Mega Trends in the Food Sector
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From Danish Food Cluster Mega Trends conference, may 2017. How big data and technology influences the food value chain and which overall tecnnology trends are changing the way we work.
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Mega Trends in the Food Sector
- 1. Kim Escherich | @kescherich | @danmark50 IoT Innovation Architect | IBM Europe MEGA TRENDSIN THE FOOD SECTOR
- 2. 2 Drivers of digitization – Across industries Stories from the field – Focus on the food sector Call to action – Discussion
- 4. © 2016 IBM Corporation Understand Like humans do Reason to extract ideas Learn From past results cog·ni·tive ˈkäg-nə-tiv Interact In a natural way
- 6. Tumbleweed SyNAPSE powered, brain-inspired, autonomous, rolling, search and rescue robot.
- 9. 9
- 12. 12
- 14. 14 NEW WAYS OF WORKING
- 16. 16 Meet Olli
- 17. Agriculture and the Internet of Things = really big data Nitrogen Sensors GPS/GIS Data from Satellites Drone Sensor and Image Transmissions Weather Data Crop Modeling Environmental Data – temp, humidity, wind, heat units Soil Moisture Sensors Drip Irrigation Sensors Pivot Irrigation Sensors Social Media Yield Sensors on Harvesting Equipment Application Sensors for Inputs Seeding/ Planting Sensors Connected Tractors & Harvesters
- 18. The IBM portfolio for cognitive IoT Solutions Enabling new business models with integrated solutions for industry Applications Optimizing operations for business impact Platform Everything you need to innovate with IoT Powered by IBM Watson Local Deployment Enabled by IBM Cloud Connecting the data that matters Business Transformation Blockchain Edge Weather Non-traditional partners IoT for [X] industry Predictive maintenance Asset management Facilities & real estate IoT Product engineering IoT Platform
- 19. 19
- 20. 20 Blockchain
- 21. 21
- 22. © 2016 IBM Corporation 22Page© 2016 IBM Corporation Blockchain in an emerging platform for transaction services Party A’s records Bank’s records Auditor’s records Party B’s records Digitally signed/encrypted transactions and ledger All parties have same replica of the ledger Party A Bank Auditor Party B Types of Use Cases •Trusted registry of ownership of assets •Asset transfer •Smart contracts Attributes •Shared replicated immutable ledger •Digitally signed/encrypted transactions •Business logic linking transactions into business processes •Automation Blockchain technology has the potential to radically transform multi-party business networks, enabling significantly faster, less expensive, lower risk transactions and innovative new business models Inefficient, expensive, vulnerable Consensus, provenance, immutability, finality • Difficult to maintain a single source of truth • Difficulty to maintain transparency • Not timely in delivery or access • Business logic implementation linking transactions can be different between parties •Can be overly complex due to the evolution and use of older technology.
- 23. © 2016 IBM Corporation 23Page© 2016 IBM Corporation Blockchain for business … Append-only distributed system of record shared across business network Business terms embedded in transaction database & executed with transactions All parties agree to network verified transaction Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Shared ledger … Broader participation, lower cost, increased efficiency Smart contract Consensus
- 24. © 2016 IBM Corporation 24 Use Case – Open, Trusted Product Traceability Problem • Product recalls cost major $$, time, and brand impacts • Consumers demanding transparency on where and how their products are made. • Governments require more information about corporate supply chains, with penalties for non-compliance Solution • Blockchain enables safe digital transfer of property across the end to end supply chain, with full transparency • Opportunity for additional IOT (sensors, etc.) to add value Benefits • verifiable, preventing any party from altering • efficiencies through greater transparency • consumers can make informed purchases • governments get reliable information Opportunities in: product recall, pharmacy, luxury, merchandise fraud, government compliance, ‘organic’ food, etc.
- 26. Smarter Agribusiness means enabling end-to-end visibility across the global supply chain through more connected, instrumented and intelligent systems that provide more and better information across the global web of input suppliers, growers, packers, shippers, processers and retailers So that: • resources are managed more efficiently and sustainably • people have more confidence in the quality and safety of their food • agriculture productivity increases • the whole world can put healthy meals on the table IBM’s vision for “Smarter Agribusiness” involves the innovative use of technology to improve food science, safety, sustainability, production and supply chain efficiencies
- 27. Agronomics Big Data Analytics Precision Agriculture Agriculture Supply Chain Solutions Preventive Farm Asset Maintenance Food Safety and Traceability Marketplace Analytics Smarter Crop Insurance Sustainability Calculator IBM is innovating data-driven insights across the Agriculture value chain Agriculture Insight-as-a-Service
- 28. IBM is innovating to drive solutions for the Agrifood business Smarter , Agile Agrifood “Insight as a Service” Business Soil Management Fields Management Weather Forecast Crops,Cows,… & Growth Models Pest & Disease Models weathermobile satellite Private/Hybrid Cloud Data Sources IBM Cloud Large Scale Data Ingestion Massive Scale SQL/NoSQL store Spatio Temporal Integration Big data processing Large Scale Analytics High Performance Computing Streams Predictive Optimization Acquired Data Qualified Data Enriched Data Insight Data Context Models & Data Agrifood Corpus Watson for Agriculture Crop physical models Field management Prediction Nutrient Management Automation Irrigation Weather Government/Universities Go to Market Channels Seed & Crop Protection & Nutrient companies Agribusiness companies Cooperatives Precision Ag Companies soil First party data Second party data Third party datatopography Land-use Irrigationyield equipments Literature Food Container Food Processing, Food Distribution, Food Logistics Management Supply Chain Cold Chain Monitoring Food Conservation Food Branding, Food retail Food Value Management Local, sustainable, healthy food, food branding E-commerce fresh food & delivery Waste reduction Agrifood Use Cases External Data Social Media data Public Opinion Consumer Data Disease Monitoring Climate,Food, Agri Policies Food Consumer IBM Watson IoT Platform IBM PAIRS
- 29. Structured, Unstructured, Internal, or External can all be indexed together in a unified view for the end user. “They don’t want the systems to make decisions. They want the system to help wade through all the data that exists and put the relevant pieces in front of them so they can make better decisions” Consider Watson a very smart assistant to yourAgronomist. John Gordon, IBM Watson Group
- 30. 30 Source: McKinsey: The Age of Analytics – Competing in a data-driven world http://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-age-of-analytics-competing-in-a-data-driven-world
- 31. ©2016 IBM Corporation31 Your ERP, WMS, (E)-commerce systems You need a platform. We all do. External data Your Agriculture data Fields Management Crops Harvest/ Food Container Crop Growth Models Weather Forecast Pest Satellite Soil equipments mobile Food Consumer Your Grower Ecosystem Your Food Ecosystem IBM PAIRS IBM Watson IoT Platform IBM API-Connect IBM Cloud Marketplace IBM MobileFirst IBM Blockchain Watson for Agriculture Real-time collaboration Extend the reach of your expertise Trusted traceability & transparency Yield & Resource Quality Optimisation Access to consumer platforms IBM Watson Analytics
- 32. 32
- 33. 33 Price
- 35. The Platform Call to action
- 36. 36 Sustainability via insight Smarter Agriculture Traceability Informed consumer Healthy citizen
- 37. Kim Escherich escherich@dk.ibm.com +45 2880 4733 internetofthings.dk Danmark50.dk @kescherich /escherich /in/escherich kescherich@gmail.com
Editor's Notes
- A COGNITIVE BUSINESS HAS SYSTEMS THAT CAN ENHANCE DIGITAL INTELLIGENCE EXPONENTIALLY. Key to attaining a richer digital intelligence are cognitive systems. With analytics, we get key insights from data, but with cognitive systems, we can turn those key insights into knowledge. Traditional computing is programmed (rules-based, logic-driven, dependent on organized information), but cognitive systems are probabilistic (they learn systematically, they are not dependent on rules, they handle disparate and varied data). Cognitive systems can understand unstructured information such as the imagery, natural language and sounds in books, emails, tweets, journals, blogs, images, sound and videos. They unlock meaning because they can reason through it, giving us new contexts to weigh and consider. Cognitive systems also learn continually, honing our own expertise so we can immediately take more informed actions. And they interact with us and with our customers, dissolving barriers between humans and machine, fueling unique, essential user experiences.
- Notes for presenter: This slide can be inserted after or in place of slide 9 (The IBM portfolio for cognitive IoT) Here is how this depiction of the portfolio relates to the three areas on slide 9: “Platform” on this slide – relates to Cloud-based platform for development and production on slide 9 “Applications” and “Solutions” on this slide – relate to Software and services tailored to specific industry needs on slide 9 “Powered by Watson” on this slide – relates to IBM Watson cognitive computing application programming interfaces (APIs), software and services on slide 9 Slides 19–21 drill down on specific offerings and capabilities within platform, applications, and solutions This graphic enables you to tell a fuller story, adding the following elements: Connecting the data that matters IBM makes connecting devices easy We have a vibrant, ever-expanding ecosystem of ecosystem partners, including silicon and device manufacturers We are working with AT&T, National Instruments, ARM, Semtech, The Weather Company and more to ensure the secure and seamless integration of data services and solutions on IBM’s open platform We actively contribute to open source and participate in standards bodies to drive ecosystem-wide interoperability, security, scalability. We are working with Industrial Internet Consortium, LoRa Alliance, Open InterConnect, and Allseen Alliance Enabled by IBM Cloud IBM operates more than 41 cloud data centers in the Americas, Asia, Australia and Europe This enables customers to provision cloud resources exactly where and when they need them to minimize network latency, improve application performance, and comply with local data regulations Local Deployment IBM also supports local on-premise deployment and hybrid cloud Business transformation All of these portfolio elements work together to achieve the end state of business transformation, which can be driven by any or all of the three key IoT outcomes: boosting operational efficiency, transforming the customer experience/relationship, or driving industry disruption
- So Blockchain technology comprises these four main blocks, that can lead to increased efficiencies, and cost reduction across the business network. We will “unpack” CONSENSUS PRIVACY & SMART CONTRACT in the next couple of slides. Shared LEDGER has been already covered, and a SMART CONTRACT enables the business rules implied by the contract to be embedded in the Blockchain and executed with the transaction So Blockchain technology comprises these four main blocks, that can lead to increased efficiencies, cost reduction, and decrease risk across the business network. A blockchain contains the shared LEDGER, which has already been covered. It has a SMART CONTRACT the enables the business rules implied by the contract to be embedded in the Blockchain and executed in the transaction. As part of the blockhain, our view is that it must be PERMISSIONED… ensuring that transactions are appropriate, secure, and validated. CONSENSUS is the concept that all parties agree to the networked transaction. So Blockchain technology comprises these four main blocks, that can lead to increased efficiencies, and cost reduction across the business network. We will “unpack” CONSENSUS PRIVACY & SMART CONTRACT in the next couple of slides. Shared LEDGER has been already covered, and a SMART CONTRACT enables the business rules implied by the contract to be embedded in the Blockchain and executed with the transaction Other benefits include : Improve discoverability When everyone on an exchange can view the same ledger, it is easy to broadcast an intention (or offer) by appending it. For example, in a trading network, all asks and bids would be visible to every network participant. Automate trusted processes Unlike a centralized system where only the network operator can create a generalized solution that fits every user’s needs, Blockchain networks allow each participant to create customized solutions using their own proprietary business logic while running on the same common ledger. Ensure trusted record-keeping By design, no one party can modify, delete, or even append any record to the ledger without the consensus from others on the network, making the system useful for ensuring the immutability of contracts and other legal documents.
- Traceability can be extended as a use case from the whole idea of ‘farm to fork’ traceability for product safety and recalls, to provenance of the authenticity of a product --- in the prevention of fraud, to government compliance – to show for instance that we are not doing forced labor or child labor as part of our international supply chain, to proving food is organic. Other extensions of the area of traceability include the pharma industry – being able to better track prescriptions and controlled substances. When blockchains track the movement of objects through the supply chain they can also note how individual ingredients combine to form a newly manufactured item. This proving out allows an end user to know exactly what went into the product even if it has been through multiple manufacturing steps at different companies. These moments show how in a future with blockchains, our experience producing and consuming food could be quite different than it is today. At the core of this is the ability to assign identity to people, to organizations, and to goods, to track in a transparent way the provenance of goods as they pass from one organization to the next, and lastly, as goods change hands, to exchange payment between the two organizations. Food is a compelling supply chain because we’re deeply sensitive to where our meals come from, and how they arrived at our plate, but importantly the human-scale impact of blockchains could be felt throughout the world’s supply chains. Blockchain can track what went into a product, and who handled it along the way, revealing the provenance of a product to everyone involved, from origin to end user. BCs offer a way to introduce transparency into supply chains and to create entirely new opportunities for participation. As a shared, secure record of exchange, blockchains can track what went into a product and who handled it along the way, breaking supply chain data out of silos, and revealing the provenance of a product to everyone involved from originator to end user. Food products require consumer trust: trust that the kitchen that made the product X is sanitary, that the ingredients that went into it are fresh, and that product X tastes good. This trust is critical, but there’s so much more we could know. We could create entirely new relationships with the stuff we buy, namely where it came from and how it arrived in our hands
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- Breadth of Expertise -useful data analytic tools in the industry is still a work in progress. It is easier today to collect agronomic and machine data. That requires solving a logistics problem. But finding a platform that can crunch the numbers and provide a farmer with useful, practical information that improves their farming practices is more difficult.
- Door de digitalisering van je productie, kun je de waarde van jullie fysische producten (smaak, origine, ecologische voetafdruk, fairtrade label, waterverbruik) zichtbaar maken. Je kunt je ecologische, fairtrade waarde per koe/varken/kip of per container van je gewas/veld digitaal zichtbaar, traceable en auditable maken Je supply chain partners verderop de ketting, kunnen deze waarde zichtbaar houden en valoriseren naar de consument toe