Devlight is one of the largest mobile app developers in Ukraine and has worked with many large companies to help them undergo digital business transformation and start using artificial intelligence. We talked to Ihor Polych, founder and CEO of Devlight, about how Devlight works and what tasks it tries to solve for its clients.
How did Devlight start and what is it doing now?
Devlight started as a small team, but with an ambitious goal - to create unique digital products that combine user-friendliness with a powerful technology base. The company's primary vision hasn't changed to this day. Back then, I saw how smartphones were taking over the world and, most importantly, capturing the attention of users. It was obvious that this was the next big trend, and that smartphones and the software in them would become the window to the digital world for billions of people around the world.
My personal vision was that every business would soon interact with external stakeholders via mobile. That's how our mission to transform companies into mobile-first businesses was born.
We faced serious challenges in 2016:
- There were relatively few mobile apps, and most businesses did not yet realize their value and capabilities.
- Web apps remained dominant in the market and received major investment support.
- User experience has never been as well researched and structured as it is now.
To overcome these prejudices, we talked to hundreds of companies across the country in the hope of finding innovators who would see the potential of our vision. For example, at the time, none of the 10 largest retailers in Ukraine had a mobile app. Today, all of them have mobile apps, and four of them are our regular customers. Gradually, luck was on our side, but at first there were lengthy negotiations, where we had to explain the benefits of mobile solutions for 6 hours in a row to the entire top management. Sometimes such negotiations lasted until midnight and could take several months before we reached a common understanding.
What are we doing now? We literally transform companies into mobile first businesses. We create a comprehensive mobile strategy for each client, studying the market, user behavior, and best practices. We conduct numerous workshops and brainstorming sessions with clients to find unique competitive advantages that can be implemented in their applications. We create user experience, develop apps, and bring them to market. After the launch, we closely monitor the analytics metrics, discuss the results, and make decisions on further product development based on the data obtained.
Today Devlight is a leading Ukrainian company specializing in mobile applications for large businesses and strategically important sectors. We have created 120 projects with over 35 million downloads. Our clients include: Vodafone, Nova Poshta, Fishka, Sense Bank, DOC.UA, OKWINE, Portmone, NOVUS, VARUS, BROCARD, Ukrnafta, and others. Our solutions help businesses move to a new level, where a mobile application becomes not just a tool, but an entire ecosystem that ensures maximum user engagement. And every Ukrainian has already used mobile applications developed by Devlight one way or another.
How did the full-scale war affect the company's operations? How did you manage to retain your team and clients in these conditions? What principles and approaches do you use to motivate and retain employees?
At Devlight, we started preparing for a major war in mid-January, when it became clear that the tanks stationed near the Ukrainian border were not going to return to their deployment. I was expecting a full-scale war, although, of course, I hoped for a different development. In January, we decided not to start any investment or development projects until the end of March 2022, to limit ourselves to mandatory expenses and accumulate cash.
At the company level, we developed three scenarios and monitored the indicators to better understand the reality. The most likely scenario assumed that Ukraine would enter a state of economic and investment crisis due to the information and hybrid war waged by Russia. In early February, a number of our clients announced that they were suspending active investment in projects due to the situation. Some clients, with whom we were preparing to sign major deals, simply refused to do so, arguing that a war might soon break out in Ukraine.
On February 24, at 5:54 am, I wrote in our team chat that a full-scale war had begun and gave specific instructions on how to proceed. Our priority was to evacuate our colleagues from the territories that could be under occupation and to ensure the company's security. The entire team was able to return to work only on March 10, after almost all colleagues were safe and had stable Internet access to continue their work.
Thanks to a number of successful decisions made before and in the first days after the war began, we managed to achieve key results: we did not lay off or dismiss a single employee, did not suffer losses that exceeded our estimates, and did not lose a single key client.
Already in May 2022, Devlight returned to pre-war profit levels, and at the time of our conversation, we have an MRR that is 4 times higher than in January 2022. We expect to finish this year with a 4.5-fold increase compared to 2021.
At Devlight, we always work with a people focus, and at this time it became critical to motivate and retain the team. It was important to show that everyone's contribution matters and affects not only the success of the company, but also the support of the Ukrainian economy and IT industry. Financial support was key, but no less important were constant communication, regular meetings and workshops that allowed us to feel united and integral to our mission.
In your opinion, what are the main digital transformation trends that are currently affecting Ukrainian and international business?
Digital transformation is now going beyond standard innovations, becoming deeper and more comprehensive. Ukrainian and international businesses are adapting to key trends that not only affect the way companies operate, but also create new expectations from customers.
First, personalization of has become the foundation of successful business strategies. In an increasingly competitive world, customers expect products and services that are tailored to their personal needs and preferences. Artificial intelligence and accumulated big data allow companies to build personalized solutions that create unique experiences for customers.
Secondly, there is a growing demand for the integration of various digital platforms into single ecosystems. This is not just a mobile application or website, but a full-fledged ecosystem that covers all points of interaction with the customer. Today, companies consider mobile apps as a strategic asset, where every step of the user is part of a single digital brand story. At Devlight, we clearly see this trend in projects with large clients, where the mobile app becomes a central element of the customer experience.
Another significant trend is workflow automation. As digitalization opportunities grow, companies are looking to automate and self-service more and more processes to reduce their operational burden. This is especially true in Ukraine, where the demographic crisis and lack of skilled workers are pushing for such solutions. Automation will be key for large manufacturing companies with hundreds or thousands of employees. A few years ago, it was hard to imagine that it would be possible to order the delivery of concrete worth 40 million hryvnias through a mobile application. Now such solutions exist.
Artificial intelligence (AI) is rapidly transforming both the Ukrainian and international markets. For businesses, AI is an opportunity not only to increase efficiency but also to create new services that were simply impossible before. Artificial intelligence not only changes the customer experience, but also simplifies the user interface and promotes the development of personalized solutions tailored to individual needs.
Data security and cybersecurity have become another important trend. With the development of technology, the number of data security risks is growing. Businesses, especially in Ukraine, are forced to pay more attention to cybersecurity, which requires implementing new solutions and adapting to ever-changing threats.
Another important trend worth noting isthe commercialization of the digital transformation process. Many large companies are making efforts to monetize their digital expertise by setting up IT subsidiaries to develop and sell technology solutions to foreign markets. For example, companies such as Nova Poshta, Metinvest, DTEK, and Kyivstar are setting up IT subsidiaries such as Nova Digital to meet not only their own digital transformation needs but also to provide similar services to other players. This strategy allows them to recoup a significant portion of their investments in software development and deepen their understanding of the market.
On the other hand, a number of companies are investing in the creation of standalone digital products that can replace their core business model. For example, many B2B retailers are transforming themselves into marketplaces and aggregators, abandoning warehouses and their own inventory. The essence of this strategy is to transform into a digital platform by transferring part of the operational risks to other participants in the value chain.
In general, digital transformation is now going not only deeper, but also covers all levels of business. It is no longer just a matter of technology, but a strategic approach that allows companies to better adapt to changes and work with customers on a new level.
Have customers' priorities for digital transformation changed during a full-scale war?
The war did not stop the digital transformation of business, but rather accelerated it. However, the requirements for digital solutions have changed significantly. Companies have become much more demanding in terms of cybersecurity, flexibility and adaptability of platforms. The events taking place in Ukraine on a daily basis are forcing businesses to expand their channels of interaction with customers, and digital channels are now winning the most.
As for mobile applications, since the beginning of Russia's full-scale invasion of Ukraine, they have become the only way for many Ukrainians to stay connected to the world. In a situation where many found themselves under occupation or unable to leave their homes, mobile solutions became vital. Already in the first days of the war, important applications appeared, such as air raid alerts and eVorog, which alerted people to the movements of Russian troops.
At the same time, the war has led to another unique shift in business priorities: large retailers, banks, and financial institutions have begun to minimize physical retail space, branches, and service points, focusing on developing online channels. Investing in online business is now safer than opening new service outlets that may come under fire.
In the early stages of the war, we at Devlight believed that we had lost our Ukrainian customers for a long time, but over time it became clear that despite all the difficulties, Ukrainian business is actively transforming in the digital environment.
Are mobile applications still a key tool in digital business transformation? Do you see an increase in demand for mobile solutions?
Mobile apps are not always a key element of digital business transformation, but they are often its main driver. A mobile application can take over a significant part of the interaction with the end user, providing the customer with convenient access to the brand's products and services. Every business wants this interaction to be of the highest quality, as it creates a competitive advantage and increases customer loyalty.
The demand for mobile solutions is growing as more and more businesses find effective models of presence on the customer's smartphone. In addition, consumer expectations for convenience and personalization are also on the rise, forcing brands to look for new ways to retain attention and optimize engagement.
The basis of any business is the customer journey - from the first trigger or incentive to making a purchase and receiving the goods. Nowadays, the main competitive field for brands is shortening and optimizing this path. And here the mobile app offers obvious advantages, because:
- The customer always has a smartphone at hand. Ordering a product or service through an app is easier than using a laptop or even a mobile version of a website. A mobile app is an ideal personalized brand showcase located on a user's smartphone. The modern user spends 3 to 8 hours a day on his or her phone, and the mere presence of a brand icon on the screen stimulates purchases, even subconsciously.
- Ample opportunities for remarketing and retargeting. Thanks to the technological capabilities of the mobile application, the brand gets the tools to encourage users to complete purchases that they have already paid attention to. Using user journey analytics, the company can customize targeted messages or offers that encourage the user to return to an unfinished order or complete the purchase. It can be reminders, bonuses for closing the cart, or adapting the interface for a more convenient shopping experience.
- Data and Analytics. A mobile app is an important source of information about user behavior. The brand receives valuable data on the product categories that generate the most interest, products with high conversion rates, and areas of the app where users spend the most time. This allows the company to better understand the needs of its customers, customize offers, and use its resources more efficiently.
Which mobile solutions are currently in the greatest demand among Ukrainian businesses?
I can't say that any specific mobile solutions have an absolute advantage in demand, because every business chooses what best suits its needs and strategy. Different types of solutions that perform specific functions and solve specific tasks are popular today.
First, mobile applications focused on end-user interaction remain in focus. Many companies seek to build stronger relationships with customers through convenient and personalized mobile platforms, which are becoming the main channel for selling goods and services.
Second, mobile solutions aimed at increasing employee productivity are of great interest. Applications that simplify workflow management allow employees to complete their tasks faster and more conveniently. Such products greatly simplify the interaction between the company and its employees, allowing them to create a digital workplace right in their colleague's smartphone, making them indispensable tools for effective work.
Finally, mobile tools that automate various business processes are becoming popular. Such solutions are especially in demand in logistics and large retail, where an app can help you quickly find the right product, get information about it, or track its availability at different points of sale. This allows companies to reduce their operational burden and ensure uninterrupted operation even in the unstable environment we have today.
If possible, tell us more about working with your clients. What innovations have you implemented together? How difficult is it to work with large companies?
Each of our clients is in a unique context, has different goals and needs. That's why our cooperation always starts with the formation of an app release strategy that takes into account the specifics of the business. Our first task is to identify the biggest opportunity to create value for the business. Based on this, we build a strategy to achieve it.
The approach to creating a strategy depends on the client's request and current capabilities. Devlight's task is not only to offer solutions, but also to build an effective digitalization strategy that strengthens or expands the client's business model, allowing it to reach a new level.
Different businesses have different goals, and these goals determine the approach to strategy development. For example:
- Nova Post. The company's main goal is operational excellence and speed of service. That's why all elements of the mobile app are designed with a focus on speed and user experience. Success here is measured by the number of successfully completed operations, such as tracking, receiving, or paying for services.
- Novus and Varus. For these retailers, the key priority is to reduce the user's time in the app: from login to payment for products. In addition to speed, it is also important to analyze the contents of the cart, which allows you to make personalized offers and improve the customer experience.
- Niche e-commerce. Here, the main indicator of success is the additional number of new purchases in a mobile application that exceeds the average level of purchases of a typical user.
In addition, there are clients for whom mobile applications are becoming a major factor in saving operating costs. For example, in some cases, our solutions have saved tens of millions of dollars compared to the situation before the implementation of mobile solutions. For banking clients, mobile applications take over the work of hundreds of customer service managers, providing not only convenience for users but also a significant reduction in operational burden.
These examples demonstrate how different business goals shape unique approaches to strategies. Our task is to dive deeply into the client's business context, help them identify key growth points and ensure that their goals are met. Each strategy is tailored to unique needs, allowing businesses to effectively adapt to challenges and remain competitive.
The formula for successful innovation. Our approach is not only to find an attractive niche or market segment, but also to create a system that is constantly evolving. This allows the business to be adaptive and respond to changes in market conditions faster than competitors. Thanks to this, our customers receive products that not only meet modern standards, but also shape new rules of the game in their industries.
Working with large companies is never easy, as they have a complex decision-making structure and high quality standards. However, this opens up the possibility for large-scale innovations that affect a huge number of users. Our approach allows us to tailor innovations to the needs of each client as efficiently as possible, ensuring their real growth and success in the digital age.
How do you introduce new technologies into Devlight products? Do you use artificial intelligence or machine learning in your developments?
As I have already mentioned, the introduction of new technologies into Devlight products always takes into account the client's business goals, current trends, and potential for innovation. We focus on technologies that create real value for the business, allowing it not only to remain competitive but also to set new market standards. The company never implements technology for the sake of technology.
Artificial intelligence (AI) and machine learning (ML) have already become important tools in many of our projects. For example, we use AI to personalize customer experience, analyze user behavior, and automate processes. This allows our clients to build deeper relationships with consumers, anticipate their needs, and increase loyalty.
Here are some examples of the implementation of these technologies:
- Personalization. In mobile retail applications, we implement systems that analyze user behavior to offer personalized recommendations and special offers. This significantly increases customer conversion and retention.
- Analytics: For banking applications, we integrate AI models that analyze transactions, allowing us to automatically generate offers for financial products or warn of potential fraud risks.
- Process automation: In the B2B segment, AI and ML help automate tasks such as order processing, demand forecasting, and supply chain optimization.
- AI product search. For clients in the retail sector, we implement search engines that use artificial intelligence to make the process of choosing products as user-friendly as possible. For example, a customer can search for products not only by name, but also by characteristics or even by formulating a query about a specific problem they want to solve. This approach simplifies the user experience and allows brands to meet their customers' needs more effectively.
Devlight's approach to implementing new technologies always begins with an assessment of whether a particular technology solves the client's real business problems. We don't introduce innovations for the sake of the process, but use them to achieve measurable results: increased revenue, increased efficiency, or improved customer experience.
At the same time, we follow the development of technology and constantly experiment with new solutions. For example, we are currently exploring the possibilities of integrating generative AI to improve interfaces and create even more interactive scenarios for user interaction.
Does AI help to improve the personalization of customer experience? What innovations in this area have you already implemented or are you planning?
Definitely! Artificial intelligence (AI) has definitely become a key tool for improving the personalization of customer experience. But I can't talk about specific innovations yet.
What are the biggest challenges you faced when implementing AI technologies in your products and services?
One of the first barriers we faced was the cost of implementation. Integrating artificial intelligence is an expensive process that requires large investments in technology, development, and customization. And while we know that the long-term results can be revolutionary, in the short term, customers often doubt whether AI will justify the resources spent. Here, we see a big challenge for innovators to show how AI can increase revenue, improve customer experience, and even change the business model. For example, in retail, AI helps to create customized offers for customers or optimize product search, which already yields visible results.
Another important challenge is ensuring data security. In many projects, we use basic artificial intelligence models such as OpenAI, which are incredibly powerful tools. However, dependence on external platforms raises information security issues, especially for companies with high privacy requirements. We are developing additional security and encryption mechanisms to minimize these risks, but this remains a serious topic of discussion with our clients. At the same time, we are constantly exploring opportunities to localize solutions to reduce dependence on global platforms.
The third challenge we experienced was the lack of AI expertise. Artificial intelligence is a relatively new area where qualified specialists are often rare. At Devlight, we solve this problem by investing in our own team: we train specialists, hire experts, and create internal competence centers that ensure the stable development of our AI expertise.
Despite all the challenges, we firmly believe that AI is the future. It is already changing approaches to personalization, automation, and analytics in business, and its potential is only just beginning to be realized. In our work with clients, we strive not just to implement an innovation, but to make it a real strategic advantage that will help them adapt to the fast-changing world.
What markets or sectors does Devlight plan to target in the next few years?
Over the next few years, we plan to expand our presence in European markets, focusing on building a systematic business in countries that are actively investing in digitalization and innovation. We recently made our first significant step in this direction by entering the Swedish market, a country known for its openness to technology and a strong ecosystem of startups and IT companies.
Sweden was the perfect choice for us to start our European expansion, as this market combines a high level of digital culture with a strong demand for mobile solutions. We see great potential in cooperation with Swedish companies, as many of them are focused on creating solutions that not only meet modern challenges, but also set new standards in their industries.
At the same time, our plans are not limited to Sweden. Devlight aims to gradually develop its presence in the Nordic countries, such as Norway and Denmark, where there is also a high demand for innovative digital products. In addition, we continue to be active in the Ukrainian market, remaining a leader in creating mobile applications for large businesses and strategically important sectors.
Since you are also the Vice President for International Cooperation at the Ukrainian IT Association and have your own extensive business experience, I can't help but ask how such associations can be useful for companies? And how can they get the most out of interacting with them?
Associations are a necessary and extremely useful experience for any business, because it is in such associations that we learn, develop, share experiences and shape the industry together. They provide an opportunity to join forces to defend common interests, create influence, and jointly find answers to the challenges faced by business.
For me personally, being a member of the Board of Representatives of the Ukrainian IT Association is a great privilege and responsibility at the same time. This is an experience that requires considerable effort, time and attention, but also opens up incredible opportunities for the development of the industry, creating a community that works for the common good.
As Vice President for International Cooperation, I am honored to build bridges between Ukrainian IT and the world. It's about new horizons, partnerships, collaboration, and promoting the high standards and values of our industry on the international stage. I am excited about the opportunity to represent Ukraine, demonstrating that the Ukrainian IT sector is competitive, innovative and ready for global challenges.
How do you get the most out of your interaction with associations? It is about active participation, your proactivity and willingness to share your vision. It is important to have a clear vision that will resonate with other members of the association, to be open to dialogue and cooperation. For me, the key to working in such structures is, first and foremost, the return: knowledge, time, resources. It is through this return that synergy arises, which is the source of real benefit.
Associations are more about what you can give to the community, not just what you can get. And this is what creates the foundation for the long-term development of the industry, the industry and the business of each of its members.
What advice would you give to Ukrainian startups and young entrepreneurs seeking to enter the international market?
When it comes to entering the international market, I would like to avoid general recommendations and draw attention to a few important points that can help Ukrainian startups and entrepreneurs:
1. Plan your budget and funding.
Exporting is a capital-intensive process. Without sufficient financial resources, it is almost impossible to succeed. Half-measures or limited budgets often lead to disappointment. It is important to think about sources of funding in advance: attracting investment for a specific plan to enter new markets is a very good idea. Investors are often interested in such projects because the international market opens up prospects for scaling.
2. Take advantage of government support and grant programs.
Ukraine is actively promoting its companies in the international arena, and today there are many opportunities to participate in trade missions, joint stands or grant programs. This not only reduces costs but also allows you to explore target markets with minimal risk. It is an ideal way to see the realities of the market before you start a large-scale investment in entry.
3. Look for your x-advantage.
If you want to compete successfully, think about what makes your product or company unique. If it doesn't already exist, you should focus on creating it or finding a way to highlight your existing strengths in the most favorable light. Sometimes creativity makes all the difference: how you position yourself, what story you tell the world.
4. Study the successes of others.
Analyze the success stories of companies in your niche that have already achieved success in the international market. Find 3-5 such cases, carefully analyze their steps, and understand which of them can become part of your strategy. Many valuable lessons can be learned simply by studying the actions of competitors.
5. Do not trust dubious experts.
Today, it's easy to come across "export experts" on Instagram who sell courses or offer template solutions. Remember that every market and every company is unique. Only you can be the best expert in your export process if you study the market in detail and understand your real capabilities.