In 2016, Caterpillar showed the way forward to industries that have primarily been product-focused. They started investing in technology that is not just focused on solving, but actually predicting customer issues to improve service. Even industries such as Agriculture are increasingly becoming customer-focused, as more citizens become conscious of where and how their food has been produced. Freight Farms is a good example of customer-centricity in the industry – focusing on technology to grow food in environments not considered conducive to farming such as urban localities and places with extreme climates.
Investing in the Right Technologies
Looking at the Top 5 CX trends for 2020, we find that technologies such as Cloud and AI, and solutions such as robust knowledge management are true enablers of positive CX. So how do these two groups differ when it comes to investments in these technology areas? Customer-focused industries are slightly more enthusiastic about their Cloud investments, but only marginally (Figure 2). Obviously, they invest more in knowledge management solutions, both for CX as well as improved employee experience (EX). But surprisingly, product-focused industries also tend to invest in knowledge management, for several reasons ranging from product improvement to after-sales support.
Where product-focused industries really lead is in their investments in AI/Analytics – which ties in with our observation that automation is the stepping stone for AI investments across industries. The applications of AI/Analytics are very distinct for the two groups (Figure 3). Product-based industries focus on automation and optimisation and have a clear asset focus. However, it is heartening to see some customer-centric solutions such as market segmentation. On the other hand, the top AI/Analytics application for customer-focused industries is billing management, which might significantly improve CX but falls under the purview of Finance & Operations in most organisations.
Securing Data and Building Trust
No organisation can ignore the seriousness of data breaches – whether customer data or intellectual property. Public cloud is going to be the true enabler of Digital Transformation (DX), from both cost and agility angles. Security has always been a key concern around public cloud adoption, even though organisations would mostly benefit from the robust and evolving security features of public cloud providers rather than having a go at securing their systems and data in-house and on-premises. The perception on public cloud security has changed over the years (Figure 4), but customer-focused industries appear to be savvier about the shared responsibility SLAs most public cloud providers have in place.
Which brings us to another important question – how much sensitive data do these organisations store on public cloud (Figure 5). Probably because they hold more customer data and must follow industry and country compliance laws that mandate how customer data should be stored and accessed, nearly a third of customer-focused organisations store sensitive data on-premises only. While their cloud adoption may be slightly higher than product-based industries, they are also more wary of storing sensitive data on the public cloud.
The differences in strategies between customer-focused and product-focused industries might have blurred over the past decade – both groups focusing on customer-centric products. Their technology priorities are still clearly distinct, however. It is important to bear this difference in mind – both for tech buyers who are looking at use cases across all industries when it comes to emerging technology adoption; as well as for tech vendors who now have to engage with stakeholders beyond the IT department.
NB: For the purpose of this blog, industries have been classified as follows: Product-focused Industries – Energy & Utilities, Manufacturing-based industries, Resource & Primary industries, Transport & Logistics, Wholesale and Construction; Customer-focused Industries – Banking & Financial industries, Retail & eCommerce, Healthcare, Government, Professional Services, Media & Telecommunications
A preview of the New Zealand Agritech Story, developed along with New Zealand Trade and Enterprise (NZTE), was kicked off on a foggy Waikato morning on day two of Fieldays, providing insights into the country’s competitive advantage in Agritech along with perceptions of key global players. This was then followed by the New Zealand government announcing a new $20 million Agritech investment venture fund.
NZ Tech reports that the tech sector in New Zealand is the third largest and fastest growing export sector, worth $6.3 billion in 2015, and according to the TIN100, the Waikato, has had the fastest growing tech sector in the country two years in a row. New Zealand Agritech exports stand at $1.4 billion in 2018 and is growing – and together with a strong tech sector overall, the investment will help position New Zealand at the forefront of Agritech innovation globally.
Day two also revealed Fieldays Innovation Award winners across a range of categories including Modusense who took out the Gait International Innovation Award for Product Design and Scalability. Modusense, developed here in the Waikato, is a secure, scalable and reliable Internet of Things (IoT) device platform that provides everything needed to deploy remote data collection. In the primary industries sector, Modusense enables complete apiary health monitoring.
Another IoT enabled solution, RiverWatch, was awarded the AWS Innovation Award in Data for their “Fitbit for water” – an inexpensive water quality monitoring device. RiverWatch is currently running trials in the upper Waikato River in partnership with Te Arawa River Iwi Trust to look at the impacts of industry and farming on water health.
Agritech will transform the industry, and innovations such as those mentioned will further advance New Zealand’s position in the agriculture industry. The true value of Agritech will be realised when AI-enabled IoT is leveraged for cost savings through process automation, and for greater visibility of the entire supply chain. And leading organisations in the industry are aware of it. In the global Ecosystm AI study, Resource & Primary industries (including Agriculture) emerged as a leader when it comes to current and future deployments of IoT Sensor Analytics.
Innovations in IoT
Shipping and logistics in the agricultural sector present unique challenges including a lack of transparency, something that Sparrows.io is working to solve with a hardware and software solution that provides actionable insights using custom sensor modules and live tracking to enable visibility over the supply chain.
The recently launched TRex – IoT, Telemetry, Data and Messaging I/O Transceiver, was also being showcased in the Innovation Centre. Designed to be used for long range monitoring and control, the solution enables two-way messaging and is customisable to meet the needs of applications across various industry sectors including agriculture and farming.
Another innovation that caught my attention at the Innovation Centre was a water monitoring and management device designed to be connected to the irrigation system to enable effective management of water through a mesh network. Hailing from the deep south Next Farm has developed two solutions, with their Remote Irrigation Mesh (RIM) product utilising integrated farm sensor technology together with cloud-based dashboards allowing farmers to maximise the efficiency of water usage while minimising runoff.
Innovations in AI
One of my favourites from last year, Halter, were in the Mystery Creek Pavillion this year and after raising $8 million in funding to refine and further trial their solar-powered collar, for herding cows and monitoring their health, in the Waikato they are close to hitting the open market. Head of Data Science at Halter, Harry She, previously employed by NASA, oversees the development of what the team calls “cowgorithms” which form the basis of the AI underpinning much of the product functions. The collars, which can receive signals up to 8 kms away, is available free and farmers then subscribe on a monthly basis, at a cost per cow, to enable the features they require.
Another product back for another year was the PAWS® Pest Identification Sensor Padfrom Lincoln Agritech which is able to identify pests, differentiating these from native species, and transmit the result to the Department of Conservation staff. Utilising machine learning and AI, amongst other technologies, the device greatly reduces surveillance workload and enables staff to detect and respond to re-invasion more rapidly.
However, as exciting as the idea of a Fitbit for cows and innovation in the pursuit of a predator-free New Zealand is, I must admit the highlight of my Fieldays visit was a team of Agribusiness students from Hamilton’s St Paul’s Collegiate school who were awarded the Fieldays Innovations Young Innovator of the Year Award for their floating electro unit “Bobble Trough” designed to keep animal water troughs clean by preventing the growth of algae and microorganisms through the release of copper ions into the water.
I am now working to secure the team’s innovation as a display in a Smart Space being launched in July as part of the Hamilton City Council’s smart cities initiative, Smart Hamilton. A space designed to provide an opportunity for the wider community to engage with technology innovation and be involved in co-creating solutions that enhance the wellbeing of Hamiltonians.