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

The 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 utility companies, 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. To achieve this, a digitalisation strategy was developed under the leadership of Mr Frank Kindervatter and is now being implemented step by step to provide customers throughout Germany with the best possible 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, as well as 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 self-sufficient neighborhoods, digitalization in the grids, or charging infrastructure in the region. To implement all of this, however, 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 become 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 of the tasks that do not work via smartphones or laptops will no longer 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, this is not a platitude, but a fact.

DIGITAL FUTUREmag: What resistance did you encounter within your own company?

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

DIGITAL FUTUREmag: The 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 consider each of our areas of operation in every aspect of our digitalization strategy. After all, digitalization in the workplace certainly does not only take place in the office! On the contrary: Since all 2,200 employees – from bus drivers to administrative specialists – have received a smartphone, we are much more efficient. As 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 one click on their smartphone. Technicians can take on additional spontaneous appointments that come in as orders by receiving all 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 because it only becomes apparent during the transition how many process chains are still trailing behind. As a municipal service provider, we definitely don’t need to hide! Over the next two years, we’ll focus 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 externally as well, for example in our collaboration with suppliers – though this isn’t yet happening everywhere. But I’m very optimistic!

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

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 rather a 360° service provider: customers should receive everything from a single source.

DIGITAL FUTUREmag: To achieve its goals, NEW AG also acquires 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 consistently provide new impulses 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 the Mönchengladbach Seestadt. The next step will be implementation, and more exciting projects are in the pipeline.

DIGITAL FUTUREmag: Let’s take a look into the future together. 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 one thing I love about it is how fast-paced it is. 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, with our solutions significantly driving the energy, heat, and mobility transition.

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