Digitalisation as inevitable focus for municipalities

Citizens' expectations of digital administration are constantly increasing. Fast, transparent and uncomplicated administrative processes that are no longer slowed down by bureaucracy and long waiting times are demanded. The Online Access Act (OZG) obliges local authorities to provide all essential administrative services online by 2024 at the latest.

However, many local authorities are still very much at the beginning of this transformation. A lack of resources, outdated IT systems and data protection concerns are making implementation difficult. How can a municipality successfully shape the digital transformation and which strategies and best practices help to implement digitalisation sustainably?

1 Why digitalisation is essential for municipalities

The administration is facing a number of urgent challenges that can only be overcome efficiently through digitalisation:

a) Citizens expect digital administrative services

73% of citizens surveyed in a Bitkom study said that digital administrative processes would save them time and, in their view, would be easy to use. By 2022, over 60% of citizens were already using digital administrative services, but many processes are still paper-based.

In the same year, just 25% of local authorities had an elaborate digitalisation strategy.

b) Skills shortage forces municipalities to automate

According to the German Association of Towns and Municipalities, there will be a shortage of more than 840,000 skilled workers in German municipalities by 2030. Automated workflows and digital file management relieve the burden on employees and increase efficiency. Digital solutions make it possible to compensate for staff shortages and shorten processing times.

c) Legal requirements are driving digitalisation forward

The OZG prescribes the comprehensive digitalisation of administrative services in around 575 service bundles. In addition, some laws contain information or counselling obligations, which can also be offered more easily using digital solutions, see Sections 13 et seq. SGB I.

2 The biggest hurdles for local authorities when it comes to digitalisation

Despite the clear advantages, there are numerous obstacles:

a) Outdated technical infrastructure

Many local authorities work with outdated IT systems that are not designed for end-to-end digitalisation. Even if the e-file has already been set up, the specialised procedures are often not state of the art.

In some cases, the connection to central identification services such as BundID or BayernID has not yet been implemented across the board.

b) Data protection and IT security as a challenge

The GDPR and special provisions such as those in SGB X set high standards for data protection. These are also necessary, as over 800 attacks on companies and institutions were reported in 2023 alone . The number of attacks on local authorities also rose rapidly.

c) Lack of expertise in the administration

Many local authorities lack digitalisation officers or data protection officers who coordinate processes centrally. Administrative staff need targeted training in order to be able to use digital processes efficiently. The changeover from long-standing analogue processes requires a clear change strategy and implementation.

3 Strategic guidelines for successful digitalisation

Municipalities that want to successfully shape the digital transformation should be guided by the following guidelines:

a) Utilise inter-municipal cooperation

85% of local authorities in NRW already rely on cooperation with external IT service providers, experts and other local authorities. Joint projects enable cost savings and standardised regional services.

b) Ensure user-centricity and accessibility

Digital administrative services must be accessible to all groups of citizens (including people with disabilities and older people). Digital citizen portals with multilingual support and simple user guidance increase acceptance.

c) Prioritise security and data protection

End-to-end encryption, two-factor authentication and pseudonymisation are often indispensable. There are written form-replacing proofs of identification such as BundID, BayernID etc., which can be used here. However, even for communication that is not bound to any form, the GDPR should at least be taken into account.

Regular IT security audits help to prevent data protection breaches.

Conclusion: Take a strategic approach, but also start implementing it.

Municipal decision-makers must act now to actively shape the digital transformation. The key success factors are: Modernise technical infrastructure, focus on data protection and IT security, Actively involve employees in the digitalisation process, Use inter-municipal cooperation to increase efficiency

The Online Access Act provides the framework - it is up to the municipalities to use it sensibly. Digitalisation is not an end in itself, but an opportunity to increase proximity to citizens, efficiency and transparency in administration.

Your contact for digital administrative processes

Municipalities, federal states and institutions face a variety of challenges when implementing digital administrative processes. LeistungsLotse supports you with practical advice and customized solutions. If you need support with digital implementation, we are on hand with help and advice. Contact us – together we can create a modern and efficient administration!

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