How Germany Successfully Implemented Its Intergovernmental FLORA System
Julia Amend, Simon Feulner, Alexander Rieger, Tamara Roth, Gilbert Fridgen, and Tobias Guggenberger
This paper presents a case study on Germany's implementation of FLORA, a blockchain-based IT system designed to manage the intergovernmental processing of asylum seekers. It analyzes how the project navigated legal and technical challenges across different government levels. Based on the findings, the study offers three key recommendations for successfully deploying similar complex, multi-agency IT systems in the public sector.
Problem
Governments face significant challenges in digitalizing services that require cooperation across different administrative layers, such as federal and state agencies. Legal mandates often require these layers to maintain separate IT systems, which complicates data exchange and modernization. Germany's asylum procedure previously relied on manually sharing Excel-based lists between agencies, a process that was slow, error-prone, and created data privacy risks.
Outcome
- FLORA replaced inefficient Excel-based lists with a decentralized system, enabling a more efficient and secure exchange of procedural information between federal and state agencies. - The system created a 'single procedural source of truth,' which significantly improved the accuracy, completeness, and timeliness of information for case handlers. - By streamlining information exchange, FLORA reduced the time required for initial stages of the asylum procedure by up to 50%. - The blockchain-based architecture enhanced legal compliance by reducing procedural errors and providing a secure way to manage data that adheres to strict GDPR privacy requirements. - The study recommends that governments consider decentralized IT solutions to avoid the high hidden costs of centralized systems, deploy modular solutions to break down legacy architectures, and use a Software-as-a-Service (SaaS) model to lower initial adoption barriers for agencies.
Host: Welcome to A.I.S. Insights, the podcast where we connect Living Knowledge to your business. I'm your host, Anna Ivy Summers. Host: Today, we're diving into a fascinating case of digital transformation in a place you might not expect: government administration. We're looking at a study titled "How Germany Successfully Implemented Its Intergovernmental FLORA System." Host: With me is our analyst, Alex Ian Sutherland. Alex, in simple terms, what is this study all about? Expert: Hi Anna. This study is a deep dive into FLORA, a blockchain-based IT system Germany built to manage the complex process of handling asylum applications. It’s a great example of how to navigate serious legal and technical hurdles when multiple, independent government agencies need to work together. Host: And this is a common struggle, right? Getting different departments, or in this case, entire levels of government, to use the same playbook. Expert: Exactly. Governments often face a big challenge: legal rules require federal and state agencies to have their own separate IT systems. This makes sharing data securely and efficiently a real nightmare. Host: So what was Germany's asylum process like before FLORA? Expert: It was surprisingly low-tech and risky. The study describes how agencies were manually filling out Excel spreadsheets and emailing them back and forth. This process was incredibly slow, full of errors, and created huge data privacy risks. Host: A classic case of digital transformation being desperately needed. How did the researchers get such an inside look at how this project was fixed? Expert: They conducted a long-term case study, following the FLORA project for six years, right from its initial concept in 2018 through its successful rollout. They interviewed nearly 100 people involved, analyzed thousands of pages of documents, and were present in project meetings. It's a very thorough look behind the curtain. Host: So after all that research, what were the big wins? How did FLORA change things? Expert: The results were dramatic. First, it replaced those insecure Excel lists with a secure, decentralized system. This meant federal and state agencies could share procedural information efficiently without giving up control of their own core systems. Host: That sounds powerful. What else did they find? Expert: The system created what the study calls a 'single procedural source of truth.' For the first time, every case handler, regardless of their agency, was looking at the same accurate, complete, and up-to-date information. Host: I can imagine that saves a lot of headaches. Did it actually make the process faster? Expert: It did. The study found that by streamlining this information exchange, FLORA reduced the time needed for the initial stages of the asylum procedure by up to 50 percent. Host: Wow, a 50 percent reduction is massive. Was there also an impact on security and compliance? Expert: Absolutely. The blockchain-based design was key here. It provided a secure, transparent log of every step, which reduced procedural errors and made it easier to comply with strict GDPR privacy laws. Host: This is a fantastic success story for the public sector. But Alex, what are the key takeaways for our business listeners? How can a company apply these lessons? Expert: There are three huge takeaways. First, when you're trying to connect siloed departments or integrate a newly acquired company, don't automatically default to building one giant, centralized system. Host: Why not? Isn't that the simplest approach? Expert: It seems simple, but the study highlights the massive 'hidden costs'—like trying to force everyone to standardize their processes or overhauling existing software. FLORA’s decentralized approach allowed different agencies to cooperate without losing their autonomy. It's a model for flexible integration. Host: That makes sense. What's the second lesson? Expert: Deploy modular solutions to break down legacy architecture. Instead of a risky 'rip and replace' project, FLORA was designed to complement existing systems. It's about adding new, flexible layers on top of the old, and gradually modernizing piece by piece. Any business with aging critical software should pay attention to this. Host: So, evolution, not revolution. And the final takeaway? Expert: Use a Software-as-a-Service, or SaaS, model to lower adoption barriers. The study explains that the federal agency initially built and hosted FLORA for the state agencies at no cost. This removed the financial and technical hurdles, getting everyone on board quickly. Once they saw the value, they were willing to share the costs later on. Host: That's a powerful strategy. So, to recap: Germany's FLORA project teaches us that for complex integration projects, businesses should consider decentralized systems to maintain flexibility, use modular solutions to tackle legacy tech, and leverage a SaaS model to drive initial adoption. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. Expert: My pleasure, Anna. Host: And thank you to our listeners for tuning in to A.I.S. Insights, powered by Living Knowledge. We'll see you next time.
intergovernmental IT systems, digital government, blockchain, public sector innovation, case study, asylum procedure, Germany
