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INDEX.PHP: Observability in Lithuania: How Dynatrace Helps the State Tax Service Ensure High Performance

 

In recent years, digitization has been significant for Lithuania. The country has developed one of the most advanced digital economies in Europe. Lithuania stands out for its extensive digital infrastructure, high broadband penetration and mobile internet usage. More and more companies are using their own apps, which are crucial in communicating with customers. The Government of Lithuania and public institutions are not lagging behind: they also promote digital technologies, create programs, invest in e-government initiatives and support the development of digital skills. The main task of these companies is to ensure the stability of programs and promptly eliminate problems.

We talked to Artiom Maslov, CEO of UAB NBCS, to learn more about digitization’s benefits and challenges and to reveal how one observability platform solves many problems.

Summary

The State Tax Inspectorate (VMI) is a state institution responsible for supervising tax administration and compliance in Lithuania. It is coordinated by the Ministry of Finance of the Republic of Lithuania. The VMI’s obligations include collecting taxes, ensuring the fulfillment of residents’ and businesses’ tax obligations, and implementing tax policy in the country. For residents and businesses in Lithuania, it is critical to comply with tax laws and other legal acts and cooperate with the VMI when necessary.

So, as the world dived into digitization, the organization had to adapt.

Digitization of tax services

Digital tax services offer many advantages that can change how taxes are administered and paid. I will distinguish two types of changes: those that modern companies face in general and those crucial for VMI.

General changes

First of all, I should mention an important step: the online service for filing tax returns. The tax authorities have implemented this to ensure convenient and efficient filing of tax returns online. Digital tax services businesses and individuals use today offer tools such as tax calculators and FAQs that simplify compliance. In addition, encouraging electronic payment of taxes through online banking reduces the use of cash, which makes tax collection easier.

E-invoicing plays a significant role as it helps tax authorities monitor transactions, prevent tax evasion, and ensure that companies provide accurate sales and purchase reports. Transparent operations require careful data sharing; for example, VMI, in cooperation with government agencies, detects tax evasion in preferential tax zones.

VMI changes

VMI’s shift to modern digital platforms was vital and complex, requiring both human and financial resources. The organization had to effectively manage the budget and allocate resources.

In the age of digitization, the user experience of digital tax platforms is critical to ensuring compliance and satisfaction. Therefore, it is important to address the issue of possible disappointment and mistakes.

The transition to digital tax services requires a well-trained and adaptable workforce. Of course, there will always be resistance from employees or taxpayers accustomed to traditional processes. However, adapting to the new reality is a necessary part of progress. To achieve this, each organization must develop an effective communication, training and progressive implementation approach.

Ensuring data quality, legal compliance, digital inclusion, and literacy are also among the challenges. In response, VMI embarked on a transformational journey, actively seeking solutions to overcome this complex transformation.

Choosing and implementing the solution

VMI faced various challenges, such as performance issues, a complex IT environment, and user experience improvement. The organization had a specific request: They were looking for end-to-end solutions that would meet strict requirements and provide real-time insights into system performance, proactive problem-solving, and cost optimization.

Since VMI is a public institution, all actions must be carried out under public procurement rules and national laws. Therefore, a tender was held, and Dynatrace was selected as the optimal solution to meet the needs and requirements. That’s how we started working together.

Dynatrace was introduced to the market by us, UAB NBCS, and our partner BAKOTECH. This unified AI-based data platform provides end-to-end infrastructure observability, helping to quickly identify issues, make data-driven decisions, and improve user experience.

Benefits for VMI

First, Dynatrace’s ability to identify and resolve performance issues improves application performance. VMI can optimize its systems and create faster, more reliable applications for a better user experience. The organization must achieve its digital performance goals and drive growth. In my opinion, Dynatrace helps to cover these tasks.

I should also point out that Dynatrace helps reduce downtime by proactively addressing issues. In other words, VMI customers may not even feel that there is a problem, which positively affects their attitude towards the organization’s services.

For example, recently, there was an incident at VMI: the system did not work correctly after the update. The demand for server resources has increased to a maximum, and network resources have encountered interference. Dynatrace tools identified the issue as endless queries to the database due to unstable service performance. The information was passed on to the service provider and it turned out to be a problem with the process update. The service provider got the point right away, and it only took a few minutes to identify and resolve the problem.

Conclusion

If I had to describe Dynatrace in one sentence, I would say it is “a modern, flexible, easy-to-use tool for development and operations teams.”

The results show that Dynatrace has solved many problems related to VMI digitization, making it easier for the organization to achieve its IT goals. VMI now has full infrastructure observability and optimization capabilities. This ensures the reliability and efficiency of digital services and applications aligned with the organization’s IT performance and user experience goals.

Want to know more?

If you are interested in the Dynatrace platform, please email us at dynatrace@bakotech.com