Tanja Kuzman, director of the Digital Serbia Initiative - Digital transformation in Serbia is hampered by lack of money and knowledge

She points out that our ecosystem faces challenges such as lack of financial resources and knowledge about new technologies. As she notes, companies are the most ready for digital transformation as they face market pressure, while in state administration there is still great potential for the improvement of numerous processes.

We also talked about the sectors leading the way in digitalization, the challenges faced by small businesses, the Serbian startup scene, but also about employment prospects in the IT sector.

eKapija: According to a global survey by the McKinsey consulting company, 90% of all organizations are undergoing some kind of digital transformation. Is that number smaller in Serbia?

- The number of organizations and the success with which they undergo digital transformation can be viewed differently depending on how we define digital transformation – whether, for example, we have really transformed the organization by introducing digital payments, or have we digitized only one of its segments?

When we look at the big picture, it seems that a far smaller number of organizations in Serbia are going through a real digital transformation which includes organizational culture, business processes and how value is delivered to users. One of the reasons is the fact that our ecosystem faces challenges such as lack of financial resources and knowledge about new technologies. The rapid technological transition and the arrival of artificial intelligence, push organizations not only to adopt new technologies, but also adapt their business models and mindsets in order to remain competitive.

eKapija: Who is more ready for digital transformation - companies, state administration or citizens?

- For successful digital transformation it is crucial that there is a synergy between the degree of digitization, the understanding of its benefits and the available resources. At this moment, companies are most ready for digital transformation because they are facing market pressure, especially if they are operating on the global market.

The state administration has taken the first steps and set digitalization as a priority, but there is still great potential for improving numerous processes.

When we talk about citizens, in formal and non-formal education, several advances have been made, children in Serbia already learn programming from the 5th grade, there are specialized IT departments in secondary schools, Makers labs are opening, as classrooms of the future in secondary schools and there are numerous support and cooperation programs with the economy.

In all these processes there are certain challenges that we need to overcome and to enable faster and more comprehensive digital transformation. What we must not ignore is the age structure of our society which is why we have to ensure the involvement of older generations and enable them to be part of the digital transition.

eKapija: Digital Serbia gathers more than 30 organizations and companies, many of which are multinational. How do they see digitization in Serbia compared to other countries?

- Our members, including multinational companies, see Serbia as a market with great potential for innovation, but they also highlight the specific challenges we face. Serbia is developing rapidly in terms of technology and our talented engineers are recognized worldwide. Many companies have their development centers right here where the most advanced products are developed. In contrast, the traditional segment of our economy and a large number of small businesses face challenges in the context of adopting new technologies, while certain segments of society are excluded from the digital transition due to lack of support. The "Digital Serbia" initiative brings together companies and organizations that have pooled their knowledge and resources in order to help that the necessary changes in certain segments take place as soon as possible.

eKapija: What is the most serious obstacle on the road to digital transformation in Serbia, and where does our opportunity lie?

- The biggest obstacle is the lack of required knowledge in traditional companies which would allow them to successfully apply new technologies, along with a lack of financial resources. On the other hand, the opportunity lies in the huge potential of our IT experts and companies which are already working on the global market and with international clients. The growth of IT sector exports this year also confirms that there is a chance on the global market that our companies have recognized and managed to address. It is important that we create synergy between traditional sectors and technological leaders in the country, because together we can create solutions that improve business processes and raise the competitiveness of the entire economy.

eKapija: Do companies see digitalization as an investment or an expense? Which industry is leading the way in digital transformation?

- Companies that think long-term and that understand that digital transformation is one of the key factors for success, they see those investments as an investment. They recognize that digital transformation enhances processes, increases efficiency, changes business models and increases competitiveness. On the other hand, companies that face challenges in their business, they see the digital transformation process as an additional expense. In a global context, industries whose business models are aimed at end users, such as the financial sector, telecommunications and retail, are at the forefront of digital transformation because innovations have a direct impact on the satisfaction and loyalty of their clients.

Milovan Milić, Tanja Kuzman, Rastko Petaković, Zoran Petrović, Dragoljub Damljanović, Saša Popović, Branko Milutinović, Jelena Drakulić Petrović, Jan Dolinaj (Photo: DSI/Branislav Nenin)

eKapija: How do you rate the Serbian startup scene? What conditions must be met for a Serbian startup`s product or solution to achieve global success?

- The startup ecosystem is still in the early stages of development with several significant changes occurring over the past five years. We have a growing number of startups who are developing the first versions of their products, new funds have been created that will finance startups in our market and there are a number of organizations that have created support programs for the early stages of startup development. Current shortcomings, which at the same time represent room for improvement, are related to the lack of global ambition of the startup founders and by slowing down their growth after placing products on foreign markets. It is crucial that products are designed from the very beginning to solve problems of global users, as well as for startups to have knowledge about the markets where they are marketing their products. In that segment, they need access to mentors and support aimed at the internationalization process.

eKapija: The US Bureau of Labor Statistics estimates that the number of jobs in the IT industry will increase by 15% by 2031. On the other hand, we`ve had waves of layoffs at major tech companies, and some estimates indicate that future earnings will be lower due to automation and artificial intelligence. Is the interest of young people in jobs in the IT sector waning in our country? What is their outlook for future earnings and job opportunities?

- Through programs like Career 4.0, where we connect high school students with business experts, we see that there is an interest among young people in working in the IT industry. In mentoring sessions they want to know more about the specific positions that exist, then how their employment in certain positions will affect their professional development and the like. In addition, they want to understand what other positions besides technical ones exist in these companies. Automation and artificial intelligence are definitely changing the labor market, but they also open up new opportunities for creativity and skill development which will be crucial in the industry in the future. Long-term success and sustainable development of our economy will depend on the generations to come, as well as our commitment to enable those young people to develop key skills through formal and informal education.

eKapija: You recently took over the position of the general manager of Digital Serbia. What will be the focus of the organization in the future?

- In the following period, the "Digital Serbia" initiative will focus on activities aimed at accelerating the development of the digital ecosystem, and on which other organizations or institutions are not currently working. Our focus will be on creating support for startups in the later stages of development, the creation of informal forms of education aimed at understanding and acquiring knowledge in connection with new technologies, and achieving a higher degree of connectivity with developed ecosystems. The presentation of our new strategy will happen by the end of this year. where we will explain in detail the specific effects we want to create.