kj poppe on ict at ifsa berlin 2014
DESCRIPTION
Presentation on ICT and FI-PPP for IFSA conference on Farm System Research in BerlinTRANSCRIPT
How ICT is changing the nature of the farm: a research agenda on the economics of big data
Krijn Poppe Berlin, IFSA, April 2014
Co-authors: Sjaak Wolfert, Cor Verdouw
In 2020 DATA-flows....
are as important
as Money and
Material flows
Thanks to the strong trends in ICT
Strong ICT Trends
Satellite and (remote) sensing technology, geo-informatics
Sensor technology, robotica in tractors and machines; computer vision;
Bio-sensors and bio-informatics
Internet of Things: ‘everything’ gets an IP-address
Cloud computing: service delivery via (broadband) infrastructures
Smart phones and tablets with data ‘in the cloud’
Social media (Facebook, Twitter, Wiki, etc.)
Web of data, Linked Open Data, Big Data
E-knowledge, E-science
App store
Smart Farming in the Cloud
Services
sensorsactuators
data sources(‘Internet of Things’)
LocalFMS
Spraying Advisory Services
Meteorological Service
State and Policy Information Service FMIS
E-agriculturist Service for spraying potatoes
FI-Ware enabled Cloud Platform
Machine Breakdown Service
User’s devices
Other sources
CloudFMS
Data exchange by ABCDEF’s
• Large organisations mostly have gone digital, with ERP and other systems
• But between organisations (and especially with SME) data transfer and information exchange is often on paper
• While more data exchange to monitor business processes in the chain would be welcome
There is a need for ABCDEF’s:Agri-Business Collaboration and Data Exchange Facility
FIspace is such a collaboration facility, built in the FI-PPP
Envision that....
Firms could find each other and connect like in social media (LinkedIn, Twitter, Facebook, Wordpress)
Also to specify their workflow / contracts in a ‘conversation’. Firms then could start to stream data between each other– like
you upload a photo or video on Google+ to one of your ‘circles’ Linked Open Data: invoices, ‘Internet of Things’ sensor dataMaking a choice in using standards like EDI, XBRL etc.
Although compared to Facebook firms might like to have more control on access to their data (possible with web services and access rights),
and do not need storage of their data Firms could buy apps (that work with the data streams and
enrich such “open” (and big) data to provide advice)
THAT IS WHAT FIspace WILL DELIVER
FIspace platform High Level Architecture
Front-End
FIspace Store
Real-time B2B Collaboration
Core
System & Data Integration
Security, Privacy, and Trust Management
Operating Environment
Dev
elop
men
t Too
lkit
I2NDIoTIoCIoSS&T
GENERIC ENABLERS
DEVELOPMENT TOOLKIT
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 SC Chain Monitoring
6. Meat Information Provenance
7. Import & Export of Consumer Goods
8. Tailored Information for Consumers
8
Technical Overall Platform Approach
Deployed inthe Cloud
Future Internet Core Platform
I2ND IoT Cloud IoS
Real World Integration
Service Provisioning & Consumption
Ubiquitous Broadband
Connectivity
Infrastructure Virtualization
SPT
Security & Reliability
Generic Enablers
FI-CODE
Tool Support
FIspace: Extensible SaaS
App 1 App 3 App n…
Collab. Workflow 1 … Collab.
Workflow kExtension
Mechanism 2:Configurable Collaborative
Workflows
Extension Mechanism 1:Addition of value-add functionality through AppsUser
FIspace approach for Software Mass Customisation
FIspace App StoreMy FIspace
DevelopApps
Pre-configureUser Systems
Configure &Use Systems
FIspace Platform
Single AppConfiguration
App developer Business Architect User (farmer, coop)
Impact of ABCDEF’s on the food chain
International market for platforms and apps; replace the current Farm Management Information Systems
Also a market for data ?
New types of contracts: e.g. service level agreements on machine use
End-to-end tracking and tracing
Virtualisation of food chains
Emergence of direct farmer-consumer markets supported by ICT.
More data analysis, more sustainable production
How more data contributes to current business models
Transport
loyaltySmall Cost priceGRIN
Transport Transport
Input industriesFarmer Food processor Retail / consumerSoftware
Provider
Logistics solution providers
Service cope with retail
Sustainability HealthFood SafetyFeed the growing world
Precision Farming: better control
Better management decision
SophisticatedTechnology,More advise
Segment products and
input suppliers;Benchmark with
competitors
Consumer decision support (pre- and after
sales)
Better service concepts, e.g. in store replenishment
Impact ABCDEF’s on the nature of the farm
The Nature of the Farm: Family Farms dominate
The market creates income by enabling specialisation in functions like labourer, manager, land lord, investor.
The family farm combines these functions,
as the market does not induce specialisation
Due to transaction costs that are too high (a.o. due to moral hazard and regulations on wages)
And a low profitability combined with relatively high risk (due to imperfect factor markets: the exit of labour is slow as in the family farm the total income is the relevant variable and opportunity costs are low)
IS THAT GOING TO CHANGE IN THE FUTURE??
Trends favour larger non-family farms:
Increasing prices and profitability make it more attractive for outside investors to invest in farming.
Access to cheap labor from Eastern Europe in Western Europe also leads to more specialization.
ICT is a clear thread for the family farm: with ICT the monitoring options strongly increase and agency problems can be solved.
Some activities could disappear from the farm when they become automated or instructions come from apps developed in Berlin or Wageningen.
Effects are stronger in proprietary systems that are linked exclusively to the ERP system of a big food business than in an open system where switch costs are low.
Towards a research agenda
Estimate costs/benefits of ABCDEFs in concrete cases
Analyse the European market for farm software (small national markets collapsing?) and apps
Analyse the pros and cons of open ABCDEFs over proprietary software.
Analyse how ABCDEFs support regional food webs
Analyse how ABCDEFs support new services (business cases) in food chains
Analyse the regional effects of the trend to big data (does value added disappear; lack of rural ICT infrastructure)
Property rights on data: sometimes unclear or very skewed to industry
