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Is there a business(case) in fresh
without ICT?
Krijn Poppe
LEI Wageningen UR
Based on work with Sjaak Wolfert, Cor Verdou...
Supervisory Board
Executive Board
Environmental
Sciences
Group
Alterra
Agrotechnology
& Food Sciences
Group
Food & Biobase...
265
employees
65% male
35% female
LEI
Wageningen
UR
Facts
40%
Accepted EU
R&D proposals
in societal
challenge 2
Turnover
€...
working
on
global
challenges
worldwide
Food Security
Biobased Economy
Water, Energy and Climate
Sustainable Food Clusters
CONTENT
1. ICT: What is happening
2. Why now?
3. Business collaboration
4. Food and health
5. How to organise this all?
ICT brings info for farmer and consumer
Royal Gala apple
Origin: Girona
Pesticides: No
Organic farming: Yes
Carbon footpri...
Drones, Big Data and Agriculture 7
IoT in Smart Farming
cloud-based event
and data
management
smart sensing
& monitoring
s...
Connected Nursery
8
Order info
Cultivation
info
Stock info
Quality info
Financial
info
Systems in Supply
Chain Network
Tra...
Adoption of Connected
Nursery solutions
Economic reality
High ICT
complexity
High path
dependency
Relative small scale
of ...
Towards smart autonomous objects
Source: Deloitte (2014), IT Trends en Innovatie Survey
Tracking &
Tracing
Monitoring
I am...
Virtual Box
Location A Location B
Location
& State
update
Location &
State
update Location
& State
update
IoT in Agri-Food...
Quality-controlled Supply Chain
12
Disruptive ICT Trends:
 Mobile/Cloud Computing – smart phones, wearables,
incl. sensors
 Internet of Things – everything...
Disruptive scenario: Toshiba’s lettuce growing
tijd
Mate van verspreiding
van technologische revolutie
Installatie periode
Volgende
golf
Uitrol periode
Draai-
punt
INDRI...
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 exo...
Chain organisation changes (©Gereffi et al., 2005)
inputsEndproduct
PRICE
Shops Complete
IntegrationLead
company
Lead
comp...
Which innovations and new business models are possible ?
Precision Farming/Advice Segment Cons. supportService ++
• Prescr...
Data exchange by ABCDEFs
 Large organisations mostly have gone digital, with ERP
and other systems
 But between organisa...
Redefining Industry Boundaries (1/2)
(according to Porter and Heppelmann, Harvard Business Review, 2014)
21
3. Smart, conn...
Redefining Industry Boundaries (2/2)
(according to Porter and Heppelmann, Harvard Business Review, 2014)
22
5. System of s...
Agri-Food Supply
Chain Networks
are multi-
dimensional
• Markets allocate
products to different
destinations
• Chains are
...
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 >€10...
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...
USA: Farm Mobile
28
“Farmers believe their trust has been violated”:
their data go to multinationals, that announce
big fu...
Discusions among US farmers:
29
Code of Conduct
• Do I own my own data?
• Who has access to my data?
• Does the government...
Towards the future:
30
• Horticulture and farming become data based
• Data have mainly a value if they are combined
and ag...
Is an eco-system of apps an alternative?
FARMER SCANS PESTICIDES PACKAGE IN THE FIELD
APP CONNECTS BASF FOR E-INSTRUCTION,...
Towards highly integrated solutions
Platforms in the cloud of input suppliers and food processors:
• What is the scope (co...
Towards highly integrated solutions
Highly Integrated Service Solutions
• Event-driven
• Configurable
• Customizable
• Ser...
Value proposition
Platforms solve the issue of connecting individually with a lot of business
partners to exchange data : ...
FIspace
App Store
80 Accelerator
companies
Configure &
Use Systems
First Commercial MVP by ... ?
App developer Business Co...
Towards highly integrated solutions
Highly Integrated Service Solutions
• Event-driven
• Configurable
• Customizable
• Ser...
IoT and the consumer
37Drones, Big Data and Agriculture
Source: Hisense.com
Smart Farming
Smart Logistics
tracking/& traci...
Food consumption compared to official
advise, NL 2007 – 2010 (source: PBL)
38
Consumer Interaction
A. Quick Scan Food Apps
1. Generic product information
2. Specific product information
3. Cooking inf...
A SMARTer Greenport
Consumer Interaction
1. Veggipedia-app
2. User Generated Content
→ Interviews learn us that there is n...
www.eurodish.eu02/12/201p. 41
Big data for smart food and health
services
41
Lifestyle
Health
Food
Big Data Horticulture
42
BIG
DATA
OPEN
DATA
Social media - Unstructured - Event-driven Information systems – Structured - ...
Need for (institutional) innovation
 Adoption bottlenecks in small companies (Connected
Nursery)
 Organisation of the ch...
Can we speed up these trends?
 Can we learn from the organisation of the FI-PPP ?
 Pay more attention to business models...
Thanks for your
attention
krijn.poppe@wur.nl
www.lei.wur.nl
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presentation on business aspects of ICT given at EU FRESH INFO congress in Rotterdam

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EUFRESHINFO ICT and business Rotterdam dec 2015

  1. 1. Is there a business(case) in fresh without ICT? Krijn Poppe LEI Wageningen UR Based on work with Sjaak Wolfert, Cor Verdouw and others December 2015
  2. 2. Supervisory Board Executive Board Environmental Sciences Group Alterra Agrotechnology & Food Sciences Group Food & Biobased Research Livestock Research Central Veterinary Institute Animal Sciences Group Plant Sciences Group Plant Research International Applied Plant Research Social Sciences Group Wageningen University Contract Research Organisation Concern Staff Facilities & Services Wageningen Academy IMARES Wageningen International LEI Centre for Development Innovation RIKILT (food safety) Environmental Sciences Animal Sciences Plant Sciences Social SciencesAgrotechnology & Food Sciences Wageningen UR and LEI
  3. 3. 265 employees 65% 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
  4. 4. working on global challenges worldwide Food Security Biobased Economy Water, Energy and Climate Sustainable Food Clusters
  5. 5. CONTENT 1. ICT: What is happening 2. Why now? 3. Business collaboration 4. Food and health 5. How to organise this all?
  6. 6. ICT brings info for farmer and consumer Royal Gala apple Origin: Girona Pesticides: No Organic farming: Yes Carbon footprint:1,2 kg CO2e
  7. 7. Drones, Big Data and Agriculture 7 IoT in Smart Farming cloud-based event and data management smart sensing & monitoring smart analysis & planning smart control
  8. 8. Connected Nursery 8 Order info Cultivation info Stock info Quality info Financial info Systems in Supply Chain Network Trader Retail Service provider Accountant Service provider 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
  9. 9. Adoption of Connected Nursery solutions Economic reality High ICT complexity High 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
  10. 10. 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 Management 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
  11. 11. Virtual Box Location A Location B Location & State update Location & State update Location & State update IoT in Agri-Food Supply Chains 11Drones, Big Data and Agriculture
  12. 12. Quality-controlled Supply Chain 12
  13. 13. 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
  14. 14. Disruptive scenario: Toshiba’s lettuce growing
  15. 15. tijd Mate van verspreiding van technologische revolutie Installatie periode Volgende golf Uitrol periode Draai- punt INDRINGER EXTASE SYNERGIE RIJPHEID Door- braak Werkeloosheid Stilstand oude bedrijfstakken Kapitaal zoekt nieuwe techniek Financiele bubble Onevenwichtigheden Polarisatie arm en rijk Gouden eeuw Coherente groei Toenemende externalities Techniek bereikt grenzen Marktverzadiging Teleurstelling en gemakzucht Institutionele innovatie Naar Perez, 2002 Crash 2008 1929 1893 1847 1797 time Degree of diffusion of the technological revoluton Installation period Next wave Deployment period Turning point IRRUPTION FRENZY SYNERGY MATURITY Big Bang Unemployment Decline of old industries Capital searches new techniques Financial bubble Decoupling in the system Polarisation poor and rich Golden age Coherent growth Increasing externalities Last products & industries Market saturation Disappointment vs complacency Crash 2008 1929 1893 1847 1797 Institutional innovation Based on Perez, 2002 The opportunity for green growth 1971 chip ICT 1908 car, oil, mass production 1875 steel 1829 steam, railways 1771 water, textiles
  16. 16. Europe towards 2050 3 scenarios to explore the future of EU agriculture source: SCAR-AKIS
  17. 17.  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.
  18. 18. Chain organisation changes (©Gereffi et al., 2005) inputsEndproduct PRICE Shops Complete IntegrationLead company Lead company Turnkey supplier Relational supplier Market Modular Relational Captive Hierarchy Low Degree of explicit coordination and power asymmetry High Lead company Farmers
  19. 19. 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 industries Farmer Food processor Retail / consumerSoftware Provider Logistic solution providers Transport+ Collaboration and Data Exchange is needed!
  20. 20. 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 organisations There is a need for ABCDEFs: Agri-Business Collaboration & Data Exchange Facility Proprietary/closed or open ABCDEFs?
  21. 21. Redefining Industry Boundaries (1/2) (according to Porter and Heppelmann, Harvard Business Review, 2014) 21 3. Smart, connected product + + + 2. Smart Product 1. Product
  22. 22. Redefining Industry Boundaries (2/2) (according to Porter and Heppelmann, Harvard Business Review, 2014) 22 5. System of systems farm management system farm equipment system weather data system irrigation system seed optimizing system field sensors irrigation nodes irrigation application seed optimization application farm performance database seed database weather data application weather forecasts weather maps rain, humidity, temperature sensors farm equipment system planters tillers combine harvesters 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?
  23. 23. 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
  24. 24. Farm Digital project Sharing Data with AgriPlace: Compliance Made Easy http://www.farmdigital.nl/
  25. 25. 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 PROTOTYPE AGRI-PLACE FMS-manage- ment software GOV. open data LEI Wageningen UR Benchmark-data
  26. 26. The USA battleground: Monsanto (et al.) 26 PRESCRIPTIVE FARMING based on VARIABLE RATE APPLICATION
  27. 27. 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.
  28. 28. USA: Farm Mobile 28 “Farmers believe their trust has been violated”: their data go to multinationals, that announce big future income from big data, while they have pay for everything. Farmers collect ‘crop stories’ and decide where they travel (and get a few cents per item?)
  29. 29. 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?
  30. 30. 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?
  31. 31. 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 ?
  32. 32. 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 architect bundles apps in a platform ... 80 Accelerator companies Apps
  33. 33. Towards highly integrated solutions Highly Integrated Service Solutions • Event-driven • Configurable • Customizable • Service model Data (Standardisation) Services AdaptEPCIS MyJohnDeere.com Data Standards to connect Business Collaboration Services - Based on Open Source Software Farmers Biz architect bundles apps in a platform ... 80 Accelerator companies Apps Modules: Single SignOn Biz Collab. Event Proces. System-Data integration App repository
  34. 34. Value proposition Platforms 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 services Prevent 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
  35. 35. 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 Foundation MVP – open source My JohnDeere 365 Farmnet Akkerweb Dacom/CROP-R Datalab Pantheon ICT company Service model ?
  36. 36. Towards highly integrated solutions Highly Integrated Service Solutions • Event-driven • Configurable • Customizable • Service model Data (Standardisation) Services AdaptEPCIS MyJohnDeere.com Data Standards to connect Business Collaboration Services - Based on Open Source Software Farmers Biz architect bundles apps in a platform ... 80 Accelerator companies Apps Modules: Single SignOn Biz Collab. Event Proces. System-Data integration App 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 ?
  37. 37. IoT and the consumer 37Drones, Big Data and Agriculture Source: Hisense.com Smart Farming Smart Logistics tracking/& tracing Domotics Health Fitness/Well-being
  38. 38. Food consumption compared to official advise, NL 2007 – 2010 (source: PBL) 38
  39. 39. Consumer Interaction A. 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
  40. 40. A SMARTer Greenport Consumer Interaction 1. Veggipedia-app 2. User Generated Content → Interviews learn us that there is not much interest in providing USG (even with digital natives). → Recipes score best
  41. 41. www.eurodish.eu02/12/201p. 41 Big data for smart food and health services 41 Lifestyle Health Food
  42. 42. Big Data Horticulture 42 BIG DATA OPEN DATA Social media - Unstructured - Event-driven Information systems – Structured - Transaction-driven HORTI- CONNECTOR HORTI- RADAR HORTI-CUBE MAP ANONY MISE AGGRE GATE COM BINE COL LECT INTER PRET TOPICS TRENDS ALERTS NORMS TRANSACTIONS REGISTRATIONS BUSINESS GOVERNMENT RESEARCH CULTIVATION IMPORT PRODUCT MARKET LOCATION FLOW apps services
  43. 43. 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 ?
  44. 44. 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.
  45. 45. Thanks for your attention krijn.poppe@wur.nl www.lei.wur.nl
  • KlliKaare

    Feb. 17, 2016
  • MartijnVanEs

    Dec. 3, 2015

presentation on business aspects of ICT given at EU FRESH INFO congress in Rotterdam

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