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IDP Podcast
Konova AG: Shaping the future of Intelligent Document Processing
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Welcome to the first Intelligent Document Processing Podcasts in the world.
A few weeks ago, we invited Miro Hegnauer, CEO at Konova AG.
Konova AG offers innovative digital solution for cooperation and participation processes. The solution is used throughout Switzerland by municipalities, cities, cantons and organizations for consultations and participations and is a tried and tested solution for e-participation.The management of public and private projects becomes significantly simpler, multidimensional, and concrete.
What about Parashift?
Parashift is a machine learning company that has taken on the topic of document capture. Its product, the Parashift Platform, is a cloud-based document extraction solution that uses IDP technology to read relevant data from any document. By using its proprietary Document Swarm Learning technology, companies can gradually automate all their document processes.
In the process, employees team up with the Parashift Platform to integrate document data into processes and systems super quickly and cost-effectively. The platform learns from all interactions and thus comes closer to complete autonomy step by step. So everything at Parashift is focused on making this technological milestone a reality. The team is not pursuing other topics. Alain Veuve says, “We’re not an end-to-end solution, so we’re working with a lot of companies that can do vertical integrations.”
Website: https://parashift.io
Interview filmed on February 18, 2022
***Disclaimer: The opinions expressed in this podcast are those of the guest and the host. They do not purport to reflect the opinions or views of their company.
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Welcome to a new episode of the Intelligent Document Podcast.
I am Alain Veuve,
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CEO and Founder of Parashift.
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Today I have with me Miro Hegnauer from
the Konova AG.
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So glad to have you here.
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Who are you?
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Yes, my name is Miro Hegnauer. I am founder
and co-owner and CEO of Konova AG.
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Maybe I can just say what our company does, maybe also how
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we came into existence.
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Everything started in 2017.
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I already had an online marketing
agency alongside my apprenticeship.
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That was my hobby, to start a small company.
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I made websites there.
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Nothing insanely complex.
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With a business partner we were
then involved in a project
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with the canton of Obwalden,
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to develop strategic communication.
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And that was a consultation case.
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Consultation means concretely:
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One integrates the citizens
or even the parties in a political process
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process. You ask them: What do you think?
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You gather feedback.
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And I noticed there that this inclusion is very complicated,
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very time-consuming for the administration, but also very
tedious or time-consuming for the participants who
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want to take part in the political process.
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And then we asked ourselves: Can't that be done better somehow?
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And yes, you can do it better.
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We found this out in the meantime, we developed a prototype,
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tested it directly with great success, and then realized that this is not just
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something that exists in one administration, in one canton, but also in
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cities, in communities, in various cantons, at the federal level,
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everywhere where there is involvement.
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And so we developed a product and have
further developed it again and again.
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And that's where we are today. What is the name of the product?
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E-Mitwirkung. E-Mitwirkung, that's right. This
consultation process
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is something original swiss, right?
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Yes. This does not exist in Germany. For
our German viewers:
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We ask people before we decide on something.
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That's the principle, isn't it?
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We ask:
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What do you think? That's right, we
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checked it out: What does that look like in
Germany?
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There are individual processes, in communities
for example, where certain construction projects
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are pending, where the population must be involved.
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However, it is not like in Switzerland, where this is much stronger, where in principle
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for every major political project the population or at least the parties
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etc. must be involved.
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That is different here and that is also
especially in Switzerland. Okay.
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I am now asking some of the stupid questions that someone would ask if
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they weren't Swiss. How many of
of these consultations
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are there at the communal level, for example?
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Yes, at the communal level, it is usually the case that it is actually
construction projects or urban development
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projects. For example
even if a private person wants to
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build or develop an area, he has to do it in cooperation with the administration.
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And the administration must then also involve the
population.
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For a small community, that's
four processes, larger processes,
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and in the case of a city or a canton, it is 40 processes.
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But these are only the
processes required by law.
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Of course there are many more
participations.
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Basically, our product
is much more about stakeholder
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involvement. It's just like in a company
where you want to involve the employees firmly in the
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process. Is of course very wide.
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There are also surveys, other topics
and there are actually very many purposes.
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So, let me get this straight:
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There are certain projects where this
consultation is required
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purely by virtue of the law.
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Did I understand that correctly? And with
others, is it politically clever or is it
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decent, let's say, to simply involve the people in order to find a
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better decision?
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Is that correct?
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Exactly. The question is: Why does
an administration receive or why does the
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law exist at all? The goal is, after all,
to achieve a high level of acceptance, so that
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the population says: "I support this.
behind it.
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That's a good thing.
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I understand what it's about.
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I was able to comment on it." And more and more
administrations are also realizing that it makes sense
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to make voluntary contributions.
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Not only when it is required by law
required, but to determine at an early
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stage: Where are there potential opportunities,
where are there risks?
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And to obtain the feedback at an early stage
and not just, as is the case in Switzerland,
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when there is a vote of either yes or no.
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Very exciting, what does the product look like?
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How can I imagine this?
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Yes exactly, this is a software-as-a-service solution.
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That was very important for us.
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We did not want to create 26 cantonal solutions and
and community solutions,
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we wanted to have a standard solution.
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This means, there are actually two sides
in this solution.
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There is the side of the participant, that is
the person, for example, the citizen, who
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records the statement.
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That means he can view documents there. He may
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participate in interviews. He has like a theme board,
where he can place different ideas,
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evaluate them, prioritize them.
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This is one side and the other side,
that is the side of the administration
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now in this case, where the feedbacks are
and questions can then also
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be collaboratively evaluated, assessed, post-processed
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etc.
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We can, for example, summarize certain inquiries
and say: This is an inquiry
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that is similar or that is related to an argument?
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How do I have to imagine the consolidation
imagine? Exactly, so
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the most important thing is first of all that the
administration sees
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quite easily, for example, in a document, for which chapter or for which headings
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which feedback has been received.
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In the past, these were unstructured letters that arrived.
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All this had to be assigned individually to these chapters
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hundreds of Excel files that went back and forth.
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In the meantime, with our solution, the
feedback is already recorded in a structured manner.
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So that's one issue. And the other
topic is: How can I gain knowledge
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from it? And there I can do clustering, there I can use automations
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to search for matches, to make summaries.
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And these are the efficiency
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tools that are needed precisely when I'm asking
a higher number of stakeholders.
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How do these invitations come about ... or is there an invitation for consultation?
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Or how does that get to the citizen now?
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I understood it like this: Potentially
anyone who lives
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in this political community can participate. Exactly.
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So basically, the theme is always:
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We have very different needs, also from administrations. Some
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administrations say: We really want to involve the entire population.
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It is important to us that every person, the
young people, the older people are
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integrated into this political process.
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With others, they are still a bit
reserved.
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They may not yet have quite the
trust in it or are afraid that there will be
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too much feedback.
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And depending on what the goal is, one must design communication and
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activation differently.
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This means quite simply: This is typical
activation via marketing.
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I mean: via flyers, via posters, at events, via social media
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ads, etc.
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citizens can be activated and made aware and draw their attention to these projects.
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And the software is built in a way, I assume that I can customize it
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in the look and feel to the community more or less.
Yes, exactly.
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Okay, then I have like an account as a
citizen now?
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Yes, exactly.
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For the next one, I can just log in again?
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Exactly, that's a little bit exciting,
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it goes a little into the topic of AI,
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the discussion, of citizen login, which is now very active in
Switzerland.
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It is now actively led and that will of course massively simplify it for us,
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if there will be such a uniform login.
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Currently we have our own single sign-on.
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If, for example, you now participate with a
a community, a city, you can
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register at the same time and at higher levels,
for example, a canton, you can then register
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with the same login.
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Now a couple of weeks ago we were
were in a discussion, I think.
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I found that quite exciting.
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We met somewhere.
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I think you used to be a customer at another start up where
I was kind of part of.
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Well, I've always followed what you're doing
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and found it exciting.
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And suddenly you call me and
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we talked about certain strategic options.
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I thought that was pretty cool, A) that you're doing that at all - because it's not like
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we've all been communicating the whole time.
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I thought that was very, very, very cool.
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I should do more of that. On the other hand
I was very, very pleasantly surprised at
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how well this business has developed.
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So you have found something that is a
need and you have also made a super
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Business draus gemacht. Maybe you can give a
give a bit of the dimensions of how you've
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grown there.
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I don't mean sales figures or anything like that,
but you are a good
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group by now, you have great
coverage.
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I have heard from two of our customers at the Canton about you
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and heard very many good things.
Maybe first of all:
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How was that for you? You are not the
the oldest.
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So let's say: having an advertising agency on the side,
then getting into this product and now
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you have a business that has filled such a
perfect spot, I think,
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you've earned, a super reputation.
How are you doing with that?
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I think a lot is learning by doing.
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Yes, I was interested in building a product. I actually wanted to create
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a product earlier.
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The opportunity then arose
or the potential.
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But it's not that we just started out as a start-up
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that
we developed a product for two years
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and tried to establish it on the market we actually just started
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with a prototype.
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This is an opportunity that has arisen
and
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then has always developed further.
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For us it was certainly important that we have a focus, and that's what we did.
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In the meantime, we can also open something.
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We have a larger team, which is super exciting, we can move into new areas.
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Basically, it is a matter of including stakeholders and, as I said, this
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is the case in various areas.
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We are currently establishing the topic of associations,
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companies, where it is then a question of involving the
employees
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and piloting it here. And here, too: This is
very learning.
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We are very much learning as we go.
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We are in a network and that
is perhaps also the reason why I
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called you. Because I find it exciting myself
to learn from others.
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There are certain topics that are very
specific to our product, but
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I think especially in other areas,
product development, marketing, there are
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similar challenges that others have already done.
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For me, it's exciting to learn here.
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Let's talk a little bit about the cloud,
this is, after all, a cloud product.
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Let's talk a little bit about the cloud,
this is, after all, a cloud product.
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I have discussions every day with
potential new customers about our data
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in the cloud. We have a lot to do here with personal data and
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sometimes also with sensitive personal data.
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Is there even an on-premise version of
E-Mitwirkung?
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That is a good question.
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I myself am a fan of Software as a Service
and also of cloud solutions, where everything
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is offered as a one-stop service, where
the customer knows that he is getting a
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complete service and that he no longer has to look after
the IT infrastructure anymore.
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Where we started, it was clear to us that the
administrations, we notice that the topic
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of e-government and digitalization is very
active at the moment.
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There are many goals, but some of them lack
resources.
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There is a lack of knowledge in the administrations.
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And if we had come here with an on-premise
solution and the administrations
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first had to activate their own IT resources, then the answer would have been:
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No, we don't have any resources at the moment.
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So it was clear to us: We need a complete
solution that we can offer, which the
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administration has to put into operation immediately.
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But now, as you said, there are certain fears, uncertainties
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about the cloud.
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And we had to dismantle those.
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That is, I listened carefully:
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Where was the problem?
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What are the risks that customers
see?
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And we then worked on those.
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This means, for example, that for us it is quite clear:
Switzerland as a data center for administration.
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We have built up the whole thing here with Swiss partners, which are ISO-certified etc..
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On the other hand, we also brought in an IT legal protection lawyer at an early stage,
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who also assisted us in
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implementing the solutions in a data privacy
data protection-compliant and data-secure right from the start.
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We perform pentesting and with these
measures we can prove that we have
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done the best possible.
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And what certainly helps if you get a
major client, such as a
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larger canton,
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then it's also easier for smaller cities and
communities to build trust
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and go to the cloud.
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In the sense of: Canton XY also uses
our solution? Yes.
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Okay, this is exciting.
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That's the way it is,
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we've won a few cantons and a
few - now with Parashift -
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and a few are actually also using the cloud.
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But that's always the case: Yes, let's not do that
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it's all legal, but let's not make a big deal about it.
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And we would be quite happy to do that, that we would
say we go to Canton B and say
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Canton A, by the way, why don't you give them a call?
They have already done all the
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paperwork, all the compliance. But that is not really allowed with us, I have the feeling that
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this kind of thing is not really believed. There's certainly a lot of educational work
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to be done, and we've noticed that.
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Do you have ... sensitive personal data are not really an
not really an issue in that sense, or how
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should I understand that? So... yes, but these are just
personal data in the sense that the citizen
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identifies himself, I assume, on your platform?
Exactly. Okay. But
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this is classified differently.
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According to data protection laws, political statements are particularly worthy of protection.
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It's the same issue with healthcare data.
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That is why it is actually the highest level
according to data protection.
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But for us, the most important thing is certainly that
the data is in Switzerland.
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So a cloud abroad or
from a foreign provider
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would not be accepted.
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This is exciting.
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Did you then have a lot of compliance work
and assessment
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now also, through the cantons?
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Or is it more like this:
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Look, we are documented like this.
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Here are all the documents, if you still
questions ... and then this went through?
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Or were there assessments as well?
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Assessment in this sense not.
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There have certainly been audits by the persons responsible for data protection
within the administration.
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And here, however, it is also important - since, for example, we do not operate
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the data center ourselves, we have a corresponding
partner, - that this partner
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is certified, ISO-certified, and then we can show that a certain
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data protection standard exists.
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Exciting, very exciting.
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Um. It's called Civic Tech, right?
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Yes, that's one area, yes. That's like once I got more involved
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with your company,
I noticed:
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There are actually super few civic tech
players in the startup environment,
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at least they haven't gotten to me.
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What's your take on the scene,
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Civic Tech? One would like to think
actually,
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the government is one of the biggest customers
that exist.
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Yes, if you look at it a little bit from a distance
you have to say, somehow, I think,
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40 percent of the Spent
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is spent by the state, something like that,
so really a lot.
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Are there many startups in the field?
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Or are you in that bubble?
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Does this bubble even exist?
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Let me put it this way: there are many projects,
but there are few startups that also have a
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commercial interest
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in developing a product and in developing it in the long term.
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There are OpenSource projects, there are
experiments, which are also supported by
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various foundations.
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That is very exciting.
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But here you also always have to see: What is the
benefit effectively for the administration.
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There are just two aspects here.
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One aspect is certainly that administrations
have an interest in promoting democracy,
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in offering channels.
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But there are also many fears.
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Exactly: I don't want to involve the
population, because that means
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a lot of work, etc.
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But the other aspect - and this is our
advantage - is the issue of efficiency. Especially with
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these projects that the administration has to do,
these inclusions, it's not a question of: Do I
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do them digitally now or is it a question of making
these ... I have to do them,
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but how do I do them? Do I do it digitally or
not?
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And if we can say: We save effort- and that is
with our solution - around 65 percent,
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then the question is clear: do it digitally.
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And we also focused very early on the issue of efficiency, we developed an efficiency
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solution with collaborative tools,
which serves the administration.
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And many other projects in this environment
are primarily focused on the topic of digital
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democracy, i.e., primarily from the perspective of citizens, which is certainly important, but
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in order for it to be attractive for the administration to rely on such a product,
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both sides have to be fulfilled.
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And here we are sure
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that there are not many startups,
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not even abroad, which take care of this area.
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I once discussed with - you may know
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David Fuss from Tilbago -
I had a discussion with him very early on
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and I told him: How crazy,
what you are doing here
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with Tibago is actually what the state should be doing.
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So in the sense of: They're doing debt collection,
so they make a front end -
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I'm certainly not doing
the product justice,
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but as I understood it, they make a front end for debt collection offices,
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so that it is much easier for companies to file for debt collection,
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to manage the whole thing. This is especially important for
companies that have to serve a lot of customers,
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the biggest companies,
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it is a super ugly process.
And I said: Aren't you actually
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afraid that the state, that is, that the administration
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will go along with it? At some point, they will have to digitize.
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And he told me: No, I'm not afraid, it works.
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They are moving so slowly,
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which makes it rather difficult for us to connect our product in such a way that
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it works. And conversely - this
was really at the very beginning -
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he said: And maybe, you know,
we can somehow
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sell this to the state as an exit partner.
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What's your take on this in Civic Tech,
are there exit opportunities?
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Is that something you
you're dealing with at all?
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How do you see it?
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Can the state become a competitor
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at one point? Now to you,
that he says: Oh come on,
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we'll build that centrally as a toolset?
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I ask myself: Everything is digitized
except for the state.
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That's a bit bold, but when we
consider: What are the ...
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These are the business models of the
political operations, of the future, that
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need to be digitized.
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You would also have to think that somewhere
the state has to start
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using other tools and organize the processes differently,
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perhaps adapt the legal foundations a bit, so that
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it can better accommodate this digitalized lifestyle. And what
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you are doing shows very clearly that this is a need
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of the citizens. I don't think that a citizen will say: I don't want to
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do it digitally, please give me back the paper!
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That won't happen.
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Oh, sporadically still. Really?
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Yes, there are certainly some citizens who say
say: I would still like to submit this in analog form.
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But that is also possible and that is a
minority, quite clearly.
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And that will continue to get smaller in the future.
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Yes well, someone always has to be different. Exactly.
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Okay. So how do you see that
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working out in Civich Tech? Do you have a plan to
sell it at some point or
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just from a business perspective?
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So at the moment we still have a lot of
potential, besides
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the case that we have now, with these formal obligations to carry out consultations,
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there is still a great deal of
potential, also in the B2B environment, in the club
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environment, it's still fun enough to continue
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and we can still grow.
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Regarding if the state has to or do we have
competition from the state:
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there are individual e.g. cantons, administrations that
develop individual solutions.
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But what we see as a problem or a challenge there is the exchange of information.
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Everyone gains experience,
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but that doesn't make a lot of sense if
each canton builds its own solution etc.
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And here, this is the advantage, when the customer comes to us, he benefits from a lot
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of experience, we can say: The other canton has
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solved this in such and such a way, they had these challenges.
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And it does not work ...
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Each canton does not have to rebuild the
Login system anew etc., but it can
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build on one site and together ...
ultimately, we develop
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the solution together with our customers,
so it's good for everyone and I think our customers really
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appreciate that. There are few who
want to build solutions specifically now.
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They also know that resources are scarce.
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Yes, exciting.
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How do you generally
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see digitization in the institutional sector now?
Where will we be in
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5 years?
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It's difficult to say, there's a lot going on at the moment.
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They also always say you have to become more agile.
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However, we have also noticed that, for example, there are also certain risks in administration.
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People are always quick to say "Try it!",
but you also notice that it's not
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that the administration doesn't want to,
but when a mistake happens,
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it's in the media the next day.
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And that is also the challenge that the
administration has,
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and here both sides really have to live the culture of trial and error so trying is possible.
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And I notice progress here,
that both sides are becoming more open,
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both sides also want to try out more,
and also cooperate
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more with the private sector.
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Yes, I see progress here, but
that will certainly not happen overnight.
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Would that mean that you digitally ...
You said that
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digitalization in the public sector is progressing more
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slowly than in the private sector, isn't it?
393
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It may be a little more complex than that.
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You may have larger or more different stakeholders, different requirements.
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You may have from a political point of view many guidelines. The topic of data protection
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is certainly also looked at closely by companies
and by the customers, but with the
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citizens it is still much more the case and here
the state has to be much more careful,
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and more careful usually means slower.
slower.
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Exciting, yes.
400
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We have already reached the end of our conversation.
401
00:23:29,130 --> 00:23:32,190
Thank you very much for coming here,
402
00:23:32,190 --> 00:23:34,800
Friday afternoon. I appreciate that very much.
403
00:23:34,990 --> 00:23:39,420
I find it really exciting what you are doing and I
wish you all the best on the way.
404
00:23:39,960 --> 00:23:40,650
Thank you very much!