Digital business transformation is a relatively new term in the domestic market, which is currently very much talked about, but still, there is little knowledge about the same. What it implies and how it can contribute to the sustainable development and growth of companies in the digital age and what are the steps for successful business transformation are revealed by Marija Raseta Vukosavljevic, CEO of TeleGroup Montenegro. This company is already a quarter of a century engaged in the integration of technology and business, and from 2013, it helps business users to connect, digitize, automate and protect their business most optimally.

Companies around the world, including Montenegro, are faced with the challenges of digital transformation. What does it really imply and what is the biggest challenge facing companies in the 21st century?

Digital transformation is indeed a relatively new term in the domestic market that is much talked about, and there is little knowledge about or an even better understanding of its essence. People often put the sign of equality between digitization and digital transformation, which is incorrect and can point the company in the wrong way. By introducing ERP or CRM you have not transformed your business, you have somewhat improved the way you work and automate certain processes, which is essentially a digitalization process. On the other hand, the multilayer process that implies adapting your business model to the digital age where interaction with the customer and creating value for the user, I dare say, is digital transformation. One would say, what is this change in the mode of work compared to ten or twenty years ago when it is logical that the user is always in the foreground?! The difference is enormous, in my experience.

We live in a world where the user dictates the game - wants the best possible service or product at the best price with the utmost convenience of consumption. Customer reviews on our products and services have a much greater impact on the public than ads of the brand itself. In order to survive, it is necessary to create this new value for the user. Companies often glorify their own products and think that the previous success is guaranteed and because of this, a priori do not want to change anything in their business. Because of this way of thinking and business based on the principles of the economy of the past century, companies risk their survival. Is there a bigger challenge?!

 Which are the most important steps for successful business transformation? Do companies need help in this process, or they can do it all by themselves?

There is no universal manual to become a modern company from a conventional one in a few steps. One of the most important things in this process is the ability of companies to create a new value for the user, to quickly change in accordance with the characteristics of the contemporary market and to put their ideas on the test through continual communication with users, because they are the only ones competent to verify ideas no matter if they are about creating a new product, service or new way of delivering it. Many business theorists will say that only startups can make worldwide tectonic disturbances on the market. However, the facts deny this. There are a number of good examples of companies that have emerged in the pre-digital era, and timely understood the rules of a new market game such as General Electric, Toyota or, say, the Britannica. They started, at the right moment, the process of transforming the business model to provide to the user, who is more demanding within the spheres of digital technology, additional value for the money invested.

This process is not easy. It is most difficult to change the awareness of people in one organization. On this path, the companies above had the help of a consultant whose task was to revive the entrepreneurial way of thinking, the one who brought them success at the beginning of their work. Today, within the TeleGroup system, we have a team of innovators that are made of certified digital transformation consultants. Our mission is to help companies, regardless of their size and business, to provide new growth paths through the innovation of products, services or a complete business model that is in line with the 21st-century economy principles. We believe that this is a chance for the growth of the domestic economy. 

Digital technologies are a driver of innovation. How much is the Montenegrin IT market up-to-date in terms of tracking technological trends and introducing innovations and how it is positioned in relation to the countries of the region?

The IT scene in Montenegro, like most countries, is directly dependent on economic and business conditions, so it can be said that in Montenegro, with little delay, there are developed and provided services at the regional level. With the development of the economy and its need for further progress, the domestic IT sector is working to innovate its own bidding and develop tools that will enable companies to work more efficiently while reducing operating costs. However, much more state support is needed in terms of creating formal prerequisites mostly from the aspect of regulation, in order to allow undisturbed work to organizations within the digital economy. If you look at what has happened in China for the past 10 to 15 years, if you look at how much economic growth has been achieved through services driven by modern technology platforms, it is clear to you that this is the time that gives everyone a chance to make a revolution. Because, as Erik Ris says, innovations are not reserved for some sort of chosen circle of people, but the ideas that change the world are often hidden in the most unexpected places.

Specifically, Montenegro has high-tech companies and is experiencing growth in the domestic IT sector but faces a serious lack of professional staff. Our talented IT professionals of all profiles go abroad where they are offered much better conditions not only for earnings but also professional training. One way that the domestic IT industry is advancing and retaining quality people is to develop its own innovative products that will have a greater share in overall growth compared to outsourcing services. This is a creative part of a job for which young people go overseas and which can bring companies a dazzling success, and production on order itself cannot be such for sure. That is why we are delighted that in Montenegro, there are innovative technology startups which are trying to make that difference.

It is also necessary to support both the state and the economy in order to develop a home-grown startup ecosystem, and young people to get the chance to make great things in the country where they were born. One of the positive examples is the Association of Montenegro Managers, which through all its activities, especially through the Digital Transformation Board, is trying to foster innovation and a new business perspective to make everyone achieve more.

Through the development of IPTV platforms and innovative TV applications, the company TeleGroup has shown that telecommunications operators can provide sustainable development in the digital economy era where the end user dictates the game. What kind of innovation is this?

I will give you an example of one Telekom operator in the region who has decided to expand its portfolio and offer enhanced IPTV services to keep the lead position in the target market. What did we innovate? We have been working on innovating digital television services. First, we responded to the primary user request and implemented the most up-to-date IPTV multiscreen platform that allows consumers to watch video content on any smart device. But in that process, we have gone a step further. Along with their video team, we've been thinking about what video services are going to make them more competitive than other operators in the region.  

After a thorough analysis of the current state of the market for IPTV services in the region, the ability to experiment and test new ideas quickly, we have developed innovative TV applications that enable citizens to surf on favorite social networks on ordinary TV and then buy TV packages while sitting in the armchair without going to the branch office and modify the subscription model, record and watch missed TV content up to 72 hours back, have a video, mosaic channels, watch the news and favorite sports forecasts and other similar things the user used to have on his smartphone, and now that same experience and the ultimate multimedia experience on their TV. As a result, our client has gained steadily the number of new users, thus we as a technology partner fully responded to the requirements and helped create this new value for the user.

Cybercrime is a much-talked-about topic and we agree it represents a severe challenge to the world's largest companies. Hacker attacks are getting more and more common and the impression is that companies in the digital era face the challenge of preserving the security of their information systems and keeping their data safe. How can TeleGroup company respond to these challenges?

Information security is facing a huge challenge in the 21st century. The motives for attacks are increasing, and how hackers come to data and how they use them to gain their own interests are more and more creative and innovative. And despite black statistics and publicly available data on how many economies are losing ground around the planet due to unauthorized intrusion into systems, there are still many companies in the region that do not invest in protecting their business. People are fooled and think that t it will not happen to them, they are unaware that just as these thoughts go through the head, the hackers are messing up with their emails or websites or business applications …

We fight each day against the attacks, and we are not a global corporation. I particularly highlight this due to the small and medium-sized companies that are irresponsible in relation to this reality. We live in a connected world and preventive security strategy is the first and most important step that every smart company is undertaking. Therefore, this is the first thing we work with the customers - or we're starting it from scratch or the existing “cybersecurity strategy” we bring to the level of today's frames. After that, we are designing and implementing "cybersecurity" solutions that will drastically reduce security risks and provide maximum protection at the user's network level, data, and the most important applications, because the biggest risk today is right here - in the world of business applications.

Nobody and I underline absolutely nobody can guarantee that you will fully apply the latest technology tools to completely protect your business. Unfortunately, along with the technology development are also growing the security risks that need to be understood and to have the ability to manage them.

Text by Promo, on June 13th, 2019, read more at Vijesti

12 June 2019 - In the four months of this year, banks have granted loans in the amount of 2,95 billion EUR in total. It represents a 2,7% decline at a monthly level, indicates the data of the Central Bank of Montenegro, as reported by Cafe del Montenegro.

The amount of the granted loans is 4,3% higher in comparison to the first four months of last year. As far as the deposits are concerned, they declined by 3,2% in April in comparison to March and amounted to 3,32 billion EUR. At an annual level, deposits increased by 1%.

“There has been a decline in deposits at the monthly level since Atlas bank has been excluded from the records,” explained the representatives of the Central Bank of Montenegro.

If deposits of Atlas Bank are left out from the total deposits in April, the savings increase at banking system level amounts 7,6% annually.

“Time deposits make up 32,3% of the total, whereas demand deposits made up 67,6%,” stated the Report generated by the Central Bank of Montenegro.

In mid-May, the Central Bank of Montenegro reported that thirteen banks that operate in Montenegro (apart from Atlas and IBM that went bankrupt) were in the plus 14,3 million EUR at the end of the first quarter. Every bank has made a profit except for Nova and Zirat. Universal Capital Bank had the biggest increase in profit. In comparison to the same period last year, its profit has increased by 13 times.

Banks have earned a total of 33,4 million EUR based on interests and 8,3 million EUR based on fees and commissions. Erste Bank has made the highest profit in three months – 2,4 million EUR. It has earned 5,5 million EUR based on interests and 579.000 EUR based on fees and commissions.

Read more about Business in Montenegro at TMN's dedicated page.

The custody department of the NLB bank from Podgorica, which controls the hidden owners of shares from the portfolio companies ZIF Eurofond, should in the next few days, on the demand of public notaries, block the remaining shares of this fund in favor of disagreeable shareholders to be offered for sale at the Stock Exchange in the process of execution of the several court judgments. NLB Bank is, in other words, the depository bank of ZIF Eurofond, which since December 2015 did not fulfill its legal obligation and paid disagreeable shareholders. 

Among the most valuable shares that will be the subject of the sale, in the process of compulsory billing, there are majority shares of the funds of Solana "Bajo Sekulic" from Ulcinj and Izbor from Bar.

These are the shares from the portfolio of funds that have been pledged to the bank Alpinum AG - Vaduz from Liechtenstein a few years ago, as means for securing loans withdrawn, as confirmed by the Capital Market Commission.

Public executives Aleksandar Boskovic and Aleksandra Tomkovic Vukoslavcevic have made three decisions on the execution of two court verdicts to settle 28 disagreeable shareholders of ZIF Eurofond, which, according to final verdicts, amount to a total of about EUR 1.15 million.

In an earlier communication with the custody department of NLB and representatives of the Central Clearing and Depository Company (CKDD), the notary Boskovic was unable to immediately sell the remaining Eurofund shares because he received an answer that the fund is not their owner.

Last week, NLB representatives finally admitted that the remainder of the fund's shares is in the hidden aggregate account number 8 right in that bank and that they will respond in writing to this notary’s request "in two or three days" which has not happened to this day.

Ulcinj’s Solana is the beneficiary of over 13 million square meters of land in the hinterland of Velika plaza in Ulcinj.  Izbor is a company from Bar which owns real estate in Bar, Podgorica and Cetinje. Out of the 161 disagreeable shareholders of ZIF Eurofond, about 70 of them had sued the fund a couple of years ago. The disagreeable shareholders initially demanded about €5.8 million. 

Boskovic: Interest rate is still being calculated 

The notary Boskovic told “Vijesti” that the procedures are in the process of obtaining accurate data on the quantity and type of actions owned by the executive debtor - ZIF Eurofond, which are registered with the CKDD. "In the course of the proceedings, the notary has taken all actions within his jurisdiction in order to enforce the collection of claims, recording the execution for all shares owned by the executive debtor. Execution decisions that, among other funds, were also executed on the shares of the executive debtor, were made in January and February this year. At this point, it is not possible to provide accurate information on the value of claims of executive creditors, since the solutions are determined by execution and to charge the interest rates calculated from the due date until the final payment, which remains uncertain. The sale of the shares that are the subject of the execution is carried out through an authorized shareholder on the stock exchange, after obtaining the amount and value of the shares. Also, I appreciate that by providing information on the identity of executive creditors and the number of their claims, the personal and economic interest of the participants in the proceedings could be jeopardized, protected by the Personal Data Protection Act," Boskovic stated.

Text by Milorad Milosevic, on June 12th, 2019, read more at Vijesti

Former Director of Invest Bank Montenegro Enes Kurpejovic is the chief candidate for the future executive director of Montenegroberza, as "Vijesti" unofficially finds out from several sources at the top management of the Atlas Group.

Kurpejovic has been working for Montenegroberza for a month as a deputy director, and the mandate of the current acting director Mirko Markovic is due to expire on July 15^th this year.

The Board of Directors of Montenegroberza decided in the first half of January this year, after the implemented but not realized tender, to decide on the further selection of directors and secretaries of this joint share company, and for the acting director of the company appointed Markovic, a graduated computer engineer who is permanently employed at the stock since 2011.

Kurpejovic did not even take part in this tender for the election of the new executive director and secretary of Montenegroberza, where as many as 15 potential candidates applied.

Sources of "Vijesti" claim that the new deputy director of stock exchange enjoys great confidence in the President of Atlas Group Dusko Knezevic, whose several affiliated companies together with MNE stockbroker agent Aco Aleksic, mostly control stock market management.

The Board of Directors of the Stock Exchange subsequently took the position not to publish publicly the names of the candidates who applied for the last year's ad.

Potential candidates interested in submitting, as stated in the advertisement, "apart from their personal reputation and professional ability, were required to have higher education (with a minimum of 240 CSPK credits) and that under the provisions of the Capital Market Act (Articles 153 and 154) do not have any restrictions on their appointments".

This tender preceded the resignation of Gojko Maksimovic, former director of Montenegroberza, at the beginning of December, who has been employed at this position since 2011.

Text by Milorad Milosevic, on June 12th, 2019, read more at Vijesti

12 June 2019 - The Montenegrin Employers Federation will send an initiative to examine the Law on Internal Trade, which envisages the introduction of a non-working Sunday for retail and wholesale, to the Constitutional Court, reports Dnevne novine daily. The Advocate for Legal Affairs and Social Dialogue in MEF, Filip Lazović, stated that the amendments to the Law, about which two days ago the ministers finished the debate, violated the body of economic rights.

"We believe that the Law will soon be the subject of constitutional review, that is, a constitutional initiative will soon be sent. In Croatia, the Constitutional Court abolished this law three times, for similar reasons, which is likely to happen in Montenegro. We really anticipate this as a real possibility," said Lazović.

He added that the official stance of the Union is that the process of adoption is not good because the economy is not consulted, and the law is very much connected with the economy within the country.

"We consider the changes to be problematic both from the aspect of large trading systems and from the aspect of the small ones. The Montenegrin economy consists of 95 per cent of small and medium enterprises. We can observe the negative effects that the adoption of the Law will bring in the future, especially since we have strategically decided that tourism is our main industry. The question arises as to whether we can afford the luxury to deny huge traffic that takes place on Sundays, which is affected by numerous tourists on the coast and in the north," Lazović pointed out.

According to the Ministry of Economy, the provision relating to the introduction of the non-working Sunday will begin to apply three months after the entry into force of the Law, in particular in autumn. The reason for the postponement of the application, as they explained, is to leave the space for employers to organize and harmonize their business in relation to the changes that should be adopted by the Assembly soon.

Judging by the comments of the ruling coalition and part of the opposition parties, it is expected that amendments to the law will be adopted. The draft defines that apart from the established exceptions, all stores will have Sunday as a day off. Economy Minister Dragica Sekulić pointed out in the Assembly that the Government clearly defined the exceptions without the possibility of expanding them. This means that shopping malls, including Delta City (Podgorica) and Kamelija (Kotor), to which the Ministry has refused an exemption request, will be obligated to introduce non-working Sundays.

On Sundays and holidays, as specified, wholesale and retail trade can be performed in pharmacies, specialized stores or stores that sell bread, bakery products and cakes, flowers, souvenirs, prints, plant protection products or funeral equipment, gas stations or retail stores within the gas stations, as well as in markets, stands, stalls, showcases and machines outside the market and mobile shops. The amendments to the Law stipulate that employers who violate the provision and open their stores on Sundays may be fined between 1,000 and 10,000 EUR, and the Law also foresees the closing of these stores.

Read more about Business in Montenegro at TMN's dedicated page.

10 June 2019 - Prime Minister Duško Marković recently hosted representatives of EasyJet, EasyJet Holidays and Karisma Hotels & Resorts. During the meeting, it was noted that Montenegro is an attractive tourist destination which has enormous potential for further development and growth, which is a great opportunity for airline companies such as EasyJet.

"The Government is strongly committed to the development of tourism, but also to improving the overall infrastructure as a key precondition for further progress of this branch of economy," said Prime Minister Marković.

He recalled the plans for valorisation of airports in Podgorica and Tivat, which is crucial for further development of tourism, given that Montenegro is mainly a flight destination.

Prime Minister Marković pointed out that the Government is open to a strategic partnership with EasyJet, which, according to Chief Executive Officer of EasyJet Johan Lundgren, is interested in long-term investments. This company, through EasyJet Holidays, is interested in offering its customers a unique holiday offer in Montenegro, and it is partnering with Karisma Hotels & Resorts, which has a hotel complex in Ulcinj.

EasyJet is considered one of the best low-cost companies. In Europe, it is the second largest airline with over 1,000 routes and, according to company management, exceptional operation and low operating costs.

So far, EasyJet has carried about 60,000 tourists on flights from London and Manchester to Tivat and flights from Geneva. They believe that the potentials of Montenegro, and especially its position in the region, give the conditions for further long-term development and increase in the number of tourists.

“Tivat, the seaside home of the country’s international airport, now benefits from multi-million-dollar marina Porto Montenegro, often nicknamed the Monte Carlo of the Adriatic: an extravagant spot of super yachts, luxury apartments, nightclubs, helipads and the country’s first five-star hotel. Whether it’s to go off the beaten track or to mix with the masses in Montenegro’s rapidly developing beach resorts, the country is embracing its new-found tourist industry and vastly developing as a result. Hinted by experts to be the next hit destination, there’s really no better time to go and see for yourself,” says the info report on Cheap Flights to Montenegro by EasyJet representatives.

Read more about business in Montenegro at TMN's dedicated page.

08 June 2019 - President of Montenegro Milo Đukanović, according to his Cabinet, met with Philip Reeker Acting Assistant US Secretary of State for Europe and Eurasia.

An excellent level of bilateral relations was noted and the common interest was to pay special attention to the upgrading of economic relations in the next phase of cooperation, with the primary goal of improving the investment climate and creating an environment that will attract more and more US investments.

Reeker expressed high remarks on the results Montenegro achieved in its integration and reform efforts.

"What you did, and what the US strongly supported, is obvious. Today, Montenegro is a NATO member that contributes to security and a worthy ally, which is a legacy for the future and a guarantor of stability both in Montenegro and in the region" Reeker said.

Special attention was paid to the situation in the region and its European and Euro-Atlantic perspective.

President Đukanović reiterated his belief that integration of the region is the cornerstone of its stability, with the assessment that the Western Balkans, outside the context of the European and Euro-Atlantic perspective, remains an abandoned and risky region. Montenegro remains determined to continue its democratic and economic development, but is primarily strongly interested in the stability of the region and resolving remaining open issues.

"The Europeanization of the region is of great importance and we must return it to the European House," the President of Montenegro said.

The interlocutors agreed that for the future of the region and resolving the remaining issues, a strong presence of the United States, together with the European Union, is necessary.

Foreign Affairs Minister Srđan Darmanović also recently met with Acting Assistant Secretary of State for European and Eurasian Affairs Philip Reeker, on his working visit to the United States.

Read more about business in Montenegro at TMN's dedicated page.

07 June 2019 - Montenegrin ICT sector is becoming one of the key economic branches in the context of economic recovery, besides traditional industries such as tourism, energy sector and agriculture.

Innovative Montenegrin ICT companies and start-ups are gradually getting into the international markets with a promising forecast regarding income generation and job creation.

International recognition of this sector is becoming stronger. Five leading ICT companies, Amplitudo, The Badger, Uhura solutions, Marleq and Super Hub are going to take part at the Global Entrepreneurship Summit 2019. The USA and the Netherlands are official organizers of the event which annually attracts over 2.000 representatives of business communities from more than 120 states. The event is taking place in the Hague, from 3 June to 5 June.

Montenegrin ICT companies are going to be presented at a special media conference, organized by the State Department. The companies will have the opportunity to present their innovation programs to the key players in the ICT industry, entrepreneurs, specialized media and potential partners.

This event is part of the regular support US Embassy in Podgorica provides to national economic reforms and endeavors to assist innovative companies with overcoming economic barriers.

The cluster-creation process is going to start soon. Clusters will consist of key innovative start-ups working on the promotion of digital services, software and hardware components and ICT solutions which are going to be competitive on the market.

Two big regional events, EDITA and PRODIGY, dedicated to digital transformation, are going to take place in September. They will bring top regional business experts, digital innovators and associations, in order to discuss cooperation in the area of digital innovation. This will be a great opportunity for Montenegrin start-ups as well.

Source: Cafe del Montenegro

07 June 2019 - President of Montenegro Milo Đukanović traveled to Bratislava recently, where he participated in prestigious security forum at the invitation of the GLOBSEC team.

At the end of the first day of the GLOBSEC Security Forum in Bratislava, President of Montenegro Milo Đukanović talked with the deputy Prime Minister and Minister of Foreign Affairs Miroslav Lajčak, the OSCE Chairman, at a working dinner hosted in his honor, as reported official website of President of Montenegro.

Lajčak thanked Đukanović for participating in this prestigious gathering, with the pleasure that Bratislava will be the hosting panel on the Western Balkans.

Among other things, Đukanović noted that this is another confirmation of the commitment of friendly Slovakia to the European perspective of Montenegro and the region as a whole, which is further expressed through its role as OSCE chairmanship in the year of the recent elections for the European Parliament and the changes that will follow at the top of the institutions in Brussels .

Interlocutors jointly expressed satisfaction with the results of the pro-European forces and emphasized that it would be extremely important both for the EU and for the region to extend the policy of enlargement to the Western Balkans on the agenda of the new European administration.

In a long conversation and friendly atmosphere, Đukanović and Lajčak exchanged views on developments in the region, with an emphasis on remaining open issues, as well as on processes in Europe and globally, with expressed willingness to promote otherwise excellent bilateral relations and cooperation.

GLOBSEC Bratislava Forum, organized in cooperation with the Ministry of Foreign and European Affairs of the Slovak Republic, traditionally gathers a large number of participants, political leaders and prominent thinkers, and with the World Economic Forum and the Munich Security Conference is one of the most important conferences on strategic issues in Europe.

Read more about business in Montenegro at TMN's dedicated page.

The Delta City's shopping mall management publicly protested yesterday because the Ministry of Economy has refused to exempt the shopping malls from the Law on non-working Sundays, which is contained in the draft law on domestic trade. This company did not directly answer whether they would submit an initiative to the Constitutional Court following the example of the trade centers in Croatia if such a proposal is to be finally adopted.

"The proposed amendments to the law already cause justified disapproval and dissatisfaction with many entities. Shopping Mall Delta City is a member of the Employers' Union of Montenegro and we believe that it is the right way to justifiably seek to exercise our rights through this organization," said the company.

Commercial centers in Croatia have been able to overcome laws that limit their work on Sundays with the decision from their Constitutional Court, in two cases in 2003 and 2009. In both cases, the prohibition of work lasted only a few months. The Constitutional Court of Croatia has explained the termination of the law by granting a guaranteed right to the equal position of entrepreneurs and freedom of business.

"On the weekend, the first Montenegrin shopping mall is visited by 18,000 to 24,000 people. The industry's estimate is that Sunday as a non-working day, in this case, causes loss of a minimum of EUR one million in the monthly turnover of our tenants. The financial loss of the leaseholder entails the reduction of salary and the release of labor. It is estimated that around 20% of the workforce in the center will be left without a job," they added, stating that the state would, therefore, have lower incomes.

They say that in all the countries of the region and in most European countries, shopping malls are working on Sundays. They pointed out the examples of Hungary, for example, where a similar prohibition was abolished only after a few months due to the drastic drop in the turnover.

Text by Goran Kapor, on June 6th 2019, read more at Vijesti