Future internet and agri at SRII Japan

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

FI-PPP Programme Architecture

90 M€ 80 M€ 130 M€

Accelerators

Building blocks for the Future Internet

7

FI-WARE serving usage areas

8

FI-PPP Programme Architecture

90 M€ 80 M€ 130 M€

Accelerators

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

FI-PPP Programme Architecture

90 M€ 80 M€ 130 M€

Accelerators

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

Coordinator

Technicalpartners

Businesspartners

Research centers and universities

FI-PPP Programme Architecture

90 M€ 80 M€ 130 M€

Accelerators

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

www.finish-project.eu/matchmaking

How to contact us?

[email protected]://www.finish-project.eu

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 ?

[email protected]

www.FIspace.eu