Nikola Novaković: Building a stable company that people will love working for

Years ago, Nikola Novaković decided to become a veterinarian. Had he not changed his mind at the last minute, this conversation with the tech entrepreneur and the Managing Director of Emil Frey Digital would never have happened. His story is one of hard work, sacrifice and some mind-blowing risk-taking. There were times when things were on the verge of collapse; a failure would have meant a farewell to the company, the employees, and most of his life’s savings invested in the business.

Every week ended in disappointment…

-I wanted to start a company and develop global-scale products. I imagined it as a stable business, an example of good practices in the Croatian IT industry, he said. 

Nikola and his early team started developing games. From that, an idea for a car marketing solution was born. It was based on 3D modeling, but the approach didn't work, so they started experimenting with photography. That was in early 2014.

-I kept reaching out to car companies in Croatia and abroad. Every day, I sent them 3D models to present the idea, explaining what we were working on and our vision of what we could do. But every week ended in disappointment, he recalls.

…until positive signals arrived from Switzerland

One day things took a different turn. Positive signals arrived from Switzerland. Emil Frey, Europe’s largest car distributor, wanted to discuss the idea.

-We knew that we could turn it into something better, and that we could do it quickly. We built the prototype in three months. It was the 360 app which allowed car buyers to see the vehicle from all angles. We went to Switzerland to present it and it was a success.

The 360 ​​app was the first solution they developed for Emil Frey. It was the basis for a cooperation which led Nikola’s team to join the Group in November 2017.

-As we built the 360 app, we already imagined it as the foundation of something bigger. Something like a platform where you can showcase both new and used cars and make sales. We thought that it should support all car brands, without requiring users to switch between systems. I sketched on a few slides a concept of this potential multi-brand salesman workspace, which has a lot of features and integrates with many of their legacy systems. That was the beginning of the INSiDE platform, which later became the core solution for sales and aftersales processes at the Emil Frey Group, he revealed.

Getting people to join: One day we will succeed

Early on, finding the right people and getting them to join the team wasn’t easy. Nikola explains why. 

-For a company developing its own product, it can be challenging to get funding. Especially in early stages. Clients are usually willing to pay when you have at least 60-70% of the product developed - after they test it and see the value. We compensated with occasional agency projects, our own money and by inspiring people with the belief that one day we would succeed. A few of us, including myself, weren’t taking any salary. It was an all-or-nothing risk. We were lucky that in those critical moments things worked out with the Emil Frey Group, he said.

Nikola believes that the Group recognized their enthusiasm and potential.

-They wanted to have their own development center, and we were a product house the whole time. It set us apart from other agencies. We were a team of 17 when we joined a multinational company with over 20 thousand employees. We quickly scaled our solution to 15 markets, integrated with various systems and implemented a range of business processes. We started to work with many stakeholders and grew rapidly, he said.

What has not changed is our approach to work

A lot has changed along the way, except for their approach to work. 

-On the day we signed the deal, Emil Frey's Chief Digital Officer Philipp Rhombergh said they had only one request for us: to continue to work as if the company was ours.

The Group was supportive from the very beginning. 

-If we had had someone questioning every step of the way, I think none of this would have happened. They trusted our management and that we were doing things right. Also, we had some experience in building and growing companies. That helped us avoid some mistakes, such as having too centralized organization and decision-making. I think we started building on good foundations, with a healthy management team and democratic decision-making, he said.

At the time when they joined the Group, it already had its own IT team in Switzerland. One part of it handled infrastructure, while the other worked on an internal ERP. That solution is now deeply integrated with INSiDE.

New HQ in Varaždin means stability and trust

In May, it will be three years since EFD moved into its new HQ in Varaždin Business Zone. 

-First of all, I would say it is a great working space. It also reflects the support and trust from the Group. It represents stability and shows that we are serious about what we do. I think it’s important for employees that the company they work for is stable. It is also important for the company, as we look to attract new talent, he explained.

With 150 people employed, the turnover is surprisingly low here.

-I hope it is because we build interesting products. I think people who join us want to work for a product company that can show them a long-term vision with high-quality jobs. We are a part of the Group with a hundred-year long tradition. We have evidence of their long-term commitment. Another reason, I believe, is the benefits we offer.

When asked about his expectations from employees, Nikola spoke about a particular attitude to work.

-We need people to understand - right from the start - how important it is to approach their work with respect. We encourage them to be accountable, proactive and give their best. I believe this is the only way they will truly succeed. We choose mentors carefully. They should pass on knowledge but, more importantly, instill the right attitude toward work, he explained.

“I appreciate people who approach their work with energy and enthusiasm, and who motivate others (including me) with their drive.”

Whoever has the best team wins

Nikola compares software development with a team sport: whoever has the best team wins. 

-We are a product house, and without a team that is end-to-end responsible for their work, you cannot win. In modern software development, boundaries between being just a developer and just a tester are quite blurred. If we want to be a strong IT company, people shouldn’t operate within these boundaries. It’s very important to understand the whole process. DevOps concept has the goal to bridge the gap between development and operations, which improves collaboration and efficiency.

-When I think back to our beginnings, we all tested the software. I still test it sometimes. It helps me understand what we build, what works, what the challenges are. We want this mindset in all employees, he said. 

Touching on how to keep people motivated and engaged, he offered the following thinking: 

-First and foremost, they need to see the results of their work. Second, they need to know in advance what we are developing and why. Knowing that helps people see their purpose. If you want to have a self-organizing team, you need a long-term roadmap so the team can organize in the best possible way. And finally, management needs to show that kind of motivation consistently. We need to lead by example.

Early life and influences: How FOI prevailed over veterinary school

-I would say I am a programmer who, by chance, ended up in IT management. As a kid, I was really into computers and programming. But toward the end of my math high school I kind of lost interest. To the point where I started preparing for the veterinary school entrance exam. Then my dad gave me a piece of advice that made me look at things from different angles. It turned out to be the most important bit of advice I got in my life, he revealed.

Eventually, Nikola went to study at the Faculty of Organization and Informatics (FOI). He did well and kept up with his studies. Toward the end of his studies, a highschool friend asked him if he was interested in a job at an IT company. He started working in software development; soon he moved to IT management. He stayed there for the next 12 years.

-Growing up, I had a deep interest in cynology. We've always kept dogs, I trained them and went to competitions. So, this thing with vet school wasn’t a rebellion against IT or anything like that. I was really interested.

Judo taught me how to lose and get back on my feet quickly

Nikola likes cars, but he is not a fanatic. He says he ended up in Emil Frey Group primarily because he wanted to build a good business, and he understood software. Cars had a secondary role. He was a basketball player until mid-highschool, then he started with judo.

-I was good at basketball, but not great at judo, as I started too late. Judo taught me how to lose and get back on my feet quickly. Before that, I was a very bad loser, he confessed.

When he isn’t working, he spends time with his family and his dog. You might see him fishing or playing sports. When asked about what he saw as his greatest qualities, he said that was hard to say. 

-I find it extremely hard to give up. It’s been useful in business, but in my personal life, it can be exhausting. :) I think I am very goal-oriented. When combined with my “not giving up” approach, it can be both good and bad.

When it comes to working with his closest colleagues, he says he is open with everyone and expects the same in return. 

-I trust our managers and have no problem letting them handle things. I work with many people at the company nearly every day, and I truly appreciate and respect every one of them. I constantly have in mind that I am privileged to work with such capable people.

Things to build in the future

Looking ahead, there are many projects and ideas to be excited about at EFD.

-To give you an example: there are plans to transform INSiDE into a new Dealership Management Solution (DMS). INSiDE was originally designed as a multi-brand salesman workspace, while various local solutions were used for aftersales processes. Now, we will turn INSiDE into a complete ERP solution that will replace many legacy systems and become a workspace used by everyone for all sales and aftersales processes.

There are still many markets in Europe where EFD needs to roll out their products. At the same time, the automotive market is changing. New car brands from the East are coming to Europe, and business models are evolving.

-It will be very important to have a robust digital solution that is also fast, flexible and lightweight. And, of course, there is artificial intelligence. We will use it in test automation, code reviews, and other things. I expect it will speed up some processes and facilitate things that in the past took time away from actual development, Nikola said.

His final thought is about the work they do: it is never done, and it starts over with each new day.

-We cannot live on old glory. New challenges come up each day, and some very cutting edge things are ahead to develop. We all have to give our best every single day, he concluded.