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9 out of 10 digital transformation projects will fail

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Digital transformation is now a widely accepted term in enterprises across every industry. While leaders have embraced the idea, a report has found businesses are struggling to implement transformation strategies, with just one in ten projects successful.

The survey from Couchbase found that 90 percent of digital transformation projects have either fallen below planning expectations, delivered only minor improvements or altogether failed. The NoSQL database vendor surveyed 450 CIOs, CTOs and digital leaders at companies with over 1,000 employees in the U.S., U.K., France and Germany.

According to the survey respondents, problems usually occur due to a lack of business agility. The scope, scale and requirements of digital projects can shift significantly during their implementation. When these projects are completed in the context of a large enterprise, they are limited by existing processes that don’t possess the same flexibility.

This has created a disparity between businesses in traditional industries and start-ups focused on tech. Start-ups tend to be implicitly focused on the aims of transformation: improved productivity and an extended customer experience. Larger businesses stand to benefit the most from digital transformation but often find themselves constrained by the nature of their industry.

Specific challenges cited by the survey respondents included a lack of preparation within the organisation and a restrictive reliance on legacy technology. A combination of these problems means most companies find themselves unable to implement their digital transformation strategies, even if the original plan is sound.

This matters because an overwhelming majority of the business leaders surveyed agreed a successful digital transformation will be critical to the future success of their company. A full 73 percent said their industry is being disrupted by new technology, with a further 16 percent saying they expect a transition to be just a matter of time.

The consequences for firms that don’t adapt could be severe. Couchbase previously reported that 54 percent of companies expect to fail if they miss the impending digital transformation revolution. Companies are desperately trying to avoid being made irrelevant by the next Amazon or Uber. However, with only a small minority of digital projects succeeding, the CIOs and CTOs responsible for their implementation are becoming increasingly concerned.

Couchbase warned that enterprises are facing a “stark choice” as they move to put their transformation plans into motion. Companies need to balance the maintenance of their legacy systems with the introduction of modern customer-first alternatives. As entire industries migrate to digital approaches, studying success stories will be vital to installing satisfactory implementations.

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Agriculture

Growing more with less – Using AI and robotics to grow crops

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farming
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Startup Iron Ox has created a fully autonomous farm in San Carlos, California. The hydroponic indoor farm relies on two robots to plant, care for and harvest produce, and by doing so, they grow 30 times more produce than traditional farms.

San Carlos, California-based Iron Ox is a startup company founded in 2015 by Brandon Alexander and Jon Binney. The two founders decided to get into robotic farms after working at a number of other robotics companies. But as Alexander notes, in his stint at Google X, it was more about building cool technologies, rather than how robots could be used. As he told Tech Crunch, “We’d seen lots of novelty robotics stuff and wanted to avoid that.”

The two would-be urban farmers also realized that farming is very hard work. The U.S. alone has more than two million farms with 925,000 people to perform tasks like planting, seeding and inspection, contributing to total production expenses of $350 billion in 2017.

Then, there is the knowledge that agricultural productivity will need to increase by 60 percent in order to feed the world population by 2050. These factors inspired the young company to tap into a database of agricultural and horticultural knowledge, along with robotics, to design an indoor farm of the future.

Today, most of the leafy greens grown in the U.S. are produced in California and Colorado, particularly in the winter months when it’s colder in the rest of the country. So fresh leafy greens are actually two or three days old by the time they reach the supermarket. “That’s why we switched to indoors,” Alexander said. “We can decentralize the farm.”

The ‘robotics-first’ approach

“At Iron Ox, we’ve designed our entire grow process with a robotics-first approach,” Alexander said. “That means not just adding a robot to an existing process, but engineering everything … around our robots.”

In the company’s first 1,000-square-foot farm, which is already in full production, there is a 1,000-pound robot named Angus that can lift and move the large hydroponic boxes in which the produce is growing, and Iron Ox ’s robotic arm for all the fine manipulation tasks, like seeding and transplanting.

With this current setup, Alexander says they can produce about 26,000 plants per year — equivalent to the output of a one-acre outdoor farm. With this system, the farm grows leafy greens such as romaine, butterhead and kale, and herbs like basil, cilantro and chives — using sensors and collision avoidance systems “similar to that of a self-driving car.”

Alexander claimed that Iron Ox is able to do the equivalent of 30 acres of outdoor farming in just a single acre on its robotic farm. The company wants to build more small farms near urban centers so produce is fresher upon arrival. “Right now fresh produce really isn’t all that fresh. It’s traveling on average 2,000 miles from farm to grocery store, which means a lot of people are eating week-old lettuce or strawberries,” Alexander explained

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Agriculture

5 Cargill digital initiatives making food production more sustainable

How the agriculture giant is using the cloud, AI and facial recognition tech to transform the agriculture industry

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Sponsored by Cognizant

Agricultural production needs to increase by 70 percent globally by 2050 in order to keep pace with population growth and shifting diets, according to the UN.

Agriculture giant Cargill is turning to digital technology to tackle this challenge.

Whether through creating predictive software to give shrimp farmers real-time insights into their operations, or applying smart weather sensor technology to row crop irrigation to help farmers cut back on water usage, Cargill is creating IoT technologies to help farmers make their processes more sustainable.

“We are trying to bring digital transformation to the industry,” Neil Wendover, an executive from the Cargill Digital Insights department, told Bloomberg.

1. Mobile Shrimp Monitoring:

Cargill’s iQuatic software is a cloud-based digital platform specifically for aquaculture that syncs with a farm operations dashboard so farmers can monitor what’s going on in their farms using data collected in real-time.

iQuatic powers Cargill’s iQShrimp app, which receives data about shrimp size, water quality, feeding patterns, and health and weather conditions from shrimp ponds by way of sensors and automatic feeders.

Related: Driving the Convergence of the Physical and Digital Worlds – 14 Case Studies

This data is then sent to the app that uses predictive technology to give farmers insights and recommendations on feed management strategies for the shrimp, and the best dates for harvest.

2. Connected Crop Irrigation:

Cargill is also looking to help farmers on land by using smart weather sensors and IoT technology on sprinklers connected to smartphone apps to help Nebraska beef farmers cut back on water usage in crop irrigation.

“By using smart weather sensor technology in row crop irrigation, this program could help save 2.4 billion gallons of irrigation water over three years, which is equivalent to roughly 7,200 households over that time period,” said Hannah Birge, water and agriculture program manager at The Nature Conservancy about the partnership. “The reduction of pumping also means less energy used and less labor expense for farmers.”

3.Animal Facial Recognition:

Facial recognition is big these days — even on farms.

Earlier this year, Cargill invested in Cainthus, an Irish startup that has developed facial recognition for cows. Cainthus uses artificial intelligence and imaging software to identify and monitor individual animals on a farm. The cows are monitored for what they eat and how much milk they produce in an effort to help farmers manage their herd.

The images are collected from drones, satellites, CCTV, and smart devices.

Cargill also entered a partnership with Cainthus to bring its technology to dairy farms globally.

4. Cocoa in the Cloud:

Tracking and tracing cocoa shipments has largely gone untouched by technology. To change that, big companies like Cargill started utilizing mobile applications to get a better picture of where their cocoa comes from.

Traders from the companies, local traders and partner organizations started to collect GPS coordinates of each farm and details about the farmer themselves, like if the farm is within a protected forest area.

Download: Driving the Convergence of the Physical and Digital Worlds – 14 Case Studies

The system keeps a record of cocoa transactions, acting as a digital ledger. All this information is stored on a cloud-based database.

Cargill also has a target to commit to sourcing “fully traceable farm-to-factory cocoa” by 2030.

5. Techstars Farm to Fork Accelerator:

Last year Cargill partnered with tech startups Techstars and Ecolab to create the Techstars Farm to Fork Accelerator, a “mentorship-driven” program with a goal of safer, more secure and sustainable food supply.

Participants in the accelerator are expected to be tackling problems like supply chain management, food safety, waste reduction, and traceability.

Download: Driving the Convergence of the Physical and Digital Worlds – 14 Case Studies

“This Accelerator allows us to invest our time and resources in technology shaping the future of agriculture, and to address some of the greatest challenges facing the food system,” said Cargill’s CIO Justin Kershaw in a Cargill press release.

The accelerator is expected to continued for three years and it recently announced the inaugural class of startups who will spend 13 weeks building their businesses.

DX Journal covers the impact of digital transformation (DX) initiatives worldwide across multiple industries.

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Here’s the thing about how digital transformation will impact your business

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Digital skills
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Here’s the thing about digital transformation: Everyone knows it’s happening.

But it’s hard to know which new technology or innovation is going to be the one that upends your industry, opens up massive opportunity, threatens your company, or forever alters your role.

Today we’re introducing a new, custom-tailored service to help you figure that out. The service combines journalism, research and market analysis to help you and your team understand the state of digital transformation (DX) and explore the key developments that will impact your employees and industry.

We call this our “Here’s the thing about…” service. Teaming up with the DX Journal, we leverage journalists, analysts, researchers and strategists to help your company get a full picture of:

  • What is likely to impact your industry
  • Your team’s readiness to deal with it
  • An in-depth look at major developments you need to pay attention to

Here’s how it works:

This service is designed to give perspective on how digital transformation will impact your company. We present our findings in an easy-to-understand format breaking down trends for multiple departments and for every skill set with documented takeaways and action items.

We uncover and share those findings in a simple, two-step process:

Step 1: Research & interview process

  • Custom research on digital transformation trends impacting your industry, customers, and competitors.
  • One-on-one interviews with your company’s executives, department heads or managers, employees and/or customers.

Step 2: Research presentation

  • A presentation to your company in an internal keynote-style presentation to any size group — be it a small strategy team or an all-hands employee seminar.
  • Our team of researchers, journalists and analysts will share the research findings, key trends in your industry and provide an overview of how well you’re set up to address challenges or embrace opportunities based on the employee interviews.

Who this service is for:

Let’s start by clarifying that digital transformation is not just an IT problem. Our clients are often leaders who are not technologists. In fact, many companies we speak with are surprised to learn how many areas of the business are impacted by DX, including marketing, HR, IT, sales, operations, legal, and others.

There’s no escaping that every area of a business is going to have to manage change that digital transformation brings. Digital transformation should not be left for the IT department alone to figure out.

With that in mind, we’ve designed this report and presentation service most commonly for executives and managers in:

  • Operations, finance & strategy
  • Human resource departments
  • Marketing and sales departments
  • IT departments

Sure, you might not have to deal with artificial intelligence in your accounting department tomorrow. Or chatbots in your HR department. Or big data solutions for your manufacturing warehouse. But how can you be sure if you don’t understand these emerging technologies? What if your competitors are? And what if they’re getting a 6-month head start?

To get started, please contact the DX Institute.

This post was originally posted on DX Institute.

DX Journal covers the impact of digital transformation (DX) initiatives worldwide across multiple industries.

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