future internet and agri at srii japan
TRANSCRIPT
The European Future Internet programme and its application in agriculture
Tokyo, March 2015
Krijn J. Poppe
LEI Wageningen UR
In 2020 DATA-flows....
are as important
as Money and
Material flows
Thanks to the strong trends in ICT
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
tijd
Mate van verspreiding
van technologische revolutie
Installatie periode
Volgende
golf
Uitrol periode
Draai-
punt
INDRINGER
EXTASE
SYNERGIE
RIJPHEID
Door-
braak
WerkeloosheidStilstand oude bedrijfstakken
Kapitaal zoekt nieuwe techniek
Financiele bubbleOnevenwichtighedenPolarisatie arm en rijk
Gouden eeuwCoherente groei
Toenemende externalities
Techniek bereikt grenzenMarktverzadigingTeleurstelling 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 bubbleDecoupling in the system
Polarisation poor and rich
Golden age
Coherent growth
Increasing externalities
Last products & industries
Market saturation
Disappointment vscomplacency
Crash
2008
1929
1893
1847
1797
Institutional
innovation
Based on Perez, 2002
The opportunity for green growth
1971 chip ICT1908 car, oil, mass
production1875 steel1829 steam, railways1771 water, textiles
Content of my presentation
Strong ICT Trends
The Future Internet PPP in the European Union
● Phase 1: Smart Agrifood: ICT in agriculture
● Phase 2: The need for ABCDEF’s: how farms will belinked >> Fispace
● Phase 3: Accelerator projects for apps: FInish
What does this imply for the agro-ict market, the food chain and the nature of the farm
A research agenda
The challenges that the project addresses:
1. Smart Farming: to improve productivity and pest control in
agriculture with reduced input of energy and chemicals
2. Smart Agri-Logistics: to improve food safety and food quality
and to reduce ecological footprint and waste of food
3. Smart Food Awareness: to assist the public in developing healthy
and sustainable food consumption
Info for the farmer and the consumer
Royal Gala apple
Origin: Girona
Pesticides: No
Organic farming: Yes
Carbon footprint:1,2 kg CO2e
Tuinbouw Digitaal © 2013
BIG
DATA
OPEN
DATA
TRANSFORM
MAP
ANONY MISE
AGGRE GATE
STRUCTURE
COMBINE
INTER PRETERE
GATHER
Social media - Unstructured - Event-driven Informatiesystems–Structured - Transaction-driven
AGRI-FOOD-SPECIFIC CHARACTERISTICS AND USE OF THE FUTURE INTERNET
• Natural conditions (e.g. soil, weather, pests)
• Seasonal growing
• Natural products: growth, decay, high quality variations
• High demands from consumers and society (legislation, certification, food safety)
• High volume distribution
• Governance: large processors, many SME’s in global chains
• Dynamic open Supply Chainnetworks (SCN)
Generic enablers Specific
augmented reality,
geo-information,
wireless sensors
and networks,
mobile
precision farming,
product storing and
conservation
(real time) data
handling, context-
sensitive eContent,
web mash-ups
on-line business
intelligence, integrate
scientific knowledge
(‘active publishing’)
eBusiness,
eGovernment
eHealth
crop production
message, flower web
shops, veterinary issues
(I&R), animal
health/welfare
social/semantic
web, (ERP) cloud
software (BPM,
SOA, Saas)
knowledge networking
(at distance), chain info-
integration, dynamic
planning, tracking &
tracing, transparency
Proposal Domains # Trials # Countries
FINESCE Smart energy 5 7
cSpace AgriFood, Transport & Logistics 8 6
FI-CONTENT2 Social Connected TV, Smart City Guide, gaming 6 5
FITMAN Smart Factory 11 7
FI-STAR Health 7 7
DG CONNECT – Unit E3
Phase 2 – Use case trials
Related to FINSENY
Related to FINEST & SmartAgriFood
Related to FI-CONTENT
End-2-End VisibilityCollaboration & Communication
High-Quality Customer Applications
New Services & Apps
Consultants
Forwarder
ProductionPlants
Carriers
Ports
Customs
Banks
InsurancesAuthorities
ConsumersFeatures
Machine-2-Machine Communication
Motivation and Impact of FIspace
Agri-Food, Transport and Logistics:• EU turnover: 1,500 billion €• Efficiency: 148-220 billion € savings• Sustainability: 26.5% of CO2 emissions
Future Internetwill facilitate:■ … seamless cross-organizational
collaboration (information exchange, communication,
coordination of activities)
■ …unprecedented transparency, visibility and control of processes (using Internet-connected sensors and IoT devices)
■ …rapid, easy, low cost development and deployment of customized solutions (apps and services)
■ …agile formation of business networks and ecosystems (social networks and app/service markets)
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
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
App store
SmartAgriFood: Conceptual Architecture
Services
sensorsactuators
data sources(‘Internet of Things’)
LocalISs
Spraying Advisory Services
MeteorologicalService
State and PolicyInformation Service
Consumer Food safety service
E-agriculturist Service for spraying potatoes
FI-Ware enabledCloud Platform
Machine Breakdown Service
User’sdevices
Other sources
CloudIS
Transport
FIspace to connect business partners who want to configure a workflow to stream data
FIspace supports app developers by making data streams and generic enablers available. It also offers a European / global market for such specialised apps.Which disrupts classical, often national all-in-one farm management information systems with stagnant revenue streams
FIspace helps business partners to create value (or save costs) by easier data-exchange and commissioning new apps
Fispace platform High Level Architecture
Front-End
FIspace Store
Real-time B2B Collaboration
Core
System & Data Integration
Security, Privacy, and Trust Management
Operating Environment
Dev
elo
pm
ent
Too
lkit
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
Trials:
http://dev.fispace.eu/doc/wiki/Home
http://www.fispace.eu/
22
Technical Overall Platform Approach
Deployed inthe 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 1:ConfigurableCollaborative
Workflows
Extension Mechanism 2:Addition of value-add functionality through Apps
User
FIspace approach for Software Mass Customisation
FIspace App Store
My FIspace
DevelopApps
Pre-configureUser Systems
Configure &Use Systems
FIspace Platform
Single AppConfiguration
App developer Business Architect User (farmer, coop)
Potential revenue streams for FIspace
FIspace App Store My FIspaceDevelopApps Pre-configure
Configure &Use Systems
FIspace Platform AAS (Company/Foundation)
App developer (sme, IT dpt) Business Configurator (Ag.co.) User (farmer, Ag.co)
Advertiser
Access fee
Use Fee Use Fee
Access fee
Pay for app (use)Sponsored app
FIRST PRINCIPLES in the design
• Fispace is here to support SME in workflow with each other• this asks for regional specialised software suppliers that provide
instances useful for a sector or region• this means that companies like Limetri with a high costumer
intimacy e.g. in agricultural SME should be able to offer an instance with – access to all components in open source– or with minimum IPR deals needed with e.g. IBM – option to replace an enabler / component with something better / different
as long as it is FIspace compatible (good for innovation)– but they want the workflow information fed into those of other instances,
like e-mail or websites
• large companies like Koc or IBM or ATOS could find business opportunities by providing services to those local Limetrees and in helping their current big clients like retail or K&N to install solutions that links with Fispace
• Technically there is no need to have one (1) central physical infrastructure
FIspace Foundation and Commercial companies
FIspace App Store My FIspaceDevelopApps Pre-configure
Configure &Use Systems
KILA’s Phase 3 Platform AAS Lab
App developer (sme, IT dpt) Business Configurator (Ag.co.) User (farmer, Ag.co)
Advertiser
Access fee
Use Fee Use Fee
Access fee
Pay for app (use)Sponsored app
FIspace Foundation
IBM
Lime-tri
Facebook/ SAP
1 4
3
5
2
6
8
7
Intelligent PerishableGoods Logistics
Smart Distributionand Consumption
Farming in the Cloud
Use Case Trial Experimentation Sites
1. Crop Protection Information Sharing
2. Greenhouse Management & Control
3. Fish Distribution and (Re-) Planning
4. Fresh Fruit and Vegetables Quality Assurance
5. Flowers and Plants Supply Chain Monitoring
6. Meat Information Provenance
7. Import and Export of Consumer Goods
8. Tailored Information for Consumers
Project Details
• EU Seventh Framework Program (7FP)– Future Internet Public Private Partnership programme (FI-PPP)
• Project type: Collaborative Project - Large-scale Integrated Project (IP)
• Total budget: 20 M€
• EU funding: 13.5 M€
• Duration: April 2013 – April 2015 (FI-PPP phase II)
• Grant Agreement: 604123
• Project coordinators:– Sjaak Wolfert, Wageningen UR, The Netherlands
– Rod Franklin, Kühne + Nagel, Switzerland
• Website: www.FIspace.eu
consortium
• Accelerators
• Company managed funds
• ICT infrastructure providers
• Public sector
• Regional Development Agencies
• Sectorial ecosystems
• SME associations
• Others?
By sector
By company ecosystem
By regional dimension
We look to Phase-3
I am a Royal Gala apple
from south Spain, I was
grown without pesticides
following organic farming
criteria, I have been here
for 1 day, my carbon
footprint is 1,2 kg CO2.
4 Accelerator projects on agri-food & logistics
• SmartAgriFood– Smart farming (livestock, arable &
horticulture)
– Open call: 4M€
– Open until 15 Nov.
– www.smartagrifood.com
• FInish– Agri-Logistics
– Open call: 5 M€
– Planning 1st call: 29 Oct. – 10 Dec.
– www.finish-project.eu
• Fractals– Smart Farming in Balkan
– Open call: 5.5 M€
– 30 Nov. – 28 Feb.
– http://www.f6s.com/fiware-fractals
• SpeedUp!Europe– Agrobusiness Park (DE)
– Open call agri-food: ~1.9 M€
– Open until 10 Dec.
– www.speedupeurope.eu
Total: ~ 16 M€ in 2 years ~ 150 Apps?
Do you want to develop your hack further into an exploitable application?
Food Waste Hack, 17 & 18 October 2014, Eindhoven NL
Krijn Poppe – Wageningen UR
Future Internet PPP: Internet-enabled Innovation in Europe
Technology Enablers
Domain App Platform
AppsFuture Internet
Accelerator Projects
See for more information: http://www.fi-ppp.eu/
and many others
1. Empower small and innovative ICT players to develop high-quality and high-impact solutions for food and flower supply chain networks based on technologies of the FI-PPP programme
2. Develop a large set of innovative and technologically challenging services and applications for virtualisation, connectivity and intelligence of food and flower supply chain networks
3. Implement and validate the technologies and concepts developed in the Future Internet PPP programme
4. Support SMEs in creating high-impact apps with Future Internet applications and helping to market their apps cross-border in specialised EU markets and beyond
5. Ensure business value of services/applications for collaborative business networks in food and flower industry
Objectives FInish
• Reduce your development efforts by reusing FIspace / FIWARE tools
• Benefit from features of other apps
• Open new markets for your application
– by participating in the Future Internet ecosystem / FIspace app market place
• Minimise your financial risk by receiving funding
– while remaining your intellectual property
What’s in it for you?
We do not predefine Apps!!
We are asking for great ideas
With business need/interest
In the domain of Food & Flower Chains
• 2 Calls for Application Development– Calls open in Oct-Dec 2014 and Mar-Apr 2015 – Searching for ± 50 apps
– Envisaged apps are funded with some 50-150 kEURO
– Only WEs / SMEs can submit proposals
– Commitment and support of a business partner mandatory!
• Competitions– Two competitions - apps will be assessed by a jury
– Prizes of up to 25 kEURO awarded in Oct. 2015 and Feb. 2016
• Hackathons– Educational hackathons foreseen. Further details on
possible prizes will be published at a later point of time.
• Awards– The three most promising apps
will also receive an award
FInish Accelerator – Available Grants
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
How more data contributes to current business models
Transport
loyaltySmall Cost priceGRIN
Transport Transport
Input industriesFarmer Food processor Retail / consumerSoftware
Provider
Logisticssolution providers
Service cope with retail
Sustainability HealthFood SafetyFeed the growing world
Precision Farming: better control
Better management decision
SophisticatedTechnology,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
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??
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 threat 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.
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
Thanks for your attentionQuestions ?
www.FIspace.eu