Munich Startup: What does your startup, ZdoV, do? What problem do you solve?
Finnigan Lutz, ZdoV: We are the Munich 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 sectorWe also work extensively with NGOs, associations, and foundations to digitally set up teams. What makes us somewhat unique is our focus on a type of software that is particularly well-suited to the public sector. We're talking about open-source ERP systems. These can simplify digital collaboration considerably, making work more transparent, faster, and more organized.
Munich Startup: But that's been around for a long time!
Finnigan Lutz: Of course, we're not the first to use open source ERP systems. But I think we're the first to recognize this as an opportunity for the public sector and to have successfully used it in administration and social enterprises. I'd be happy to briefly explain what's behind it.
First, ERP systems. For those who don't know: ERP stands for "Enterprise Resource Planning" and describes business systems that are highly efficient because they integrate multiple applications into a single platform. Without ERP, you have a separate tool for everything, and the applications don't communicate with each other. This creates significant 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, creating a comprehensive digital overview. They also make process automation much easier.
What speaks for open source in administration
But why open source? The public sector can actually reap a number of benefits when the source code of its systems is open. There's no "lock-in" effect, which can arise from the monopolies of individual providers, because the code doesn't belong to a private company. This has a positive impact on the organization's digital sovereignty and avoids external control. Open source systems also benefit from global network effects, which often have a very favorable impact on prices. These are just two reasons for open source in public administration—there are a few more. In summary, these are the two interrelated mechanisms on which we implement projects!
Munich Startup: What is your founding story?
Finnigan Lutz: Our roots as an organization are truly in the digitalization of education. As the founder of the Berlin NGO Zukunft Digitale Bildung (Future Digital Education), Nico has deep roots there, and there have been several pilot projects with school authorities, schools, and teachers that have turned out extremely positively. We drew inspiration from this and saw the opportunity to make a direct contribution to digitalization. However, we are also a spin-off from 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 we have our roots in many areas.
ZdoV: “We have made remarkable progress”
Munich Startup: What have been your biggest challenges so far?
Finnigan Lutz: We've made remarkable progress. A current challenge for 2024, however, is of course the funding landscape for social enterprises. Last year, they were able to implement government-funded projects to digitize business processes with us – it was very popular. Unfortunately, the funding period has ended, and a follow-up program is still being worked on. Perhaps things will then look 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 its use is worthwhile. Whether it's just to map individual processes or specialist procedures, but also when new departments, innovation centers, or spin-offs are being considered – this presents a rare opportunity to establish an efficient infrastructure right from the start.
Munich Startup: Where would you like to be in one year, where in five years?
Finnigan Lutz: Of course, one shouldn't make predictions! It's also interesting to see where the world will be in one year and in five years. Personally, we would love to be able to delve deeper into our mission in both the social services sector and 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 commitment not just to maintaining the status quo, but to making a genuinely positive difference. This approach is a core component of our DNA, and we never want to lose sight of it.
Munich Startup: How have you experienced Munich as a startup location so far?
Finnigan Lutz: Very, very positive. Munich offers excellent conditions for startups. A special ecosystem thrives here, with major universities, many technology companies, and places for mutual acquaintance and natural exchange, which we greatly value.
Munich Startup: Outsource or do it yourself?
Finnigan Lutz: Case-specific consideration.
