Impact of Digital Growth in Modern Business

Target research in this paper is the assessment and analysis of content of digital progress and its impact on modern business. Business digitization has been introducing increasingly dynamic changes across the entire global economic sphere, whereas its content increasingly maintains to affect the competitiveness of national economies. At the microeconomic level, digital technologies lead to a change of economic structure and quality of production factors, based on knowledge and innovations. This paper should provide specific answers on how to apply new technologies and digital techniques in a quality manner within the knowledge economy. This is not the only answer provided in this paper. On the contrary, the paper shall respond to question how to minimize the risks of all kinds, in order to increase labour productivity. The immediate objective of this paper is to adequately locate and understand the problem of economy digitization and the changes it brings, as well as to provide specific ideas and practical solutions for better and more efficient business operations. The new information, i.e. digital economy fundamentally differs from the traditional ones. This very synergy of workforce, its emergence in such manner, as well as increase in its presence, will be the biggest challenge to what we now call the digital economy. The IT revolution and communication technology affect the development of the new economy on a global scale, which significantly contributes to the modern business. The impact of digital growth on modern business should be reflected in increased productivity, knowing that the increase in productivity is a key issue in any economy, including the digital economy. Increasing productivity implies an increase in the results achieved with the same consumption of resources or achieving the same results with less consumption of resources. Numerous studies have been performed on this subject at the global level, demonstrating that there are serious analyses and research that show exactly how much the investment in IT does actually increase productivity. It is believed that the majority of the growth in productivity since 1995 to date is to be primarily credited to investments in information technology and business process automation. Increasing productivity is evident almost anywhere: in individual companies, industries and economies, which actually represents the essence of modern business activities

Transformation of the economic system of Republic of Srpska and its adaptation to global processes

Republic of Srpska cannot boast of its economic system ever since the onset of the Global Economic and Financial Crisis (2008) to this day. Global Economic and Financial Crisis has produced negative effects onto a small economy like the economy of the Republic of Srpska (RS). In times of such crisis, RS has been faced with high unemployment rate (44%), reduced industrial production, enormous public debt, high deficits and colossal illiquidity. It indicates that the Republic of Srpska is characterised by poor macroeconomic indicators. The fact that RS possesses rich and diverse natural resources, which should be a key factor in its present and future development, did not help the economic system of RS in any way. The industry has been designated as a major segment of development by a long-term strategy of socio-economic development. Such long-term strategy has not given any results in terms of positive rate of economic growth, nor even the slightest improvement of any of the macroeconomic indicators so far. Urgent transformation of the economic system of the Republic of Srpska and its adaptation to the global processes is more than necessary. This can be achieved by offering investors numerous benefits and opportunities for investment under very favourable conditions, particularly in the industries and sectors representing significant natural resources. First of all, it is believed that there is great potential for the development of agriculture; exceptionally favourable conditions for the development of thermal and hydro energy sector; numerous possibilities of providing energy from renewable sources; vast areas covered by forests, mining and mineral resources; great tourist potential, etc. The above listed items are the essential ones, although there are others, which can represent a good basis for development of the economic system. Transformation of the economic system of RS will depend on many factors, primarily, of globalization that has contributed to the huge increase in trade, as well as of modern communication technologies. Globalisation has both positive and negative aspects, but it has certainly brought significant changes. The developed world is the bearer of the globalization process and it made the best use of current global circumstances. The solution is in creation of economic and political integrations, being in a cause-effect relationship with the process of globalization. Economic system of the Republic of Srpska simply has to be included in the such integrations

Value Creation Concept In Stakeholder And Shareholder Economies

In the financial theory it is common to make distinction between two types of corporate value creation concept: shareholder value and stakeholder value. In shareholder systems, also known as Anglo-American concept, institutional investors, who usually own small percentages of companies' shares, exert significant influence over managers. In major stakeholder systems, marked as Continental concept, influence is shared between large shareholders, employees, customers and suppliers. The aim of this paper is to analyze influence of globalization processes and economic crises on value creation theory and practice

Economic Policy as a Determinant of Development and More Efficient Business Operation in the Republic of Srpska

The Republic of Srpska needs a developing economic policy in order to make it a key determinant of more efficient business operation. The present economic policy is far from being like that, as it is more recession like given that it does not determine development yet. The economic policy of the Republic of Srpska has failed to perform its function years and especially for the incoming 2016, when, in addition to previous scope of welfare, which was defined as a target, it set to itself an additional goal to also finance pensions from the Budget in the coming period. The RS Government has gone even further and has even praised in public that in 2017 the Public Health Service would also be financed from the Budget, which will most certainly place an additional burden to an already strained Budget of the Republic of Srpska, whose 1/5 has been regularly replenished by using resources of International Monetary Fund. The Republic of Srpska, unlike many other countries worldwide, has abandoned Bismarck social insurance system and has adopted the Beverage system which is rarely applied worldwide. Such occurrence appears only when an economic system of a parent state cannot finance social rights out of its operations. Unfortunately, it has happened to the Republic of Srpska. Thus defined objectives and economic policy created in this way would not provide any positive growth rate, higher employment level, abatement of public debts nor cutting the deficit in any country, let alone in the RS. The said arguments will additionally contribute to poor living standard of citizens i.e. the citizens would experience even worse conditions than today, while only a small number of them would live in abundance. Such poor condition was not only caused by the global economic and financial crisis, but the culprits should be sought among those who have poorly planned, managed and spent scarce financial resources of the RS. Economic policy of the Republic of Srpska should spawn certain indicators, which would become a determinant of development and better business operation. It would considerably benefit to greater wealth of the Republic of Srpska and provide better living standard of its citizens

Penzijsko osiguranje – „bauk današnjice“, mogućnosti i ograničenja za preobražaj

Bauk kruži svijetom. To je bauk bankrotiranog sistema državnog penzijskog osiguranja.1 Ovu tvrdnju Josa Pinere potvrđuje činjenica dadanas u svijetu najveći broj zemalja imaju PAYGO sisteme koji se zasnivaju na principu međugeneracijske solidarnosti. Odavno su ovakvipenzijski sistemi u krizi i kao takvi su postali problem, čije loše stanje se sve više usložnjava, a ne nikako pozitivno rješava. Najvećiproblemi PAYGO sistema (međugeneracijske solidarnosti) jesu ekonomski problemi – fi nansiranje, demografski problemi, organizacioniproblemi i na kraju problemi političke prirode, koji snažno utiču na ekonomske. Nijedna zemlja dosad nije preobrazila svoj sistem u smisludobrog rješenja, koji bi se mogao uzeti kao svijetli primjer današnjice. Dakle, nema idealnog modela penzijskog sistema koji bi mogaoposlužiti svim drugim, da svoj penzijski sistem preobraze po modelu najuspješnije zemlje. Većina teoretičara u današnje vrijeme smatrada je Čile država koja je napravila najveći iskorak u smislu preobražaja penzijskog sistema i da je to svijetli primjer koji možda trebaslijediti većina zemalja u svijetu. Šta je zapravo Čile uradio? Tvorac čileanskog preobražaja penzijskog sistema Jose Pinera svojim projektomnaprosto je likvidirao obavezno penzijsko osiguranje, država je prešla na drugi vid osiguranja, a to je kapitalizirana štednja. Pozitivniefekti tog preobražaja mjere se i danas, a prema ocjeni javnosti, oni se kreću uzlaznim trendom. Na tom putu ka uspješnom preobražaju,a boreći se protiv svih ograničenja, danas su zemlje Latinske Amerike (Peru, Bolivija, Meksiko itd.) koje žele da svoje penzijske sistemereformišu po uzoru na preobražaj Čilea. Neće biti lako, vrijedi ona „koliko god država, toliko novih modela penzijskih sistema“

Structural Weaknesses in the Economy of Bosnia and Herzegovina – A Brake on Growth and Development

To present the status and development of economies of the countries, a number of macroeconomic indicators is available and used and the most important aggregate in the system of national accounts is the gross domestic product (GDP).An analysis of GDP serves to present the status and trends of the economy of Bosnia and Herzegovina (BiH). We have used the comparison method, in order to establish the status, as well as trends in the economy of BiH in comparison with the neighbouring countries with similar GDP structures and with economies of some developed countries.We note that the structure of gross value added (GVA) in BiH is not primarily oriented towards profitable activities, nor towards activities giving a synergistic effect on the entire economy. The service sector is not sufficiently developed. GDP per capita in 2015 was almost eight times lower than the one recorded in the EU member countries. The relationship between consumption and investment, in addition to the negative balance of trade, are negative determinants of the BiH economy. The global crisis has produced negative effects on the BiH economy. Such trends were imminent even in the developed countries, the only difference is that the developed countries, by size of their GDP per capita, are far stronger and more developed than the BiH economy. The economy is small in its size and growth rates are not sufficient to provide a visible progress, as is the case with developed countries.BiH needs to put maximum efforts into increasing its value added in areas that are fast and strong in contributing to the growth and development

Demographic Trends and the Educational System of the Republic of Srpska

The subject of this research are the demographic trends and the educational system of the Republic of Srpska. The aim of the research is to define the concepts required to comprehend the demographic trends and to explore their implications for the educational system of the Republic of Srpska. In order to establish sustainable development in the Republic of Srpska, education being a key component therein, it is necessary to perceive its demographic resources in order to create an educational system. By means of empirical research with a presentation of results through factor and cluster analysis, generated quantitative and qualitative indices of demographic resources, particularly in the educational system. The Republic of Srpska as a whole belongs to type D, featuring poor demographic resources and characteristics, as well as prominent demographic disparities regarding spatial development. However, in order to increase the coverage, relevance and efficiency of completion of the education process, it is necessary to determine the strategic commitments to be accomplished together with certain quantitative demographic indicators of the achievement level (educational coverage of different generations). Demographic changes will pose a major challenge for policy makers and to the society in general across the upcoming decades and will require shaping new economic, tax, health, pension, educational, social, family and other policies that affect demographic changes. The research endeavour in this paper focuses on that very aspect, together with the respective applicative capabilities

A Case Study of Ethno Village in Slovenia and Bosnia and Herzegovina

Background: The world tourism industry is subject to big changes. A number of tourists traveling steadily grows, resulting in turnover and income. The destinations, that tourists are attracted, to are numerous, and there are also newcomers who arrive to a certain destination for the first time. Nowadays, even some very distant places are on the travellers’ bucket lists. What is more, tourists are looking for authenticity, in terms of which the concept of ethno village proves to be such an example