Rural Sourcing Benefits From Digital Agribusiness Solutions To Meet Global Food Needs

Tanja Reith

With the world population headed toward the 10 billion mark in the coming years, the need for healthy, sustainable and fairly produced food will increase accordingly. Rural sourcing will be integral in meeting these needs. Hyperconnectivity in business and digital transformation of agriculture processes can create a stronger operational foundation for rural sourcing. This transformation can bring affordable, sustainable agricultural production by facilitating smart, traceable solutions throughout operations from farm to fork.

Reimagining smallholder farming network management

Modern farmers are surrounded by a complex system of equipment, vendors, processors, manufacturers, and agrichemical specialists. These technologies are often new to farmers in rural areas and developing countries; however, they can assist them in becoming far greater contributors The processes involved in rural sourcing must stay in sync with increased demand and changing consumer behaviors. Smallholder farming operations can benefit immensely from food traceability and hyperconnectivity innovations. This digital transformation is set to bring agricultural production to new heights of productivity and effectiveness, with additional benefits for rural farmers.

Rural sourcing made easier with digital business solutions

Rural sourcing is an area that’s ripe for transformation through digital agriculture solutions. Current and emerging digitization processes can assist with taking rural sourcing from smallholder farmers in developing countries to new heights of viability and success. The agribusiness value chain can be effectively streamlined, improving smallholders’ lives in a range of positive ways.

For example, rural farmers will be able to connect with financial services more readily. They will have a range of opportunities that were not available to them in the past. A blend of supplier and collaborator business networks, workforce engagement, assets, and the Internet of Things (IoT) assist all of the elements of this process to work together within a digital core. While the digital core facilitates the management of all financial and contractual data, collaboration within a supplier network is also seamless throughout the entire process. Mobile advances, the cloud, and IoT all come together in innovative software solutions to manage all the crucial components of rural-sourcing digitization.

The following are some of the key areas:

  • Identify farmers and expected crop yields. Research and due diligence in a rural area are streamlined and made intuitive, accurate, and efficient.
  • Broadcast prices and plan logistics. Keeping all relevant parties abreast of pricing considerations and key processes is fully automated, as are the processes themselves.
  • Consult and train farmers. Getting rural farmers up to speed and at top efficiency is also enabled with software solutions.
  • Record quantities and qualities. Full tracking of products from farm to fork is easier than ever with digital agriculture. Both quantities and full descriptions can be included.
  • Truck loading and offloading. Hyperconnectivity of the processes involved in digital farming ensures full food traceability until it reaches its destination – and at every phase along the way.
  • Mobile data exchange/track and trace standards. Data can be exchanged rapidly while on the go and kept up to date for all parties involved. Information, correspondence, and productivity data are always readily accessible, as is key information about products that are en route.
  • Mobile and SMS payments. All financial aspects of digital farming, including SMS payments, financials, and controlling, can be effectively managed with software solutions.

Processes involving integrated sourcing for crops or commodities from rural areas assist farmers by making training and best practices available. Tracing shipments in line with area and industry standards is also supported. It all starts with a direct connection to local farmers and allows for the accurate tracking of the resultant products to ensure efficiency. Digital farming can bring it all together. Transparency of origins is improved as well as the settlement process, reducing fraud risk. The hyperconnectivity of digital farming allows for more effective food traceability, more efficient farm operations, better food safety and quality, and an overall more beneficial experience when working with the rural farmer.

With effective rural sourcing management, everyone wins

Businesses implementing digital farming can more readily and consistently provide sustainable processes and positive working conditions. Farming practices can more easily be kept in line with fair trade labels and other key standards and certifications.

Learn more about digital transformation for the agribusiness industry
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Tanja Reith

About Tanja Reith

Tanja Reith is a solution manager for the Agribusiness vertical in the Industry Cloud organization at SAP. She has over 15 years of experience in solution management and go-to-market roles for enterprise software, engaging closely with customers and partners across different industries such as agribusiness, consumer products, and financial services. Tanja’s ambition is to drive shared value resulting in business value to our customers while making a social impact and improving people’s lives.

Digitalist Flash Briefing: Dulux Moves Beyond EDI

Bonnie D. Graham

Today’s briefing looks at how a business that decided to go paperless reaped an even greater benefit when it went to the cloud to digitally transform its supplier ecosystem. Bye bye, EDI!

  • Amazon Echo or Dot: Enable the “Digitalist” flash briefing skill, and ask Alexa to “play my flash briefings” on every business day.
  • Alexa on a mobile device:
    • Download the Amazon Alexa app: Select Skills, and search “Digitalist”. Then, select Digitalist, and click on the Enable button.
    • Download the Amazon app: Click on the microphone icon and say “Play my flash briefing.”

Find and listen to previous Flash Briefings on Digitalistmag.com.

Read more on today’s topic

 

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Bonnie D. Graham

About Bonnie D. Graham

Bonnie D. Graham is the creator, producer and host/moderator of 29 Game-Changers Radio series presented by SAP, bringing technology and business strategy thought leadership panel discussions to a global audience via the Business Channel on World Talk Radio. A broadcast journalist with nearly 20 years in media production and hosting, Bonnie has held marketing communications management roles in the business software, financial services, and real estate industries. She calls SAP Radio her “dream job”. Listen to Coffee Break with Game-Changers.

Blockchain To The Rescue: We Can Be Much Better At Weathering Natural Disasters

Susan Galer

As a massive hurricane devastates a city, first responders immediately bring life-saving medical attention, food, water, fuel, and other resources to victims in real-time, hiring suppliers with the best prices to deliver items to the exact locations where people need it most.

Contrary to real-life events in the news lately, this is not wishful thinking. It’s a humanitarian relief scenario made entirely possible by a blockchain technology demo I saw at the recent SAP TechEd event in this video interview with Torsten Zube, blockchain lead at the SAP Innovation Center Network.

Bringing help where it’s needed most

Called the “pooling and sharing” scenario, this blockchain example offers a fundamentally disruptive approach to quickly mobilize public and private organizations when disaster strikes. Often the problem lies not so much in the lack of resources available to help, but in the logistics to efficiently direct and deliver that support to the right places.

“Blockchain’s trusted, decentralized transparency across numerous parties – government officials, community organizers, vendors, utilities, healthcare providers ­– makes it perfectly suited to help align citizen demands for relief with the most readily available supplies,” said Zube. “It’s a very simple way to bring help to where it’s needed most. Giving everyone involved the ability to write and read data on an open source platform speeds up disaster relief to a whole new level.”

“During natural disasters, blockchain can bring life-saving transparency to humanitarian relief missions”

Essentially operating as an ad hoc supply chain network on a mobile app, this blockchain example connected suppliers of clean drinking water with helicopter pilots to schedule deliveries at specific locations within certain time frames. Smart contract technology determined which offer was the best one based on community needs, triggering acceptance of the offer, and setting in motion the delivery through confirmation.

“We end up with a system of record, built from scratch and outside of any existing application, that everyone can use right away to help alleviate problems faster,” said Zube.

Blockchain can’t prevent natural disasters, but it’s top of mind as a solution right now when millions of people are struggling with this season’s record breaking natural disasters.

Distributed ledgers, smart contracts, and other blockchain technologies embed integrity and provenance in every digital asset and transaction. Learn more about the benefits of Running Future Cities on Blockchain.

Follow me: @smgaler

This article originally appeared on SAP News Center.

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Human Skills for the Digital Future

Dan Wellers and Kai Goerlich

Technology Evolves.
So Must We.


Technology replacing human effort is as old as the first stone axe, and so is the disruption it creates.
Thanks to deep learning and other advances in AI, machine learning is catching up to the human mind faster than expected.
How do we maintain our value in a world in which AI can perform many high-value tasks?


Uniquely Human Abilities

AI is excellent at automating routine knowledge work and generating new insights from existing data — but humans know what they don’t know.

We’re driven to explore, try new and risky things, and make a difference.
 
 
 
We deduce the existence of information we don’t yet know about.
 
 
 
We imagine radical new business models, products, and opportunities.
 
 
 
We have creativity, imagination, humor, ethics, persistence, and critical thinking.


There’s Nothing Soft About “Soft Skills”

To stay ahead of AI in an increasingly automated world, we need to start cultivating our most human abilities on a societal level. There’s nothing soft about these skills, and we can’t afford to leave them to chance.

We must revamp how and what we teach to nurture the critical skills of passion, curiosity, imagination, creativity, critical thinking, and persistence. In the era of AI, no one will be able to thrive without these abilities, and most people will need help acquiring and improving them.

Anything artificial intelligence does has to fit into a human-centered value system that takes our unique abilities into account. While we help AI get more powerful, we need to get better at being human.


Download the executive brief Human Skills for the Digital Future.


Read the full article The Human Factor in an AI Future.


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Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation.

Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Finance And HR: Friends Or Foes? Shifting To A Collaborative Mindset

Richard McLean

Part 1 in the 3-part “Finance and HR Collaboration” series

In my last blog, I challenged you to think of collaboration as the next killer app, citing a recent study by Oxford Economics sponsored by SAP. The study clearly explains how corporate performance improves when finance actively engages in collaboration with other business functions.

As a case in point, consider finance and HR. Both are being called on to work more collaboratively with each other – and the broader business – to help achieve a shared vision for the company. In most organizations, both have undergone a transformation to extend beyond operational tasks and adopt a more strategic focus, opening the door to more collaboration. As such, both have assumed three very important roles in the company – business partner, change agent, and steward. In this post, I’ll illustrate how collaboration can enable HR and finance to be more effective business partners.

Making the transition to focus on broader business objectives

My colleague Renata Janini Dohmen, senior vice president of HR for SAP Asia Pacific Japan, credits a changing mindset for both finance and HR as key to enabling the transition away from our traditional roles to be more collaborative. She says, “For a long time, people in HR and finance were seen as opponents. HR was focused on employees and how to motivate, encourage, and cheer on the workforce. Finance looked at the numbers and was a lot more cautious and possibly more skeptical in terms of making an investment. Today, both areas have made the transition to take on a more holistic perspective. We are pursuing strategies and approaching decisions based on what delivers the best return on investment for the company’s assets, whether those assets are monetary or non-monetary. This mindset shift plays a key role in how finance and HR execute the strategic imperatives of the company,” she notes.

Viewing joint decisions from a completely different lens

I agree with Renata. This mindset change has certainly impacted the way I make decisions. If I’m just focused on controlling costs and assessing expenditures, I’ll evaluate programs and ideas quite differently than if I’m thinking about the big picture.

For example, there’s an HR manager in our organization who runs Compensation and Benefits. She approaches me regularly with great ideas. But those ideas cost money. In the past, I was probably more inclined to look at those conversations from a tactical perspective. It was easy for me to simply say, “No, we can’t afford it.”

Now I look at her ideas from a more strategic perspective. I think, “What do we want our culture to be in the years ahead? Are the benefits packages she is proposing perhaps the right ones to get us there? Are they family friendly? Are they relevant for people in today’s world? Will they make us an employer of choice?” I quite enjoy the rich conversations we have about the impact of compensation and benefits design on the culture we want to create. Now, I see our relationship as much more collaborative and jointly invested in attracting and retaining the best people who will ultimately deliver on the company strategy. It’s a completely different lens.

Defining how finance and HR align to the company strategy

Renata and I believe that greater collaboration between finance and HR is a critical success factor. How can your organization achieve this shift? “Once the organization has clearly defined what role finance and HR must play and how they fundamentally align to the company strategy, then it’s more natural to structure them in a way to support such transformation,” Renata explains.

Technology plays an important role in our ability to successfully collaborate. Looking back, finance and HR were heavily focused on our own operational areas because everything we did tended to consume more time – just keeping the lights on and taking care of our basic responsibilities. Now, through a more efficient operating model with shared services, standard operating procedures, and automation, we can both be more business-focused and integrated. As a result, we’re able to collaborate in more meaningful ways to have a positive impact on business outcomes.

In our next blog, we’ll look at how finance and HR can work together as agents of change.

For a deeper dive, download the Oxford Economics study sponsored by SAP.

Follow SAP Finance online: @SAPFinance (Twitter)LinkedIn | FacebookYouTube

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Richard McLean

About Richard McLean

Richard McLean, regional CFO for SAP Asia Pacific Japan, oversees all key finance and administrative functions for field and regional headquarters, supporting more than 16,000 employees. He has more than 20 years of experience in senior finance roles with leading global companies across a range of industries, including financial services, investment banking, automotive, and IT. He joined SAP in 2008.