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KJ Poppe on ICT at IFSA Berlin 2014


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Presentation on ICT and FI-PPP for IFSA conference on Farm System Research in Berlin

Presentation on ICT and FI-PPP for IFSA conference on Farm System Research in Berlin

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  • This will be achieved by the FIspace platform, which is a cloud-based solution for business collaboration.This platform is represented by the big rectangle in the middle, consisting of several components:FIspace store (similar to the Apple App Store or Google Play), which offers a range of apps and services supporting B2B collaborationBecause apps are characterized by simple, lightweight functionalities, this collaboration is supported by a B2B collaboration core that handles object states, event handling, (re-)planning processes, etc.Further embedding and integration is supported by the other layers:System & Data IntegrationSecurity, Privacy and Trust managementAnd an operating environment to make it runningThe apps are planned to be developed through the open call in Phase 2 and large scale expansion in Phase 3. Therefore we develop and offer aSoftware development toolkitFinally, the whole platform is approachable through front-ends, which are typicallycockpit-type of web browser applicationsAll these components will use, and therewith validate, several GEs from FI-Ware and - at the other side – eight trials will validate and demonstrate the FIspace platform
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    • 1. 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
    • 2. In 2020 DATA-flows.... are as important as Money and Material flows Thanks to the strong trends in ICT
    • 3. 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
    • 4. App store Smart Farming in the Cloud Services sensors actuators data sources (‘Internet of Things’) Local FMS 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 Cloud FMS
    • 5. 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
    • 6. 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 data Making 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
    • 7. FIspace platform High Level Architecture Front-End FIspace Store Real-time B2B Collaboration Core System & Data Integration Security, Privacy, and Trust Management Operating Environment DevelopmentToolkit I2ND IoT IoC IoS S&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. 8 Technical Overall Platform Approach Deployed in the 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 k Extension Mechanism 2: Configurable Collaborative Workflows Extension Mechanism 1: Addition of value-add functionality through Apps User
    • 9. FIspace approach for Software Mass Customisation FIspace App Store My FIspace Develop Apps Pre-configure User Systems Configure & Use Systems FIspace Platform Single App Configuration App developer Business Architect User (farmer, coop)
    • 10. 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
    • 11. How more data contributes to current business models Transport loyaltySmall Cost priceGRIN Transport Transport Input industries Farmer 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 Sophisticated Technology, 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
    • 12. 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??
    • 13. 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.
    • 14. 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
    • 15. Thanks for your attention