sonka steve

E-Commerce and Agriculture:Where is There Valueto Create?: 

E-Commerce and Agriculture: Where is There Value to Create? Steve Sonka National Soybean Research Lab University of Illinois Where’s the beef ????

Agenda: 

Agenda E-Commerce and information technology (IT) coming to ag IT implementation and industry redefinition Where are the IT gaps? Implications

Agenda: 

Agenda E-Commerce and information technology (IT) coming to ag IT implementation and industry redefinition Where are the IT gaps? Implications

Forces Pushing and PullingTowards Redefinition: 

Forces Pushing and Pulling Towards Redefinition Consumer segments that desire differentiated farm output Biotechnology Environmental responsibilities Food safety traceback e-Commerce Precision ag

E-Commerce: 

E-Commerce Encompasses all electronically facilitated business processes, including data transfer among buyers, sellers and various supply chain entities. Has three primary components Supporting infrastructure, Processes supporting how business is conducted, and Commercial transactions.

Agenda: 

Agenda E-Commerce and information technology (IT) coming to ag IT implementation and industry redefinition Where are the IT gaps? Implications

What is Industry Redefinition ?: 

What is Industry Redefinition ? Redefinition: When profound change occurs in the rules of competition Between suppliers and customers With consumers Among competitors

Knowledge Creation: 

Knowledge Creation Stories of Competitive Dynamics American Airlines and Sabre American Hospital Supply Frito Lay **** Broiler industry **** Aggressively used data from their own operations to gain competitive advantage Common Feature Vision Hallucination

Information TechnologyAnd Strategic Change: 

Information Technology And Strategic Change Jeffrey Sampler: How information technology redefines industries. ... Look at individual transactions (1) Separabilty (2) Aggregation potential

Transaction Characteristics (1): 

Transaction Characteristics (1) Separability: extent to which information can be separated from the associated transactions Amount of information CAPTURED as transactions occur

Transaction Characteristics (1): 

Transaction Characteristics (1) Separability: extent to which information can be separated from the associated transactions 1950s 0 or 1 Today 011010100 110111000

Transaction Characteristics (2): 

Transaction Characteristics (2) Aggregation potential: extent to which the information’s value is “leverageable” beyond the original transaction 011010100 110111000 011010100 110111000 011010100 110111000 011010100 110111000 011010100 110111000 011010100 110111000 011010100 110111000

The Sector: Today: 

The Sector: Today

Slide14: 

Potash and Phosphate Institute Separability

The Dot.Com’s Come to Ag:A Two Day Sample: 

The Dot.Com’s Come to Ag: A Two Day Sample J.R. Simplot Company &Aspen Technology – e-business solutions Rooster.com -- Cargill, DuPont and Cenex Web site to sell inputs www.farms.com -- new CEO & CTO Cargill & Ariba –B2B exchange for food mfgrs and suppliers Ocean Spray & Symbol -- warehouse productivity Aggregation potential

Two IT-DrivenChange Factors: 

Two IT-Driven Change Factors

Agenda: 

Agenda E-Commerce and information technology (IT) coming to ag IT implementation and industry redefinition Where are the IT gaps? Implications

The Generic Value Chain: 

The Generic Value Chain Inbound logistics Operations Outbound logistics Marketing & sales Services Firm infrastructure Human resource management Technology development Procurement ---------- Primary activities ---------- Support activities

Food and Ag:A Series of Value Chains: 

Food and Ag: A Series of Value Chains Input mfgrs Farming Retail Input retailers First handlers Food mfgrs

Bar Coding andManufacturer / Retail Power: 

Bar Coding and Manufacturer / Retail Power Retail Food mfgrs

Bar Coding andManufacturer / Retail Power: 

Bar Coding and Manufacturer / Retail Power

Where IT’s Being EmployedToday: 

Where IT’s Being Employed Today Input mfgrs Farming Retail Input retailers First handlers Food mfgrs

IT Within the Farming Sector: 

IT Within the Farming Sector Precision ag as we thought it would be Fixed asset utilization

From “JIC” to “JWN”: 

From “JIC” to “JWN” Farming Input retailers Just In Case

From “JIC” to “JWN”: 

From “JIC” to “JWN” Farming Input retailers Just What’s Needed For Production

From Commodity toSupply Chains : 

From Commodity to Supply Chains First handlers Farming

Tomorrow’s Consumer Driven System: 

Tomorrow’s Consumer Driven System

Agenda: 

Agenda E-Commerce and information technology (IT) coming to ag IT implementation and industry redefinition Where are the IT gaps? Implications

Managerial Implications: 

Managerial Implications Anticipate interactions Concentrate on timing and sources of value Manage (create) intangibles

Assets Today !!!: 

Assets Today !!! What earns high value ?

In Conclusion….: 

In Conclusion…. E-Commerce, application of IT, is a feature of tomorrow’s ag system IT redefines industries, predictably IT gaps exist at and around the producer level Intangible assets with demonstrable value are the key