ZdoV: Open-source ERP systems for the public sector

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Munich Startup: What does your startup ZdoV do? What problem do you solve?

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Finnigan Lutz, ZdoV: We are the Munich Govtech startup “Future Digital and Open Administration GmbH”, but you can simply call us “ZdoV”. We enable the digitalization of processes and organizations in the public sector, but we also work a lot with NGOs, associations and foundations to set up teams digitally. What makes us a bit unique is our focus on a type of software that is particularly well suited for the public sector. This is about open-source ERP systems. With these, you can simplify digital collaboration many times over, the work becomes more transparent, faster and more organized.

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Munich Startup: But that’s existed for ages!

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Finnigan Lutz: Of course, we’re not the first to work with open-source ERP systems. But I think we are the first to recognize an opportunity for the public sector here, and we’ve been successful with it in administration and social enterprises. I’d be happy to explain briefly what’s behind it.

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First, about ERP systems. For those who don’t know: ERP stands for “Enterprise Resource Planning” and describes business systems that are very efficient because they integrate multiple applications into one platform. Without an ERP, you have a separate tool for everything, and the applications don’t communicate with each other. This creates a lot of effort in managing tasks because the “media breaks” between applications sometimes have to be bridged manually or with Excel. ERP systems were developed precisely for this purpose, to connect all areas with each other so that a comprehensive digital overview can be created. Process automation is also much easier with this.

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What speaks for open-source in public administration

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But why open-source? In fact, the public sector can derive a number of advantages from having the source code of systems open. There is no “lock-in” effect that can arise from monopolies of individual providers, since the code doesn’t belong to any private company. This has a positive effect on the organization’s digital sovereignty, and you avoid external determination. Furthermore, you benefit from global network effects in open-source systems, which often have a very beneficial effect on prices. These are just two reasons that speak for open-source in public administration – there are a few more. In summary, these are the two mechanisms of action that play into each other and on the basis of which we implement projects!

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Munich Startup: What’s your founding story?

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Finnigan Lutz: Our roots as an organization are actually in the digitalization of education. Nico, as the founder of the Berlin NGO Future Digital Education, has deep roots there, and there were several pilot projects with school authorities, schools and teachers that turned out extremely positively. We drew inspiration from that and saw the opportunity to make a direct contribution to digitalization. But we’re also a spinoff from TU München and maintain close ties with the Munich management consultancy much. GmbH, which supports us as our umbrella partner – so I’d say we have our roots in many places.

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ZdoV: “We’ve made remarkable progress”

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Munich Startup: What were your biggest challenges so far?

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Finnigan Lutz: We’ve made remarkable progress. A current challenge for 2024 is of course the funding landscape for social enterprises. Last year, they were still able to implement state-funded projects with us to digitalize business processes – that was very popular. Unfortunately, however, the funding period has ended and work is still being done on a successor program. Maybe things will improve for social enterprises and NGOs again. Apart from that, of course it would always be good if more people knew what an ERP system is and when its use is worthwhile. Both to map only individual processes or specialist procedures, but also if new departments, innovation centers or spinoffs are in the offing – here is a rare opportunity to establish an efficient infrastructure from the ground up.

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Munich Startup: Where do you want to be in one year, where in five years?

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Finnigan Lutz: Of course, you can’t make predictions! Of course it’s also exciting: where will the world be in a year and in five years? Personally, we’d find it very nice if we could pursue our mission in depth both in the area of social services and in German administration, to set these organizations up better. Both fulfill an essential social function and serve our society in a valuable way. We see valuable will in this, not just to preserve the status quo but to make a real positive difference. This approach is a core part of our DNA that we never want to lose sight of.

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Munich Startup: How have you experienced Munich as a startup location so far?

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Finnigan Lutz: Very, very positive. The Munich location offers very good foundations for startups. Here a special ecosystem flourishes with the major universities, many technology companies and places for mutual getting to know each other and natural exchange, which we greatly appreciate.

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Munich Startup: Outsource or do it yourself?

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Finnigan Lutz: Case-by-case assessment.

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