Q&A with Frederick Beckmann: “Q1 Energie is an innovation driver in the industry”
PetrolPlaza speaks to Frederick Beckmann, CEO of Q1 Energie AG, a mid-size German retailer known for its innovative approach. We discuss the power of innovation, why they develop their technology in-house, and the “New Technology Disruptors Award” they’ve launched together with forecourttech.
Q1 Energie is an independent German medium-sized fuel retailer whose brand proposition is putting "Quality First". The company operates a network consisting of 230 service stations throughout the country, with a strong focus in the northern and eastern regions. The retailer's strategy is putting technology and innovation at the core of their businesses to drive their operations and stay relevant amidst the transformation of the industry.
PetrolPlaza talks to Frederick Beckmann, CEO of Q1 Energie AG, about the firm's commitment with innovation, developing their own technology in-house and the "New Technology Disruptors Award'' launched alongside forecourttech and to debut the event's next edition.
Q. What is the value of innovation for modern fuel and convenience retailers?
A. Innovation is a facilitator, whether it’s for generating better profits, efficient processing, freeing resources for other tasks, or accelerating customer satisfaction. You should pursue innovation to offer a better product.
Q. What are some of the biggest examples of innovations that you've implemented throughout your own network?
A. We perceive ourselves as an innovation driver in the industry. We have a very strong department of software development and data scientists. One example is our pricing software that uses AI to visualize pricing effects in the market and competitor pricing strategies. Launched as a B2B software, it is now implemented by different companies in the German market. We also developed a mobile payment platform called Zahlz. It’s accepted in our network, it includes a digital version of the DKV card, and are currently rolling out a digitized Roadrunner fleet card for drivers of medium-sized German companies accepted at 1,300 stations. We are currently redesigning our Q1 fleet card on a completely new technological platform. This allows us to digitize a card through our mobile payment platforms as well as implementing cross acceptance with other networks and EV charging operators.
Q1 is quite innovative around shop and food service with very modern, state-of-the-art concepts. We recently won a budget from the government of Lower Saxony to invest in our digitalization fund to support retail innovations. There are plans to experiment with new technologies such as robots connected to food preparation and software solutions for automated stores. Our first step in that field is a click-and-collect software that we are currently piloting and planning to roll out soon.
Q. What pushed Q1 to invest in the development of its own technology?
A. Q1 has a very strong brand proposition: "Quality First". To be able to sell that value to customers you need a core competence in the field of IT. That’s why we build up these resources. There are other markets that are much more developed than Germany in technical terms. So it’s a good opportunity to generate a competitive advantage.
Q. Is it more important than ever for fuel retailers to be connected to new technologies?
A. Definitely, technology should be at the core of business processes. Only with technology can you work on efficiency and the customer journey in an omnichannel way. Every company that does not see technology as an essential internal role will get lost in the long term.
Q. That takes us to the "New Technology Disruptors Award'' you developed together with forecourttech. How did the idea for this come about? What is the basis for the competition?
A. We want to give innovations visibility at forecourttech to get decision makers at the event in touch with the top-of-the-edge developments, and accelerate the implementation of new technologies.
Five participants will be selected to take part in the event and pitch their projects to the audience. The attendees will select one start-up as the winner – they will get a free ticket to SmartCityHouse, a start-up accelerator based in Osnabrück that we founded together with other partners. The winning project will be supported to improve its market strategy and increase the probability of a successful business development.
I'm curious to see the scope of start-ups and business ideas; the range is very broad. They can be based around automation, process improvements on the forecourt or fuel technology. So I'm really curious to see which of the start-ups is going to win and enjoy the mentoring of the SmartCityHouse accelerator program, and also being able to work more closely with us.
Q. What do you see as some of the biggest disruptors for our industry in the next 5-10 years?
A. One of the biggest changes will come out of store automation, fully or semi-autonomous stores. This will definitely happen because we have the technology, and it will get cheaper. There is a lack of workforce and a problem with raising wages. I strongly believe that in a couple of years we'll see a growing number of automated stores that are very likely to completely change the shape of the industry. It sets the workforce free from processes that are repetitive or not very meaningful to tackle value-generating processes.
I think it's necessary to be connected to the disruption happening in the market if you want to influence your future business and shape the market in which you operate. Now is the opportunity to design the future market.
