IT applied in the Agricultural Technology

1. IT applied in the Agricultural Technology Claudio Chauke, Executive Partner ExP Programs

2. The Confluence of Trends Societal Trends Technology Trends Compound Impacts Business Landscape OUTCOMES

3. New Interfaces, New Devices

4. The (Industrial) Internet of (Every)Thing(s) Social network Location Invite service Credit history Places # of people here # people visited Wait time Reservation service People # of cars: no stop # of cars: stopped Priority green service Location Diagnostic service Movies watched Information Schedule Expected disruptions Buy ticket service Things

5. Agriculture

6. Key Issues 1. IoT, OT& IT! 2. Information Insights 3. What Are Some IT-OT integration Strategies? 4. Strategy, Innovation, and Governance!

7. Making Government Smarter: Convergence of IT, CT, OT and IoT Everything Physical Objects OT IoT?! Information people CT Systems Virtual Entities Places IT More Data, More Often, From More Sources.

8. Definitions • Internet of Things (IoT) – the network of physical objects that contains embedded technology to communicate and sense or interact with the objects’ internal state or the external environment.1 • Operational Technology (OT) – hardware and software that detect or cause a change through the direct monitoring and/or control of physical devices, processes and events in the enterprise.2 1Source: “Hype Cycle for the Internet of Things”, (G00252763)2Source: “Hype Cycle for Operational Technology, 2013”, (G00246894) 7

9. IoT and OT Heterogeneity Digital Analog,Mechanical IoT OT

10. IT, OT, and Things Evolution IT OT IT OT Things Things • "Tomorrow": • Common governance • Standard systems • Cultures leveraged • "Today": • Silo organization • Proprietary systems • Culture differences

11. IT and IoT- Similarities and Differences

12. IoT and OT Potential Product/Service Markets 2014-2020 Enterprise(Industrial, Commercial) Consumer IoT (2020) OT (2014) IoT (2014) OT (2020) Growth Growth

13. Definitions - Security • IoT Security – governance, practices, technologies and services used to secure the networks and objects that make up the Internet of Things. • OT Security – practices and technologies used to • Protect people, assets and information • Monitor and/or control physical devices, processes and events • Initiate state changes to enterprise OT systems1 1Source: “Definition: Operational Technology Security”, (G00257497)

14. IoT and OT: Technology Domain Examples ‘Smart’Medicine Point of Sale (POS) ConsumerElectronics IndustrialControl Telematics Smart City Home Automation SmartGrid Industry, commercial, consumer use case examples Sensors Integrated Circuits (IC) Programmable LogicDevices (PLD) Actuators Relays Meters Intelligent ElectronicDevices (IED) Bar codes Embedded Systems RTOS RFID Machine to Machine (M2M)Communications IoT and OT core components IndustrialAutomationSystem (IAS) IndustrialControlSystem (ICS) DistributedControlSystem (DCS) ProcessControlNetwork (PCN) SCADA ProgrammableLogicControl (PLC) OT core components NFC TPM HSM IPv6 KeyManagement Biometrics EmbeddedJava RTOS Encryption RFID Mesh Networks Wi-Fi GPS CDMA/GPRS/4G IT technologies used in IoT and OT 13

15. Key Issues 1. IoT, OT& IT! 2. Information Insights 3. What Are Some IT-OT integration Strategies? 4. Strategy, Innovation, and Governance!

16. Infinite Information "We now create as much information every two days as we did from the dawn of civilization to 2003." Eric Schmidt, Chairman & CEO Google Measureable BusinessOutcomes and Innovations Eric Schmidt, Chairman and CEO, Google Information Strategy InformationManagement Analytics Social Mobile External Data Real-Time Data Big Data

17. But Do We Have Really Have Choices? The system knows. Too much data. People are empowered. Information is easily available. People are enslaved. Beware the "free" app. Data use leads to societal conflict. Choice is an illusion.

18. Cross-domain Interoperability:Scalable by Design Focus on the right information, the right patterns,and the right characteristics for information sharing. Source: National Information Exchange Model (NIEM)

19. Variety of Information Devices, Systems and Applications Will Only Increase • Back-office, transaction management: Tabular, relational data • Real-time systems: Time-series audio and visual data • Citizen engagement: Text, IM, social media • Infrastructure management: Geospatial data, video, 3D models • Sensors and reporting: Time interval data, monitoring data The variety of sources will only increase. Velocity Volume Complexity Variety

20. OT+Real Time Systems = Big Data Warehouse Integration Europe North America 2012 to 2015: Government, Environmental, Urban Planning and Transportation 2012 to 2015: Government, Environmental, Urban Planning, Transportation, Education, Utility and Public Safety, ? 2012 to 15: ~ 2Government, Transportation, Utility and Health Asia/Pacific

21. Key Issues 1. IoT, OT& IT! 2. Information Insights 3. What Are Some IT-OT integration Strategies? 4. Strategy, Innovation, and Governance!

22. What Issues Does IT/OT Integration Raise? Operational Technology Information Technology Process transactions, provide information Manage assets, control physical processes Purpose Architecture Interfaces Ownership Connectivity Role Event-driven, real-time, embedded hardware and software (custom) Enterprisewide infrastructure and applications (generic) GUI, Web browser, terminal and keyboard Electro-mechanical, sensors, coded displays CIO and computer grads, finance and admin. depts. Engineers, technicians and LOB managers Corporate network, IP-based Control networks, hardwired Supports people Controls machines

23. Use the "Big Data" Hype to Build an IT-OT Strategy Pattern-Based Strategy™ (Seek, Model, Adapt) Social Computing Context-Aware Computing Volume Velocity • SocialNetworking • Search/Mobile Complexity Variety Images Transactional Data Audio Documents IT/OT Text Video Enterprise Systems

24. Your Integration Strategy Is? IT Asks these Qs: • Mission-Critical and Why? • Can We Map Environment to Operational Technology? • List Our Ability to Access and Store Data and Any Restrictions? • What Are Appropriate Alternatives? Information Centric Real Time Event Processing Mission-Critical

25. Combination of Mobility, BI and GIS for Government Continues… • Transactions • Reports • Events • Alerts • Enrichment • Correlation • Hot Spots • Maps BI GIS-LI MobileDevice • Positioning • Visualization • Data Delivery • Data Collection

26. Government Should Look for New Applications and New Opportunities OT/External Information Management New Rule: Adjusts to Change New Opportunity: Predictive or Real Time Monitoring = + Perishability Fidelity Devices, Applications and Systems Linking Validation Content Analytics Classification Contracts Identify Patterns (Social, Sentiment, Criminal) Predictive Analytics Pervasive Use Technology Velocity Volume New Business Applications Performance Management Complexity Variety

27. Data Mining for Riskless Farming • Opportunity: • Former Google employees offer crop insurance to underserved parts of the world • Data and Analytics: • Continually gathering weather measurements from 500K locations; 30 trillion simulation data points • Actuarial analytics to predict weather-related risksfor specific crops in specific locations • Hadoop, Lisp, Clojure, Amazon Web Services; 1000s of concurrent instances of MapReduce • Results: • Out-compete insurers that can't assess granular risk; automatic claim payments based on weather • Enable farmers in Asia and Africa to take on risk

28. Managing the Convergence and Interaction Between OT and IT IT OT • Alignment can be achieved Record Control Harmonized- Synchronized Operations • Architecture may be different • But needs integrated planning Command & Control Disparity Overcome silos — build a connected enterprise.

29. Key Initiative Overview for IT and Operational Technology Alignment 28

30. Key Issues 1. IoT, OT& IT! 2. Information Insights 3. What Are Some IT-OT integration Strategies? 4. Strategy, Innovation, and Governance!

31. Moving From Digitized Transactions to Digitalized Business Digitized Transactions Digitalized Business • Margin Improvement • Scale and Reach • Process Excellence • Optimization • Revenue Generation • Value Creation • Customer Experience • Innovation • Digital business creates new sources of value and revenue based on incorporating technology into business. • Digital business integrates digital resources to invent and innovate the business, rather than mimic current operations and capabilities. • Digital business involves reimagining the customer experience, value proposition, and set of capabilities required to create and sustain a unique business model. • Digital transactions — the act of applying technology to transform atoms into bits. • Digital transactions create an information-based representation (digital) of real-life things (analog). Examples include e-stores, e-books, online banking, and online travel. • Digital transactions are more efficient and scalable than analog transactions but mimic analog business models rather than changing the nature of value creation and revenue generation.

32. Discovering and Digitalizing the Business Customer Experience Enhanced Abilities Outcomes Digitalized Business Capabilities Capacity Interactions Context Operational Capabilities Situational Relevance

33. Definition of "Customer Experience" The customer experience (CX) is the customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier's employees, channels, systems, or products.

34. Common Standing Governance Process Structures and Roles

35. The Practical Governance Model Governance Process Governance Framework • Corporate Framework • IT Framework • Process Components • Governance Mechanisms • Corporate Strategy • IT Strategy • Structures • Standing Governance • Corporate Values • IT Principles • Roles • Project Governance • Business Model • Enterprise Architecture • Tools

36. The Gartner Business Model Framework "Who are your customers, what do they value, and how do you deliver that value at an appropriate cost?" — Peter Drucker 35

37. "Truly" Putting the Customer at the Center of the Enterprise… 36

38. Use Portfolios to Discuss Governance Strategically Without Structures • Competitive Differentiators • Commodities & Operations • Infrastructure & Compliance • Innovation & Game Change • Investment Principle: • "Risk Assess and Manage" • Investment Principle: • "Invest to Grow and ROI" • Investment Principle: • "Experiment and Write Off" • Investment Principle: • "Cheap and Good Enough" • Capability C • Capability B • Capability A • Capability D

39. Business Innovation and Emerging Trends Agenda Overview Source: Gartner

40. Boards of Directors — Should We Create a Board Technology Committee? Litigation for Failed Responses to Digital Business Threats Answer: YES! Purpose:The Technology and eCommerce Committee (the "Committee") is appointed by the Board to review and provide oversight of, and counsel on, matters relating to technology, eCommerce and innovation. Source: Walmart

41. Application Modernization ERP Case Study: Transformational Program for Commodities-Based Firm Approach/Differentiation • Connected the client with existing agribusiness, manufacturing, distribution and commodities-related Gartner clients. • Senior-level consultants with deep “been there, done that” experience to identify issues well before the program begins. • Battle-tested SI RFP templates that provide detailed responses to properly assess potential SI partners. • Independence and expertise to be a trusted advisor in project oversight, sourcing and vendor management. • Leveraged existing software and SI negotiation strategies. Benefits Achieved • Saved millions of dollars in licensing and consulting fees. • Provided Board of Directors with go-forward strategies and business cases. • Provided C-level executives with insights and recommendations for software and SIs. • Provided proven recommendations and best practices around high-risk areas, backed up by Gartner research. • Provided guidance on selecting the best partner for priming the transformational program. Client Context • Gartner led the largest Canadian-based agribusiness firm through an ERP and system integrator (SI) selection process and negotiations. Gartner first evaluated the client’s business process needs from a global perspective and determined the best-suited ERP suite for their complex agribusiness needs. Gartner then led the ERP request for information (RFI) process with two large software vendors. In subsequent negotiations, Gartner’s advice saved the client millions of dollars in licensing fees. • With the software purchased, Gartner directed the SI selection process for the client. This selection process was driven by Gartner research and Gartner consulting experience in the agribusiness-based transformations. Business Challenges • Rapid M&A growth. • Ongoing rapid penetration into emerging markets. • Wildly incorrect existing business case. • Commodities-trading system integrations required. • Global ERP system consolidation, while combining multiple businesses onto a single ERP instance. • Massive industry deregulation. • Underdeveloped business intelligence strategy. • Need to develop a Center of Excellence (CoE).

42. Conclusion: The Essence of Successful IT Strategy Lies in Balance Key 2013-2014 Realities S&G

43. Illustrative Example Recommended Gartner Research • Pattern-Based Strategy: Getting Value from Big Data Yvonne Genovese, Stephen Prentice (G00214032) • IT and Operational Technology: Convergence, Alignment and IntegrationKristian Streenstrup (G00210814) • Government Should Look Beyond Traditional Uses of Location-Tracking SystemsT. Jeff Vining (G00219026) • As UAVs Proliferate, CIOs Must Monitor Standards, policies and Regulations to Integrate Them Into Commercial AirspaceJeff Vining, Jerry Mechling (G00234688) • Smart Government Makes IT a Must HaveAndrea DiMaio, Jerry Mechling (G00232726) For more information, stop by Experience Gartner Research Zone.

44. IT applied in the Agricultural Technology Claudio Chauke, Executive Partner ExP Programs