In the interview with Frank Kindervatter, Chairman of the Board of NEW AG

NEW AG is a municipal service provider with strong ties to the Lower Rhine region. It supplies its customers with electricity, gas and water. NEW stands for a partnership-based, regional and innovative energy and water supply. Unlike traditional utilities, NEW also operates public local transport, the public sewer network in Mönchengladbach and Viersen, as well as several swimming pools in the region. NEW’s goal is to become a digital flagship company by 2025. Under the leadership of Mr Frank Kindervatter, a digitalisation strategy has been developed and is now being implemented step by step to provide customers throughout Germany with optimal service. In an exciting interview with the CEO of NEW, we discuss today the strategic transformation of an energy service provider, the implementation of an innovation and digitalisation strategy, and key areas of action in the energy industry.

DIGITAL FUTUREmag: What are currently the biggest challenges for municipal utilities and suppliers?

Frank Kindervatter: As a supplier, we currently need to focus on three key areas that will significantly shape our future and business model: the energy transition, the heat transition, and the transport transition. By being aware of this and investing in new fields, we want to contribute to advancing these topics. We are currently heavily involved, for example, in topics such as self-sufficient neighborhoods, digitalization in the grids, or charging infrastructure in the region. However, to implement all of this, we need consistent digitalization!

DIGITAL FUTUREmag: What are the core points of the NEW digitalization strategy?

Frank Kindervatter: In 2017, we set ourselves the goal with the digitalization strategy of becoming a digital flagship company by 2025. We see digitalization not as an end in itself, but as an opportunity to make ourselves more flexible. All our employees have received a smartphone from us, without which they cannot work: for example, they use our employee app to open doors, receive pay slips, and I process procurement approvals and processes by signing with my fingerprint. I no longer sign contracts on paper. All the things that don’t work via smartphones or laptops won’t be done by us in the coming years. All processes will be completely digitalized. Only those who consistently implement their strategy will be successful. For me, that’s not just a cliché, but a fact.

DIGITAL FUTUREmag: What resistance have you encountered within your own company regarding this?

Frank Kindervatter: New goals and visions always mean change. Not everyone welcomes that with open arms. From the start, I was aware that not everyone would participate. However, it’s important to support the advocates and work together with them to forge the path forward. So far, this has worked wonderfully.

DIGITAL FUTUREmag: NEW AG offers not only energy and water supply but also many classic services, such as public transport or swimming pool operations. To what extent are such areas included in the overall strategy?

Frank Kindervatter: We integrate each of our operational areas into every aspect of our digitalization strategy. After all, digitalization at the workplace certainly doesn’t take place only in the office! On the contrary: since all 2,200 employees—from bus drivers to administrative staff—have received a smartphone, we are much more efficient. A small example from operations: in the past, colleagues had to read their duty rosters on paper at the depots; today, they can check them with a click on their smartphone. Technicians can also take on spontaneous intermediate appointments that come in as orders by receiving all the relevant information directly as a task on their smartphone. They record the incident with a photo, add brief notes, and the order is already completed so that the administration can process it further. In our swimming pools, all process chains around maintenance and commissioning also run with digital devices. I could give many more examples, but that would go beyond the scope.

DIGITAL FUTUREmag: How far along are you currently with the implementation of yourInnovation and digital strategy?

Frank Kindervatter: It’s still a little way off until 2025, but we’re on a very good path. We’ve been able to digitalize far more processes than originally expected. New processes are added daily, as the conversion reveals just how many process chains are still hanging on at the back. As a municipal service company, we certainly don’t need to hide! Over the next two years, we’ll be focusing even more strongly on the topic of Big Data. Many processes have already been implemented internally. My wish, however, is to extend this consistent mindset outward, for example in our collaboration with suppliers – which currently doesn’t work everywhere. But I’m very optimistic!

DIGITAL FUTUREmag: What long-term benefits do you expect for the company and its associated municipal enterprises?

Frank Kindervatter: We can only secure growth by thinking exclusively in digital solutions for our processes and products – both internally and externally. Only those who optimize processes, recognize trends early, and inspire customers with innovative products and services will survive. Our self-image will then no longer be that of a pure supplier, but of a 360° service provider: customers should receive everything from a single source.

DIGITAL FUTUREmag: To achieve its goals, NEW AG is also acquiring stakes in companies to pursue future-oriented concepts such as CO₂-free neighborhoods. How do you select these companies, and what effect does this have on the speed of implementing your strategy?

Frank Kindervatter: We invest in companies with innovative business models whose future economic opportunities can deliver a high contribution to results and address major challenges. New business models invigorate the business. We work with many start-ups that continually provide new impetus and service ideas. One example: Stadtentfalter GmbH, which emerged from our partnership with Avacon AG. Stadtentfalter pools expertise in electricity, heat, waste disposal, communications, and mobility to offer 360° solutions for sustainable residential neighborhoods. Together, we’ve already planned major projects such as Mönchengladbach’s Seestadt. Going forward, implementation will follow, and more exciting projects are in the pipeline.

DIGITAL FUTUREmag: Let’s dare to take a look into the future. What role will NEW AG play in Germany in five years?

Frank Kindervatter: Looking into the future isn’t always easy, especially when it comes to digitalization. But if there’s one thing I love about it, it’s that it’s so fast-paced. We can influence tomorrow, but we certainly can’t predict it. I hope that in five years, we’ll have achieved our goal of being a digital flagship company. Furthermore, I see us in five years having further expanded our expertise as a 360° service provider, and our solutions will significantly influence the energy, heat, and mobility transition.

DIGITAL FUTUREmag: Many thanks for this insightful interview and continued success in implementing the strategies and visions you’ve outlined.