Advances in technology force us to change the way we interact with the world around us, allow us to seek new and innovative ways of operating, and provide opportunities to gain efficiencies and optimization which was previously impossible.\u00a0 Although many sectors have faced changes, the farming industry has undergone an incredible technological revolution to reduce labor and crop yields.\u00a0 Earlier this year, I read an article in the Wall Street Journal about Matt Reimer, a Canadian farmer who converted his tractor into an autonomous vehicle by using a tablet, drone parts, and open sourced software [1].\u00a0 The alterations cost approximately $8000 [2].\u00a0 After reading the article, I began to wonder: what problems are facing the modern farmer, how can digital technology help, and what are major companies like John Deere doing to stay relevant with an increasingly technologically sophisticated customer.<\/p>\n
Farmers often face tight margins and fluctuating crop prices.\u00a0 Land and agricultural equipment account for high fixed costs and large capital investments.\u00a0 Additionally, farmers must control variable costs such as fuel, pesticides, and fertilizers [3].\u00a0 Therefore, maximizing operational efficiency is critical to success.\u00a0 Advances in technology and the advent of precision agriculture allow farmers to maximize crop production per acre and use analytics to minimize variable costs.\u00a0 In order to help farmers maximize efficiency, John Deere developed digital solutions to improve operations in agricultural vehicles ranging from GPS guided to self-driving functionality [4].<\/p>\n
At first glance, John Deere\u2019s product offering appears to be a dizzying array of acronyms, sensors, and satellites melded into green and yellow tractors [5].\u00a0 However, John Deere\u2019s various data packages are designed to: more effectively monitor fields\/equipment, link the functionality of machines to maximize productivity, and more accurately drive equipment to maximize the farmed area through AutoTrac [6].\u00a0 The equipment monitoring features are relatively simple, but the AutoTrac feature and other efficiency tools provide sophisticated solutions to improve efficiency.<\/p>\n
AutoTrac is the heart of the self-driving software.\u00a0 It uses a combination of GPS, laser range finders, thermal infrared sensors, color cameras, and inertial navigation to safely steer machinery [7].\u00a0 In order to enhance the accuracy of GPS, John Deere developed its own RTK radio towers and linked its Starfire receivers to NASA\u2019s ground stations to achieve a stated accuracy of +\/- 1 inch [8].\u00a0 The self-driving technology can be utilized to reduce fatigue, maximize field usage, and integrate the automatic distribution of fertilizers, seeds, water, and pesticides [9].<\/p>\n
Although digital network integration and monitoring is not part of John Deere\u2019s traditional business model, I believe it is valuable for two reasons.\u00a0 First, a clear need for enhanced data monitoring and increased automation exists in the agricultural industry.\u00a0 If John Deere continues to innovate, there is no reason they cannot compete in this market. Additionally, the sale of heavy machinery tends to follow the broader economy.\u00a0 Establishing a consistent revenue source from network subscriptions will help protect John Deere from larger economic downturns.<\/p>\n
John Deere certainly faces some challenges from the external factors and competition to achieving success in data monitoring and agricultural optimization.\u00a0 The regulation of the RF spectrum concerns management [10].\u00a0 Losing the ability to use current frequencies will result in large additional costs to both John Deere and the consumer [11].\u00a0 Autonomous technology also faces risks with regulation.\u00a0 Currently, few regulations exist regarding self driving technology in the agriculture industry [12].\u00a0 As self driving regulation reaches the automotive market, laws may become more inclusive.<\/p>\n
The installation of the AutoTrac system and subscription fees are expensive compared to competitor options.\u00a0 Depending upon the required driving precision, installation alone may cost over $20,000 per tractor [13].\u00a0 Also, the John Deere hardware\/software combinations are not compatible with other digital operating systems.\u00a0 As a result, considerable friction exists for the customer to initially purchase the product or quit using the product.<\/p>\n
In order to maintain a competitive edge, John Deere must either invest heavily in marketing or consider partially subsidizing the equipment installation to gain market share. \u00a0John Deere should also look to differentiate their product offering through robust encryption and cybersecurity [14].\u00a0 The October cyber attack which exploited the \u201cinternet of things\u201d demonstrated the importance of cybersecurity in the modern environment [15].<\/p>\n
Word Count: 695<\/strong><\/p>\n <\/p>\n Autonomous technology and enhanced data integration are changing the way agricultural equipment manufacturers are addressing farmers needs. <\/p>\n","protected":false},"author":2555,"featured_media":17946,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-17945","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\n\n