to the inability to continue business.

Unicom is the first registered commercial centre for the prevention of security risks in ICT systems in Serbia. What services does your UniCERT team provide?

- Information security is a complex field, and effective protection requires the application of various technologies, suitable practices and something that is often overlooked – the availability of professional staff. Technology is very accessible today, but this is precisely the most common trap. Companies acquire a certain technology, some software, some solution that should provide protection. In practice it has been shown that this is not enough, that these solutions are often not installed and used in an appropriate way, most often due to insufficient personnel capacity.

As information security is a dynamic area, the regulations need continuous improvement

That’s why we started from the basic premise that companies need protection, not just a piece of technology. We have created a set of services (the emphasis is on the complete service), which target the most common security risks. Of course, our services include the appropriate technology for protection, but also the appropriate processes and procedures, relying on our expert team and Security Operations Centre (SOC) that is available 24/7. The SOC team provides the service of operational monitoring and reacts if it has to take appropriate measures that are beyond the reach of the technology. Moreover, our services were created with an emphasis on easy and rapid implementation, with a transparent and intuitive user interface that was internally developed according to the perceived needs.

The most important services are endpoint protection, through which computers and servers are protected. This is the most dominant entry point for attackers. Then comes e-mail protection, which protects against all attacks through the e-mail channel – from malicious programs (malware/ viruses) to e-mail scams of which there are plenty. The web application protection service enables complete protection of web portals, which combines several different technologies and protects against almost all risks web portals are exposed to.

In addition to these ‘packaged’ services, we also perform various forms of security audit, penetration testing, i.e. ethical hacking and software security testing.

Unicom, and you personally, have taken part in organising numerous cyber exercises. For whom are they intended?

- According to the ISC2 Cybersecurity Workforce Study, the average cybersecurity professional has an average of 13 years of experience in IT and seven years in cybersecurity itself. Also according to the same research, the current assessment indicates that the world lacks about 3.4 million experts in this field, and for the European continent, this shortfall is estimated at about 317,000.

Classic education and training, although necessary, can hardly replace years of working experience. Cyber exercises and training conducted on platforms for cyber exercises

put participants in realistic situations –realistic attacks in a realistic environment that they overcome on their own with the possible support of instructors. In this way, accelerated experience is gained, which is immediately applicable in practice. Participants and trainees are prepared to protect their systems and to react in the right way if incidents occur in their environments.

Unicom also participates in the formal development of strategy and regulations governing the ICT sector, especially cybersecurity, while you have personally worked on projects to improve regulations. What are our legal solutions like?

management of cybersecurity risks for all members of the European Union, and the EU Cybersecurity Act, the framework for cybersecurity certification of products and services. There is also an initiative, to form a national cybersecurity agency, which would greatly improve our capacities.

As an integrator, you build your market position not only on cybersecurity projects, but also on digitalisation of services and network solutions. Why are your services different?

- I hope it won’t sound like a platitude or like some generic mission and vision, but we approach each project and each user

- Serbia adopted the Law on Information Security in 2016 and amendments in 2019. As information security is a dynamic area, the regulations need continuous improvement. Just a few days ago, the first meeting of a working group was held to draft a law on amendments to the Law on Information Security. The new amendments should first of all ensure compliance with European regulations: the NIS 2 directive, which governs common measures for the

uniquely. We propose and create solutions that will fit into the organisation in the best way. There is no one-size-fits-all solution, but in conversation and often through long-term cooperation with users, we recognise specific needs and propose appropriate solutions. We have never gone to first meeting with a client and presented some ‘best’ solution, but our proposals and later our projects are the result of knowing the needs and the organisation. A good basis for this approach is provided by a broad partner portfolio. Even for the same technological solutions, we often work with several vendors, and in this way, in addition to always being able to offer users the most suitable solution, our team acquires a much broader expertise and a critical view of the technologies.

There is also an initiative to form a national cybersecurity agency, which would greatly improve our capacities

Innovation - A Great Driver

Printec Group has a 35 year-old tradition and is one of the technological leaders in automating payment transactions in south-east Europe. Their solutions are behind ATM cash transactions, card transactions, self-service solutions and much more

They are involved in the complete process, starting with the analysis of business requirements all the way to the implementation of the project. They provide customer support and are responsible for operating and maintaining the equipment and software they supply, and are very proud of the fact that there is no major banking institution or retail chain in the region that does not use their services.

Can you tell us more about the Printec Group?

- With its 35-year tradition, the Printec Group is one of the technological leaders in automating the execution of payment transactions, while Printec Serbia celebrates two decades of successful work this year. With more than 25,000 ATMs and 600,000 POS terminals installed in the region, it’s highly likely that you’ll withdraw cash, pay for lunch or buy groceries at one of the devices that we’ve supplied and keep running 24 hours a day, seven days a week.

Who are your clients, given that you are a technology vendor that offers complete hardware and software solutions for transaction automation, as well as outsourcing services?

- We are involved in the complete process, starting with the analysis of business requirements all the way to the implementation of the project. During production, we provide support to our customers and we are responsible for operating and maintaining the equipment and software we deliver. We combine the knowledge and experience gained on various projects in the region, which, in addition to financial stability, forms the basis for investing in the future development of our products and services, and also new business models that bring value to financial institutions, retailers and telco

We try to anticipate the future needs of our clients and invest in the development of new technologies

operators and contribute to the efficiency of their business processes. There is no major banking institution or retail chain in the region that does not use our services.

What is your recipe for success and what values does Printec support?

- We try to anticipate the future needs of our clients and invest in the development of new technologies. We want to make digital transactions safer, faster and simpler. No matter if it is a service technician who repairs an ATM on site, a programmer who implements a new business requirement or an engineer who puts a system into operation at the client’s premises, we value our staff and make them feel good in their working environment and help them improve through

specific education programmes. Mutual trust, love for the technologies that we deal with, team spirit and innovation are the values that drive us. We are responsible to our customers, to society and to the environment, and we are always looking for ways to be even better.

Will technology make our daily lives even easier?

- Imagine going out without a wallet... Whether we need cash or want to buy something, today we already withdraw money or pay for products and services using our phone, watch or payment cards, whichever is most convenient for us at a given time. As long as there is electricity and internet in the future, we will certainly not carry out transactions in a more difficult way. We expect that the digitalisation of money and the accompanying regulatory activities will guide the future experience in the implementation of payment transactions. The technology is already adapting and supporting the demands of regulators and payment institutions.

Traditional Banks Versus Fintech Providers

The global digital banking market was worth US$12.1bn in 2020 and is expected to hit approximately $30bn by 2026. It’s clear that this fast-growing, lucrative space is not just for traditional market players like high street banks anymore – but for emerging fintech providers too

Akey trend in this sector that is set to accelerate is digital-only banking accounts such as Monzo, Starling and Revolut. In the UK, 14 million adults already bank with digital only accounts, a three-fold increase since 2019 – and that number is expected to hit 23 million by 2027. Notably, 41% of digital-only banking account holders are Gen-Z adults, and nearly half of all digital-only accounts (47%) have just a £1,000 average balance.

So, what does this mean for traditional banks? Why are customers moving from an HSBC or Barclays current account to the Monzo app? The answer lies in personalisation. Challenger banks like Monzo have the agility and speed in innovation to meet customers’ needs in terms of their lifestyle choices. And even if this need constantly changes, new and emerging banks are better able to offer more that is hyper-personalised and highly appealing, such as attractive pricing and simple account opening for money transfers and day-to-day transactions. A key differentiator is their ability to provide very detailed, real-time bank balance and transfer notifications – something traditional banks cannot do as easily because of their existing core legacy systems. For many people, challenger banks offer a better customer experience and give them the products and services they need when they need them –and this is a key test for incumbent banks.

How can incumbent banks compete with digital banks?

Although fintech providers are naturally more nimble and perhaps less complex in nature, there are many areas where high street banks are still superior in the digital banking space. They have developed solid

Banks must embrace a shift in mindset to adopt a more customer-centric, technologydriven approach to deliver the hyper-personalised services that customers (especially younger customers) expect

and secure digital channels and processes and unparalleled customer service support. For instance, with NatWest or HSBC, you can speak with a banking representative about

your banking matters almost any time you need. Many of the digital-only banks offer online support only. High street banks also have the advantage of inherent trust which they can use to their advantage, as many customers have a legacy of confidence in their traditional banks.

While high-street banks have the right digital processes in place, it’s the end user customer experience that’s currently inadequate. Many of these banks aren’t agile enough to streamline digital processes like a fintech provider due to the complexity of their back-office legacy systems. To truly lead the way in digital banking and particularly make their offering attractive to Generation Z, these banks must strategically analyse what applications directly impact their customer and lift those out of the legacy core. By extracting this intelligence out of the back-office and moving it into a mid-office layer that sits closer to the digital channels for customers, banks can simplify complex operations and infrastructure and embrace intelligent technology to create the right service bundles for their customers. It will also allow them to understand how to leverage customer data to offer service-first models, just as the challenger banks do, and to stop looking at the legacy core system as a hindrance.

Ultimately, banks must embrace a shift in mindset to adopt a more customer-centric, technology-driven approach to deliver the hyper-personalised services that customers (especially younger customers) expect. If they don’t, their customers will continue to move to challenger banks and embrace their service-first approach to meeting their financial needs – leaving traditional banks behind.

JIN

Alibaba And The Forced Restructuring

Alibaba’s planned restructuring might assuage the Chinese government's concerns about its size and influence. But the move does not seem likely to alleviate antitrust concerns in any meaningful way, and there is no strong business justification for the company's chosen approach

Markets are welcoming Chinese tech giant Alibaba’s plan to split into six independent entities. The reason might seem obvious. Because smaller autonomous units appear likely to be nimbler and more adaptable, one might expect the restructuring to help to revitalise the massive company and boost productivity.

One might also assume that dividing the company will alleviate the monopoly concerns that have made Alibaba a primary target of regulators in recent years. But, as compelling as this logic seems, it is deeply flawed.

Breaking up a firm can help to stimulate internal competition if the firm has a genuine monopoly that prevents others

from exposing it to competitive pressure. But Alibaba operates in cutthroat sectors – e-commerce, entertainment, cloud computing, and logistics – where competition is fierce. As large as Alibaba is, its operations are subject to strong external pressure.

In any case, Alibaba will most likely retain significant control over the new “units”

it is creating, even if some go public. So, from an antitrust standpoint, Alibaba will still be regarded as a single entity, with the same market power it already possessed.

Expectations that the company will become more agile – a vision that Alibaba’s CEO, Daniel Zhang, repeatedly touted during a recent call with investors – are similarly misleading. Yes, smaller entities with greater autonomy can adapt to changing conditions more quickly than a single sprawling entity. But Alibaba’s planned restructuring is neither the least costly nor the least disruptive way to boost agility.

If a firm is split into independent units, resources are likely to be replicated across those units, especially in areas like computing, risk management, legal affairs, and government relations. Compliance costs will probably rise, owing to increased oversight from the board, investors, and financial regulators. Moreover, each unit will seek to advance its own interests, without accounting for the interests of the company as a whole. This may lead to incentives mismatches, causing one unit to act in ways that hurt another – or the business as a whole.

By contrast, a multi-divisional – or M-form – structure would prevent both resource duplication and the misalignment of incentives. First adopted by DuPont a century ago, and embraced by countless companies since, the M-form structure empowers division heads to make their own personnel, budgeting, and operating decisions, while corporate headquarters offer strategic direction, support, and oversight.

With full access to internal information about the operation of the divisions, the company’s headquarters can use tools like bonuses to align incentives across divisions and optimise resource allocation. A holding company is unlikely to have the same access to information about independent units as a company headquarters has about the divisions it oversees, let alone the same ability to leverage such information to optimize resource allocation.

An M-form structure offers another advantage: the headquarters can adjust the degree of different divisions’ autonomy as

business needs change. A well-functioning company should constantly adjust the extent of centralisation in response to evolving market conditions.

Alibaba’s restructuring plans would not allow for such fine-tuning. In the future, it may well become desirable for Alibaba to revert to a more centralised structure. But after it is split into independent units – and especially after some of its subsidiaries go public – responding to this need could

restructuring for Alibaba’s relationship with the Chinese government.

For any business operating in China, a good relationship with the state is hugely important. By pursuing what is effectively a “soft break-up,” Alibaba appears to be addressing government concerns about its size and influence. This, coupled with Alibaba co-founder Jack Ma’s return to China after a year overseas, sent a strong signal to the market that the firm has

Breaking up a firm can help to stimulate internal competition if the firm has a genuine monopoly that prevents others from exposing it to competitive pressure. But Alibaba operates in cutthroat sectors –e-commerce, entertainment, cloud computing, and logistics – where competition is fierce

be very costly. Alibaba’s organisational structure could thus become more rigid over time, even as its operational decision-making becomes nimbler.

If Alibaba’s restructuring does not seem likely to alleviate antitrust concerns, and there is no strong business justification for the approach it has chosen, why did the market react so favorably to the news? The answer lies in the implications of the

mended fences with the government, removing what is arguably the biggest obstacle to the firm’s continued success.

Alibaba’s restructuring might serve as a template for other Chinese Big Tech firms seeking to appease a government that fears their growth and influence. But, as with Alibaba, it could carry significant costs while failing to address fundamental antitrust concerns in any meaningful way.

LET SCIENCE WORK FOR US

Not so long ago it seemed that we were far behind the developed world in terms of technology, telecommunications, electronic commerce and online shopping, and especially in the application of artificial intelligence, but today these sectors can be considered the flagships of our country’s economic development, attracting foreign investment and European integration.

The development of science and technology has brought the world into the digital age with enormous changes in our way of doing business, and especially in the lives of those who today wonder how they got by before they could shop from their armchairs, pay bills without going to the post office or bank before high-speed internet and modern telecommunications were available. Indeed... How did we live without all that?

WHY IT’S HARD TO RESIST ARMCHAIR SHOPPING

Asked about the main reasons for shopping online, customers all over the world mention time-saving, security, speed, saving money, practicality, a broader selection and the fact that they can rapidly find and compare various offers. More than two-thirds say that free shipping would encourage them to buy more online in future. Clothes and shoes are the items that are most often bought online, bought by 65% of people, whereas 31% purchase small household appliances, and cosmetics and beauty care products.

More than 42 million cashless online transactions worth 1.2 billion euros were made in Serbia last year, and according to the National Bank of Serbia, electronic commerce continues to post excellent results. The average value of dinar transactions made via the Internet was 2,675.24 dinars, while the average transaction value in euros was 54.71 euros.

AMERICANS ARE THE BIGGEST SHOPAHOLICS AND CONSUMERS

The total value of sales to end users via the Internet is estimated at 1,471 billion dollars. Almost half of these sales, $703 billion, are made in the US as 191 million Americans shop online. Most is spent on Cyber Monday, followed by Black Friday and Thanksgiving. The market is dominated by Amazon, followed by eBay, then Walmart, Apple, Target and Best Buy.

American customers spend an average of 2,000 dollars a year, Germans spend a few tenths less. The French spend about 1,400, the Dutch about 1,000, Swedes about 900 and the Italians and Spanish about 800. An interesting trend that is accelerating, especially around the holidays, is click-and-collect: ordering online where the customer picks up the product from the shop.

FINTICIPATE GATHERS LOCAL AND FOREIGN EXPERTS IN JUNE

On 15th June this year, the second Finticipate will be held at the Zemun Madlenianum. This is a unique FinTech event, a place for discussion and a centre for the exchange of ideas for FinTech, banks, neobanks, financial experts, public sector investment funds, private equity investors, VC, consultants and lawyers, futurists, technologists and innovators who want to contribute and help shape the future of finance.

The main panelists will be Jorgovanka Tabaković, Governor of the National Bank of Serbia, Dragana Stanić, Deputy Governor of the National Bank of Serbia, Piotr Jan Pietrzak, Director of International Development for Non-European Markets at BLIK, Tanja Dimitrijević, Head of the Legal Red Acre Group...

The panels will discuss FinTech trends and challenges that need our attention, the impact of the latest financial crisis on financial markets and FinTech, regulations that will define the functioning of FinTech in the future, security threats and many other current issues in the field.

FIVE TRENDS THAT WILL DEFINE FINTECH IN 2023

According to expert predictions, but also according to this year’s first results, it is estimated that the FinTech industry will see accelerated development and improvement and jump to 174 billion dollars in 2023. For this reason, they singled out five trends that will define the future of the FinTech industry and that will make our lives simpler, and less stressful.

AI and ML: The first trend that will undoubtedly shape the future of FinTech is artificial intelligence (AI) and machine learning (ML) as they improve banking, payments, investment, risk management and a lot more. FinTech companies can use both technologies to automate loan approval or fraud protection while providing more accurate insights into customer behaviour. By using these tools, businesses can reduce costs while increasing accuracy and efficiency.

Built-in finance: This term describes a broad category of financial services and products that can be used in a specific framework or platform. Users can better manage their finances without switching between several apps or websites when these services are built into an existing app or platform. The best example of this is the “Buy Now Pay Later” service, the fastest growing embedded financial model in the world.

SaaS: With SaaS services, companies can access and pay for software applications hosted in the cloud without having to install them on their own servers or computers. This eliminates many of the associated overhead costs and allows organizations

EUROPE IS CHASING SOUTH KOREA, SERBIA IS STUCK IN THE PAST

In the 2022 European Mobile Economy Report, GSMA pointed out that 34 markets in Europe had 5G, with 108 operators offering commercial services and a user share of about 6% of the total number of mobile service users. Average 5G penetration is estimated to reach 44% by 2025, with the UK and Germany expected to lead the way with 61% and 59% respectively, although they lag behind global competitor South Korea, which is estimated to have a penetration of 73%, with the U.S. and Japan at approximately 68%.

Although the commercial introduction of the 5G network in Serbia was planned for 2022, our country is still one of the few European countries that will not have it this year either.

In our country, 5G frequencies have not yet been allocated, and some domestic operators have stated that they are keenly awaiting the state’s decision. However, although there is active talk about the benefits of 5G and its impact on the economy, accelerating the digital transformation and improving life, there is no clear indication at the moment that full-scale 5G will reach us in the near future.

to focus their resources on developing the user experience. In addition, using SaaS provides access to powerful tools with enhanced security protocols for data storage and management that would be difficult or expensive for individual firms to implement.

Open Banking: Open banking is a financial technology that allows customers to securely share their financial information with third parties, offering them greater control and flexibility over their finances. It offers benefits for customers and opportunities for businesses to access new markets, create innovative products and services, and increase efficiency through data sharing.

Blockchain: Blockchain is a digital ledger that records and verifies various types of transaction. It enables individuals, organizations and machines to securely transfer digital assets without relying on any central authority or third-party intermediary. This decentralisation means that blockchain technology can be used for a variety of financial applications, such as payments, transfers and trading.

THE GREY ECONOMY IS ALSO MOVING TO THE INTERNET

Electronic commerce in Serbia is experiencing double-digit growth, so it is assumed that by 2027, around 4.5 million citizens will use these services. The authorities are expected to take all necessary steps to mitigate risks and find suitable answers to the many challenges. From the state and its bodies, shoppers expect protection against fraud, fair market operations, protection against the growing illegal trade on the Internet, improvement of the legal framework and development of the market based on principles of fair competition.

The number of unregistered merchants offering goods over the Internet is increasing, so consumers are advised to inform themselves about the seller before ordering and paying for goods by checking the company registration number, tax number,

email, and contact phone number of the seller. Advertising on the Internet is also a serious problem, because natural persons who do not have the status of a trader offer and sell goods. Experts advise that it’s best not to buy anything from natural persons, among other things because they don’t pay taxes, contributions and other fees, they hurt legal traders because they create unfair competition and they can endanger customers because fraudsters are difficult to find and punish.

ALL SCHOOLS IN SERBIA WILL HAVE HIGH-SPEED INTERNET

The Broadband Communication Infrastructure Development Project is introducing high-speed internet in 700 rural settlements and villages in Serbia. Almost 120,000 households and 700 schools will be involved and 4,700 kilometres of fibre-optic routes will be built. By June of this year, all schools in Serbia will be connected to high-speed Internet, and by the end of 2023, the Connected Schools project is expected to be completed.

Thanks to fast internet, everyone in Serbia will be able to use electronic administration services, including eAgrar, digital teaching, the Internet in rural schools, the possibility of starting their own business in villages and multimedia content such as television and landline telephony.

The development of broadband infrastructure in rural areas of Serbia is one of the largest capital projects of the Ministry of Information and Telecommunications, which will cover more than 99 percent of households with new generation networks by the end of 2025.

What Is 6G & When To Expect It

With 5G networks still being deployed around the world and many areas of the globe still using 4G and even 3G networks, it seems a bit early to throw around the term 6G. After all, what use do we have for 6G networks when relatively few people can even use a 5G network?

That said, technology always pushes forward and standards take a long time to mature, so we’ve always been on a path to a 6G world. If anything, the idea of 6G this early in the development of 5G simply indicates how quickly this technology moves forward. We’ve managed to go from 1G to 5G in such a relatively short amount of time, so 6G is just the natural progression towards faster and better wireless connectivity.

Although 6G would make sense as the successor to 5G, it may actually never be called “6G.” If not something like 5G Enhanced or 5G Advanced, we might one day stop with

all the numbers and names and just say that we’re connected.

Ultimately, whether it’s with 6G, 7G, or another “G”, we’ll have such incredibly fast speeds that no progress bars or wait times will be required for any normal amount of data, at least at today’s standards. Everything will just be available...instantly, and we won’t need to keep making new terms to describe it.

WHEN WILL 6G COME OUT?

It’s been typical for a new mobile network standard to take the spotlight every decade or so. That means 6G networks might roll out sometime around 2030 (or even a bit earlier

in Asia and other areas that were first to introduce 5G), or at least that’s when most telecom companies will be running trials and when we’ll see phone manufacturers tease 6G-capable phones.

However, it’s common for work to start as long as a decade prior to any real implementation of a new network technology, which might be why you’ll start hearing about 6G before you even have your hands on a 5G phone!

Progress won’t start and finish overnight, though. For the same reasons 5G rollouts are slow, 6G networks won’t come out as quickly as we’d like. There are frequency bands to debate over, spectrum licenses to purchase,

physical towers to build and coordinate, and rules to deal with.

Despite 6G being less than a decade away, few companies are actually looking into it seriously right now, but 6G experimentation is expected to really kick into high gear as we identify where 5G fails. The next network type will improve on the inevitable weaknesses and limitations of 5G, so it won’t take long for the powers that be to start deciding what to do next.

We’re already destined to have more powerful VR and AR systems with 5G, plus interconnected smart cities and farms, AI at our fingertips, intelligent robotics working in factories, autonomous cars with vehicle-to-vehicle (V2V) communication, and more. 6G will continue to support all of those areas with greater strength, while also providing even more bandwidth that will ultimately expand innovation even further, maybe into fields we haven’t tapped into yet or even considered. Think more immersive experiences and life-like, hologram video calls.

For example, Marcus Weldon of Nokia Bell Labs, says that 6G will be a “sixth sense experience for humans and machines” where biology meets AI.

Japanese phone operator NTT Docomo predicts 6G will enable the “sophistication of cyber-physical fusion”, which that document claims will be required in the 2030s. This will, according to them, make it “possible for cyberspace to support human thought and action in real time through wearable devices and micro-devices mounted on the human body.”

HOW COMPUTERS COULD SOON INTERFACE WITH YOUR BRAIN

Healthcare will no doubt change with 6G as well. Here’s an example, according to 6G researches, of what a morning could be like with 6G in the home:

As an 80-years plusworld citizen, my limbs will sometimes work and sometimes not. But I know that I would still like to manage on my own. Maybe I want to stay a bit longer than usual in bed this morning, and instead of needing to call for my care worker, I can simply think and my 6G-connected exoskeleton will arrive seconds later, communicated via think.

Much of what makes 5G so great is its low latency of around 4 ms, but 6G networks

might bring this down even further, maybe even to the point that we can safely say there’s virtually zero latency. The start time for movies, TV, and games will be limited only by how long it takes the screen to power on, and video calls can be as crystal clear as standing in front of the other person.

As we’ve seen with prior network technologies, as the capacity of a network increases, so too will its applications. This will cause an amazing effect where new products

in question. We might see several hundred gigabit per second speeds, or even ranges in the terabytes. Samsung Electronics tested 6G tech at 50 times faster than 5G.

As for how 6G will be faster than 5G is still up in the air, but we can assume it will involve using ultrahigh frequencies (millimeter waves) of the radio spectrum. 5G’s bandwidth capacity lies in the fact that it uses high radio frequencies; the higher you go up the radio spectrum, the more data you can carry. 6G might eventually approach the upper limits of the radio spectrum and reach extremely high frequency levels of 300 GHz, or even terahertz ranges.

However, just like we’re seeing now with the ultra-fast 5G networks variants being extremely localised due to the inherent limits of millimeter waves, the same problem will be seen in 6G networks. For example, the range of terahertz radiation is around 10 metres, which is much too short for significant 6G coverage.

5G intends to make the internet more accessible for lots of people and improve everything from entertainment to healthcare. Whether those areas will have room for improvement beyond 5G—and thus require the use of something better, like 6G—is a resounding yes

and services can be built to utilize 6G’s bandwidth and other improved features to their fullest extents.

6G VS 5G: WHAT ARE THE DIFFERENCES?

Speed and latency will be the clearest distinction between 6G and 5G. This is what separates 5G and 4G in terms of performance, so we can also expect 6G to be magnitudes of times speedier than 5G.

If early targets are eventually met, 6G networks will supposedly have 50-100x the capacity of 5G networks. Also, where 5G must support 1 million devices for every square kilometer, 6G is proposed to support 10 million devices.

How fast will 6G be? There’s no telling right now, but even with 5G, we’re seeing speeds of up to 1 Gbps in ideal circumstances. 6G will absolutely top that, but how much is still

Perhaps by 2030, we’ll have developed new ways to amplify signals far enough to avoid building thousands of new 6G cell towers. Or maybe we’ll have found better methods for transmitting huge amounts of data, like these researchers who, in 2022, used a new kind of transmitter that created focused beams (vortex millimeter waves) to carry more information; 1 TB of data was moved in a single second.

DO WE REALLY NEED 6G?

5G intends to make the internet more accessible for lots of people and improve everything from entertainment to healthcare. Whether those areas will have room for improvement beyond 5G—and thus require the use of something better, like 6G—is a resounding yes.

However, as fun as it might be to imagine a time when 5G is considered slow and 6G powers the world, if 5G pans out correctly or slowly evolves under that same term, we might never need to come up with a new next-gen network.

The 6G concept could be avoided as long as manufacturers, regulators, and telecom companies keep improving 5G. If all of 5G’s pitfalls could be addressed on a frequent basis, new products could continuously flow into the market to take advantage of the ever-changing and constantly evolving new technology.

E-commerce Continues To Grow In The EU

In 2022, 91% of people aged 16 to 74 in the EU had used the internet, 75% of whom had bought or ordered goods or services for private use. The proportion of e-shoppers grew from 55% in 2012 to 75% in 2022, an increase of 20 percentage points (pp).

The highest shares of internet users who bought or ordered goods or services over the internet in 2022 were recorded in the Netherlands (92%), Denmark (90%) and Ireland (89%). On the other hand, fewer than 50% shopped online in Bulgaria (49%).

B etween 2012 and 2022, the growth was particularly significant in Estonia (+47 pp), Hungary (+43 pp), Czechia and Romania (+41 pp).

Clothes, shoes and accessories: most common online purchase

T he collaborative economy opened up a new way of exchanging goods and services through digital technologies.

In 2022, among internet users in the

EU, 21% used collaborative economy platforms to order or buy physical goods from other individuals, while 6% rented accommodation, 1% used a transport

service and below 1% ordered household services via such platforms.

Individuals aged 25-34 years and 35-44 years had a higher-than-average propensity for buying goods from other private sellers in 2022 with a share of 29% of internet users each.

The importance of online platforms to book, for instance, rented accommodation was recently also observed via the experimental statistics on this topic, showing booking levels in 2022 that exceeded the pre-pandemic years, whereas tourism in more traditional types of accommodation was still lagging behind slightly.

In 2022, the most common online purchases of goods were clothes (including sports clothing), shoes or accessories (ordered by 42% of internet users). Following wearables, the top five most common online purchases of physical goods were completed by deliveries from restaurants, fast-food chains and catering services (19%), cosmetics, beauty or wellness products (17%), furniture, home accessories or gardening products (16%), and printed books, magazines or newspapers and sports goods (excluding sports clothing) (both 14%).

Purchase of physical goods exceeds demand for services