Munich Startup: What does your startup ZdoV do? What problem do you solve?
Finnigan Lutz, ZdoV: We are the Munich-based Govtech startup “Zukunft digitale und offene Verwaltung 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 to the public sector. We are talking about open source ERP systems. These can simplify digital collaboration many times over, making work more transparent, faster and more organized.
Munich Startup: But that already exists!
Finnigan Lutz: Of course, we are not the first to use open source ERP systems. But I think we are the first to have recognized an opportunity here for the public sector and have been successful with it in administration and social enterprises. I can briefly explain what’s behind this.
Let’s start with the 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 several applications into one platform. Without an ERP, you have a separate tool for everything and the applications do not communicate with each other. This causes a great deal of effort in managing tasks because the “media breaks” between the applications have to be bridged, sometimes manually or using Excel. ERP systems were developed precisely for this purpose, to connect all areas with each other so that a digital overview can be created. This also makes it much easier to automate processes.
What speaks for open source in administration
But why open source? In fact, the public sector can reap a number of benefits when the source code of systems is open. There is no “lock-in” effect that can result from the monopolies of individual providers, as the code does not belong to a private company. This has a positive effect on the digital sovereignty of the organization and avoids external control. In addition, open source systems benefit from global network effects, which often have a very positive impact on prices. These are just two reasons that speak in favor of open source in administration – there are a few more. In summary, these are the two mechanisms that interact and on the basis of which we implement projects!
Munich Startup: What is your founding story?
Finnigan Lutz: Our roots as an organization really do lie in the digitalization of education. As the founder of the Berlin-based NGO Zukunft Digitale Bildung, Nico has deep roots there, and there have been several pilot projects with school boards, schools and teachers that have been extremely positive. We took inspiration from this and saw the opportunity to make a direct contribution to digitalization. However, we are also a spin-off of the Technical University of Munich and maintain a close relationship with the Munich-based management consultancy much. GmbH, which supports us as an umbrella partner – so I would say that we have our roots in many places.
ZdoV: “We have made remarkable progress”
Munich Startup: What have been your biggest challenges so far?
Finnigan Lutz: We have made remarkable progress. However, one current challenge for 2024 is of course the funding landscape for social enterprises. Last year, they were still able to implement state-funded projects for the digitalization of business processes with us – that was very popular. Unfortunately, the funding period is over and we are still working on a follow-up program. Perhaps things will then pick up again for social enterprises and NGOs. Apart from that, it would of course always be good if more people knew what an ERP system is and when it is worth using it. Both for mapping individual processes or specialist procedures, but also when new departments, innovation centers or spin-offs are in the pipeline – this is a rare opportunity to set up an efficient infrastructure right from the start.
Munich Startup: Where would you like to be in one year, where would you like to be in five years?
Finnigan Lutz: Of course you can’t make predictions! What’s also exciting here, of course, is where the world will be in a year’s time and in five years’ time. Personally, we would be delighted if we could pursue our mission in greater depth both in the area of social institutions and in the German administration in order to better position these organizations. Both fulfill an essential social function and serve our society in a valuable way. We see this as a valuable desire not just to maintain 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.
Munich Startup: How have you experienced Munich as a startup location so far?
Finnigan Lutz: Very, very positive. Munich is a very good location for startups. A special ecosystem flourishes here with the major universities, many technology companies and places for getting to know each other and natural exchange, which we greatly value.
Munich Startup: Outsource or do it yourself?
Finnigan Lutz: Case-specific consideration.
