date: november 10, 2017 prof solomon darwin prof henry ... · national and international...

SMARTFARMINGINANDHRA-WHITEPAPER

SMARTFARMINGINANDHRAPRADESH,INDIA:ANOPENINNOVATIONAPPROACH

Date:November10,2017PROF. SOLOMONDARWIN

PROF. HENRYCHESBROUGHResearchers:WernerFischer,ShreyaEvani,JudahDarwin,K.Harshadeep&ArunSharma

“Agricultureisourwisestpursuit,becauseitwillintheendcontributemosttorealwealth,goodmoraleandhappiness”–ThomasJefferson

Researchpresentedinthispaperisbasedon:a) Feedbackfromover40CorporatePartnersworkingwithUC

Berkeleyonthesmartvillageprojectsincesummer2016b) One-on-onefieldsurveyswithover10,000farmersinAndhra

Pradesh,India,andc) OpenInnovationresearchbeingconductedonBusiness

ModelInnovationatUCBerkeley.

TableofContent

1. ExecutiveSummary…………………………………………………………………………1

2. Overview…………………………………………………………………………………………2

3. LessonsLearnedfromPreviousRuralDevelopmentInitiatives……...3

4. Berkeley-AndhraSmartVillageProject…………………………………...………5

5. TheRoleofOpenInnovationandSharedValue……………………..……….7

6. PastAgricultureEcosystem(Pre-Bifurcation)……………………….…………9

7. VisionfortheFuture…………………………………………….……………..………..13

8. ValuePropositionoftheOpenInnovationAgricultureEcosystem…17

9. CalltoAction:thePathForward…………………….……………………..…..….21

10. Appendix………………….…………………………………………………….……….…….23

“Villagesarethesourceofwealth”ChiefMinisterNaidu

MoriSmartVillageInaugural,Dec.29,2016

“Thegovernmentbelievesthatagriculturalgrowthisonlypossible

bycombiningadvancedtechnologywitheffectivepolicies.Itisthegovernment'saimtomake

Andhrathemostadvancedagriculturalstateinthecountry."

ChiefMinisterNaiduHansIndia,Sep.2016

“Agriculturalproductivityisoneofthemostbasicthingsthatcanhelpthepoortomovetowardsamore

prosperouslife.”

“Ihaveseenfirst-handthatagriculturalsciencehasenormouspotentialtoincreasetheyieldsofsmallfarmersandliftthemoutof

hungerandpoverty.”

“Innovationsthatareguidedbysmallholderfarmers,adaptedto

localcircumstances,andsustainablefortheeconomyandenvironmentwillbenecessarytoensurefoodsecurityinthefuture.”

BillGates

SMARTFARMINGINANDHRA-WHITEPAPER1

ExecutiveSummary

Thebottomofthewealthpyramidoffersahugeuntappedgrowthopportunityforglobalbusinessestoexpandmarkets.However,itrepresentsthepoorestsocio-economicgrouponearth.InIndia,70%ofitspeopleliveinits650,000villages.Sufferingfromanarrayofpainpoints,theruralpopulationneedsempowermentandaccesstodigitaltools,resourcesandinformationtobecomeeconomicallyself-reliant.Inthesummerof2016,UCBerkeleywasappointedbytheChiefMinisterofAndhraPradesh,ShriNaraChandrababuNaidu,astheState’sresearchpartnertoofferpossiblesolutionsthroughascalablesmartvillageproject.AccordingtoProfessorSolomonDarwin,“Asmartvillageisacommunityempoweredbydigitaltechnologiesandopeninnovationplatformstoaccessglobalmarkets”.UCBerkeley’sresearchisfocusedonaddressingthesechallengesthroughdevelopmentofbusinessmodelsforbusinessesthat incorporatedigital technologiesandopen innovationplatforms toaccessglobalmarkets.Thisapproachreliesonglobalandlocalfirmsworkingtogethertoformabusinessecosystemtoaddresstheneeds.Thebenefitsoftheecosystemapproach includes: costelimination, time saving, risk reduction, transparency, speed-to-market,data richness, sharedasset utilization and new revenue generation, among others. This is essential to establish scalable and sustainableenterprisesinthisexpandingmarket.Two-wayexchangebetweencorporatesandruralpeopleisessential.Globalbrandsseekinggrowthcannotignoretheemergingeconomiesthataregrowingatover10%GDPrepresenting5.5billionpeoplevs1.5billioninrichnationsgrowingonlyat2%GDP.However,thisrequiresnewbusinessmodelsbasedonscaleandOpenInnovationEcosystems.Theexistingbusinessmodelsdrivenbyhighermarginsprevalent indevelopedeconomiesdonotwork.Ourobjectiveistodevelopscalableandsustainablebusinessmodelsforglobalbrandsaswellasaspiringfirmstoexpandmarketstoultimatelyenhancethehappinessofpeopleinruralvillages.Thiswhitepaperdiscussesthefindingsandanalysisoftheongoingresearchsincesummerof2016andisbasedon:

a) One-on-oneexchange,interviewsandsurveyswithover10,000farmersin472villagesservingOpeninnovationlaboratoriesongroundthroughco-creation/co-innovationapproaches.

b) Feedbackbasedresultsfromongoingresearchonbusinessmodelviabilitywithover40partneringfirmssuchasGoogle,Cisco,IBM,andEricsson,aswellasstartups.

c) OpenInnovationresearchbeingconductedonBusinessModelInnovationbyacademicresearchersworldwidethroughtheBerkeleyInnovationForumnetworkattheGarwoodCenterforCorporateInnovation.

Entrepreneurialapproachtoempowerpeopleiscriticalwhencomparedtotraditionalapproachessuchasgovernmentaidprogramsthathelpvillagersintheshorttermbutlackthefoundationforsustainableeconomicdevelopment.Thefollowingarekeytakeawaysofthispaper:

1) Ruralpopulationsinvillagesarereadytoembracedigitaltechnologytoempowerthemselves.2) Globalbrandsandstartupsarereadytoinvestinruralvillagestoexpandtheirmarkets.3) TheStateofAndhraPradesh,throughtheleadershipofthecurrentadministrationisripeforinvestment.Chief

MinisterNaiduseekstocreatepoliciestoaddresstheunmetneedsofhispeople.4) Co-innovationapproachtodevelopbusinessmodelsbyengagingvillagersandcorporatesisshowingtraction.5) OpenInnovationEcosystemsapproachisnowembracedbyallpartneringfirmsasanewwaytodelivervalueto

villagersgiventhescaleandscope.

TheresearchpresentedinthispaperfocusesonSmartAgricultureEcosystemsbutourworkincludesotherecosystemstoprovide holistic solutions to rural populations in the areas of health, education, security, transportation, energy,communicationandentrepreneurship.OurobjectiveisbuildingandempoweringpeopletoincreasethehappinessindexofruralIndiathroughOpenInnovationEcosystems.AsProfessorSolomonDarwinstates,“OpenInnovationishappeningin472villagesofIndiatocreatevalueforruralpopulationsandnotintheivorytowersofSiliconValley.”


1.Overview

ThechiefministerofAndhraPradesh(AP),Hon.N.ChandrababuNaidu,upontakingchargeinhisnewposition,completedaseriesofvisitstoruralvillagesinhisstateof60millionresidents.Thirty-fivemillionoftheseresidentsliveinruralareas.ChiefMinisterNaiduseekstocreateanewpolicymechanismtoaddressthemanyunmetneedsofhisconstituentsinAP.InJuneof2016,hedecidedtolaunchanexperimentcalledSmartVillagesinconsultationwithoutsideexpertsincludingprofessorsfromUCBerkeley’sHaasSchoolofBusinessthatservesasaresearchpartnertoprovidepossibleoutcomebasedmodelsandsolutions.According to UC Berkeley Professor Solomon Darwin, “A smart village is acommunityempoweredbydigitaltechnologiesandopeninnovationplatformstoaccessglobalmarkets”.

This initiative is primarily funded by private organizations, with the stategovernmentproviding leadershipanda supporting role.OnDecember2016,Phase1prototypewascompleted,inMoriVillage,AndhraPradesh.Itvalidatedtwo things: 1) readiness of the villagers to embrace digital technology toempower themselves and 2) willingness of global technology firms such asGoogle,Cisco,IBM,andEricsson,amongothercorporatepartnerstoinvestinprototyping business model experiments in India. The Garwood Center forCorporateInnovationatUCBerkeley’sHaasSchoolofBusinesswasappointedasaresearchpartnerfortheAndhraPradeshGovernment.

The objective of this experiment is to implement Open Innovation at thegrassroots level inordertodeviseanddeliveraffordabledigital technologiesthat rural villagers want and are willing to pay for. These affordabletechnologiesmustthenbeembeddedinnewbusinessmodelsthattechnologysuppliers can scale and sustain throughoutAndhra Pradesh, and later, all ofIndia.ScalabilityissomethingthatIndiaofferstotheseindustrypartners,givenits650,000villageswhere70%ofits1.3billionpeoplelive.

RuralvillagershadanoverwhelminglypositiveresponsetothesuccessfulPhase1 prototype of smart villages. Given the success of Phase 1,Minister NaidurequestedUCBerkeleytopursue472villagesaslaboratoriesofinnovation.ThePhase 2 goal is to explore and create new businessmodels where industrypartners can scale and prosper through providing value to the poor, ruralpopulation.

Theinitiativebeganinthesummerof2016inMorivillage.Todate,morethan40companiesfromIndiaandoutsideofIndia,havechosentodeploystaffandequipmenttothevillagetosupportthegoalsofthisproject.

ThiswhitepaperfocusesonSmartFarming,andOpenInnovationEcosystemsapproachtoaddressthefarmers’painpoints.AformalcasestudyofPhase1can be found in the Harvard Business School case management system. 1UCBerkeleyalsoconductedforums,andhackathonstonurtureinnovationandexchangeknowledge;itbroughtprivate

1https://cb.hbsp.harvard.edu/cbmp/product/B5886-PDF-ENG

“UCBerkeley’sapproachoffirmscomingtogetherasanecosystemthroughanintegratedprocesstodelivervaluetothefarmerissomethingthathasnotbeentriedbefore.Theeffortsbeingmadebytheuniversityinbringingtogetherlargeandsmallfirmsasanecosystemto:a)Eliminatecosts,b)Facilitatespeedtomarket,c)Increasetransparency,d)Lowerriskforalle)Increaseefficiencyinthesupplychainf)Timesaveforallg)Increaseyieldsandrevenuesh)Enhancedatarichnessi)PromoteUberizationofAssetsThisapproachissupportedasendorsedpersonallybyourHon.ChiefMinisterandwearehopingforgreatresultsinthefuture.”“Ourstategovernmentintheagriculturalsectoriscommittedtobethekeyfacilitatorinthewholesupplychainprocesstoremoveobstacles,bottlenecksandtightentheweakestlinksinthesystemstoimprovethehappinessofthefarmer.”

RajsekharBudithi,IAS,PrincipleSecretary,DepartmentofAgriculture


investmenttootherwiseisolatedvillages.Accordingly,corporationsandstart-upscanmakeprofitthroughhelpingruralpeople.

2.LessonsLearnedfromPreviousRuralDevelopmentInitiatives

VillagesinIndiahavereceivedgovernmentaidthroughseveralprogramsovertheyears.Althoughtheseprogramshelpvillagersintheshortterm,theydonotlaythefoundationforsustainableeconomicdevelopment.Typicaljobprograms,forexample,dolittletoimprovevillagers’knowledgeorskills.Moreover,oncegovernmentfundingforaprogramends,there is little to sustain further at the village level. Creating economic opportunity would help the village and thegovernment,whichcould reduceexpendituresonaidwhile improvingvillagers’ lives.This createsavirtuouscycle,asgreaterknowledgeandskillsleadtohigherincome,whichpromotesanincreaseinhealthandwell-beingleadingtofurtherknowledgedevelopment.

Manycompanieshavelonghistoriesofgivingtovillagesinthedevelopingworld,butcharitabledonationsoftenhavenoconnection to thecompanies’missionorcorecompetencies.Suchasanoil companycontributingmoney topromotehealthandwellnessinitiatives.Asaresult,theeffectsarenotsustainable,andthecompanieshavenoincentivetoexpandtheireffortsbeyondthecharityprovided.Inmanycases,governmentsandcompanieshavenotinvolvedvillagersinthedesignoftheiraidprograms;theprogramsoftendidnotaddressvillagers’actualneeds.

TheseoutcomesarenotuniquetoIndia.Traditionalaidprogramshaveoftenledtounintendedconsequences,negativeoutcomes,andreducedeconomicgrowth,accordingtoeconomistDambisaMoyo,authorofDeadAid:WhyAidisNotWorkingandHowThere isaBetterWayforAfrica.AlthoughthebookaddressesaidgiventoAfricancountries,manysimilaritiesexisttoaidgiventoindividualsindevelopingcountries.Aid,Moyoargues,“hasfailedtodeliverthepromiseofsustainableeconomicgrowthandpovertyreduction…ithasnotliveduptoexpectations.Itremainsattheheartofthedevelopmentagenda,despitethefactthatthereareverycompellingreasonstoshowthat itperpetuatesthecycleofpovertyandderailssustainableeconomicgrowth.”2

Oneofthebiggestproblemswithtraditionalaidisthatitinstillsdependence.Finite,limitedaidprogramsthataddressspecificgoalscanhelpalleviateimportantproblems,butmuchaidinlow-incomecountriesispervasiveandessentiallycontinuous,writesMoyo.“Withouttheinbuiltthreatthataidmightbecut,andwithoutthesensethatonedayitcouldallbeover,Africangovernmentsviewaidasapermanent,reliable,consistentsourceofincomeandhavenoreasontobelievethattheflowswon’tcontinueintotheindefinitefuture.Thereisnoincentiveforlong-termfinancialplanning,noreasontoseekalternativestofunddevelopment,whenallyouhavetodoissitbackandbankthecheques.”3

Aidcanalsoharmotherwisesuccessfullocalbusinessesand,paradoxically,createtheneedformoreaid.Moyocitesthescenarioofamosquito-netmakerinAfricawhoemploystenpeoplewhoaltogethersupportasmanyas150people.4Aninfluxoffreemosquitonetsfromawell-intentionedaidprogramhelpssomepeopleinthearea,butputsthenet-makeroutofbusinessthusmakingthe150peoplehisbusinesswassupportingsuddenlydependentonaid.Andtheabilitytoprovide more nets in the future now depends upon further philanthropic support, instead of local business peoplerespondingtolocalmarketincentivestosupplythem.Todate,“morethanUS$2trillionofforeignaidhasbeentransferredfromrichcountriestopooroverthepastfiftyyears,”writesMoyo,yetthereisnotverymuchtoshowforthiseffort.5Onereason:aidprogramsarefrequentlyevaluatedintheshortterm,whichislargelyirrelevanttotheireffectonthetarget

2DambisaMoyo,“DeadAid.WhyAidisNotWorkingandHowThereisaBetterWayforAfrica”(NewYork,NY:Farrar,StrausandGiroux,2009),Page28.

3Ibid,Page364Ibid,Page44.InAfrica,Moyowrites,itisnotuncommonforaworkingfamilymembertosupportasmanyasfifteenrelatives.5Ibid,Page28


region’s long-termproblems. “Aideffectiveness shouldbemeasuredagainst its contribution to long-termsustainablegrowth,andwhetheritmovesthegreatestnumberofpeopleoutofpovertyinasustainableway.Whenseenthroughthislens,aidisfoundtobewanting.”6

Exhibit1-ComparisonbetweenDevelopment-ledAidandSmartVillagesApproach

Government-ledAidInitiatives SmartVillages–OpenInnovation-ledInitiatives

Duringtheperiodofsubstantialaid,localpricesofteninflated,pushingmanybasicitemsoutofreachforthealreadypoor.

Minimalstaffinvillage,minimalimpactonlocalprices.

Villageresidentsacquiredlittleornoskillsthatmighthelpthemtobemoreproductive.

Strongfocusonskillsdevelopmentandtraining.

Residentswerestillkeptawayfromlargermarkets,somuchofthevaluethattheyproducedwascapturedbymiddle-men.

Digitaltechnologyplatformsenabledirectlinkagetolocal,regional,nationalandeveninternationalmarkets.

Corruptionwasendemic,reducingtheamountofmoneythatactuallyreachedthelocalresidents,andcreatingpoliticalbarriersthatlastlongpasttheendoftheaiditself.

Digitaltechnologyplatformsenablemuchgreatertransparencyandreduceopportunitiesforcorruption.Openinnovationconnectstheallproviderstogetherintoacoherentplatform.

Therewasnowaytoscaleanysuccessbeyondtheimmediateruralarea.

Companiescontributingtalentandresourcesarelookingtoexpandtheirmarkets,willscaleoncetheyunderstandwhatvillagerswant,andarewillingtopayfor.

Oncetheaidended,littleeconomicbenefitremained. Thebusinessmodelsforthevillageandforthecompaniesaresustainable,somarketcapitalistincentiveswillsustaintheactivitiesinthevillage,oncegovernmentsupportiswithdrawn.

Farmers’Needs

UniversityofCalifornia,Berkeley’sapproachfor innovation issimpleandprofound,perpetuallystimulatingtheSiliconValleycultureinAndhraPradesh.InPhase1,theUCBerkeleyteamcreatedaco-innovationspaceforallpartiestoengage;realizingthattoinnovatesolutionsforcommunitiesthesolutionsneededtobeconceivedfrominsidethecommunity.DuetoanestablishedrelationshipbetweenUCBandfarmers,UCBerkeley’sSmartVillageteamconductedasurveyofover10,000farmersabouttheirneedsinjustafewdays.

Farmersmustcopewithunpredictableaccesstowaterpresentingthefarmerwithseveralissues.Forexample,Morihasasystemofgatesthatreleaseswaterthroughcanalstofarmers,butfarmerssaythewaterisnotreleasedwhentheyneedit,andsometimesnowaterisavailable.Thisgreatlyaffectsirrigationmakingitdifficulttoplanandproducegoodyields.Inaddition,thevillage’slackofcoldstoragefacilitiesresultsinalargeshareoffarmersproducegoingtowaste.Farmersalsolackaccesstocurrentinformationonmarketpricesfortheircropsandoftensellforlessthanthemarketvalue.Inaddition,only20%offarmersownthelandtheycultivatereducingoverallmarginsonthefarmersprofit.

Theenvironmentissuitedforlentils,peanuts,sesame,andavocado,makingthemhighmargincrops.Whilefarmerswouldliketogrowhighermargincrops,knowledgeofhowtofarmthesecropsislimited.Itisalsodifficultforfarmerstohaveaccesstoeducationandinformationthatwouldincreasetheirknowledgebase.

7Ibid,Pages44and45.


Manyfarmersnowharvestshrimp(ahigh-marginproduct) fromman-madeponds in thevillage.Consequently,salt isaddedtothewaterintheseponds,whichincreasesthesoilsalinity.Excesssaltinthesoilhindersthegrowthofcropsbylimiting the amount ofwater available for crops nourishment.7Shrimp farmsmust be deep to be effective, howeverdiggingtheponddrawsseawaterintotheaquifer,furthersalinizingthesoilandreducingyieldsforothercrops,suchasrice.Althoughshrimpingnearricefieldsisbannedtopreventsalinizationdamage,itisstillpracticedaccordingtoasurveyofvillagers(aspublishedintheformalcasestudyofPhase1).8

Theseandothervillageconditionshavecausedmanyresidentstoleave,seekingbetterlivesinsomeofIndia’slargecitiesandtheMiddleEast. InagriculturalvillagessuchasMori,emigrationcreatesshortagesof labor.Thisalsodeprivesthevillage of talent and entrepreneurial initiative. To Chief Minister Naidu, these trends and events underscore theimportanceofdevelopingIndianvillages.

3.UCBerkeley-AndhraSmartVillageProject

In rural areas, villagers have an opportunity tobecome prosperous, but often lack basic tools,suchasinformationaboutmarketpricesfortheirfarmed produce. Simplicity can help keep costslow for companies that are developing productsand services to meet the needs of rural areas.Villagesarealsoclosetobeinggreenfields—thatis, thegeneral lackof infrastructureandservicesmeans fewer legacy constraints exist on thoseentering the market. For example, distributedenergy generation innovations like small-scalesolararenotcompetingwithclean,stablepowersources in villages.9Instead, they often compete

withlackofaccess,inefficientandunreliablepowersystems,orpollution-emittinggenerators.

Deemingageographicalunit“smart”isnotanewconcept.TheideaofsmartcitiesisalreadybeingimplementedinplacessuchasDublin,Ireland,wherethecityappliesanalyticstodatatohelpoptimizeawiderangeofpublicservicesandworkstoengagecitizens,businessleaders,andscholarstoimprovecitylife.10

ForChiefMinisterNaidu,themotivationsfortransformingvillagessuchasMoriintosmartvillagesaresimilartothosedrivingleadersinDublinandaroundtheworld.Specifically,hewantstoempowervillagerswithaccessto(1)smartandcleantechnology,(2)transparentinformation,(3)easy-to-usedigitaltools,and(4)resourcestodevelopentrepreneurial

7Source:SoilQualityInformationSheet,SoilQualityResourceConcerns:Salinization,UnitedStatesDepartmentofAgricultureNaturalResourcesConservationService,http://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/nrcs142p2_053151.pdf

8https://cb.hbsp.harvard.edu/cbmp/product/B5886-PDF-ENG

9Source:Developingworld:Small-scaleinnovationbringsvitalhelptopoorcommunities,TheFinancialTimes,https://www.ft.com/content/34eb8824-fe25-11e0-bac4-00144feabdc0

10Source:OptimizingCriticalCityInfrastructures,presentationbyTomLeahy,ExecutiveManager,DublinCityCouncil:http://smartcitiescouncil.com/resources/optimizing-critical-city-infrastructures

“Johnson Controls is excited to be a part of the UC Berkeley Smart Villages initiative that brings together the best of todays’ digital technologies, platforms and partnerships with other businesses and the government to solve societal challenges to build more safe, sustainable and smarter villages in India.” This initiative sets the standard on how businesses, government and knowledge centers like UC Berkeley can work together to solve everyday problems in a self-sustaining manner.” Robert Locke, SVP, Corporate Development Johnson Controls / Tyco


skillsanddirectaccesstoglobalmarkets.Thatprocesswillnotrequiresubstantialinfrastructuredevelopmentorlargeoutlaysofmoney.Rather,itwillrequireuninterruptedInternetconnectivity,communityengagement,andskillbuilding,alongwithOpen Innovationpracticesto linktheseactivities together.Withtheseresources,villagerscan identifyandpursueentrepreneurialpathstoeconomicindependence.

Themeaningoftheterm“smartvillage”followsthedefinitiondevelopedbyProfessorSolomonDarwinthatstates,“asmartvillageisacommunityempoweredbydigitaltechnologiesandopeninnovationplatformstoaccessglobalmarkets.”Specifically,Darwinemphasizesthatasmartvillagemeetssixcriteria:

1. AnEcosystem:Thevillageleveragesitsresources,aswellasthoseofsurroundingvillages,distantplaces,andotherentitiestogeneraterevenueandloweritscostsandrisk.

2. APlatform:Thevillageallowsexternalandinternalbusinessestoexchangeresourcestoprofitforeconomicdevelopment.

3. ABrand:Thevillagecreatesanidentityandbecomesknownforitsuniquevalue.

4. ACommunity:Thevillageisaself-organizednetworkofpeoplewhocollaboratebysharingideas,information,andresourcestobuildastrongecosystem.Ifandwhenprojectsfail,thecommunityremainsandrebuildsitself.

5. ABusinessModel:Thevillagecreatesvalueforitspeopleandothersoutsidethevillagebyutilizingleanandcost-effectivestate-of-the-arttechnologies.Thevillagecapturessomeofthevalueitcreatesforitself.

6. ASustainableUnit:Thevillageoperatesusingatriple-bottom-line,focusingonpeople,profitandplanet.

Ultimately, making a village smart is intended to enable villagers to improve their employment, per capita income,standardof living and their happiness level. Theprocess is also intended to enable villagers tobecomeeconomicallyindependentwhilesimultaneouslycreatingbusinessopportunitiesforfirmsbringingtheirproductsandservicestothevillage.Inturn,governmentexpendituresintheareacangodownorberedirectedtonew,highervalueprojects.

This definitionmatters, because it underlies the design of the Smart Villages initiative. The target recipients are thevillagersthemselves,andthedigitaltechnologiesarethedeliveryvehiclefortheservicesintheinitiative.Note,thatunlikeSmartCities, there is littlepublic investment in infrastructure,beyonddigital connectivity in thevillage.11Todate,weestimatethatroughlyUS$6.5millionhasbeenspentinPhase1&2.About80%ofthesefundsarefromtheprivatesector,withtheAPgovernmentsupplyingabout20%.Inturn,about95%ofthefundsspentstayinAndhraPradesh,withabout5%goingtoUCBerkeleyforresearchandevaluationoftheproject’sperformance.

ThemajorityofthefundsgivenfromthestatetotheUCBerkeleyteamisusedfortheoperationexpenseofrunninganon-groundforceofover550people.Thegroundteaminteractswithvillagersonthevillage,province,anddistrictlevelstonurturetheaforementionedrelationship.ThisrelationshipformulatedthroughavarietyofsolutionsthatwerepitchedfromongroundteamsinthedistrictsChittoor,Krishna,WestGodavari,EastGodavari,andSrikakulam.ThesetechnologiesandsolutionsweremobilizedfromtheSiliconValleyto Indiaandhavebeenengagedonground inanunprecedentedspeed. The Garwood Center of Corporate Innovation at UC Berkeley focused time, money, and resources to givecompaniesspeedtomarketandvillagersaneasetotheirpain.

11ThetotalbudgetofthetowncouncilinMoriVillageisroughly$8,000peryear,fortoolittletosupportanyinvestmentinITinfrastructure.


4.TheRoleofOpenInnovationandSharedValue

Open innovation isbasedon the conceptofharnessingknowledge flowing from theoutside inone’sown innovationprocesses, and allowing unused knowledge to flow outside for others to use in their innovations. The companiesparticipatinginOpenInnovationareseekingtoinnovatenewproductsandservicesforthebottomofthepyramid.Morivillage isan ideal testbed for thesecompanies touse in theirexplorations.Thesevillagershavemanyneedsand fewresources. Thebuyingpower andwill of the villagers is profusely difficult tounderstand. Therefore, businessmodelsthrivinginMori,(40,000inAP,morethan650,000throughoutIndia,andmillionsacrossthedevelopingworld)willlikelyrootinnumerousothervillagesaswell.Theruralworldisalargeandrapidlygrowingmarket,makingtheseexperimentsarewellworthtakingfortheparticipatingcompanies,iftheycanbelinkedtogetherinacoherentway.

ThepilotstageoftheSmartVillagesprojectsucceededinattractingmorethan40companiesandorganizationstoMorivillage.Thesecompaniesarenotprovidingcharity,however.Theyaremakingsmallbusinessdevelopmentinvestmentstolearnabouttheneedsofruralvillagersforproductsandservicestheycanprovide.Importantly,theseinvestmentswillrevealwhatvillagersvalueenoughtopayforitdirectlywiththeirownfunds.ThisisakindofbusinessmodeldiscoverythatweseeinLeanStartupapproachestobusinessmodelinnovation.12

Thesecompaniesarecertainlyprovidingresourcestothevillageforlittleornomoneyupfront. Buteachparticipatingcompanyseesanopportunitytoexpandtheirsalestoruralvillagers,asaresultoftheSmartVillagesinitiative.Theirparticipationismorelikebusinessdevelopmentforthebottomofthepyramid,thanitisanotherroundofcharitabledonations to thepoor. It really is an exampleofopeninnovation,bothforthecompaniesandalso

fromtheperspectiveofChiefMinisterNaidu.Previousapproachesweregovernment-led,with less inputandsupportfromtheprivatesector.Moreover,theprivatesectorparticipationwasprimarilycharitable,ratherthanbusiness-driven.

ThereisafurtherecosystemeffectthatisemergingintheSmartVillagesproject.Thepresenceofonecompanyinthevillagemakesitmoreattractiveforsubsequentcompaniestoalsolocateapersoninthevillage.Theresultisavibrantecosystemofpossibleproductsandservicesforlocalvillagers.Notethatnosinglecompanyororganizationcouldmartialallthesedisparateresources.Ittakesanecosystemoforganizations,allseekingtounderstandvillagers’needsandtheirwillingnesstopay,toobtainthisopeninnovationecosystem.

AnotherperspectivethatinformsthedesignofthisinitiativeisthatofSharedValue.Sharedvalue,asPorterandKramerdefineit,doesnotinvolveacompanysharingthevalueithasalreadycreated;thatis,itisnotredistribution.Rather,“itisaboutexpandingthetotalpoolofeconomicandsocialvalue.”13Thatis,sharedvalueisanapproachtoinnovationinwhichcompanieslookforwaystogrowandsustaintheirownbusinessesandcreatesocietalvaluebyaddressingsociety’sneedsandchallenges.Thisapproachaddsvaluetothesocietyinwhichtheorganizationoperates,whichinturnexpandsthemarketfortheorganizationtoprovideitsproductsorservicesgoingforward.

12SeeEricRies,TheLeanStartup,2011,foranintroductiontothisapproachinthecontextofhightechnologystartupcompanies.

13MichaelE.PorterandMarkR.Kramer,“CreatingSharedValue,”HarvardBusinessReview(2011),Page50.

“The time is now for the initiatives of Open Innovation in the Agriculture Ecosystem, and I believe this approach will be welcomed and adopted with great acceptance and appreciation, and will set the foundation for a new standard for farming in the future.” Douglas Ry Wagner, PhD, CEO, of Agrinos


Bywayofexplanation,PorterandKramercontrastthesharedvalueapproachtothefair-trademovement,whichfocusesonpayinghigherprices to farmers for thesamecrops,a formof redistribution.“Asharedvalueperspective, instead,focusesonimprovinggrowingtechniquesandstrengtheningthelocalclusterofsupportingsuppliersandotherinstitutionstoincreasefarmers’efficiency,yields,productquality,andsustainability.Thisleadstoabiggerpieofrevenueandprofitsthatbenefitsbothfarmersandthecompaniesthatbuyfromthem.”14PorterandKramercitestudiesofcocoafarmersintheCôted’Ivoirethatindicatefair-tradeincreasedfarmers’incomesbyapproximately10to20percent,butsharedvalueinvestmentsincreasedtheirincomesbymorethan300percent.

Indeed,atleastoneexampleofsharedvaluehasalreadyarrivedinIndia.PorterandKramerexplain:“ThomsonReutershasdevelopedapromisingmonthlyserviceforfarmerswhoearnanaverageof$2,000ayear.Forafeeof$5aquarter,itprovidesweather and crop-pricing information and agricultural advice. The service reaches an estimated twomillionfarmers,andearlyresearchindicatesthatithashelpedincreasetheincomesofmorethan60percentofthem—insomecasestriplingincomes.”

Forcompanies,thefirststepinpursuingsharedvalueopportunitiesisassessingtheirproductsandservicesintermsofhowtheyaddressorcreatesocietalneeds,benefits,andharms.Companiescanalsoidentifysourcesofsharedvaluebychanging their perspective on their relationships with suppliers. “The traditional playbook calls for companies tocommoditizeandexertmaximumbargainingpoweronsupplierstodrivedownprices—evenwhenpurchasingfromsmallbusinessesorsubsistence-levelfarmers,”accordingtoPorterandKramer.However,marginalizedsuppliers’productivityandqualitylevelsoftenplateauorbegintofall.Companiescanreversethistrend,therebyensuringaccesstoinputsandpotentiallyreducingthetotalenvironmentalimpactoftheirproducts,byhelpingsuppliersgainstrength.Forexample,obtainingreliablesuppliesofcoffeeisessentialtocompanieslikeNestlé,whichincludesNespresso.Manycoffeegrowersrunsmallfarmsandfacemanyconstraints,includinglowproductivity,poorquality,andenvironmentaldegradation.

“To address these issues, Nestlé redesigned procurement. It worked with its growers, providing advice on farmingpractices,guaranteeingbankloans,andhelpingsecureinputssuchasplantstock,pesticides,andfertilizers,”PorterandKramerwrite.Nestléalsobeganmeasuringthequalityofthecoffeeproducedatthepointofpurchase,achangethatmadeitpossibletopayqualitypremiumsdirectlytogrowers.Asaresult,yieldsandquality increased,asdidfarmers’incomes.“And,theenvironmentalimpactoffarmsshrank.Meanwhile,Nestlé’sreliablesupplyofcoffeegrewsignificantly.Sharedvaluewascreated.”

Companiesthatfailtobuildsharedvalueintheirmarketswillsoonerorlaterfindtheirabilitytogrowtobecomeimpaired.Companiesmustseektogrowthepie,inordertobeabletosellmoreoftheirownwares.AndcompaniesworkinginMorivillagepossessextremelyusefulskillsandknowledgethatcanhelpgrowthispie,whetheritisEricssonhelpingtomanagewaterwithsensors,orHirodeliveringhealthcarethroughitsspeciallydesignedbicycles,orIBMprovidingfarmerswithbetterweatherdatatohelpthemknowwhentoplant,whentofertilize,andwhentoharvest.Inshort,thepeopleinMorivillagebecomesamoreconnected,moreknowledgeableandmorecapablesuppliertomanymoremarketsthanitwaspreviouslyabletoaddress.

14Ibid,Page50.


5.PastAgriculturalEcosystem(Pre-BifurcationEra)

The Smart Village project in AP is projected to cover eight verticals (Agriculture, Entrepreneurship, Communication,Transportation,Safety&Security,Education,EnergyandHealthcare)tofostersustainableeconomicgrowthforruralIndia.It does so by deploying digital technology and developing sustainableOpen Innovation businessmodels, based on acoherentportfolioofmultipleprojectswithover40nationalandinternationalcompaniesinvolved.

ToemphasizetheneedtoaddresstheindividualvillagepainpointswithdigitaltechnologyandOpenInnovationbusinessmodels, initial surveyswere conducted inall 472villages,which revealeddrasticpainpointswith respect toall eightverticals.In-depthresearchtoanalyzethesefindingscreatesanoptimalfoundationtoco-innovatewiththeprivatesector,governmentandacademiainordertoscalesustainablebusinessmodelstoaddressthespecificneedsofIndia’spoor.

Theagriculturevertical isasignificantly relevant sector for rural India, thestateofAndhraPradeshandtheBerkeley-AndhraSmartVillageinitiative.Morethan50%ofthepopulationofIndiaisdependentonagriculture.Withinthissector,marginalfarmersarethelargestgroupofcultivators.Eighty-fivepercentofoperatingfarmersinIndiahaveabouttwoorlesshectaresof land.15Unfortunately,onmanyoccasions, greatdesperation leads to suicidesamong small-hold ruralfarmersinIndia.Asstatedin2015,“AndhraPradesh(includingthenowTelangana)farmershavehadthehighestrateofsuicidesinthecountryforsomedecadesnow.”16Indebtednessandhighvulnerabilitytorisksinagricultureproductionareconsideredasthemainreasons.Suchpainpointsincludelowscaleofoperation,lackofinformation,restrictedaccesstoand cost of credit, poor communication linkageswith broadmarkets and customers and consequent exploitation byintermediaries with respect to input procurement and distribution of agricultural produce.17Themonthly per capitaconsumption expenditure is frequently higher than the monthly per capita income for small and marginal farmerhouseholds.18ThesefindingsrevealthedauntingsituationruralfarmersinIndiaarefacing.

ThepastagriculturalecosystemfromthePre-BifurcationareaofAndhraPradesh(priorto2014)offersisolatedsolutionsforindividualproblems.Thefollowingillustrationshowsthehypotheticalrepresentationderivedfromconductedsurveyswith10,000farmers(seeAppendix).

15S.Singh,“NewmarketsforsmallholdersinIndia–Exclusion,policyandmechanisms,”EconomicandPoliticalWeekly,47:95-105.(2012)16Thehindubusinessline,articlepublished:March27,2015,http://www.thehindubusinessline.com/news/national/assocham-study-on-farm-structure/article7039970.ece

17S.M.Dev,“Agricultureandruralemploymentinthebudget,”EconomicandPoliticalWeekly,40(14):1410-1418.(2005)18S.Mishra,“Risks,farmers'suicidesandagrariancrisisinIndia:Isthereawayout,”IndianJournalofAgriculturalEconomics,63(1):38-54.(2008)

“World Bank is interested in empowering rural people through digital technology and scalable business models that UC Berkeley brings to the table. The Open Innovation Agriculture and Rural Ecosystem approach developed through Smart Village Program could be scaled up through the institutional investments currently being made in AP. These models are sustainable for economic development of the state in the long term.” Paramesh Shah, Global Lead for Rural Livelihoods and Agricultural Jobs, World Bank, Washington DC


IllustrationI:PastAgriculturalEcosystem


Therefore,theinitialfocuswithintheBerkeley-AndhraSmartVillageinitiativeaddressestheexistingpainpointsoftheagriculturalsector.Tounderstandthesourceofthefarmer’sdistraught,itiscrucialtoanalyzethepresentagriculturalecosystemonhowexistingsolutionsaddressindividualpainpoints.

PastAgriculturalEcosystem:KeyResearchFindingsfromtheAgriculturalSurvey

Theagriculturalecosystemsurveyincludesover10,000ruralfarmersinAndhraPradeshandwasconductedin472villagesinfiveDistrictsofAndhraPradesh,namelyChittoor,Krishna,EastGodavari,SrikakulamandWestGodavariinNovember2017.TheUCBerkeley-AndhraSmartVillageProjecthasastrongrelationshipwitheachofthe472villagessinceatleastone village intern is working closely with the respective village community. Consistent one-on-one interaction andinterviewsenablegreatrelationshipbuildingandlayoutoptimalconditionstoconductrelevantandrobustsurveysinthecontextoftheSmartVillage initiative.Adetailedanalysisdescribedbelowprovides insightsaboutpainpointsandthesatisfaction with present dominant solutions for each relevant segment from the perspective of farmers in AndhraPradesh.

1.EducationonModernFarming

The majority of farmers are presently using the knowledge of fellow farmers or ancestors as a source to educatethemselvesonfarmingpractices.Additionally,educationisofferedbyagricultureofficersfromtheGovernment,whicheveryfourthfarmerisusing.Alongwithnothavingaccesstorelevantprogramsandhighexpensesintermsofcostsandtime,theperceptionabouttheineffectiveandinconsistenteducationonfarmingoverweighsasamajorreason(40%)foranoveralldissatisfaction.AlthoughGovernmentisfacilitatingmultipleprogramsonmodernfarming,alargenumberoffarmers (88%) are unsatisfied19 with the available education programs on modern farming. To compensate missingawarenessandtoaddressgivenpainpoints,existingeducationprogramsneedtobecomplementedandimprovedupontoensureeffectivelearningandbroadawarenessaboutmodernfarming.

2.Pre-HarvestPhase

Timely information and planning assistance is crucial to each farmer in the pre-harvest phase during his crop cycle.AlthoughGovernmentisprovidingsoilanalysisandadvisoryforeachfarmer,onlysmallnumbersoffarmersareusingthisservice(27%).Still,31%ofthefarmersarelackingaccesstosoilanalysisandadvisorytodeterminethebestcroptypeandseedstouseaccordingtothesoilproperties.Thismeans,technology involvement isrelativelyrare,whichcan leadto

19Dissatisfactionisderivedbycombiningbelowaverage(1-3)andaverage(4-6)fromtheratingsystem,whichmeasuresonthescalefrom1(dissatisfaction)to10(satisfaction).

“Wipro is proud to partner with UC Berkeley and the Government of Andhra Pradesh (AP) on an open innovation initiative to develop high impact solutions in the areas of Credit Reputation Management and Citizen Assistance for the rural economy. These solutions leverage next-gen technologies such as Artificial Intelligence, Blockchain, and Machine Learning, amongst others, and will enable the flow of information, micro-capital and ensure increased returns for the rural population of AP. I strongly believe that this partnership will foster an increased collaboration between industry, academia and government to develop solutions that benefit our economy as a whole.” K.R. Sanjiv, CTO, Wipro


wrongcropplanningandthereforetodecreasedyields.Consequently,themajorityoftheaskedaudience(93%)isnotcontentwiththeexistentsolutions(i.e.fromAgriculturalDepartment(27%), localshopkeeper(18%)orfellowfarmers(47%).Thereisastrongneedtoprovideanalysisandadvicewithdigitaltechnology.

Duringthepre-harvestphase,multipleinputsareneededtoensuresuccessfulagriculturaloperationsforthewholecropcycle. Currently, farmers are using their own seeds and fertilizer (32%) or are getting needed supplies from localdistributors(20%).Inthiscontext,everythirdfarmerisfacingtoohighseedcosts.Farmerslacksubsidizedagriculturalinputsduetoanon-transparentaccesstoresourcesorthepresentproceduretoprocuretheseinputsisperceivedtobedifficult.Moreover,farmerslackrelevantagriculturalgearandarenotabletopurchasenewequipmentascostsaretoohigh(¼ofthefarmers).Consequently,inefficientoperationsarisewhenfarmersaremoredependentonlaborinsteadofleveragingefficientfarmingequipment.

Inordertocompensateforhighoperationalcostsortoaffordnewequipment,52%ofthefarmersaredependentonthegovernmentinthewayofsubsidyorloans.Everythirdfarmerfacestheproblemthattheloanapprovalistakingtoomuchtimeandpaperwork.Furthermore,highinterestratesforloans(22%)andmissingavailabilityofsmallloanswithrelevantpayback periods (18%) impede economic growth for small hold farmers. More suitable and seamless investmentopportunitiesareherebyneededtoaddressfarmer’sneeds.Additionally,suchinitiativesactasincentivesforfarmerstofacilitatemodernfarmingapproachesbytransformingtheirtraditionalpracticeswithdigitalenhancement.

Inconclusion,almost90%ofallfarmersaredissatisfiedwithexistingpre-harvestsolutionswithrespecttosoilanalysisandadvisoryservices,acquiringagriculturalinputs,accesstoagriculturalequipmentandgettingagriculturalloans.

3.GrowthandManagementPhase

Whenitcomestosustainingconsistentgrowthofthecrop,irrigationplaysacrucialrole.Almosttwothirdsofthefarmersarecurrentlygettingtheirwatersupplythroughcanalirrigation,whereasonesixthareirrigatingtheirfieldsthroughwaterpumpsinthestudiedarea.However,asignificantnumberoftheinterviewedfarmersarestillrelyingonrainfallastheonlysourceforirrigation(20%).Ingeneral,largenumbersoffarmers(41%)arepresentlystrugglingtoirrigatetheirfieldsinanefficientmannerbecauseofmissingproperirrigationsystems.Furthermore,inconsistentwatersupplyisnegativelyaffecting thegrowthof thecrop (18%).The largemajorityof the farmers (80%)are thusdissatisfiedwith theexistingirrigation solutions. Consequently, there is a great potential for adapting digital technology to improve irrigation forfarmers.

Inordertopreventdiseasesandtomonitorthecroptobetterpredictandincreasetheoverallyield,farmerstakeinformaladvicefromfellowfarmers(47%)andeveryfifthfarmergetsregularguidancefromagriculturaloffices.Veryfewfarmersareusingdigitaltechnologyforcropmonitoringanddiseaseprediction.Thus,everyfourthfarmerlacksproperadviceondiseasepredictionandyieldmonitoring.Inaddition,maintainingandincreasingyieldrequirestheapplicationofmultipleproductsaswellastheperformanceofvariousactivities.Therefore,farmersfacethedifficultyofknowing,whattypeoffertilizerandpesticidetouse(everythirdfarmer)aswellasbeingabletophysicallymonitortheircropdaily(21%).Themajority of the asked audience (80%) is dissatisfied with the existing solutions for crop monitoring and for diseaseprediction/preventioningeneral.

4.Post-HarvestPhase

Afterharvesting,farmersarestrugglingtoexchangetheirproduceforafairmonetaryincome.Almosteverysecondfarmerisdealingwithmiddlemanissues,lowmarketpricesandinaccessiblemarkets.Missingmarketaccesspreventsfarmerstoincrease their overall benefit. Currently, government (25%) or middle men (57%) are the most common buyers foragricultureproduce.Thisleadstoanoveralldissatisfactionamongthefarmers(92%).Therefore,strongmarketlinkagesandlogisticsareneeded,toempowerruralfarmers.


Conclusion.PastAgriculturalEcosystem

Privateandpublicservices,productsandinitiativestodatehavebeenofferedinanisolatedmannertothefarmersduringthecropcycle.TheGovernmentprovidesavarietyofsolutionsbutitappearsthattheavailabilityoftheseservicesishighlyrestrictiveandfragmented(i.e.onepersonperMandalisresponsibleforconducting&validatingsoilanalysis),associatedwithlimitedaccess(i.e.longdistancestotravelforeducationprograms)orpoorunderstandingofcustomers’needs(i.e.whenthegovernmentactsastheprimarybuyerforagriculturalproduce).Privatecompaniesprovideindividualsolutionsinisolation,butfarmersseemtolackawarenessaswellaseducationandhavelimitedfinancialhelptoincorporatethesein their farming operations. Further, there is a complex integration across companies’ individual solutions thatmostfarmersarenotcapableofperforming.

Overall, theexistingecosystemseemstostrugglewithsolving thepainpointsof small farmers in rural India. Isolatedapproaches leadtoaggregationof theoverallcosts, increasethecomplexity for the farmer,anddecreaseshisoverallprofitabilityandhappiness.Tochangetheexistingagriculturalecosystem,amoreopen,holisticandefficientsystemisthereforeneeded.

6.Visionforthefuture.AnOpenInnovationAgriculturalEcosystem

OurresearchhypothesisisthatapplyingtheOpenInnovationapproachanddigitaltechnologytothechallengesofIndia’sruralagriculturalsectorcansolvemostoftheprominentpainpointsforruralfarmers.

Byfacilitatingcollaborationsamongvariousrelevantcompaniesandcreatinganintegratedsolutionforthefarmers,theoverallcostsforthecustomersofthesedigitaltechnologies(i.e.theruralfarmers)decrease.Inaddition,areductionincomplexity,greaterawarenessandeducationwillbefosteredandtherefore,theadoptionofmodernfarmingmethodswillincreaseamongruralfamers.Thisleadstoimprovingyields,toself-sustainableempowermentwithintheagriculturalsector,andanincreaseinwell-beingandhappiness.

“Open Innovation in emerging economies is now happening in villages – not in the Ivory Towers of Silicon Valley.” Solomon Darwin, Executive Director Garwood Center for Corporate Innovation, University of California, Berkeley, Haas School of Business


IllustrationII:OpenInnovationAgriculturalEcosystem


Thisspecialorganizationandexecutionisrequiredtoconductresearchandpivotideasinthe472villagesworkingwithvariousunitsoftheGovernmentofAndhraPradeshandtheecosystemofparticipatingcompanies.

IllustrationIII:UCBerkeleySmartVillageOrganizationalChart

HONORABLECHIEFMINISTER- Chairman

EXECUTIVEBOARD– UCBerkeley&AP Govt.

SMARTVILLAGE TEAM

Smart VillageTeam

BerkeleyFaculty= 2BerkeleyFellows = 10Province Directors =34Village Interns =570

Others: BerkeleyandStanfordFacultyandcollegevolunteers

Organizational ChartUC Berkeley– AP Govt.

SRIKAKULAM

DISTRICTCOLLECTOR

Villages MandalProvince

VillageInterns

54 2 108

89 2 178

42 2 84

43 2 86

EAST GODAVARI

DISTRICTCOLLECTOR


VillageInterns

13 1 26

11 2 22

16 2 32

08 2 16

WEST GODAVARI

DISTRICTCOLLECTOR


VillageInterns

15 1 30

13 2 26

20 2 40

14 2 28

KRISHNA

DISTRICTCOLLECTOR

Villages MandalProvinces

VillageInterns

23 2 46

14 2 28

31 2 62

33 1 66

CHITTOOR

DISTRICTCOLLECTOR

Villages MandalProvinces

VillageInterns

48 1 96

64 2 128

38 1 76

60 2 120


ThePivotingProcessbeingappliedtodevelopbusinessmodelsforparticipatingfirmsthroughanapprovedco-innovationprocess:

IllustrationIV:UCBerkeleyPivotingProcess

..

Technology

OfferingsbyCorporates

CorporatesEducate&Train

BerkeleyFellows

BerkeleyFellowsEducate&Train

SmartVillageMandalDirectors

MandalDirectorsEducate&

TrainSmartVillageInterns

SmartVillageInternseducatevillagersandtestfor

traction,collectdataandfeedback

BerkeleyFellowsProvide

FeedbacktoCorporates

PivotingProcessDevelopingTechnologies&BusinessModelsforRuralMarkets

ThreeRunsTestRun– Aug15

th

1stReiteration:Sep15

th

2ndReiteration:Oct15

th

3rdReiteration:Dec1

st

Fine-tuningJan– Mar2018

AnalysisTime;April– May

KeyDates:• KickoffDayforChallenges:Aug1,2017

• OpenInnovationHackathonAug29-30

• OpenInnovationForumAug31

ObjectiveofPivoting:• Makedata/feedbackavailableinrealtime:

• RefineorAdaptTechnologies

• DevelopOptimalBusinessModels


7.ValuePropositionoftheOpenInnovationAgricultureEcosystem

Providingaholistic solution for farmer’spainpoints ineach relevant segment requires thecombinationof resources,expertiseandknowledgeflowsfrommultiplecompanieswithobjectivefacilitationbytheGovernment.Therefore,theOpenInnovationAgricultureEcosystemcanofferrelevantsolutionsforallneededsegmentsbyconsolidatingthevaluepropositionsofover24participatingcompanies.

ProfessionalDevelopmentCenter

Government endorsed but corporate run PDC’s(ProfessionalDevelopmentCenters)organizedbytheBerkeley-Andhrateamaddressesunemploymentandmissingeducationinruralareas.Over20nationalandinternational corporationsand industryexpertshavesigned up to offer certificated programs in a broadvariety of courses to equip the rural population foreconomic development. Each curriculum providestheoreticaltraining,accesstotoolsandresourcesforpractical project work, certification and placementcoaching.AUCBerkeleyPDCCorporateBoardensuresoverall quality standards, timely delivery, curriculumexecutionandpartnerswiththeWorldBankforstate-wide scaling. The PDC programs offer innovative,relevant and low cost, high value courses to buildentrepreneurs,placepeopleandcreateawarenessfordigital technology. Corporate partners benefit fromsuch participation by creating skilled and certifiedlaborersfortheiroperationsinemergingmarkets.

Until June 2018, five Professional DevelopmentCenterswillbepilotedintherespectivefiveDistrictsof Andhra Pradesh: Srikakulam East Godavari WestGodavari Krishna and Chittoor. After successfullypilotingthisinitiative,astate-wideadoptionwillfollow.

Farmersareofferedcoursesonmodernagriculture,diseasediagnosisandadviceoryieldimprovementusingnewfertilizertechnologies.Theagriculturecoursesaredesignedbasedonexistingpainpointssuchastime,costsandinconsistencywiththecropcycle.Thus,95%ofthe10,000farmersinterviewedshowedhighinterestinattendingagriculturecoursesfromthePDCinitiative.

“Dell EMC is pleased to support the UC Berkeley project for developing new business models for global brands to participate in untapped rural markets in India. At the core of every new business model is the ability to exploit new technology. Dell Technologies, as the largest provider of essential IT infrastructure technology, is always interested in how that technology will translate in to real world impacts. We anticipate that large firms will increasingly impact emerging economies across the ecosystem, and our partnerships in research and education with Berkeley will help us understand and influence this trend.” John Roese, President, Dell EMC

Company Course Content

1. Collabera

2. Dell

3. IBM

4. Creya

5. Hero & Hella

6. Hitachi & Tyco

7. Tech Mahindra & OSSS

8. Care & Apollo Hospital

9. Ambuja Neotia

10. USHA

11. Global 3D Labs

12. BigHaat, Agrinos & Plantix

13. C-Fog

IT / Staffing

IT / Hardware

Artificial Intelligence

Design Thinking

Automotive

Electronics

Employment & Skill Development

Healthcare

Construction

Tailoring

3D Printing

Agriculture

Agriculture & IoT Systems

Education1


Pre-Harvest,Growth&ManagementandPost-HarvestPhase

Combining and consolidating isolatedsolutions from relevant, innovativecompanies with Open Innovation businessmodelsisauniqueapproachtoaddressthefarmers’ pain points (derived from theagricultural survey). The key objectiveherebylaysinensuringasimpleintegrationacrosscompanies’individualsolutions.

Consequently, farmers can easily performand utilize services during the pre-harvestphase with flexible and hassle-free loans,accesstofarmanalysisandadvisory inrealtime, receiving the correct agriculturalinputs in a transparent and efficient way,access to high efficient agriculturalequipmentonarentalbasis.Anecosystemapproach for the pre-harvest phase ispreferred andhighly appreciatedbynearlyevery farmer (90%) from the surveyedaudience.

Tothisdate,applyingOpenInnovationinanecosystem formation is fully integratedamongfiveagriculturalcompanieswiththemain scope on the pre-harvest phase andgrowth&managementphase.Itisintendedtobecontinuouslyextendedand improvedupon. BigHaat, India’s largest one stopdigital store for agriculture inputs, isfacilitatingaccessibility forqualityproductsandknowledge.Inthisecosystem,BigHaatactsasasmart,centralmarketplaceandsupplierforvariousagricultureinputs.Inordertoaddressgreatdemandfororganicagricultureproduceandtoprovidehighqualityorganicfertilizersupplytoavastnumberoffarmers,AgrinosnowdistributestheirproductsthroughBigHaat.Agrinos,aUS-basedcompany,provideshighlyeffectivegreenbiofermentationtechnologyproductstoincreasecropyieldsandquality. Inaddition,BigHaatiscollaborating with technology solution provider related to the farming sector. C-Fog offers shrimp farmers valuable

information on critical parameters like PH-Level and DO-Levelwith respect to the pond water. To make the system self-sustainable and independent of power grid, C-Fog thereforecollaborated with Kaneka, a Japanese high quality solar panelmanufacturer. Combining complementary expertise andresourcesprovideseventuallyanoptimalsolutionforthiscase.

“Agrinos contributes the most modern approaches to sustainable farming available to farmers around the world” Douglas Ry Wagner, PhD, CEO of Agrinos

Pre-Harvest2

Company Value Proposition

1. Wipro

2. FT Cash

3. FarmX

4. Orbitalsidekick

5. Ceres Imaging

6. Ericsson

7. Agrinos

8. BigHaat

9. Trringo

10. Storeking

Providing micro loans with low interest rates for farmers by using blockchain reputation system.

Empowering farmers and entrepreneurs through financial inclusion using digital payments and loans.

Precision Agriculture solutions to optimize farmers yield by rich data analytics in farm management.

Developing a space based hyperspectral sensor infrastructure to provide data that helps with yield estimation and precision farming.

Spectral imagery technology to provide data for yield estimation and precision farming.

Connected Aquaponics and Water Grid Manage-ment IoT solutions to improve farmers yield and to optimize water distribution.

Highly effective ‘Green Biofermentation Technolo-gy’ products with unique Plant Growth Promoting Microbes and Biostimulants to deliver greater crop yields and crop quality.

India’s largest one stop digital store for agriculture inputs to facilitate accessibility for quality products and knowledge.

Revolutionary tractor and farm equipment rental business making farm mechanization accessible, affordable and reachable to every farmer.

Transforming already existing small stores to digi-tal access points for rural India.

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Such system detects e.g. viruses or diseases of shrimps in real-time and gives advice, which specific medicine toimmediatelyapply.BycollaboratingwithBigHaat,thefarmerdoesnotneedtoworryaboutgettingneededsupply.HegetsdisplayedthespecificmedicineandcandirectlyorderitthroughBigHaat.Doorstepdeliveryensureseasyaccessandoverallorderfulfillment.AnothersimilarmarketlinkageforfarmersisprovidedthroughPlantix,aGermanbasedcompany,which lets farmersdiagnoseplantdiseasesby takingpicturesof the infectedcrop.BycollaboratingwithBigHaat, thefarmercannowdirectlypurchasetheproposedfertilizerorpesticidesfromBigHaat.

ThisagricultureecosystemshowsthatOpenInnovationinecosystemformationworksintheruralcontextandcreatesamutualbenefit forthecustomerandtheparticipatingcompanies.Competingcompaniesandcomplementary industrysectorsconvergetoexchangeknowledgeandprovideuniquecustomersolutionforruralfarmers.Suchecosystemsaredifficulttoimitate,thisleadstocompetitiveadvantagesforparticipatingparties.Fromthetransactionalcostperspective,collaborationsgeneratescale,whicheffectsandminimizesrisksbysharinginvestmentcosts.Collaborationsdiversifytheproductandserviceportfoliobycombiningexpertiseandresources.Thisleadstoanacceleratedspeedtomarket20andtobetterandmoreinnovativesolutions,whichservethemajorityofthelessfortunate.

Sustaininggrowthofthecropisdependentonseveral crucial parameters. Building on thesolutions from the Pre-Harvest Phase, whichenableinformationrichnessaswellasgeneralfarm controlling through smart sensors andactuators, relevantsolutionsare integratedtoaddressfarmer’sneedswithintheGrowthandManagement Phase. Over 85% farmers agreethat receiving smart advice about theirautomated irrigation system is a helpfulresource.Moreover,monitoringcropswithoutbeing physically present, predicting andpreventing diseases enhance the farmerscapability to increase their overall yield.Surveyed farmers (86%) have shown keeninterest in the implementation of such anintegratedsystem.

Despitetheregularpowersupplyfromthemainstation to the substations, there are frequentpowercutsfromthesubstationstoruralhomesand businesses especially during summer andrainy seasons due to outdated infrastructure.This prevents farmers from performing theirdaily farming activities, especially during theGrowthandManagementPhaseandbeyond.

20Source:Glaister,Buckley1996.StrategicMotivesforInternationalAllianceFormation.

Pre-Harvest2


1. Pre-Harvest Solutions

2. Ketos

3. C-Fog

4. Plantix

5. WeFarm

6. TechMahindra

7. Kaneka

8. SeAB

9. New Sun Road

FarmX, Orbitalsidekick, Ceres Imaging, Ericsson

Provides farmers with real-time, actionable data on water usage, pressure and quality/safety through remote, continuous automated smart monitoring.

Integrated approach to aqua farming using IoT sen-sors, machine learning and predictive analysis to pro-vide actionable insights to increase shrimp yield.

AI-Driven Mobile Crop Advisory Application which can diagnose plant diseases, pest and nutrient deficien-cies.

Sharing vital information for farmers to improve lives without access to the internet.

Smart Energy Micro Grid Systems for Village to impro-ve reliability and quality of power supply.

Transforming every household and farm into renewa-ble energy producer and user by providing high quality solar solutions without up-front investment.

Modular easily configurable and scalable waste mana-gement systems to address bio waste to provide energy, fertilizer and bio gas in return.

IoT-powered operations and management platform for renewables-based power systems such as village mi-crogrids and commercial or agricultural productivity centers

Mon

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Growth & Management

3


MicroGridsystemsforvillagescombinedwithhighqualitysolarpanelsalongwithrevolutionarybio-to-energysystemsassurereliableenergysupplyinanecofriendlyandself-sustainableway.Thefarmers,andthewholevillagecommunitybenefitfromsuchinitiatives,andareequippedwithreliablegreenenergy.

After harvesting with innovative and efficienttechnologysupport, farmersnowfacemultipleoptions todistribute their agriculturalproducewithin the Post-Harvest Phase. Transparentmarketaccess,andvariousdistributionchannelsempower the agriculture sector by eradicatingthe dependency on middle men and limitedaccess to market. Digital technology improvesthroughoutthesupplychain;valuechainpavesthe way for the future. Supply chaintransparency increases the profits for thefarmer,asaresult,consumersarewillingtopaymore due to increased awareness of theproduct’s origin. Over 9,000 of interviewedfarmers (90%) highly appreciated thesesolutions to address their needs in the Post-HarvestPhase.

The conducted agricultural survey de-monstrates that themajorityof the farmers inAndhra Pradesh (90%) has accepted the UCBerkeley Open Innovation Ecosystem and isinterested in adapting and using the offeredsolutions to their farms. All five districts showhigh interest. Furthermore, nearly 60% of theoverall asked audience are willing to invest inusing and deploying the Open InnovationAgricultureEcosystem.

These results are independent of theeducational background or the geographiclocation(seeAppendix).60%ofthefarmersarenotsatisfiedwiththeirincomelevelandeverysecondfarmerperceivesthatagricultureisalow-incomeprofession.However,UCBerkeley’sresearchandsurveysshowthatfarmersarereadytoimplementOpenInnovationresearchfindingsinagricultureforruralIndia.Therefore,theOpenInnovationEcosystemwillempowerandaddvaluetotheagriculturalsectorofAndhraPradesh,andeventuallyacrosswholeIndia.

Pre-Harvest2


1. R-Tech

2. Ninjacart

3. PayPal

4. SAP

5. Sahaj

6. Paper Boat

7. ShotPut

8. ripe.io

9. StatWig

Innovative certified tree climbing solution to empower coconut industry.

India’s leading Agri Marketing platform connecting far-mers directly with businesses through smart supply chain.

Providing a virtual digital mall solution for villagers and farmers to display their products to access new mar-kets and customers.

Providing access to national markets by connecting Entrepreneurs to the largest b2b tradeplatform

Information center for villages to provide multiple elec-tronic services for the rural population.

Juice company using local farmer supply to provide authentic, indigenous and traditional beverages.

Simplifying commerce and logistics with hi-tech opera-tions.

Provide full food supply chain transparency with block-chain technology.

StaTwig is blockchain startup that uses Internet of Things (IoT) to record journey of the products across the supply chain from manufacturer to customer to create extra layer of visibility, transparency and au-thenticity.

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Growth & Management

3

Post-Harvest

4

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est


8.Calltoaction:Thepathforward

UniversityofCalifornia,Berkeleyhasengagedinnovativesolutionstoproblemsthatplaguetheruralworld.Farmingisoneofthemostcrucialvectorsinasmartvillagebecauseit iswhatdrivesavillageeconomy.Whetherit’sagriculture,horticulture,oraquaculture,therearepainpointsthatthetechnologiesintroducedbyUCBerkeley’scorporatepartnerscanaddress.Phase2ofthesmartvillageprojectwilldeterminethesolutionsthatbenefitthevillagerthroughextensiveon ground research and pivoting projects across five districts in Andhra Pradesh. UC Berkeley has created a uniqueopportunityforinnovationinAP;Itcreatedanecosystemthatbenefitscompanies,thegovernment,andempowerstherural people with valuable solutions for their pain points. Through our strong presence in villages, the UC BerkeleypartneredcompaniesareincentivizedtoinvestedinruralAndhraPradesh.

Oneexampleof this isKETOS,whichprovidesawateranalysis IoTnetworkwithend-to-endsolutions,andconductedapilotintheearlystagesofthesmartvillageprojectdeploying20devicesin20locationsandco-innovatedwithvillagers,tofindthe best use case. Through the co-creation, KETOS developed an improved,advancedproductthathasabridgedyearsofresearchanddevelopment.

Suchprojects,whichinvolveprivateinvestments,arepossiblethroughsharingofknowledge across organizational boundaries to co-develop innovative solutions,which fit perfectly in the rural market of India. With such innovations, thegovernmenthasatremendousopportunityforacceleratedruraldevelopmentanddigitalizationthatwasotherwiseonlypossibleinmetropolitanordevelopedurbanhubssuchasHyderabadorVishakhapatnam.Thisalsogivesgovernmentaccesstoreal-timedatatogovernpeopleatpinnacleefficiency.Allofthisultimatelybenefitsthe people through robust local economies, diversified financial options,employmentoptions,andcommercialoptions,andstrongermorale.Thepeoplethat create the backbone of the nation gain an increased happiness index andbolstered faith inaprimedgovernmentdrivinganew,opportunisticmarket fornationalandinternationalcorporationsandstart-ups.

Phase3oftheUCBerkeleySmartVillageinitiativeisadoptingtheseinnovationsintheentirestate.Companiesinvolved,arenotonlylookingatthe472villagesinthePhase2market,buttheopportunitytoenterintotheentireruralmarketinAndhraPradesh during Phase 3. According to the Government of Andhra Pradesh theprofessionoffarmersandartisansistheareawiththemostneedforimprovement.Formen, theaveragedailywage is299.66perday, resultingbelowthepovertybenchmarkof10,000INRamonth.Forwomen,itisevenless:213.38aday,about6,500amonth.21

A farmer who was once sad, depressed, and oppressed by the mental andcommunalrestraintsisnowupliftedthroughadigitalizeddeliveryofsolutions.ThefarmergainseducationinUCBerkeley’sProfessionalDevelopmentCenterandcorporateprogramsdesignedtoimprovefarmingtechniques.

21AndhraPradeshSocioEconomicSurvey2016-17

"Transformingavillagethroughtechnologystartswithempoweringthepeopleatthegrassrootslevelintheruralareas.TheSmartVillageinitiativedriventhroughtheBerkeleyteamsetuplocallyinAndhrawasagreatpartnershipfortheKETOSteamtojoinforcesandchannelthebestofpeople,talent,technologyandresourcestoresultwiththerightfitforeveryvillageandeveryindividualinthenewworld."MeenaSankaran,Founder&CEO,KetosInc.


Sheorheisnoweducatedandhasaccesstonumerousapplicationstobuythecorrectandsuitableagriculturalinputssuchasseeds,fertilizerandequipment.

Educatedfarmerswalkingthroughtheirnowflourishing,lushfarmscannoticeanabnormalityononeoftheirplantsandusetheirsmartphonetoscanfordiseasesandreceiveinstantdiagnosisandrelevantsolutions.IoTsensorsandadvancedimagerytechnologyplugintoanetworkofdatasharingtoprovidereal-timeanalysisofweathertrends,soilhydrologymapping, nutrient levels, and nearby growth/disease patterns. This optimizes the farmer’s growth andmaintenanceoperationsandpeaksefficiency,effectiveness,andyields.Thisincreaseinknowledgeandresources,whichdirectlyleadstosustainableempowerment,savesmoneyandtimeforthefarmerwhocashesinthehighestpossibleyieldformoreprofitsthroughdigitalizedsupplychains.Theoncehelplessfarmerisnowproperlyrewardedforthehardworkandsweatputintohisfarm.Consumerscookingintheirkitcheninsmallvillagecommunitiesorlargemetropolitanscannowscantheirfoodandappreciatethehigh-qualitygoodsviathetransparencygiventhroughrevolutionaryblockchaintechnology.Theinfluxofmoneyinagricultureisnowincentivizedtobeusedandreinvestedinsuchadvancedtechnologythatprovidesqualitystandardsforcommercialbuyersandconsumers.Eventually,educatedfarmersandvillagersequippedwithdigitaltoolshaveunimaginablepotentialtorevolutionizetheindustrybymakingagriculturealucrativefield.

InPhase3,thisadoptionwillalsocomewithnewpolicychangesuchasredirectionofwelfareandaidfundstowardsnewinnovations,PrivatePublicPartnerships,andsubsidiesforexpensivebutgamechangingandrevolutionarytechnologiestopavethefutureforsustainableeconomicprosperity.Whilethisnewgrowthwillcontinueupwards,thestatemustfindnewpoliciestokeepupwithgrowthpressurefromnationalandinternationalpartiesandpossiblerepercussionssuchasinflation,fluctuationinbuyingpower,increasedpropertyvalueetc.

GrowthinurbanhubsofIndiahasrecentlybeeninevitablethusthevisionfor‘100SmartCities’andtheoverallsmartcitytrendinIndia.22However,throughthesmartvillagesconcept,thismaynotbethecaseanymore.IncreasedemploymentopportunitiesinruralareascreatesincentivesforcitizensofAPtosettleinruralcommunities.Thisallowsacomplementedredistributionof fundstohelpdevelopruralareas, further incentivizingpopulationsettlement insmaller,butgrowingcommunities.ChiefMinisterChandraBabuNaidu’sadministrationwillbelookingtoimplementmodernpolicies,apaththatAPisalreadyon.Phase3willbemuchmorethanscalingtechnologiestotheruralworld,butmaintaininggrowth,production,andstandardoflivingfortheconstituentsbringingascoreofopportunitiesofnewresearch,knowledgeandinnovation.Thisisauniqueholisticattempttoaddressthevillages’painpointsinallverticalsbyentrepreneurialdrivenOpenInnovationbusinessmodels.

22Source:https://economictimes.indiatimes.com/new-sections/social-infrastructure/india-in-need-of-a-structured-infrastructure/lifenologyshow/45305494.cms


9.Appendix

9.1AgricultureSurveyData

OverallValidation

1. 90%ofthefarmerswouldliketousetheOIAgricultureEcosystemfortheirfarmingoperations.a. Resultsobtainedareindependentofthefarmer’sEducation:

b. Resultsobtainedareindependentoffarmer’sGeography(District)ofthefarmers:

0

25

50

75

100

Uneducated 10th Inter Graduate P.G

Perc

enta

ge o

f Sur

veye

d Fa

rmer

s

Education Level

Willing to use Technology Not willing to use Technology

0

25

50

75

100

East Godavari West Godavari Srikakulam Krishna Chittoor

Perc

enta

ge o

f Sur

veye

d Fa

rmer

s

District

Willing to use Technology Not willing to use Technology


2. 58%ofthefarmersarewillingtoinvestinusinganddeployingtheOIAgricultureEcosystem.a. Resultsobtainedareindependentofthefarmer’sEducation:

b. Resultsobtainedareindependentoffarmer’sGeography(District)ofthefarmers:

3. 60%ofthefarmersarenotsatisfiedwiththeincomelevelfromfarmingoperations.4. 53%ofthefarmersthinkthattheagricultureisalow-incomeprofession.

0

17.5

35

52.5

70

87.5

Uneducated 10th Inter Graduate Post GraduatePerc

enta

ge o

f Sur

veye

d Fa

rmer

s

Education Level

Willing to Invest in Berkeley Proposed EcosystemNot willing to invest in Berkeley Proposed Ecosystem

0

20

40

60

80

East Godavari West Godavari Srikakulam Krishna ChittoorPerc

enta

ge o

f Sur

veye

d Fa

rmer

s

District

Willing to Invest in Berkeley Proposed EcosystemNot willing to invest in Berkeley Proposed Ecosystem


EducationonModernFarming

Problems:1. 40%offarmersfindsthecurrenteducationonfarmingineffectiveandtrainingonfarmingtobeinconsistent2. 20%offarmersskipfarmingeducationworkshopsduetotimecrunchandhightravellingcost.

CurrentSolutions:3. 47%ofthefarmersuseknowledgeacquiredfromfellowfarmersandancestorsassourceforeducation4. 27%ofthefarmersaregettingeducationfromagriculturaloffices

SatisfactionLeveloncurrenteducationonmodernfarming:5. 36.6%ratedthecurrentsystemasBelowAverage(1-3Ratings).6. 51.6%ratedthecurrentsystemasAverage(4-6Ratings).7. 11.8%ratedthecurrentsystemasAboveAverage(7-10Ratings).

WillingnesstoadapttheUCBerkeleyproposedModel:6. 95%offamersareinterestedinparticipatinginPDCprogramswithrespecttoagriculturaltraining.

SoilAnalysisandAdvisory

Problems:1. 31%offarmersarelackingsoilanalysisandadvisory.

CurrentSolutions:

2. 47%ofthefarmersrelyonsoilanalysisfromfellowfarmersorancestors.3. 27%ofthefarmersaregettingsoilanalysisandadvisoryfromagricultureoffices4. 18%ofthefarmersaregettingsoilanalysisandadvisoryfromshopkeeper

SatisfactionLeveloncurrentSoilAnalysis&Advisory:5. 37%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)6. 56%ofthesurveyedfarmerratedittobeAverage(4-6Rating)7. 7%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:8. 86%preferthesoilanalysisandadvisorysolutionofferedthroughtheOIAgricultureEcosystem

AcquiringAgriculturalInputs

Problems:1. 34%offarmersstatedHighCostSeedsasamajorpainpoint.2. 17%offarmersstatedthattheyareunabletoproducetofullpotentialasthereisnosubsidyonseedsforthem.

CurrentSolutions:3. 32%ofthefarmersareusingownseedsandfertilizers.4. 20%ofthefarmersaregettingtheirAgriculturalinputsfromlocaldistributorsoncredit.

SatisfactionLeveloncurrentsystemforgettingAgriculturalInputs:5. 38%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)6. 52%ofthesurveyedfarmerratedittobeAverage(4-6Rating)7. 10%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:8. 85%prefertheOIAgricultureEcosystemtogetthecorrectAgriculturalInputbyhomedelivery.


AccessandUsingofAgriculturalEquipment

Problems:1. 24%offarmerslackfarmequipment.2. 15%offarmersfindnewequipmenttooexpensive.3. 15%offarmersfacethelaborshortageissue.

CurrentSolutions:4. 55%ofthefarmersarerentingequipmentfromlocaldistributors.5. 26%ofthefarmersarepurchasingnewequipmentwiththehelpofGovernmentsubsidies.

SatisfactionLeveloncurrentsystemsforaccessingAgriculturalEquipment:6. 39%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)7. 50%ofthesurveyedfarmerratedittobeAverage(4-6Rating)8. 11%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:9. 88%prefertheOIAgricultureEcosystemtogetaccesstoAgriculturalEquipmentonrentalbase.10. 82%prefertheOIAgricultureEcosystemtouseautomatedequipmentfortheiroperations.

FinancialServices

Problems:1. 36%offarmersfacetheproblemthatapprovalofloansistakingtoomuchtime.2. 22%ofthefarmersfacetohighinterestratesforloans.3. 18%ofthefarmersmisssmallloanswithrelevantpaybackperiods.

CurrentSolutions:4. 52%ofthefarmersdependongovernmentloans.5. 16%ofthefarmersareusingloansfromprivateinstitutions.

SatisfactionLeveloncurrentsolutionsforfinancialservices(farmingcontext):6. 40%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)7. 47%ofthesurveyedfarmerratedittobeAverage(4-6Rating)8. 13%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:9. 88%prefertheOIAgricultureEcosystemtogethasslefreeloanswithoutpaperwork.

MonitoringandHarmPrevention

Problems:1. 26%offarmerslackproperadviceonyield/diseaseprediction.2. 23%offarmerslackadvisoryonwhattypeoffertilizerandpesticidetouse.3. 21%offarmersstatethatdailyphysicalmonitoringisdifficult.

CurrentSolutions:4. 47%offarmerstakeguidancefromfellowfarmers.5. 19%offarmerssaythatthereareregularcropvisitsfromagriculturaloffices.

SatisfactionLeveloncurrentsystemsforMonitoringandHarmPrevention:6. 58%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)7. 22%ofthesurveyedfarmerratedittobeAverage(4-6Rating)8. 20%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:9. 87%offarmersprefertheOIAgriculturalEcosystemtogetadviceonharmpreventionandyieldprediction.


Irrigation

Problems:1. 41%offarmerslackproperirrigationsystems.2. 18%offarmersfaceinconsistentwatersupply.

CurrentSolutions:3. 64%ofthefarmersgetwatersupplythroughcanalirrigation.4. 20%ofthefarmersgetwatersupplythroughrainfall.5. 16%ofthefarmersgetwatersupplythroughwaterpumps.

SatisfactionLeveloncurrentsystemsforIrrigation:6. 34%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)7. 46%ofthesurveyedfarmerratedittobeAverage(4-6Rating)8. 20%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:9. 86%prefertheOIAgricultureEcosystemtogetanautomatedirrigationsystemandgettingadvice

andmonitoringMarketAccessandDistribution

Problems:1. 38%ofthefarmersarefacingmiddlemanissues.2. 26%ofthefarmerarefacinglowmarketprices.

CurrentSolutions:3. 57%ofthefarmersdistributetheirproducethroughmiddleman.4. 25%ofthefarmersdistributetheirproducethroughgovernment.

SatisfactionLeveloncurrentsolutionsforMarketAccessandDistribution:5. 39%ofthesurveyedfarmerratedittobeBelowAverage(1-3Rating)6. 53%ofthesurveyedfarmerratedittobeAverage(4-6Rating)7. 8%ofthesurveyedfarmerratedittobeAboveAverage(7-10Rating)

WillingnesstoadapttheUCBerkeleyproposedModel:8. 90%prefertheOIAgricultureEcosystemtogettransparentmarketaccessandbetteryield.

GeneralInformation:EducationalBackground

1. 70%ofthefarmershavelessthanhighschooleducation.2. Outofthese,88%arewillingtoinvestintheOIAgricultureEcosystem.3. 42%ofthefarmersaretenantfarmers

a. 45%statedthattheyaremissingsupportfromthegovernment.b. 27.5%statedhighrentalfeesforrentingthelandasamajorpainpointc. 22%statemissingrecognitionasfarmersfromtheirsurroundings

4. 62.5%ofthefarmerscultivateontheirownland


9.2Bibliography

SolomonDarwin&HenryChesbrough2016.PrototypingaScalableSmartVillagetoSimultaneouslyCreateSustainableDevelopmentandEnterpriseGrowthOpportunities.https://cb.hbsp.harvard.edu/cbmp/product/B5886-PDF-ENGH.Chesbrough,2003.OpenInnovation:TheNewImperativeforCreatingandProfitingfromTechnology,HBSPress:Boston,MA.MichaelE.PorterandMarkR.Kramer“CreatingSharedValue,”HarvardBusinessReview,89/1-2(January/February2011):62-77.D.Moyo,2009.DeadAid:WhyAidIsNotWorking&HowThereIsaBetterWayforAfrica,Farrar,Strauss&Giroux:NY.C.K.Prahalad,2005.TheFortuneattheBottomofthePyramid:EradicatingPovertyThroughProfits,WhartonPublishing;PA.Singh,S.(2012)NewmarketsforsmallholdersinIndia–Exclusion,policyandmechanisms,EconomicandPoliticalWeekly,47:95-105.Mishra,S.(2008)Risks,farmers'suicidesandagrariancrisisinIndia:Isthereawayout?,IndianJournalofAgriculturalEconomics,63(1):38-54.Dev,S.M.(2005)Agricultureandruralemploymentinthebudget,EconomicandPoliticalWeekly,40(14):1410-1418.Glaister,K.,Buckley,P.(1996).StrategicMotivesforInternationalAllianceFormation.JournalofManagementStudies33:3,S.301-332,1996.Acknowledgements

• SpecialthankstoShriRajsekharBudithigaru, IAS,PrincipleSecretary,DepartmentofAgricultureforgenuinesupportand

wiseguidance.

• AlloftheCorporatePartners’hardworkanddedicationtotheprojectismuchappreciated.

• ThankyouforalltheeffortsoftheBerkeley-AndhraSmartVillageTeam:a) RajshakarMalireddyfordatacollectionandsurveyimplementation.b) VenkatKrishnaKagga,RPTeja,SravaniPatnala,ShavanMichaeltheDistrictCoordinatorsthatmanagethegroundteam.c) AllMandalDirectorswhomadesurethesurveyswerefilledandmanagedvillageinterns.d) Specialthankstoallthevillageinternswhocollectedthedataandmadethisentirepaperpossible.

date: november 10, 2017 prof solomon darwin prof henry ... · national and international...

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