Public API: The Foundation for a Digital Ecosystem in Liechtenstein

SMEs and PSOs face significant challenges in streamlining their digital transformation efforts even though they share numerous points of interaction that could be made significantly more efficient through digital networking. Recognising this potential, there is a clear need to establish a digital infrastructure tailored to the needs of all stakeholders involved.

By creating such an infrastructure, SMEs and PSOs would no longer need to develop their own interfaces individually. Instead, they could leverage synergies, collaborating on a unified solution designed to address the diverse requirements of all parties.

However, the challenges lay in the unknown: what exactly are the needs of the various stakeholders? How could these needs be integrated into a shared digital infrastructure? Moreover, what organisational structure would be required to support and sustain this system? These open questions formed the basis for digihub.li to explore and address these critical challenges.

Digihub.li, in collaboration with its beneficiary FOGS Web Lab, was able to answer these questions through a structured and comprehensive approach.

The initiative began with qualitative interviews to identify the specific pain points faced by organisations in both the private and public sectors. This research revealed critical challenges, including the need for solutions in verification and electronic identification, secure data transmission, and efficient data exchange.

Based on these insights, digihub.li developed a tailored concept to address these issues. The proposed solution underwent a rigorous feedback loop involving experts, ensuring its alignment with industry and sectoral needs. This iterative process culminated in the creation of a Minimum Viable Product (MVP) proposal for a Public API, which lays the foundation for actionable and scalable digital infrastructure.

Description of the solution implemented

The Public API serves as a central interface and middleware for data exchange between PSOs, SMEs and private individuals. The features of the MVP include self-sovereign data management, identity and profile data as well as open data interfaces. The Public API therefore provides the necessary architecture for digital services as well as completely new business models and serves as an identity provider and data interface.

Rationale behind the investment

The research revealed that the public and private sectors are required to build a digital ecosystem. In the public sector, there is a need for a modern eID solution that is geared towards the needs of the private sector and provides a technical structure and functions that enable SMEs to implement new digital business models. Standardized interfaces are also required in various areas. The research also shows that the necessary organizational structures between the public and private sectors are currently lacking and that the topics of open data, data sovereignty and digital signatures must be tackled jointly.

The findings clearly state that Liechtenstein is in need of secure and efficient data exchange within and between organisations, as well as seamless integration with public sector interfaces to enable fully digital administrative processes.

SMEs and PSOs aim to optimise cross-organisational workflows, leverage synergies, and ultimately maximise customer value. To achieve this, they require a robust infrastructure that allows them to securely store, authenticate, transfer, and share data. Additionally, there is a strong demand for standardised processes and industry-wide solutions to enhance collaboration with suppliers, customers, government bodies, and other stakeholders, enabling effective co-creation.

Furthermore, businesses are looking for foundational frameworks and standardised practices that allow them to accelerate their digital transformation in a secure, cost-effective, and scalable way. Recognising the inefficiencies and compatibility issues associated with individually developed systems, they prefer centralized solutions that ensure interoperability and foster broader compatibility across systems.

Digihub.li has therefore spearheaded the development of a digital platform that connects the public sector, SMEs, and the digihub.li ecosystem itself. This initiative began with the identification of specific requirements necessary to build a robust and scalable platform tailored to Liechtenstein's unique landscape and resulted in the creation of a comprehensive concept for a Public API.

Digihub.li's overarching goal is to create a fully integrated digital ecosystem for Liechtenstein - with the Public API as its technical backbone. This project therefore lays the groundwork for a nation-wide digital transformation.

Benefits for SMEs

With the Public API, SMEs can gain multiple benefits that enhance their digital transformation efforts. They become part of an international hotspot for digital business, providing them with valuable exposure to cutting-edge digitalization practices and innovative business models. They also benefit from secure data location, ensuring compliance with stringent data privacy regulations while maintaining the integrity and confidentiality of their digital operations. Furthermore, the initiative fosters network effects at both national and international levels, enabling SMEs to connect with like-minded businesses, industry leaders, and potential partners. These collaborations facilitate knowledge sharing, market expansion, and increased business opportunities.

One of the core advantages is the cost-effective digitalization of SMEs, as the Public API provides access to standardized digital solutions, reducing the need for costly individual developments. By leveraging shared infrastructure and digital tools, SMEs can streamline their workflows and increase efficiency without significant upfront investment. Lastly, the initiative focuses on providing core functions for digital business, offering SMEs essential tools such as digital identity solutions, secure data exchange, and open data interfaces. These functionalities form the backbone of scalable and interoperable digital business models, allowing SMEs to thrive in an increasingly digital economy.

Overview of the funding invested

The initial investment was limited to the Public API budget. Developing an MVP would require approximately 250,000 CHF, while full implementation is estimated at 2–3 million CHF. Compared to Liechtenstein’s economic output, this investment aims to achieve a 5% efficiency increase, significantly optimizing business processes. Additionally, the Public API serves as a catalyst for new ecosystem-driven business models, unlocking innovative revenue streams and fostering digital transformation. The expected return-on-investment stems from enhanced operational efficiency, reduced redundancy in digital interfaces, and improved cross-sector collaboration, ultimately strengthening Liechtenstein’s position as a digital innovation hub.

The initiative offers valuable insights and practical advice for future projects and EDIHs undertaking similar projects. Here are the key lessons learned:

Do’s:

• Invest sufficient time in planning: A robust planning phase set a solid foundation for the project. It ensured that all subsequent steps were strategically aligned with the overarching goals.

• Strongly adapt steps based on insights: Flexibility in adjusting processes based on findings from earlier phases proved essential. This iterative approach allowed the project to remain relevant and effective.

• Start with qualitative interviews: Using qualitative interviews as a starting point was instrumental in gaining in-depth insights and understanding the nuances of stakeholder needs.

• Communicate strategically with stakeholders: Navigating the complexities of stakeholder interactions with clarity and purpose strengthened involvement and enhanced the quality of insights. By elucidating the rationale behind processes, stakeholders were more engaged and better positioned to contribute meaningfully.

• Stay flexible throughout the project lifecycle: Adaptability fosters innovation and responsiveness to emerging challenges.

Don’ts:

• Stick rigidly to non-working ideas: In hindsight, involving subject-matter experts at an earlier stage could have accelerated problem-solving and enriched project outcomes.

• Adhere strictly to the original scope when greater potential exists: Recognising the broader potential of the activity early on, digihub.li, in collaboration with its partner FOGS, successfully expanded the scope to achieve greater impact.

• Overlook the importance of clear communication: Ensure that all stakeholders understand the goals and processes to align contributions effectively and boost collaborative engagement.

By integrating these lessons, EDIHs and their partners can enhance project effectiveness and maximise their impact across diverse initiatives.