The Importance of Applying Lean Innovation for Enhancing Harmonization of Customs Procedures in context of Digitalization of Customs Administration – A Case Study of Serbia

Abstract

As a part of the Strategy for modernization, customs administrations face a need for the introduction of new communication information technologies (ICTs) that builds on a long and successful European history on technology and innovation. Hence, apart from compliance of legislation that prescribes customs procedures, customs authorities face important decisions regarding design and implementation. In that context, this empirical research explores the extent to what digitalization of the Customs Administration of Serbia can improve the customs transit performances, in terms of enforcement of trading policy, without applying certain managerial tools, such as process thinking in lean innovation. The final data analysis of the research indicates that managing the organization through the functional units, rather than the processes, and without applying lean principles to the digital transformation initiative would not completely standardize the customs transit procedure.

Digital Outcome Optimization: Ensuring a Return Oninvestment of Digital Strategy

“…Technology can benefit customer satisfaction, competitiveness, productivity, reduce tasks, improve health outcomes, automate information exchanges, and more [38,51,53,56,57]. As examples, this study documented benefits in architecture, engineering, construction, healthcare, manufacturing, and the public sector [36,37,39,44,50,58,59]. The benefits depend on the complexity, environment and lifespan of the implementation [48,56].…”

“…There is limited empirical evidence linking optimization to digitalization, however, one without the other may produce only small benefits [51,59,63,64,66,69]. Digitalizing a bad process ensures bad outcomes [59,70].…”

“…There is limited empirical evidence linking optimization to digitalization, however, one without the other may produce only small benefits [51,59,63,64,66,69]. Digitalizing a bad process ensures bad outcomes [59,70]. The human dynamic in a complex organization including the supply chain and customers is critical, and the fear of outsourcing and digital sweat shops can be real [52,59,74].…”

“…Digitalizing a bad process ensures bad outcomes [59,70]. The human dynamic in a complex organization including the supply chain and customers is critical, and the fear of outsourcing and digital sweat shops can be real [52,59,74].…”

Common Transit Procedure and NCTS Implementation: the Case of Ukraine

“…From the very beginning, the whole EU e-Customs project was considered as the central pillar of pan-European eGovernment strategy, in which customs procedures based on UN/CEFACT standards framework were embedding in a serviceoriented architecture for Collaborative eGovernment (Vogel et al, 2008). Implementing the NCTS, as well as other EU e-Customs solutions that "builds on a long and successful European history on technology and innovation," makes national customs services update their conventional workflow, in particular by applying specific managerial tools, such as process thinking in lean innovation (Dalton & Stosic, 2021). Hence, the EU utilizes the NCTS as an additional channel of exporting general principles of its administrative system.…”