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Digital data in the agri-food supply chain

Established companies and technology start-ups are all racing to create solutions that better manage agricultural data in supply chains. Does this mean radical new transparency for farmers and producers? And have we thought through the implications for data collection, management, and ownership?

In this post:

What is agricultural data?

Definition of agricultural data;

The facts, metrics, and statistics that describe elements of one or more farming or agriculture operations.

Most farms collect data in some form. Much of this may be in personal notebooks and mandatory compliance forms. Precision farming equipment, machinery, and mobile and desktop apps also collect agricultural data.

Most farmers collect information to:

  • Support improvements to farm management;
  • Follow government directives; or
  • Have something interesting to talk about in the pub.

So why are processors, food service and retailers, and dozens of internet start-ups becoming more interested in on-farm data?

How rich digital data can benefit agri-food supply chains

Three ways that digital data can benefit consumers, retailers and processors in the agri-food supply chain are:

  1. Traceability and tracebacks;
  2. Forecasting and efficiency; and
  3. Supporting product claims.

1.      Traceability and tracebacks

Tracking animals and crops through the supply chain helps the entire chain to respond to concerns about food safety or disease. This is especially important in livestock industries where animals move between farms, often through shared facilities.

Even for crops, on-farm records can establish linkages between the fertilisers and slurries, pesticides and herbicides used, and the resulting product.

2.      Forecasting and efficiency

Purchasing and processing goods from biological systems carries uncertainty and risk. Crop yields, dry-matter, or flavour will vary from the sector “average”. Animals may not be ready when first predicted or vary in how they meet processing specs.

If on-farm data were available before harvest or delivery, processors and retailers could predict the likely quality, timing, and specification of supply.

With enough lead time, processors and marketers could better match demand and processing capacity to supply. A dairy processor might vary the mix of UHT, cheese, and powder products based on expected quantities, fat, protein, and calcium levels. A fruit marketer could negotiate different market commitments based on predicted ripeness and flavour profiles.

Connected data may allow market signals to flow the other direction also. With the right information, producers could adjust harvest dates or livestock delivery to achieve target specifications and match market demand.

3.      Supporting product claims

Consumer interest is driving the creation of differentiated products, which make claims about what they do or do not contain. Examples might include:

  • “free from x”,
  • “organic”,
  • “naturally produced”,
  • “grass-fed”,
  • “local”,
  • “A2 beta-casein only”, or
  • “higher welfare”.

Consumers can see differentiation like “chocolate flavour” or gold kiwi fruit. “Credence attributes” are types of differentiation that can’t be seen. Consumers can only evaluate these based on trust and the story that supports the claims.

Small-scale producers can single-source from one or two farms that they own and closely control. For supply at scale, the evidence and controls to support credence attribute claims must be based on data and audits. And even audits make substantial use of agricultural data collected on farm.

Challenges of data in agri-food supply chains

Making effective use of agricultural data to benefit the supply chain is a worthy goal. In our experience, it is not necessarily straightforward. If you intend to use on-farm data to support an agri-food supply chain, there are four key challenges to consider:

  1. Data collection effort and methods;
  2. Data quality and completeness;
  3. Data flow between organisations; and
  4. Data ownership or control.

1.      Data collection effort and methods

With some exceptions, farmers have not traditionally been proponents of formal data collection. A few agribusinesses have built a culture of data gathering and analysis, but many farms would collect the minimum possible.

Recording has often been informal. Data to support a decision might appear on paper, in a notebook, or on an embedded device. After the on-farm decision, data may be discarded, having never been transcribed or centrally stored.

Apps are a great improvement over desktop software for data collection. But, collecting agricultural data is not as simple as rolling out a new app. Design effort needs to go into establishing when, how, and why data will be collected. You need to consider appropriate incentives and support.

A powerful data collection incentive is to immediately return useful insights to support on-farm decisions. For instance, a tool tracking mobs of animals for a processor might graphically show small changes the producer might make to improve their returns.

Remote sensing, image processing, and Internet of Things (IOT) devices promise to take farmer effort out of data collection. In our opinion, this could be transformative. At present the cost of some devices (compared to their perceived benefits) is still a challenge, as is network connectivity. Rollout of 5G networks may improve this!

2.      Data quality and completeness

Data quality issues in agricultural data don’t always arise from insufficient validation of input boxes. Sometimes just the opposite! Issues include:

  • Software and tools that are too clumsy to use or take too long, so don’t get used.
  • Overly tight validation that forces farmers to lie or “fudge” data to get it accepted.
  • Farmers who record results they believe that they should be getting, rather than what is really occurring. A farmer once told me about lamb growth rates that matched industry best benchmarks: I only to discovered later that they did not own any weigh scales.
  • Farmers recording data “just to tick the boxes”, so records are abbreviated, approximated, or (potentially) fabricated.

Transcription errors are another common cause of problems with data quality. We can understand this where data is captured on paper and later transcribed (and certainly in-field data collection can reduce errors). We have also seen real cases of manual transcription between software systems – with an advisor placing their laptop by the farmer’s computer so they can manually re-enter data from one screen to the other.

For supply chain data to be timely and useful to all parties, careful attention needs to be paid to the underlying design issues that cause missing and inaccurate data.

3.      Data flow between organisations

Supply chain networks face potential challenges in managing the flow of data between organisations. For example, farmers may potentially make use of several similar-but-different tools that capture data on farm. Or supply chain partners may request that a grower or farmer use their preferred tool – which can be challenging if the grower sends produce to multiple markets with different preferences!

In an ideal world, producers would not be locked into a single software tool or equipment manufacturer. Use of global standards would allow farmers, growers, processors and retailers to “mix and match”, selecting the best tool for their circumstances with confidence of compatibility. 

Such e-commerce standards have existed between large supply chain partners for many years. Consider electronic ordering, ship notifications and invoices exchanged in the automobile supply chain, for instance. Equivalent progress in the agricultural market has been slow and fragmented, although initiatives such as ICAR, DataLinker, and AgGateway are changing this.

4.      Data ownership or control

As supply chains start to leverage agricultural data, a key question that needs to be asked is “who owns or controls this data?”. Is it the producer, the manufacturer of on-farm equipment, a software vendor, or the processor or market partner who receives data?

It may be tempting to take the approach of “possession is nine tens of the law”. If the data has made it into our database, surely it is ours to use?

With some exceptions, rights to control data fall under copyright law. This leaves the “ownership” decisions about who can use data, and for what purpose to the party who invested time or money to create it – unless changed by a contract.

Surveys show that farmers worry about who controls and uses their data. Surveys of US farmers from 2014 and 2016 showed that 77% of farmers were concerned or very concerned about which entities could access their data, and whether it could be used for regulatory purposes. The November 2018 Farm Credit Canada survey showed similar results.

These concerns motivated the US Farm Bureau to draft its Privacy and Security Principles for Farm Data, and the NZ pastoral farming industry to create the NZ Farm Data Code. The position of these codes has been that organisations and farmers should explicitly agree what data is shared, and for what purposes, and that the starting point should support farmers rights to data about their businesses.

When we work with supply chain and agritech companies, we recommend that organisations are definite about the uses to which they will put data, and that they communicate this clearly and trustfully with producers.

In summary

There are compelling reasons why supply chain organisations in procurement, processing, marketing and retail, are looking to make greater use of agricultural data. Effective use offers greater forecasting accuracy and supply chain efficiency, as well as supporting differentiated product claims. If this is your vision, you’ll also want to consider how you will tackle the challenges of agricultural data – collection, quality, connectivity between organisations, and rights to data.

Rezare Systems helps organisations collect and make sense of supply chain data. We focus on your intended outcomes, rather than a single technology. We use design-led processes to collaboratively look across the issues of collection, quality, connectivity and rights – to identify what must be tackled, and when. If this resonates with you, let’s discuss.

Going round in circles

I’ve just finished refilling my Ecover washing up liquid bottle at work. Here in our shared office facilities our landlord is trying to get us all to go green and so has invested in a large returnable drum of Ecover from which we can all recharge our plastic bottles and avoid yet more plastic into land-fill.

My eco-crusade doesn’t stop there. In the past month we’ve stopped buying milk from the supermarket and I’m now popping into our local dairy farm on the way home and refilling glass bottles from their state-of-the art milk dispensing machine (at twice the price I might add).

Now I haven’t done the carbon calculations on any of this but what I do know is the amount of plastic we are getting through as a family has reduced significantly with just these two simple changes in habit.

At a time when Greta Thunberg is making waves across the Atlantic (literally) and movements like Extinction Rebellion are on the front pages, we simply cannot ignore the fact that the planet is in crisis.

So what does this mean for agriculture?

Those who have far better crystal balls than I do are suggesting that the future of business and the economy will be in what’s known as Circular Design. Unlike our current linear way of living (design, consume, throw away – or at best recycle), Circular Design is based on the rationale of there being no more waste, only the recycling of nutrients with a goal of arresting resource depletion and exploitation. Global sailing icon Ellen MacArthur is one of the big names leading the charge.

If the recycling of nutrients and a sustainable approach to our use of natural resources is the ambition, then agriculture must be central to the mission. And that’s the bit as someone in the agtech sector that excites me.

In an increasingly data-driven world, the opportunities for machine learning and AI to help us rethink the way we do things are growing by the day. As producers of food we are already seeing the norms of food production being challenged – impossible burgers, vertical farming and insect protein to name three. Whether these are truly “circular” I can’t say but they do signal the start of a revolution that is challenging what the farming sector has done for generations – and to traditionalists it feels uncomfortable.

But the truth is there isn’t a future in comfortable. We have such an existential crisis in an environmental sense that the rule book must be ripped up and those that tear the hardest are likely to win out.

To me that means adoption of smart, data-driven tech is an obligation not a privilege. It means we need to start collecting data on farm as a matter of urgency to begin to understand the complex dynamics of food production and resource use, and to deploy the best minds and technologies to redesign how we produce what we eat, how we consume it, and how we recharge the environment throughout this process.

We have such an existential crisis in an environmental sense that the rule book must be ripped up and those that tear the hardest are likely to win out.

Myriad projects could and should emerge that can establish the best production systems optimised by machines (sounds scary but isn’t) that calculate the “circularity” of the on-farm choices being made and that could be tied to market incentives for those that are indeed truly circular.

Imagine a future where data (privacy compliant of course) from your car, home and elsewhere is all linked up to the decisions you make about what you buy. In other words, the way in which you acquire and consume a product (food and non-food) is a dynamic calculation based on its own production history and your subsequent behaviours with it. Your “circularity” could become a badge of honour.

Governments the world over must incentivise the farming sector to make a step change. It is not good enough (in fact shameful) that something like 75% of the UK’s farmers do no electronic data recording at all. That might be fine to run an individual farm but it’s a collective disgrace when you look at the lost opportunity in a sustainability sense. Instrumenting farms and gathering good data is essential.

So as I take my refilled bottle of Ecover home via the milk dispensing machine, I can’t help but wonder what things will look like in five to 10 years from now. If it’s more of the same then we will all have failed. But if I and my children become more enthralled by sharing on social media how “circular” we are rather than obsessing about Snapchat streaks and Instagram likes, then that might suggest the tide has turned.

Or to put it another way, MacArthur won’t be the only one going round in circles!

Five reasons to attend Ag Innovations Bootcamp

The Ag Innovations Bootcamp returns October 1-2, 2019.  Hosted by Rezare and Fieldays Society, this bespoke training opportunity for New Zealand agricultural businesses offers a curated learning journey to grow your business capabilities.  The two-day bootcamp covers new product development, understanding your customers, business model development, creative problem solving and a whole lot more.

We know there’s no shortage of training opportunities out there, so you could be forgiven for wondering: “What’s so special about Ag Innovations Bootcamp?”

To answer that, here’s five reasons why attending the Ag Innovations Bootcamp will be one of the smartest investments in your innovation leadership and problem-solving capabilities.

  1. You will learn a valuable, value-added skill

    The Ag Innovations Bootcamp will teach you the fundamentals of the framework of Human Centred Design and Agile, and how the two frameworks integrate to create better customer-driven solutions at a faster rate of learning.

    These innovation frameworks are backed by rigorous research with innovation leaders IDEO and management consultancy McKinsey & Co each publishing their findings on the impact of embracing design into the heart of your organisation.

    Their insights? Companies pursuing design-thinking at the core of their business out-performed industry revenue benchmarks by over 100%; and design-driven organisations deliver a total return to shareholders 80% higher than industry benchmarks. Increasing their innovation capability using the model taught at Ag Innovations Bootcamp had the impact of increasing revenue and growing efficiencies, delivering a better end-user experience and a better business result for their organisations.

    In addition, research revealed companies utilising design-thinking de-risk their product development and increase their relationship with end-users.​ We want to stress this point – learning to innovate better is not about becoming riskier. It’s about seeking to de-risk your organisation by leading the charge towards the unknown future rather than reacting to changes that will head your way.

    Over the two days you’ll learn the fundamentals of these innovation processes, and gain a foundation to begin to implement these into your business.

    But it isn’t all theory, because…

  2. You will learn by doing

    Learning the theory of Human Centred Design and Agile is great – but you know what’s even better?

    Learning HOW to do it.

    Ag Innovations Bootcamp is built on the principle of Action Learning – we learn by doing, and we do by learning. Over the two days you will hear about case-studies, models, frameworks, tools and approaches and you’ll also be getting involved.

    You’ll be building things, interviewing people, refining problems, creating prototypes, pitching ideas, playing with canvases, practicing collaboration, iterating, clicking on new websites, downloading new apps, eating good food and learning together.

    It’s not two days of being talked at. It’s two days of listening, talking and doing – ensuring you are engaging with and trialling out the processes, not just hearing them.

    This means when you head home you’re going back as a beginning practitioner, as someone who has dipped their toes in the water of innovation and who can begin to adapt these frameworks to your own organisation.

    We want Ag Innovations Bootcamp to be an investment that makes a difference in your innovation leadership. That’s why we also create the space for Traction Conversations…

  3. You will apply your learnings back to your environment

    Ag Innovations Bootcamp is designed to pull you back to the space where the rubber meets the road. We have regular time for Traction Conversations – where you can question and wrestle with the application of your learnings with the expert facilitators in the room.

    Perhaps you’re questioning how the framework can be applied to your situation? Or you’re wondering how you can interview your end-users when they’re geographically diverse or don’t want to talk to you? Perhaps your management team doesn’t value innovation or you’re wondering whether this whole thing is just a fad?

    We don’t shy away from these conversations – we encourage them. It’s in these questions learning moments occur and we get to co-create together how these valuable frameworks can make a real-world difference in your context.

    The Rezare team connects every learning moment with your organisation and provides intentional space for you to voice your doubts and questions. This is where the magic happens and where we see the light-bulb moments really begin to spark.

  4. You will learn in a diverse community

    At the last Ag Innovations Bootcamp we were delighted with the diversity of our attendees. We had managers from agricultural banking services, developers from ag-tech start-ups, members of large industry bodies, with dairy, beef, sheep, deer and crops all represented.

    We love this. Why?

    Because in diversity, really good things happen.

University of Chicago sociologist Ron Burt’s seminal research explored this concept, mapping out the personal networks of a large electronic company and discovering who submitted the best ideas for improving the organisation.

His results were staggering. The most innovative ideas (as rated by the senior leaders) were thought-up by the managers who had the broadest networks. Managers who created ties across the organisation were most capable at generating new solutions and solving complex problems.

This was supported by research done by InnoCentive, the online innovation broker. When reviewing their InnoCentive success stories, they discovered that, on average, physicists were more likely to find solutions to chemistry problems than chemists and chemists were more likely to find solutions to biology problems than biologists.

At Ag Innovations Bootcamp, you’ll be rubbing shoulders with people from across the agriculture industry. You may be working with a scientist or an app developer from areas you’re unfamiliar with. That’s great – because as you work together and share together, you’ll start to unlock problems and see your business with a new set of eyes.

5. You will grow your toolbox

The strongest innovation practitioners have a solid understanding of innovation frameworks and an ever-growing innovation toolbox. These tools help them adapt to changing situations, facilitate new discoveries and add value across a range of business contexts.

At Ag Innovations Bootcamp, we guarantee you will learn a wide range of tools you can begin to use within your own context.

You’ll learn about new digital tools for capturing ideas, rapidly prototyping digital solutions, crafting beautiful presentations and mapping value. You’ll learn how to use familiar digital tools – such as Microsoft PowerPoint – to create rough testable website prototypes.

You’ll acquire new techniques for generating ideas from your team, engaging in meaningful conversations with your users, listening deeply to customers and ways to create powerful insights from the noise of data you collect.

Your toolbox will grow with new note-taking skills, physical prototyping practice and the ability to craft interview guides focused on discovery and connection.

These tools are clearly explained and then you are coached through the process of using them in context – allowing you to experience them in action and bring them back to your own work situation.
5.

The Ag Innovations Bootcamp provides opportunities for networking and enjoying the laughter and connection that comes with creating.  Our experienced facilitators give you space to bring other work questions to a team of experts.

If these five reasons have sparked your interest and you’re keen to begin developing your innovation skills click here to find out more about the Ag Innovations Bootcamp and register your attendance for October 1-2, at Mystery Creek.

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Do we really know what’s coming?

One of the questions I am often asked is: “How does farming in NZ compare with the UK”?

Right now I think it’s a slightly loaded question with all the Brexit talk – subsidies and all that. But in reality given the context of the question is usually in the knowledge I head up a UK-based subsidiary of an NZ agri-software business, what many are really asking is: “How will technology change what we are doing, and is NZ ahead of the UK”?

Now this is a harder question to answer. I guess at a high level I would say adoption of technology in the NZ dairy sector is some years ahead of the UK, but equally, there are big advances in UK arable and hort which one might say are further ahead than NZ. One thing I would say is that NZ farmers are, more typically, open to change and innovation and less wedded to the way it is.

But I think there is something bigger going on than simply comparing one country with another. Sure NZ is a focus for our sector just now because of the way it has, in a generation, turned itself into a very globally focused and innovative economy; one that tops the global rankings for ease of doing business (and one that I would say punches well above its weight, and that’s not just the All Blacks!). No. I think we are witnessing the early stages of an utterly transformative period in global agriculture.

And that’s why I ask the question: “Do we really know what’s coming?” By this I mean, how is technology (and maybe digital and data in particular) going to change the sector?

In short, from where I sit, I would say those of us in the tech world do have a good hunch about what’s coming and the potential impact it will have. But I am not at all convinced the “average farmer” (which is a horrid term) does.

To me it is inconceivable that a farming business (whether in the UK or elsewhere) will be in any way competitive without the use of data-driven decision support tools in the future. The level of accuracy and objectivity that data will deliver (and we are seeing this already) simply puts subjective observation in the second tier of good decision making.

That isn’t to say good husbandry and farming experience have no place in the future (of course they do – I know some brilliant, intuitive and innovative farmers) but those who apply that experience with the latest technological tools will become the Premier League while others languish in the lower divisions.

Give me an example I hear you cry? Ok! A couple of weeks ago I sat down with the CEO of an innovative dairy cow data capture company (based in the UK) that is effectively putting Fitbits on cows. The volumes of behavioural data they are collecting from those animals is now substantial. But it’s what they are doing with it that so impressed me.

By using clever algorithms to understand normal and outlier behaviour of animals they are achieving two great things. The first is the ability to provide alerts flagging animals that are not exhibiting typical behaviour. In other words, “go look at those ones, that’s where you should prioritise your time”.

But the second is what really excites me. Who’d have thought that by analysing cow behaviour data it would be possible to identify lameness, mastitis and other disorders days (even weeks) ahead of when the clinical signs might be observed? I don’t care if you are the best herdsman in the world, it is hard to compete with decision support from data that is identifying things well before they are ever observable by the human eye.

This “power” has the potential to transform the way we run our farms. The application of digital technology will not only potentially save time and labour, it will enable better focus on meeting market requirements, predicting and avoiding problems, and increasingly importantly, be able to provide a substantial evidence base to back and improve welfare standards and all sorts of other production areas currently under scrutiny.

But this future is a far cry from where many on our farms sit currently. Sure there are those that are the early adopters, but I think there is a large majority who simply don’t see this massive change coming, or if they do are in denial.

There are many analogies over the years of where technological change has been transformative and where at the time many did not see it coming: Henry Ford and so on. But it’s the sheer scale of change from tech-driven ag that I think we underestimate at our peril.

The upside is that all this talk of agriculture being a high-tech industry that our children and students should be enthused about is not just talk. It is absolutely true. The more we can find demonstrable examples of great (even cool) innovation, the better it will be for our farming sector, not only because we can farm better, but because we can also excite the right people into the industry.

In my 25-plus years in the ag world in the UK and NZ, never have I felt there is a better time and more opportunity for non-farming people to get involved in the industry, whether that’s in agribusiness, science or on the farm.

And if, as I suspect, we see a reasonably aggressive scaling back of direct farm support in the UK (assuming we Brexit!), that could open the door to a new generation of tech-driven farmers, unencumbered by the past and able to deliver from the potential of the land and associated technology alone. They will be the new competition.

Can’t see it coming? The iPhone is only a little over 10 years old. Things will look very different a decade from now in agriculture. That’s really not very far away. Are you on the train or is it leaving without you?

New grass establishment

#EvokeAg – Making the agritech ecosystem visible and discoverable

We recently attended and exhibited at EvokeAg, the new agrifood international technology event specifically for the food and farming community hosted by AgriFutures Australia.

EvokeAg brought together more than 1100 attendees from across the Australian and wider agriculture and agritech industries, including 100+ attendees from New Zealand and a substantial contingent from Israel. The event featured over 100 speakers from 20 countries, but importantly there was opportunity for all participants to share and be involved.

What was big?

Presenters, panels, exhibitors, and discussions covered a wide variety of topics. A few themes emerged:

  • The start-up and investment ecosystem – more about this below;
  • Irrigation and monitoring systems such as Lindsay FieldNet and Wildeye irrigation monitoring;
  • Automation and robotics (Robotics Plus, Yamaha, Bosch, and more);
  • Data collection, analysis, and the application of artificial intelligence. Comments like “Data is the new gold” abounded.

I’m not personally sure that data is the new gold. I think data is more like an ore that needs to be mined, processed, and refined to extract the real gold. Or maybe data is more like electricity – its intrinsic value is established from use, rather than collection.

Its all about the Ecosystem

We think that the biggest impact of EvokeAg is its impact on the agricultural innovation ecosystem. The event brought together a diverse, fragmented, and sometimes vaporous ecosystem of people and organisations and made it concrete and discoverable in the moment. Examples of groups brought together included:

  • Start-ups and new agritechnology players;
  • Investors, incubators and accelerators, and trade partners; and
  • Research and development organisations and funders.

Making connections

A particular genius of this event was the way that conversations and interactions were facilitated.

  • Braindates, facilitated by an app for discovery and bookings, brought together participants with shared interests, making it easy for those who did not know each other to connect.
  • Careful layout of the food stations, with plenty of tables, seats and leaners for eating encouraged fortuitous conversations, as did the set of food trucks outside providing lunch and evening food around a grassy courtyard.
  • A good blend of exhibitors, lounges, and a “start-up alley” encouraged attendees to look around and interact. Brad and I nearly lost count of the number of people who stopped by the Rezare Systems stand, took a seat and had a relaxed discussion.

The challenge for AgriFutures (the organisers of EvokeAg) and the wider industry is how to capitalise on the positive ecosystem effects to drive growth and innovation. The #growAg initiative announced at the conference, along with AusTrade’s Agriculture 4.0 focus should make a big difference. We’ll play our own part as well – continuing the conversations with those who met with us, and offering an Ag Innovations Bootcamp in early June, an in-depth workshop on design and customer engagement in agriculture, suitable for both start-ups and established Australian agribusinesses looking to innovate.

 

Chess player considering strategy

Is this the year you take your agribusiness digital?

Is this the year you take your agribusiness digital?

It’s the time of year when people of all backgrounds make new year resolutions, institute new habits and reflect on their journey. It’s not uncommon for business leaders too, to reflect on business performance and goals for the future.

Here’s a question for your business planning during the quiet days at the start of the year:

Are you ready to take your agribusiness digital?

You’re thinking that your business is already digital. You have an ERP and a CRM, a web site and a mobile app. Your IT team has already virtualised your core business systems. What else is there?

You already use technology in your business. You may even use it well, though many agribusinesses are saddled with 10 to 15-year-old software and significant “technical debt” that acts as a drag on business agility. Taking your agribusiness digital however, implies something more significant: transformation.

Gartner defines digital transformation as the creation of new business designs that blur the boundary between the digital and physical worlds. More than just digitisation in support of business processes, it is making use of technology to change your:

  1. Customer engagement model;
  2. Connection with the ecosystem of your partners; and/or
  3. Core business model.

Most agriculture and food businesses, rural supply, and advisory businesses have grown over many years, starting life and establishing business models well before the connectivity, data flows and analysis of today were envisaged. Would your business look the same if it were started today?

1.      Customer Engagement

With the internet and mobility connecting most people on the planet (and likely your customers), how could your business leverage technology to substantially change how you engage with your customers, streamlining their experiences and introducing greater perceived value?

A short story of two pizza companies

Dominos’ Pizza (DXP) and Papa John’s Pizzas (PZZA) both had a market cap of around US $600M at the start of 2010. Both companies still sell pizzas with take-out and delivery options. Dominos invested early and continuously in technology innovation for customer engagement, radically changing the way that pizza is ordered, and delivery is tracked. The value proposition for customers was a different, improved, and easier experience in ordering pizza. A benefit for Dominos was an increase in average order value and a massive switch from phone to internet orders. Arguably, Dominos has set the customer engagement bar that other pizza franchises have followed, and in the process grown its market cap to over US $12B, while Papa John’s followed incrementally, and has grown to US $3B.

2. Connected Ecosystems

What transformative opportunities could your business leverage by effectively connecting its digital information with suppliers and supply-chain partners? Common data standards, APIs, principled and secure sharing of data open the way for you and your partners to gain new insights and radically change business logistics.

Seven of the top 12 largest companies in the world by market capitalisation: Alibaba, Alphabet (Google), Amazon, Apple, Facebook, Microsoft, and Tencent – are ecosystem players, sharing data and common services with their supply chains and partners. At least one of those companies may have been too connected on occasion! We recommend principled and secure sharing.

Benefits of an open platform

Newspaper “The Guardian” developed its open platform in 2009 and has been evolving it ever since. The platform provides APIs for developers and for partners. Many sites and mobile services use the Guardian API to deliver timely news, and the Guardian benefits with referrals, ad placements, and the ability to understand how and when people consume its content. Partner integrations allow the Guardian to crowd-source additional data for its services (such as location tagging), and to position its brand beside influential partners.

3. Changing Business Models

Many of our agricultural and service businesses, or their forerunners, started life 80 or 100 years ago. The fundamentals remain, but models of communication and distribution, use of information and analysis have all changed dramatically. Our business models – how we create and monetise value – have changed more incrementally.

Digital transformation offers agricultural sector businesses the opportunity to reframe their business models for the new and evolving business environment.  Ford has started to redefine itself as “a mobility company and not just as a car or truck manufacturer”. GE is seeking to make analytics the new “core to the company”. Certainly, if you were starting a personal transport company today in the face of Uber and Lyft, it would not look like an existing taxi company.

How might your business leverage technology and connectedness to create value in different ways?

 

Considering your digital agribusiness options for 2019?  Contact us for a free initial discussion.

Consider using one of our digital agriculture strategists, Andrew Cooke or Julian Gairdner to facilitate a workshop our help with your thinking.