It’s common knowledge that digitalization in Germany is a slow-moving affair. The e-prescription does exist, but it doesn’t work particularly smoothly. A nationwide 5G network will probably take a while longer. And then there’s the whole thing with electronic signatures – well…
In fact, the Federal Republic ranks rather mediocrely in international digitalization comparisons. According to the Digital Economy and Society Index (DESI), which tracks progress of the 27 EU member states across five key areas, Germany ranks in the middle of the pack. In 2022, it managed only 13th place with a total score of 52.9 points – the average was 52.3.
Germany performed particularly poorly in the DESI ranking in the “Digital public services” category. And this despite several government initiatives aimed at accelerating precisely that. The share of German internet users using electronic government services was 55 percent in 2022, ranking 24th. And thus behind most EU countries.
Why do we need a smart state?
Anyone who has an appointment at the citizens’ office experiences firsthand the inadequate digitalization in administration. Forms and documents often still need to be filled out on paper, and the resulting paperwork is then submitted in person at the office. This is not only incredibly frustrating but also time-consuming and costly for everyone involved.
The goal of digital transformation in the public sector is therefore to make government services not only more efficient but also more easily accessible to all citizens. Digitalization is the key to modernizing the administrative apparatus. Federal, state, and local governments need technologies that make administrative processes and citizen services more user-friendly and transparent. Moreover, a functioning digital administration is also an important location factor for international companies and skilled workers.
Startups as drivers of innovation
Govtech – that’s when startups and political decision-makers come together. Because digitalizing public structures is a challenge that the state cannot manage alone. Administrative structures and processes are not designed to integrate risky new solutions. An important driver behind digital transformation is therefore technology-oriented companies and startups. The creativity and strong user orientation of startups make them suitable partners on the path to a digital state. Often, innovations from the fields of artificial intelligence, cloud technology, data analytics, and blockchain are deployed.
Application areas in which govtech startups are active include:
- Digital citizen platforms where citizens can obtain information and communicate with authorities in real-time
- Artificial intelligence for automatic text analysis when processing applications and documents
- Improved data collection and analysis to optimize decision-making processes
- Smart city technologies to improve urban infrastructure, traffic management, and environmental protection
Munich startups in the govtech sector
When it comes to govtech, Munich’s startup ecosystem certainly doesn’t need to hide. Numerous local startups contribute their part to making the administration sector more efficient, transparent, and user-friendly. These include:
Convaise: The startup helps organizations and public administration transition their communication with customers and citizens to a chat-based system. Complex processes can also be handled on Convaise’s no-code platform via an AI-powered messenger. In this way, municipalities and cities transform their processes into self-service offerings. The digital assistant guides citizens through bureaucratic processes and provides them with information for further processing.
Govradar: Govradar has focused on public procurement. Its AI-powered Software-as-a-Service solution enables the creation of tender documents without requiring employees from authorities or municipalities to create them manually. Additionally, the govtech ensures that performance descriptions are formulated in compliance with regulations, clearly, and unambiguously, so that potential suppliers can submit tailored offers. Furthermore, an AI-powered assistant helps optimize procurement.
Govshare: Govshare offers a solution platform for municipal climate protection. It centrally collects practical examples of successful climate protection measures at the municipal level. This allows municipalities and their public enterprises to find practical solutions without having to start from scratch themselves. Additionally, commercial solution providers, as well as non-profit organizations and social enterprises, can list themselves on the govtech’s platform.
Locaboo: Founded in 2021, the company is dedicated to helping municipalities manage public buildings such as sports facilities, community centers, and cultural and event venues. To this end, Locaboo has developed software that enables municipalities to rent out these venues directly via their websites. The software optimizes and analyzes utilization and handles the entire rental process. This is intended to increase efficiency and sustainability of resource use and support the data foundation for future urban development.