Digital company Mendigital to Offload Own In-House Creations for Sale
In the picturesque town of Menden, Germany, the municipal utilities have a daughter company named Mendigital, established in 2021 to drive forward digital funding projects under the Smart City initiative. As the Smart City funding programme nears its expiration in 2026, Mendigital is gearing up to transition from a municipal service entity into a commercial digital service provider.
According to recent local news, Mendigital is developing a robust business plan centred on the commercialisation and sales of its digital innovations beyond the funding period. The strategic direction is to shift from reliance on public funding towards a market-driven model where Mendigital markets and sells its digital solutions directly. This transition could potentially position Mendigital as a digital service vendor for other public or private sector customers, leveraging its municipal digital transformation experience.
However, the specifics of Mendigital's business plan remain unclear, with no known details about the business model, such as selling LoRaWan sensors for measuring air quality, free parking spaces, and electricity consumption. The MI faction, a local political group, has expressed doubts about Mendigital's ability to profitably market techniques and methods developed after the expiration of "Smart City" funding in 2026.
Robin Eisbach, the CEO of Mendigital, has expressed his intention to make money with the company's know-how. He emphasises the need for strategies to be developed together with politics, suggesting a collaborative approach to ensure Mendigital's future success.
The withdrawal of the MI application to dissolve Mendigital by October 2026 indicates a future for the company. Mendigital is currently engaging with other cities for various projects and is planning to use the LoRaWan wireless network for its initiatives.
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In a broader context, the practice of marketing products or consulting services by a municipally supported company is already being done elsewhere. Christian Feuring, a local politician, remains skeptical about the idea of a municipally funded company competing in the market with products developed using tax money. He raises concerns about potential competition with private IT service providers.
As the future of Mendigital unfolds, the town of Menden and its residents will closely watch the progress of this digital service provider, hoping for continued innovation and growth in the digital realm.
Finance for technology development and expansion is a critical component of Mendigital's business plan, as the company intends to commercialize its digital innovations beyond the Smart City funding period. To achieve this, Mendigital aims to transition from a municipal service entity into a commercial digital service provider, leveraging its expertise in technology and business, with plans to market and sell its digital solutions directly to public or private sector customers.
