Big Data: challenges for farmers

Digitalisierung von Produktionsprozessen – Globale Konsequenzen für

das Datenmanagement in der Landwirtschaft

Krijn Poppe LEI Wageningen UR

Based on work with Sjaak Wolfert, Cor Verdouw and others Oktober 2015

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

Which innovations and new business models are possible ?

Precision Farming/Advice Segment Cons. support Service ++

• 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 Health Food Safety Food Security

Loyalty SMEs Cost price GRIN Cope with retail

Transport

Input industries Farmer Food processor Retail / consumer Software

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 organisations

There 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)

6

3. Smart, connected product

+

+

+

2. Smart Product

1. Product

Redefining Industry Boundaries (2/2)

(according to Porter and Heppelmann, Harvard Business Review, 2014)

7

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?

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

https://www.agriplace.com

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

The USA battleground: Monsanto (et al.)

11

PRESCRIPTIVE FARMING based on VARIABLE RATE APPLICATION

USA: Farmers Business Network

12

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

13

“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?)

Discusions among US farmers:

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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:

15

• Farming becomes 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 architect bundles 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

Adapt EPCIS

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

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

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 ?

Towards highly integrated solutions

Highly Integrated Service Solutions • Event-driven • Configurable • Customizable • Service model

Data (Standardisation) Services

Adapt EPCIS

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

?

2 Scenarios, with significant impacts ?

1. Scenario FIELDSCRIPT:

● Farmer becomes part of one integrated supply chain as a

franchiser/contractor with limited freedom

● one platform for potato breeder, machinery company, chemical

company, farmers and french fries processor.

● Weak integration with service providers, government ?

2. Scenario OPEN COLLABORATION:

• Market for services, apps and data

• Common, open platform(s) are needed

• Higher upfront, common investment ??

• Business model of such a platform more difficult?

• More empowerment of farmers and cooperatives?

F

F

Points for discussion (1/2)

Ownership of farm data: the farmer, the robot supplier that puts the data in a database and refines it, the accountant that has an IPR on its report?

Liability: if it goes wrong when Dutch software is used by a Belgian contractor in spraying potatoes in N.France with a wrong update of the French pesticide regulations to instruct a German spraying machine ?

Business model (who pays what?) and governance of ABCDEF platform:

● Farmers / cooperatives owned, pay by use?

● Neutral organisation (a Data / Platform cooperative?)

● Commercially run by an ICT company?

● Governmental infrastructure ?

Points for discussion (2/2)

Do differences in privacy laws / worries play a role?

Are issues of cyber-security coming up?

Can cooperatives deal with advanced ICT-using members and paper-oriented farmers at the same time?

What ABCDEFs to copy from the USA, what to develop in Europe?

The EU is launching a big call (30 mln euro) for solving these issues in an Internet of Things environment: can we work together between farmers and industry to sort these things out, using that EU support ?

Thanks for your

attention

krijn.poppe@wur.nl

www.lei.wur.nl

www.FIspace.eu