Abstract
The chapter aims to show the development of the information society in the EU countries, its digital progress, and its repercussions on the economy of Serbia as a country that is a candidate for EU membership. The methodological concept and the analysis are based on the Digital Economy and Society Index (DESI), an official report of the European Commission. The DESI 2022 reports track the advancements made in the digital space in EU Member States and are primarily based on 2021 data. The findings of the study revealed that although Member States made progress in their efforts to go digital during the COVID-19 timeframe, they are still unable to address the gaps in digital skills, transform SMEs into digital businesses, or put out cutting-edge 5G networks. Also, the results show moderate progress in the development of the information society in Serbia in terms of the functioning of the internal market for electronic communications, the availability of modern electronic services, the development of information security, and the application of eGovernment and eCommerce.
TopIntroduction
Digital transformation and digital progress are closely intertwined concepts that represent the evolution, integration, and optimization of digital technologies, processes, and strategies within various sectors of society, business, and governance. Digital progress is the collective result of continuous advancements, innovations, and the integration of digital technologies across multiple domains. As digital transformation occurs within sectors or organizations, it contributes to the overall digital progress of a region, industry, or society. Digital transformation initiatives undertaken by organizations, governments, and societies contribute to the larger picture of digital progress by driving technological advancements, enhancing capabilities, and improving services and experiences for individuals and businesses. Both concepts are integral in the current digital era, as they represent the ongoing efforts to leverage technology, innovation, and digital tools to enhance efficiency, create new opportunities, and address societal challenges. Digital transformation drives the changes in specific entities or sectors, while digital progress reflects the collective advancements and developments in the broader digital landscape, impacting societies, economies, and governance structures. An information society thrives on technological advancement, access to information, and the ability to adapt to and utilize digital technologies effectively. Digital transformation and progress are integral to achieving a more connected, efficient, and inclusive information society.
The emergence of cutting-edge digital technologies, the information space's revolution, and the speeding up of processes leading to economic globalization can all be used to identify the beginning of the twenty-first century. Digital technologies encompass a wide range of technologies and systems that use digital data and information in electronic form for various purposes. These technologies leverage digital signals or representations of data, often in the form of binary code (0s and 1s), to process, store, transmit, and manipulate information. Digital technologies have had a profound impact on various aspects of modern life, including communication, business, entertainment, education, healthcare, and more. The new economy of the twenty-first century is the digital global economic economy that runs on information technology, whereas the new society of the twenty-first century can be seen as a continuously evolving information society (Česnauskė, 2019). The advancement of information technology nowadays has a significant impact on both society and the economy. While information technology widens the spectrum of potential for all people, organizations, and states, a person and society constantly work to meet the expanding demands in one or more fields of endeavor. The rapid digital transformation of society, the economy, and the government is based on technology. The established order is altered by the digital transformation, which introduces new communication channels and methods as well as advances in company operations and state governance that take advantage of the new technologies' opportunities (Domazet et. al, 2023).
Technology drives today's world, and drives civilization forward; thanks to it, new, innovative solutions are constantly being created to optimize production processes and offer services in all sectors of the economy. One of the key factors in the development of the modern economy is digitalization. Digitization as a process is not just an addition to existing business processes but a complete change in the organizational structure and culture, i.e., the company's way of thinking. The key factor for the development of the digital economy is certainly the implementation and development of modern ICT solutions (Domazet, Zubović, Lazić, 2019). The application of digital technologies enables all companies, including small and medium-sized enterprises, to serve a large number of consumers in a cost-effective way, which has a direct impact on the growth of competitiveness of the observed economy.
Key Terms in this Chapter
Digital Technologies: Digital tools, systems, and resources that assist with data creation, archiving, and management are included in the concept of digital technology. Information technology (IT), which refers to the use of computers to process data and information, is a significant component of digital technology.
Digital Transformation: The integration of digital technology across all functions of an organization is known as “digital transformation,” and it significantly alters how you do business and provide value to consumers. Additionally, it's a cultural shift that necessitates constant status quo challenge, experimentation, and comfort with failure on the part of organizations. The process of adopting and implementing digital technology by an organization to develop new goods, services, and operations, as well as modify existing ones, involves converting business processes into a digital format.
Information Society: A society is said to be an information society if significant economic, political, and cultural activities revolve around the creation, distribution, use, integration, and manipulation of information. A civilization where the use and knowledge of information and computer technology is at a high level is commonly regarded to be an information society.
Digital Economy: Together with technological development, the definition of a “digital economy” is constantly changing. The integration of digital technology, services, products, processes, and skills across economies is the emphasis of the modern digital economy. The adoption of information and communication technology (ICT) by all business sectors is supporting the growth of the digital economy and boosting its productivity.