It is common knowledge that digitalization in Germany is a slow process. Although the e-prescription has been around for some time, it doesn’t really work smoothly. A nationwide 5G network will probably take a while yet. And the issue of electronic signatures – well…
In fact, Germany ranks rather mediocre in an international comparison of digitalization. According to the Digital Economy and Society Index (DESI), which tracks the progress of the 27 EU member states in five key areas, Germany ranks in the middle of the pack. In 2022, it only managed 13th place with an overall score of 52.9 points – the average was 52.3.
Germany performed particularly poorly in the DESI ranking in the “Digital public services” category. This is despite several initiatives by the federal government to accelerate precisely this. At 55%, the proportion of German internet users who use electronic government services was in 24th place in 2022, behind most EU countries.
Why do we need a smart state?
Anyone who has an appointment at the citizens’ office will experience the inadequate digitalization in the administration. Applications and documents often still have to be filled out on paper and the paperwork then handed in at the office. This is not only incredibly nerve-wracking, but also time-consuming and costly for everyone involved.
The aim of the digital transformation in the public sector is therefore not only to make government services more efficient, but also to make them more accessible for all citizens. Digitalization is the key to modernizing the administrative apparatus. The federal, state and local governments need technologies that make administrative processes and citizen services more user-friendly and transparent. In addition, a functioning digital administration is also an important location factor for international companies and skilled workers.
Startups as drivers of innovation
Govtech – that means startups and political decision-makers come together. The digitalization of public structures is a challenge that the state cannot overcome alone. Administrative structures and processes are not designed to integrate risky new solutions. Technology-oriented companies and startups are therefore a key driver behind the digital transformation. The wealth of ideas and strong user orientation of startups make them suitable partners on the path to the digital state. Innovations from the fields of artificial intelligence, cloud technology, data analytics and blockchain are often used.
The fields of application in which Govtech startups are active include, for example:
- Digital citizen platforms where citizens can obtain information and communicate with the 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 from the govtech sector
When it comes to govtech, Munich’s startup ecosystem really has nothing to hide. Numerous local startups are doing their part to make the administrative sector more efficient, transparent and user-friendly. These include:
Convaise: The startup supports organizations and public administration in converting their communication with customers and citizens to a chat-based system. Even complex processes can be handled on Convaise’s no-code platform via an AI-supported messenger. This is how municipalities and cities are transforming their processes into self-services. The digital assistant guides citizens through bureaucratic processes and provides them with information for further processing.
Govradar: Govradar has set its sights on public sector procurement. Its AI-supported software-as-a-service solution enables the creation of tender documents without employees from public authorities or municipalities having to create them manually. The govtech company also ensures that service descriptions are legally compliant, clearly and unambiguously formulated so that potential suppliers are able to submit accurate bids. An AI-supported assistant also helps to optimize procurement.
Govshare: Govshare offers a solution platform for municipal climate protection. It centrally collects practical examples of successful climate protection measures at municipal level. The aim is for local authorities and their own companies to find practicable solutions without having to start from scratch. In addition, commercial solution providers as well as non-profit organizations and social enterprises can be listed on the Govtech platform.
Locaboo: Founded in 2021, the company has set itself the task of helping municipalities to manage public buildings such as sports facilities, community centers, and cultural and event venues. To this end, Locaboo has developed software that allows local authorities to rent out venues directly via the respective websites. The software optimizes and analyses occupancy rates and takes care of the entire rental process. The aim is to increase the efficiency and sustainability of resource use and support the database for future urban development.
