Branimir Bukilić, President of the Board of Directors of ICT Cortex
Diplomacy & Commerce Montenegro magazine speaks with Mr Branimir Bukilić, the President of the Board of Directors of ICT Cortex. This organisation, which unites Montenegro’s most innovative IT companies, is at the forefront of driving digital transformation and technological advancement nationally. During the interview, Mr. Bukilić shared insights on the latest global IT trends, with a particular focus on the role of artificial intelligence (AI) and the challenges and opportunities in Montenegro’s IT sector. The discussion also delved into ICT Cortex’s key initiatives, their endeavours to attract foreign investments, and their contributions to innovative and socially responsible projects aimed at promoting the sustainable development of the local community.
Mr. Bukilić, what are the latest trends in the IT industry worldwide, and how does ICT Cortex follow these global changes?
The global IT industry is closely related to the AI revolution. Innovative companies are devising new ways of applying AI to solve problems and improve various business processes. New successful startups are being born, and leading global IT have created their machine learning and AI platforms, fi ghting a great battle for primacy in this fi eld. When global leaders become interested in a specifi c technology, you should immediately know that such a technology will be a part of our everyday life in the next few years.
ICT companies in Montenegro follow these trends. We were the fi rst to recognise the importance of applying AI in our business, which immediately gave results. Aware of the improvements in business processes we have achieved in our operations, ICT Cortex promotes using the latest technologies in all other economic branches through various areas of its activity, such as media appearances, conferences, workshops, etc.
Our focus is digital transformation and creating the best possible business environment for ICT companies. To significantly raise the level of digital literacy, i.e., the application of technology in everyday life and business, we promote the use of the latest technologies, and we create a better connection between ICT companies so that they can be more competitive in foreign markets, but also to transfer technology. Also, Cortex applies for and receives national, international, and EU projects from the IT industry. At the moment, I can single out three current ones of greater importance:
IPA South Adriatic Italy-Albania-Montenegro is the project of improving efficient public administration by enhancing legal and administrative cooperation and cooperation between citizens, actors of civil society, and institutions, especially in solving legal and other obstacles in border areas.
Interreg IPA Croatia—Bosnia and Herzegovina—Montenegro, Gaming for a New Generation, the project aims to develop the gaming industry, furnish a gaming centre and purchase equipment, and develop an educational curriculum (training, hackathon, Global Game Jem) for different target groups. MontEDIH Digital Innovation Hub will support the digital transformation of Montenegrin companies and the public sector.
In your opinion, will AI technology development and task automation increase or decrease the demand for new personnel in the IT industry? Moreover, what skills do staff require for employment in the era of smart technologies?
The development of AI technology and the automation of tasks will not necessarily lead to a decrease in the demand for IT professionals. On the contrary, many experts predict that the demand for new personnel will continue to grow. Although AI and automation are taking over specific routine tasks, the human factor will still be required to develop, test, implement and maintain these systems. This means an increased demand for specialists in machine learning, data science, software development, engineering, and similar fields. Automation often leads to the creation of new types of jobs that did not exist before the development of these technologies. For example, there will be a need for experts in data management, ethics in AI, security in the context of AI, and specialists in human interaction with AI tools.
In addition, various industries are adopting technologies like AI and automation, which increases the need for IT professionals who can adapt these technologies to specific industry needs and consultants to help companies with digital transformation. Finally, while AI can automate routine tasks, human factors like creativity, critical thinking, and the ability to solve complex problems become even more important. The IT industry will increasingly need people who can use AI tools to innovate and create new solutions.
Part of your cluster’s plan is to internationalise and attract foreign investments in the Montenegrin IT sector. What are the main advantages Montenegro offers to international IT companies and investors, and how does ICT Cortex help create a favourable business environment for those investments?
Cortex is committed to internationalisation as one of its key strategic directions. Many IT companies from Montenegro are already present in the global market. Numerous companies that moved to Montenegro due to war events are mainly focused on exporting their products and services, which also affected improving the overall export of IT products and services. To facilitate exports, we organised several study visits to strategically important destinations such as the United Arab Emirates, Austria, the Netherlands, Sweden, Saudi Arabia, Estonia, Finland and other countries, including those in the region (Serbia, Bosnia and Herzegovina, Croatia). In the coming period, we plan a visit to the USA. It is essential to point out that the organisation of these visits would not have been possible without the support of the Ministry of Science, Education and Innovation. Owing to our executive offices’ and member companies’ dedicated work, we were subsidised to attend leading world conferences such as Web Summit, AI Tech Summit, GITEX, etc.
These activities contribute to a better perception of foreign markets and cultures, expand our network of companies and experts, and create new business opportunities.
The development of innovation and research (R&D) are essential elements for the sustainable progress of the IT sector. How does ICT Cortex encourage innovation within its members and the wider community? What challenges do you face in implementing research and development activities at the national level?
In parallel with study visits, we actively promote entrepreneurship, research, innovation and development of our software products. The export potential can be significantly improved if we partially transform service-oriented companies into development companies, i.e., companies that create their products and develop a business strategy for their placement on the global market. It is a challenging and risky process, but imagine that some domestic company will create a new Skype, Spotify or Viber in the coming years. Only one such product could signifi cantly affect the entire Montenegrin economy. Skype was initially developed in Estonia, and Estonia is not much bigger numerically than Montenegro. It proves that it is possible and that we must work intensively to promote innovation and development of software or hardware products.
One of the most significant challenges is undoubtedly the fi nancing of research and development. Cortex has excellent cooperation with the Innovation Fund, the Science and Technology Park of Montenegro, Technopolis, relevant ministries, and other institutions that can create a better environment to encourage innovation. Funding for the initial development of an idea up to the MVP level can be provided through available support programmes. Still, we must also work more intensively on improving the environment to fi nance the following stages of product development up to its commercialisation on the global market. It implies serious investments in market research, marketing strategy creation, branding, campaign fi nancing, etc., which are huge investments with very high risk for return on investment. We need serious VC funds for this. I believe that we should work on creating a domestic VC fund, although this is questionable considering the volume of our market. As I mentioned, ICT Cortex works actively in this fi eld by participating in numerous international and EU calls whose activities are in innovation.
Also, ICT Cortex represents the interests of its members. Still, the essential interest of our members is to create a better potential for the growth and development of the entire sector. If the cake grows, then all its parts grow. The growth and development of the ICT sector are not, and must not be, only in the interest of ICT companies. It must also be in the interest of the Government of Montenegro because any policy of growth and development of the economy of Montenegro contains the fact that the growth and development of the entire economy is directly proportional to the growth and development of the ICT sector. As a horizontal economic branch, the ICT sector helps other economic branches to achieve growth. You know that there is no serious growth without digital transformation of business, and the question is whether you can maintain the same level of productivity. On the other hand, ICT can contribute to the Montenegrin economy as a vertical economic branch. It’s happening to a lesser extent now. Still, we have a serious potential to lay the foundations for domestic software production.
A real example of this is Estonia, a country that started doing this 20 years ago and with domestic companies developed over 3⁄4 of all electronic services and infrastructure software systems. As a result, several Estonian IT companies with over 2000 employees are implementing those products. Estonia has made a brand out of it, and IT is directly responsible for the enormous success of the entire economy in a relatively short period. The only thing that matters is to recognise the moment and seize it. Now is an excellent time because AI is creating new opportunities. That is why we are trying with all our might to seize it.
We have organised many events on this topic, highlighting the big project ICT Week and the current project IT Spot’24, an event with GovTech as the main topic at the conference, which will take place from 28-29 November in the Science and Technology Park with key partners such as the Chamber of Commerce of Montenegro, the Innovation Fund and the Ministry of Public Administration.
How would you rate the cooperation with the Government of Montenegro and relevant ministries?
So far, our cooperation has been excellent. In the previous three years, we had serious support from the state through fi nancing our work program, which we received through a public tender. It enabled the excellent positioning of ICT Cortex in society because it quickly became the best-organised Cluster in Montenegro and the best-organised association of companies from any fi eld. Of course, we have returned a lot to society and the state through the benefi ts we managed to achieve in the previous project by applying to various projects for obtaining grants, conducting education and testing a kind of dual education in high schools and with faculties, participating in multiple debates on improving market potential and removing business barriers, etc. From my point of view, I would say that it was a Win-Win situation and that the Government of Montenegro received multiple benefi ts in this way, both in money, through approved grants and VAT that resulted from many projects, but also in immaterial contributions which are invaluable in creating the foundation for better growth and development of the ICT market, which will undoubtedly affect GDP growth and increase exports, as I have already answered in the previous questions.
I would especially highlight the project that, thanks to the consortium of Cortex member companies, will invest over one million euros in three electro-technical schools in Podgorica, Nikšić, and Bijelo Polje to equip classrooms and turn those schools into the best possible institutions for the growth and development of high school students.
Another important project we are giving back to the state is the Cortex Academy, which provides free education to high school students and students with the mentorship of member companies that later employ this staff. I foresee continuing excellent cooperation with the Government of Montenegro and relevant ministries, regardless of the political turbulence that has followed us since the founding of Cortex. Our cooperation is a true example of sustainability, which is one of the basic postulates on which they base all EU and United Nations policies.
ICT Cortex also works on socially responsible projects. Can you give us more information about it?
Shortly after the founding of ICT Cortex, we founded the “Do Good” Foundation to affi rm and promote socially responsible business and philanthropy. The foundation directed its work in organising and supporting projects, activities, organisations and individuals in education, green initiatives, digital services and social and child protection. Thus, the foundation helps and supports educational institutions, education in the part of formal and informal education, school, student and youth organisations and projects, but also implements activities aimed at changing awareness and habits, with an emphasis on children and young people, regarding the environment, healthy lifestyles, etc. Since its establishment, the foundation has organised and/or supported over 50 projects/activities/ events worth around 100,000 euros in education, green initiatives, voluntary blood donation actions (over 100 litres donated) and social and child protection.
A big project of ICT Cortex is the “Cortex Village” project, whose value is 16 million euros, and was initiated due to the risk of staff outfl ow from Montenegro. A humane complex of fi ve buildings with 115 residential units, green areas, an underground garage, parking, a fi tness centre, a park, a children’s playground, a community centre, and areas for children will be built on 12,500 square meters of surface area. The housing security project was initiated by members who fully support their employees and their families in solving essential life issues on favourable terms. In this way, ICT Cortex contributes to creating an environment that will reduce the departure of IT experts from Montenegro and enable them to have a better and safer future.