Introduction
 
Local government in Germany is currently in the process of modernizing its administration and services, with the aim of improving service levels to German citizens and businesses. This Datamonitor report analyzes the market opportunity for technology vendors targeting the German local government market.
 

 
Scope
 
Forecasts the opportunities for technology solution deployments by type of authority and technology, as well as region within Germany.
 
Analyzes the drivers and inhibitors for the adoption of technology within local government, outlining the factors influencing market conditions.
 
Explains the market's competitor dynamics and assesses the outcome of various government initiatives.
 
Provides a framework for conceptualizing the local government opportunity and recommends specific go-to-market approaches for vendors.
 
Highlights
 
Technology investment in German local government is being driven by government initiatives, the need to encourage economic investment, improvements to citizen services, more efficiency across government, security and public safety, system and application upgrades and the political process.
 

 
With German local authorities' budgets increasingly restricted, technologies that are able to reduce costs will certainly prove attractive, and a demonstration of ROI can be an important factor for vendors during the sales process.
 

 
Datamonitor forecasts that local government external ICT spend will grow at a compound annual growth rate (CAGR) of 6% in Germany between 2003 and 2007, from $2.37 billion in 2003 to $3 billion in 2007. In particular, the BundOnline initiatives are encouraging authorities to channel their budgets into front office investments.
 

 
Reasons to Purchase
 
Quantification of the technology revenue opportunities to 2007 will enable vendors to identify the most lucrative areas of growth.
 
Identification of strategic and tactical success factors will ensure that vendors gain a competitive advantage.
 
Assessment of the factors that are influencing market conditions will help vendors to improve their solution positioning.
 

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
1.1 Profiting from local government in Germany 3
 
1.2 Market context 3
 
1.3 Customer focus 4
 
1.4 The future decoded 5
 
CHAPTER 2 INTRODUCTION 11
 
2.1 What is this report about? 11
 
2.2 Who is the target reader? 11
 
2.3 How to use this report 11
 
2.4 Forecasts and assumptions 11
 
2.5 Scope of the report 12
 
CHAPTER 3 MARKET CONTEXT 13
 
3.1 Introduction 13
 
3.2 Key findings 13
 
3.3 Modernization of German local government 14
 
3.4 Technology deployments 18
 
3.5 What are the market drivers? 23
 
3.6 Market inhibitors and challenges 25
 
3.7 Competitor dynamics 29
 
CHAPTER 4 CUSTOMER FOCUS 32
 
4.1 Introduction 32
 
4.2 Key findings 32
 
4.3 Defining and identifying the local government opportunity 33
 
4.4 Reference sites 38
 
4.5 Go-to-market approach 40
 
4.6 The importance of ROI and TCO 45
 
CHAPTER 5 THE FUTURE DECODED 47
 
5.1 Introduction 47
 
5.2 Key findings 47
 
5.3 Market development in comparison to the UK and France 48
 
5.4 Spending variations by type of authority 50
 
5.5 Regional trends in Germany 52
 
5.6 Trend by type of IT expenditure 54
 
5.7 Summary 56
 
CHAPTER 6 APPENDIX 57
 
6.1 Research methodology 57
 
6.2 Further readings 58
 
6.3 SPP writing team 58
 
6.4 How to contact experts in your industry 59
 

 

 
LIST OF FIGURES
 
Figure 1: Core technologies and channels in German local government 4
 
Figure 2: Local government institutions in Germany by type 5
 
Figure 3: Local government external ICT spending by country, 2003 to 2007 ($ millions) 6
 
Figure 4: Local authorities involved in a shared regional network through intermunicipal corporations (Gemeindeverbände) 17
 
Figure 5: Core technologies and channels in German local government 19
 
Figure 6: Vendor presence in German local government 29
 
Figure 7: Local government institutions in Germany by type 33
 
Figure 8: Local government external ICT spending by country, 2003 to 2007 ($ millions) 48
 
Figure 9: German local government external ICT spending by type of institution, 2003 to 2007 ($ millions) 50
 
Figure 10: German local government external ICT spending by region, 2003 to 2007 ($ millions) 52
 
Figure 11: German local government external ICT spending by type of expenditure, 2003 to 2007 ($ millions) 54
 
Figure 12: Datamonitor’s market expertise and research and analysis methodology 57
 

 

 
LIST OF TABLES
 
Table 1: Local government external ICT spending by country, 2003 to 2007 ($ millions) 48
 
Table 2: German local government external ICT spending by type of institution, 2003 to 2007 ($ millions) 51
 
Table 3: German local government external ICT spending by region, 2003 to 2007 ($ millions) 53
 
Table 4: German local government external ICT spending by type of expenditure, 2003 to 2007 ($ millions) 54