effect of big data on farm enterprises
TRANSCRIPT
Effect of Big Data on Farm Enterprises
Sjaak Wolfert, Krijn Poppe, Cor Verdouw (LEI Wageningen UR)
Meeting with RABO Agrifinance, Wageningen, 10-Jun-2015
Take home messages
Agri-Food chains become more technology/data-driven
● Infrastructure and software development is a key issue
● (Distance-)advice becomes clustered instead of rural-spread
Significant socio-economic impacts; two scenarios:
1. Further integrated supply chain farmer becomes franchiser/contractor with limited freedom
2. Farmer empowered by open collaboration
• Easier switch between suppliers
• More options for direct sales to consumers
Reality somewhere in between?
F
F
Disruptive ICT Trends:
Mobile/Cloud Computing – smart phones, wearables, incl. sensors
Internet of Things – everything gets connected in the internet (virtualisation, M2M, autonomous devices)
Location-based monitoring - satellite and remote sensing technology, geo information, etc.
Social media - Facebook, Twitter, Wiki, etc.
Big Data - Web of Data, Linked Open Data
High Potential for unprecedented innovations!
everywhere
anything
anywhere
everybody
multi-dimensional
Agri-Food Supply
Chain Networks
(AFSCN)
• Currently: farm data are not optimally exchanged
• Need for exchange is rapidly changing
• Need for stake for all players
law & regulation
innovation
geographic cluster
horizontal fulfillment
Vertical
How more data affects private and public challenges
Sustainability HealthFood SafetyFood Security
Precision Farming: Better control
Better management decisions
SophisticatedTechnology,More advice
Segment products and input suppliers;
Benchmark with competitors
Consumer decision support (pre- and
after sales)
Better service concepts (e.g. in-store replenishment, less waste)
LoyaltySMEs Cost priceGRIN* Transport+ Cope with retail
Transport Transport Transport
Input industriesFarmer Food processor Retail / consumerSoftware
Provider
Logistic solution providers
* Genetic, Robotic, Information and Nano Technologies
Which innovations and new business models are possible ?
Precision Farming/Advice Segment Cons. supportService ++
• Open farm management systems with specific apps
• Computer aided (distant) advice and decisions
• Regionally pooled data analysis for science and advise
• Personalized advise by apps
• Online shops
• Integrated supply chains• Feedback consumer-producer
• Measure, pay sustainability
• Better T&T
• Paperless chain• Store
replenishment• Category
management
Sustainability HealthFood SafetyFood Security
LoyaltySMEs Cost priceGRIN Cope with retail
Transport
Input industriesFarmer Food processor Retail / consumerSoftware
Provider
Logistic solution providers
Transport+
Which innovations and new business models are possible ?
Precision Farming/Advice Segment Cons. supportService ++
• Open farm management systems with specific apps
• Computer aided (distant) advice and decisions
• Regionally pooled data analysis for science and advise
• Personalized advise by apps
• Online shops
• Integrated supply chains• Feedback consumer-producer
• Measure, pay sustainability
• Better T&T
• Paperless chain• Store
replenishment• Category
management
Sustainability HealthFood SafetyFood Security
LoyaltySMEs Cost priceGRIN Cope with retail
Transport
Input industriesFarmer Food processor Retail / consumerSoftware
Provider
Logistic solution providers
Transport+
Collaboration and Data Exchange is needed!
Data exchange by ABCDEFs
Large organisations mostly have gone digital, with ERP and other systems
But between organisations (especially with SMEs) data exchange and interoperability is still very poor
While more data exchange for collaboration and business process control in the chain is needed (see prev. slide)
There is a need for ABCDEFs:
Agri-Business Collaboration and Data Exchange Facility
Proprietary/closed or open ABCDEFs?
|9
John Deere FarmSight™:An Ecosystem for Decision Support Partners
• AgConnections• AgIntegrated• AgLeader• AgJunction• Delta Data Systems• DN2K •GEOSYS • PCT• GeekTech for Ag• Mapshots • Pioneer• Satshot• SST• ZedX• LDE (Germany)• Farmmade (UK)• Neotic Maferme (France)• DAAS (Denmark)• AgroVision (Netherlands/Belgium)• Technofarming (Italy)
Numerous Software Partners
Bottom Line: John Deere’s comprehensive ecosystem of innovative partners will drive customer value and improved decisions
Source: Charles Donahue at Smart AgriMati cs, Paris 18 June, 2014
|10
John Deere FarmSight™:An Ecosystem for Decision Support Partners
• AgConnections• AgIntegrated• AgLeader• AgJunction• Delta Data Systems• DN2K •GEOSYS • PCT• GeekTech for Ag• Mapshots • Pioneer• Satshot• SST• ZedX• LDE (Germany)• Farmmade (UK)• Neotic Maferme (France)• DAAS (Denmark)• AgroVision (Netherlands/Belgium)• Technofarming (Italy)
Numerous Software Partners
Bottom Line: John Deere’s comprehensive ecosystem of innovative partners will drive customer value and improved decisions
Source: Charles Donahue at Smart AgriMati cs, Paris 18 June, 2014
Is this‘mono-equipment system’ reality?
How many platforms should
users and developers enter?
Redefining Industry Boundaries (1/2)(according to Porter and Heppelmann, Harvard Business Review, 2014)
11
3. Smart, connected product
+
+
+
2. Smart Product
1. Product
Redefining Industry Boundaries (2/2)(according to Porter and Heppelmann, Harvard Business Review, 2014)
12
5. System of systems
farmmanagement
system
farm equipment
system
weather data
system
irrigation system
seed optimizing
system
fieldsensors
irrigation nodes
irrigation application
seedoptimizationapplication
farmperformance
database
seeddatabase
weather dataapplication
weatherforecastsweather
maps
rain, humidity,temperature sensors
farm equipment
system
planters
tillers
combine
harvesters
4. Product system
Future Internet PPP – 300 M€ EU funding
13
Towards a more open ABCDEF in the EU FI-PPP
Getting involved in the EU-ICT theme: the Future Internet Public-Private Partnership Programme (FI-PPP)
●> 300 M€ public funding in 5 yrs.
●SmartAgriFood (5 M€)
● 21 partners (LEI coordinating)
●FIspace (13.5 M€)
● 28 partners (LEI coordinating)
●FIWARE accelerators (17 M€)
Start-ups
FI-Ware enabled Cloud Platform
CloudInformation
systems
SmartAgriFood conceptual cloud architecture
sensorsactuators
data sources(‘Internet of Things’)
localInformation systems
App store
Services Spraying Advisory Services Meteorological Service
State and Policy Information Service
Consumer Food safety service
E-agriculturist Service for spraying potatoes Machine Breakdown
Service
Transport
User’s devices
Other sources
App store
From conceptual architecture & prototypes to a real software platform and Apps
Services
sensorsactuators
data sources(‘Internet of Things’)
LocalISs
Spraying Advisory Services
Meteorological Service
State and Policy Information Service
Consumer Food safety service
E-agriculturist Service for spraying potatoes
FI-Ware enabled Cloud Platform
Machine Breakdown Service
User’s devices
Other sources
CloudIS
Transport
I2NDIoTIoCIoSS&T
GENERIC ENABLERS
Base Technologies
ValidationT270: Security, Privacy, Trust Framework: SPT (KOC)
T250: System & Data Integration (ATOS)
T240: B2B Collaboration Core (IBM)
T230: App Store (IBM)
T220: User Front-End (ATOS)
T260
: Ope
ratin
g E
nviro
nmen
t(IB
M)
T280: Softw
are Developm
ent Toolkit:SD
K (ATOS)
FIspace high-level architecture
I2NDIoTIoCIoSS&T
GENERIC ENABLERS
Base Technologies
Validation
1. Crop Protection Information Sharing
2. Greenhouse Management & Control
3. Fish Distribution & (Re-)Planning
4. Fresh Fruit and Vegetables QA
5. Flowers & Plants Chain Monitoring
6. Meat Information Provenance
7. Import & Export of Consumer Goods
8. Tailored Information for Consumers
Trials:
Security, Privacy, Trust Framework: SPT
System & Data Integration
B2B Collaboration Core
App Store
User Front-EndO
pera
ting
Env
ironm
ent
Softw
are Developm
ent Toolkit (SDK)
FIspace approach: Software Mass Customisation
FIspaceApp Store
My FIspace (BCM)
DevelopApps
Pre-configureUser Systems
Customize &Use Systems
FIspace Platform
Single AppConfiguration
App developer Biz Architect User
FIspace App store: spraying advice
Public AdministrationFranz Farmer Ed Expert
FIsp
ace
platf
orm
Spraying (follow advice)
Provide Advice
Approval
2
3
Request Advice
1
FIspace AppWeather
Information
FIspace AppSpraying Advice
FIspace AppCertification
sensor data
Back
-End
Sys
tem
s
Expert SystemLaw &
Regulations system
Farm Management
System
Sensor Network
Field, crop, etc.
pesticide
advice details
compliancedata
19
trusted partners trusted partners
T270: Security, Privacy, Trust Framework: SPT (KOC)
T250: System & Data Integration (ATOS)
T240: B2B Collaboration Core (IBM)
T230: App Store (IBM)
T220: User Front-End (ATOS)
T260
: Ope
ratin
g E
nviro
nmen
t(IB
M)T280: Soft
ware D
evelopment Toolkit:
SDK (ATO
S)
FIspace ecosystem developmentIn
dust
ries
(con
verg
ing)
Farming & Manufacturing Transport & Logistics
(Producers, Farmers, Manufacturers, Suppliers, ..)
Wholesale & Retail Health Sector
(Forwarder, Carriers, 3PL / 4PL, Ports, …) (Warehouses, Supermarkets, Stores, …) (Banks, Insurances, Authorities, ..´)
ICT Industry (going to the Cloud)
Cloud Operators & Infrastructure Providers
Business Configurators
I2NDIoTIoCIoSS&T
(+ follow up)
GENERIC ENABLERS
DEVELOPMENT TOOLKIT
Base Technologies
Validation
App & Service Providers
The FIspace house
Foundation
Serv
ice
Leve
l Ag
reem
ent
FISPACELAB
ATOSIBMKOCSistemLimeTri...App Developers
FIWARE Accelerators+ future experimenters
Ope
n So
urce
Sp
ecifi
catio
nsAGRI-
FOOD1
Ecosystem inThe Netherlands
Ope
n So
urce
Sp
ecifi
catio
ns
AGRI-FOOD2
Ecosystem inGreece?
Ope
n So
urce
Sp
ecifi
catio
ns
LOGISTICS
Ecosystem inGermany/Scandinavia?
Pre-commercial Commercial
Potential revenue streams
FIspace App Store My FIspaceDevelopApps Pre-configure
Configure &Use Systems
Commercial FIspace Platform
App developer Biz Architect User
Advertiser
Access fee
Use Fee Use Fee
Access fee
Pay for app (use)Sponsored app
4 Accelerator projects on agri-food & logistics
• SmartAgriFood– Smart farming (livestock, arable &
horticulture)– Open call: 4M€– Open until 15 Nov. 2014– www.smartagrifood.com
• FInish– Agri-Logistics– Open call: 5 M€– Open until 10 Dec. 2014 – www.finish-project.eu
• Fractals– Smart Farming in Balkan– Open call: 5.5 M€– 30 Nov. – 28 Feb. 2015– http://
www.f6s.com/fiware-fractals
• SpeedUp!Europe– Agrobusiness Park (DK)– Open call agri-food: ~1.9 M€– Open until 10 Dec. 2014– www.speedupeurope.eu
Total: ~ 16 M€ in 2 years ~ 150 Apps?
Impact of ABCDEFs on the supply chain
Virtualization and end-to-end tracking & tracing
● More influence on farm decision-making less freedom?
● Increased transparency, esp. for consumers
● Logistics improved by better monitoring, problem notification and optimization
More opportunities for direct farmer-consumer markets
● On-line, virtual auctions of products
● Local food consumption (see trends in cooking)
● Chances esp. for small farmers or new, professional players?
Impact ABCDEFs on the nature of the farm
Adoption of technology (esp. ICT) traditionally low, but will be accelerated
● Apps and devices are cheap and easy to use
● Hard/software-as-a-services model will be further introduced
Digitization and virtualization of farm processes
● Traditional Farm Management Information Systems will be replaced by customized services of apps
● (Advisory) services can be done from distance clustering in knowledge-intensive areas
● Better farm monitoring and benchmarking
Farmers can move away from commodity markets
● Last mile in logistics becomes easier
Take home messages (revisited)
Agri-Food chains become more technology/data-driven
● Infrastructure and software development is a key issue
● (Distance-)advice becomes clustered instead of rural-spread
Significant socio-economic impacts; two scenarios:
1. Further integrated supply chain farmer becomes franchiser/contractor with limited freedom
2. Farmer empowered by open collaboration
• Easier switch between suppliers
• More options for direct sales to consumers
Reality somewhere in between?
F
F
Remaining points for discussion
ABCDEFs will change the market for Ag software and services that utilize (big) data
Will there be a market for Ag data as such?
● “Google Ventures leads $15 million deal in Farmers Business Network”
● GODAN, a G8 initiative for Global Open Data for Agriculture and Nutrition
● Cf. the ‘battle’ for health data by Apple, Google, Samsung, etc.
What are the business models for Big Data and Agriculture?
Value can only be created if different stakeholders collaborate and share their data?
Then the profit from Big Data also needs to be shared?
www.agriXchange.eu
www.SmartAgriFood.eu
www.FIspace.eu
Or contact me:
nl.linkedin.com/in/sjaakwolfert/
@sjaakwolfert
http://www.slideshare.net/SjaakWolfert
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