Embed Size (px)
Citation preview
Is there a business(case) in fresh without ICT?
Krijn Poppe LEI Wageningen URBased on work with Sjaak Wolfert, Cor Verdouw and others December 2015
Supervisory Board
Executive Board
EnvironmentalSciences
Group
Alterra
Agrotechnology& Food Sciences
Group
Food & BiobasedResearch
Livestock Research
Central VeterinaryInstitute
AnimalSciences
Group
PlantSciences
Group
PlantResearch
International
Applied PlantResearch
SocialSciences
Group
Wageningen University
Contract Research Organisation
Concern Staff Facilities & Services
WageningenAcademy
IMARES
WageningenInternational
LEI
Centre forDevelopmentInnovation
RIKILT(food safety)
EnvironmentalSciences
Animal Sciences Plant Sciences Social SciencesAgrotechnology& Food Sciences
Wageningen URand LEI
265employees65% male
35% female
LEI Wageningen
UR Facts
40%Accepted EU
R&D proposals in societal
challenge 2
Turnover€ 31 mln
...
Yearly around 100
references in parlement
working on
global challenges worldwide
Food Security
Biobased Economy
Water, Energy and Climate
Sustainable Food Clusters
CONTENT
1. ICT: What is happening2. Why now?3. Business collaboration4. Food and health5. How to organise this all?
ICT brings info for farmer and consumer
Royal Gala apple
Origin: GironaPesticides: No
Organic farming: Yes Carbon footprint:1,2 kg CO2e
Drones, Big Data and Agriculture 7
IoT in Smart Farming
cloud-based event and data
management
smart sensing & monitoring
smart analysis & planning
smart control
Connected Nursery
8
Order info
Cultivation info
Stock info
Quality info
Financial info
Systems in Supply Chain Network
Trader
Retail
Service provider
Accountant
Serviceprovider
Trader
Etail
Detail
Rules issuing authorities
Systems Authorities
Compliance info
Supplier info
Supplier Systems
Seed supplier
Packaging supplier
Pesticides supplier
Info exchange Supply Chain
Network
Enterprise System Grower
Systems and machines in the primary production / cultivation
Internal info exchange
cultivation related
machines Work definition Work planningWork capacity Work performance
Adoption of Connected Nursery solutions
Economic reality
High ICT complexityHigh path
dependency
Relative small scale of farms
Low rate of investments of
growers
Decrease high-end market
Low willingness to cooperate
Limited development of
integration solutions
Negative perception
relative advantage
Towards smart autonomous objects
Source: Deloitte (2014), IT Trends en Innovatie Survey
Tracking & Tracing
Monitoring
I am thirsty: water me within 1 hour!
I am product X at locatie L of Z
My vaselife is optimal at a
temperature of 4,3 °C.
I am too warm: lower the
temperature by 3 °C
Event Managemen
t
I am too warm: I lower the cooling of my truck
X by 2 °C.
I don’t want to stand besides that banana!
I am thirsty!
I am warm!
Optimalisation
Autonomy
Virtual Box
Location A Location B
Location & Stateupdate
Location & State
update Location & Stateupdate
IoT in Agri-Food Supply Chains
11Drones, Big Data and Agriculture
Quality-controlled Supply Chain
12
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, drones, etc.
Social media - Facebook, Twitter, Wiki, etc.
Big Data - Web of Data, Linked Open Data
High Potential for unprecedented innovations!
everywhere
anything
anywhere
everybody
Disruptive scenario: Toshiba’s lettuce growing
tijd
Mate van verspreidingvan technologische revolutie
Installatie periode
Volgendegolf
Uitrol periodeDraai-punt
INDRINGER
EXTASE
SYNERGIE
RIJPHEID
Door-braak
WerkeloosheidStilstand oude bedrijfstakken
Kapitaal zoekt nieuwe techniek
Financiele bubbleOnevenwichtighedenPolarisatie arm en rijk
Gouden eeuwCoherente groei
Toenemende externalities
Techniek bereikt grenzenMarktverzadiging
Teleurstelling en gemakzucht
Institutionele innovatie
Naar Perez, 2002
Crash20081929189318471797
time
Degree of diffusion of thetechnological revoluton
Installation period
Nextwave
Deploymentperiod
Turningpoint
IRRUPTION
FRENZY
SYNERGY
MATURITY
Big Bang
UnemploymentDecline of old industries
Capital searches new techniques
Financial bubbleDecoupling in the systemPolarisation poor and rich
Golden ageCoherent growth
Increasing externalities
Last products & industriesMarket saturationDisappointment vs
complacency
Crash
2008
1929
1893
1847
1797
Institutional
innovation
Based on Perez, 2002
The opportunity for green growth
1971 chip ICT1908 car, oil, mass production1875 steel1829 steam, railways1771 water, textiles
Europe towards 2050
3 scenarios to explore the future of EU agriculture
source: SCAR-AKIS
HighTech: strong influence new technology owned by multinationals. Driverless tractors, contract farming and a rural exodus. US of Europe. Rich society with inequality. Sustainability issues solved. Bio-boom scenario.
Self-organisation: Europe of regions where new ICT technologies with disruptive business models lead to self-organisation, bottom-up democracy, short-supply chains, multi-functional agriculture. European institutions are weak, regions and cities rule. Inequalities between regions, depending on endowments.
Collapse: Big climate change effects, mass-migration and political turbulence leads to a collapse of institutions and European integration. Regional and local communities look for self-sufficiency. Bio-scarcity and labour intensive agriculture. Technology development becomes dependent on science in China, India, Brazil.
Chain organisation changes (©Gereffi et al., 2005)
inpu
ts
E
nd p
rodu
ct
PRICE
Shops Complete IntegrationLead
companyLead
company
Turnkey supplier
Relationalsupplier
Market Modular Relational Captive Hierarchy
Low Degree of explicit coordination and power asymmetry High
Leadcompany
Farmers
Which innovations and new business models are possible ?
Precision Farming/Advice Segment Cons. supportService ++
• Prescriptive farming• Predictive maintenance• Eco-systems of apps• Regionally pooled big data
analysis for science and advise (and risk mgt.)
• 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
●As data need to be combined to create value ●The better we exchange data, the less disruptive it is
for current business models and organisationsThere is a need for ABCDEFs: Agri-Business Collaboration & Data Exchange Facility
Proprietary/closed or open ABCDEFs?
Redefining Industry Boundaries (1/2)(according to Porter and Heppelmann, Harvard Business Review, 2014)
21
3. Smart, connected product
+
+
+
2. Smart Product
1. Product
Redefining Industry Boundaries (2/2)(according to Porter and Heppelmann, Harvard Business Review, 2014)
22
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
combineharvesters
4. Product system
Is this‘mono-equipment system’ reality?
How to cope with changes in industry
boundries?
How many platforms should
users and developers enter?
Agri-Food Supply Chain Networks are multi-dimensional
• Markets allocate products to different destinations
• Chains are supported by many service providers
• Intensive data-exchange with governments
law & regulation
innovation
geographic cluster
horizontal fulfillment
Vertical
Farm Digital project
Sharing Data with AgriPlace:
Compliance Made Easy
http://www.farmdigital.nl/
LESS ADMINISTRATIVE BURDEN AND CREATING VALUE
Auditors• More effective audit on farm• More new clients • Savings of >€100 per audit visit
Farmers and Growers • Less time and irritation to collect data • More digital management • Savings of >€500 euro per grower
Retailers• Quicker and more complete data • Better risk management• > €30 savings per farm request
Importers and Food processors• Cost savings on data collection• Increase data quality• Savings > €10,000 per importer
Consumers • Relation with growers• Better understanding of labels• More transparency
PROTOTYPEAGRI-PLACE
FMS-manage-ment software
GOV. open data
LEI Wageningen URBenchmark-data
The USA battleground: Monsanto (et al.)
26
PRESCRIPTIVE FARMING
based on VARIABLE RATE APPLICATION
USA: Farmers Business Network
27
Farmers’ owned, investment by Google Ventures Summer 2015:FBN has aggregated data from 7 million acres of farm land across 17 states, and they’re growing 30% month over month. The platform is currently able to assess the performance of 500 seeds and 16 different crops.Costs farmer $ 500 / year.
USA: Farm Mobile
28
“Farmers believe their trust has been violated”: their data go to multinationals, that announcebig future income from big data, while they have pay for everything.
Farmers collect ‘crop stories’ and decide wherethey travel (and get afew cents per item?)
Discusions among US farmers:
29
Code of Conduct
• Do I own my own data?• Who has access to my data?• Does the government have access?• Do companies gain market power on future markets ?• Is there a lock inn ?• Do I become a franchiser with the risks but not the
returns?
Towards the future:
30
• Horticulture and farming become data based• Data have mainly a value if they are combined
and aggregated• Huge network effects can lead to monopolies• That means that collaboration / cooperation is
needed and good governance is key.• Is there a solution?
Is an eco-system of apps an alternative?
FARMER SCANS PESTICIDES PACKAGE IN THE FIELD
APP CONNECTS BASF FOR E-INSTRUCTION, CROP AND SOIL SPECIFIC
APP ASK METEO FOR 24 hour WEATHER FORECAST
BASF SENDS INSTRUCTION TO SPRAYING MACHINE ON WATER / PESTICIDE RATIO >> Machine adjusts
APP CHECKS ADVISE WITH GOV.AGENCY
FARMER CAN SHARE DATA WITH GOVERNMENT, SGS-AUDITOR GLOBAL GAP AND PUBLIC
CAN I USE MY CURRENT
SERVICE ?
CAN I USE MY FMS ?
DOES IT WORK WITH
BAYER / DEERE
DOES IT WORK WITH BRC / ISAcert
Can we link apps / services in a clever way ?Leading to a market for services (apps and data)?Can this market be European (not MS), so that development costs of services (apps and data) are shared ?
Towards highly integrated solutions
Platforms in the cloud of input suppliers and food processors:• What is the scope (connect only machinery or also with chemical
companies and accountants ?)• Reduce costs of linking individually with many other platforms and
software packages (especially in chains that are not integrated)• Is it possible to use apps with their own business model, so that the
platform does not have to pay all their costs? >> can (non-strategic) apps be available on several platforms?
• How to prevent that farmers complain to have to pay for basis apps (e.g. weather service) more than once?
MyJohnDeere.com Farmers
Biz architectbundles apps in a platform
...
80 Accelerator companies
Apps
Towards highly integrated solutions
Highly Integrated Service Solutions• Event-driven• Configurable• Customizable• Service model
Data (Standardisation) Services
AdaptEPCIS
MyJohnDeere.com
Data Standardsto connect
BusinessCollaborationServices -Based on OpenSource Software
Farmers
Biz architectbundles apps in a platform
...
80 Accelerator companies
Apps
Modules:Single SignOnBiz Collab.Event Proces.System-Data integrationApp repository
Value propositionPlatforms solve the issue of connecting individually with a lot of business
partners to exchange data : connect easily to apps (and data services in apps) based on EDI-standards or let farmers / end-users make the connection
App-developers Develop one app for different platforms Reach a European / Global market
Governments (and industry organisations)
See above for your government platform (paying agency, public advisory service etc.)Promote innovation by a competitive market for apps with new servicesPrevent lock-inn situations for farmers and unbalanced power relations in the information exchange in food chains
Farmers Not a direct FIspace client. Platforms using FIspace inside provide you more choice
Software writers in platforms and app-companies
Helps you to be part of an open source community that cares for sustainable food production with up to date ICT – be recognized by your peers
FIspace App Store
80 Accelerator companies
Configure &Use Systems
First Commercial MVP by ... ?
App developer Business Configurator End User
Advertiser
Access fee
Use Fee Use Fee
Access fee (e.g. CargoSwApp)
Pay for app use (e.g. Spraying Advice)Sponsored app
FIspace FoundationMVP – open source
My JohnDeere365 Farmnet
AkkerwebDacom/CROP-R
Datalab Pantheon
ICT company Service model ?
Towards highly integrated solutions
Highly Integrated Service Solutions• Event-driven• Configurable• Customizable• Service model
Data (Standardisation) Services
AdaptEPCIS
MyJohnDeere.com
Data Standardsto connect
BusinessCollaborationServices -Based on OpenSource Software
Farmers
Biz architectbundles apps in a platform
...
80 Accelerator companies
Apps
Modules:Single SignOnBiz Collab.Event Proces.System-Data integrationApp repository
Is this commercially feasible?
Or is it too much a common pool investment in a market where
everybody wants to grab a stake, over-estimates the value of its own data and
finds it easier to builds its own website ?
IoT and the consumer
37Drones, Big Data and Agriculture
Source: Hisense.com
Smart Farming
Smart Logisticstracking/& tracing
Domotics Health Fitness/Well-being
Food consumption compared to official advise, NL 2007 – 2010 (source: PBL)
38
Consumer InteractionA. Quick Scan Food Apps
1. Generic product information
2. Specific product information
3. Cooking information
4. Purchase support / retailer
5. Food safety
B. Qualitative Reserach
C. Quantitative Research
A SMARTer Greenport
Consumer Interaction
1. Veggipedia-app2. User Generated Content→ Interviews learn us that there is not much interest in providing USG (even with digital natives).→ Recipes score best
www.eurodish.eu2 mai 2023
p. 41
Big data for smart food and health services
41
Lifestyle
Health
Food
Big Data Horticulture
42
BIG DATA
Social media
Ongestructureerd
Event-drivenOPEN DATA
Databestanden
Gestructureerd
Transactie-driven
Social media - Unstructured - Event-driven Information systems – Structured - Transaction-driven
BIG OPEN t&u DATA
CONSUMER CHAINHORTI-CONNECTOR
HORTI-RADAR
HORTI-CUBE
MAP
ANONY MISE
AGGRE GATE
COM BINE
COL LECT
INTER PRET
TOPICSTRENDSALERTS
NORMSTRANSACTIONSREGISTRATIONS
BUSINESS GOVERNMENT RESEARCH
CULTIVATION IMPORT PRODUCT MARKET LOCATION FLOW
apps services
Need for (institutional) innovation
Adoption bottlenecks in small companies (Connected Nursery)
Organisation of the chain under discussion (Gereffi) Discussions on ownership, privacy etc. (US examples) Scope of systems and platforms (Porter et al. HBR) Common pool investments needed in standards and data
exchange facility (Fispace example) Business model and governance (Farm Digital) Consumer interaction: not easy Big data and open data: still a struggle ? INCREASES CHANCE OF DISRUPTIVE INNOVATION ?
Can we speed up these trends? Can we learn from the organisation of the FI-PPP ? Pay more attention to business models, data ownership,
sustainability after project ?? Create free experimentation zones with Hackatons, Plug-
fests, Data-paloozas etc.
