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

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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
  • KJ Poppe on ICT at IFSA Berlin 2014

    1. 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. 2. In 2020 DATA-flows.... are as important as Money and Material flows Thanks to the strong trends in ICT
    3. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 15. Thanks for your attention krijn.poppe@wur.nl www.lei.wur.nl www.FIspace.eu

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