Value Creation in The Digital Agribusiness Network

Value Creation
in the Digital
Agribusiness
Network
Transform and
Grow
to sustainably feed the
world
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SAP Digital Agribusiness Whitepaper (03/16) 2016 SAP SE. All rights reserved
ANJAS POINT OF VIEW
Dear Customers,
The world population is growing to upwards of 10 billion people by the middle of the century.1 This
growth combined with urbanization and the rise of the middle class will increase the demand for
healthy, fairly produced, and sustainable food and will require agricultural production to double.2
To succeed, we need smart solutions from farm to fork.
We expect the digitization of agribusiness to play a key role in solving this challenge. New
processes and technologies optimize seed selection, irrigation, fertilization, and crop protection;
automate farming work with autonomous equipment; optimize asset utilization; and streamline
the food supply chain to avoid waste. But even in a high-tech economy, agriculture is still exposed
to the weather, crop and animal diseases, and substantial fluctuations on commodity markets.
Predictive analytics and simulations enable optimized risk mitigation strategies. Digital
technology is turning the farm into a digital enterprise and the farmer into a digital entrepreneur.
Farmers stand in the center of a complex ecosystem of farming equipment manufacturers, food
"Digital technology and processors, and agrichemical specialists. At the same time, consumer behavior is changing
radically. Consumers are the focus point of the food industry. They want to know the origin of
collaboration are key
their food and how it was produced and processed, driving the need for transparency along the
enablers to provide end-to-end agribusiness supply chain. Digital transformation is a fertile ground for new business
sustainable, yet affordable models, innovative business processes, and new ways to work in the agribusiness network for
food for a growing world this planet.
population.
SAP has a long and trustful relationship with many companies in the agribusiness ecosystem,
Anja Strothkmper from origination, trading and food processing, to agrichemical companies, farm machinery and
VP SAP Agribusiness and equipment manufacturers. We have been helping our customers optimize their business
Commodity Management processes and make the best use of their IT investments.
SAP SE
SAP is the global leader in digital business processes, business networks, real-time database
technology, and supplier and customer relationship management. With SAP HANA, we have the
unified digital platform to integrate transactional and analytical data for real-time insights and
business processes. Bringing these together, we address the challenges in the digitized
agricultural world. Find out how the digital agribusiness platform based on the SAP HANA Cloud
Platform will help you to simplify your business processes in an increasingly complex world. We
are co-innovating with leaders along the agricultural supply chain to simplify, innovate, and
digitize business.
This document offers a point of view to start the discussion on the most relevant trends, new
business models, and processes in the agribusiness and food industry and explains how digital
technology drives this transformation. The content focuses on the digitization of crop farming,
but we invite you to also discuss the impact on livestock farming.
Our vision is to transform and to grow your business to sustainably feed the world. The insights
that follow are the tools to make that vision a reality. We offer you to take your current business
applications to the next level to meet the challenges of the new digital economy.
Thank you for your interest, and I look forward to your feedback.
Run Simple
Anja Strothkmper
VP SAP Agribusiness and Commodity Management
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TABLE OF CONTENTS
Executive Summary 4
Top 5 Technology Trends 9

Hyperconnectivity 11
Supercomputing 13
Cloud Computing 14
Smarter World 15
Cybersecurity 16
Reimagining 17
Reimagine Everything 18
SAP HANA: The Great Simplifier 19
Digital Business Framework 20

The Digital Core 22
Customer Experience 23
Workforce Engagement 24
Business Networks and Supplier Collaboration 25
Assets and the Internet of Things 26
The Digital Agribusiness Platform 27
How Does It All Come Together? 28
Why SAP? 32
SAP is Committed to Innovation 33
Complete Digital Business Solution 34
SAP Services and Support 35
SAP Comprehensive Ecosystem 36
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EXECUTIVE SUMMARY
Big picture: The digital agribusiness is real and its here to stay. Digitization in the
agribusiness sector significantly increases the ability to feed the rapidly growing world
population in a sustainable way
The Digital Economy in Agribusiness

In the agricultural industry, strong business transformation drivers coupled with
major technology trends are leading to new business models.
The challenge to the world population, which will grow to upward of 10 billion people
by the middle of the century, is on top of the industrys agenda. Digitization and new
technologies, such as drones, connected machines, and field sensors, are becoming
affordable and have the potential to drive more efficiency in the agriculture world Digital business
through innovation. models are disruptive.
The rules in agribusiness
Breakthrough technology trends have matured and hit scale together:
hyperconnectivity, supercomputing, cloud computing, the Internet of Things, and have changed.
cybersecurity. These trends will fuel the emergence of new business models. The
Land O'Lakes, a major cooperative,
speed of innovation is enormous, and start-ups in the agriculture space have the
acquired Geosys, a company that
mission to innovate fast and change every aspect of the industry as we know it today.
collects crop data via satellite to
In 2014 alone, start-ups in the agricultural technology space raised up to $1 billion on
develop tomorrows agricultural
venture capital.3
technology today.6
Agribusinesses are trying to adopt innovations fast. If you have no drone in your InVivo, Frances number one
garage yet, chances are your leading competitors have several of them. But while cooperative, is investing in Big Data to
trying to adopt technical innovations, agribusinesses in all segments (farmers and become the European leader in
producers, cooperatives, farm machinery and equipment manufacturers, agriculture.7
agrichemicals, originators and traders, food companies) struggle to realize the full Cargill provides software services
value potential for their organizations and customers. that guide farmers on how to best
plant crops, helping farmers
Aware but unsure maximize their output.8
Executives know the world has changed. Research shows 90% of CEOs believe the Nestl is not only buying from rural
digital economy will have a major impact on their industry, but less than 15% are farmers, but is also investing into
funding and executing on the plan.4 farmer training to secure sustainable
and high-quality supply of
Leaders in agribusiness are learning how to leverage these technologies to: commodities, such as specialty
Increase farming efficiency coffee.9
Create transparent and sustainable food supply chains
Manage market and price volatility Monsanto acquired Precision
Implement new, sustainable business models Planting, a manufacturer of precision
Engage with the right partners in business networks equipment, and Climate Corporation,
a provider of super-local weather
Early adopters are winning information. Monsanto shows that it
Agribusiness leaders need to decide where they stand while business transformation is serious about precision farming and
drivers and new technologies disrupt their industry. Research shows that early has now transformed from a seed
adopters are seeing significant value, with +9% revenue creation, +26% impact to business to a data science
profitability, and +12% market valuation.5 organization, providing the glue that
holds the pieces together.10
John Deere has 2,600 employees
WHAT DOES THIS TELL US? who come in every morning to
develop software. John Deere is
providing fleet telematics solutions
The road map to relevance requires reimagining business that allow farmers remotely manage
models in agribusiness and proactively evolving before new their equipment and analyze sensor
data in real-time.11
digital competitors emerge.
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EXECUTIVE SUMMARY
Digital agriculture: Agribusiness is turning digital
Transformation drivers New business models

Driven by digitization, agribusiness is transforming Reimagining agribusiness is about connecting the
rapidly. Traditional industry boundaries and digital farmer who needs to act as a farming
segments are blurring. This transformation is entrepreneur to run a profitable business in a
driven by the need to: volatile natural and market environment to the
Increase farming efficiency digital consumer, who needs healthy, tasty, fair, The world is
At the start of the value chain, there is and affordable food. This encourages all players in
tremendous pressure to increase the efficiency the agricultural industry to reimagine their
changing
of farming to produce more high-quality food in business models and processes.
Until the mid of the
a low-margin business and to reduce the Outcome-based services
century the worlds
consumed resources. Growing consumer Agricultural companies are increasingly
population will raise to
demand in developing markets is fueled by leveraging Big Data (e.g., field, livestock,
10 billion people. Food
developing countries increasing population, machine, sensor, and weather data and aerial
production needs to
which has a big appetite for meat and other imagery) to achieve better yields and outcomes
roughly double12, 13
high-calorie food. At the same time, the scarcity for themselves and their customers. This
of resources, such as water and fossil fuels, and includes smartly bundling digital farming Annual meat
decreasing arable land in many parts of the insights and improvements with products and production will need to
world are an even bigger challenge when services to provide precise and integrated rise by over 200
considering that crop output per acre will have agricultural solutions, optimizing outcomes million tons to reach
to increase, and in fact double, by 2050. based on the individual requirements of each 470 million tons by
Create transparent and sustainable food farmer. This makes Big Data a valuable asset 205014
supply chains and creates completely new opportunities and By 2030, global water
Consumer patterns in mature markets are revenue channels. demand will increase
rapidly changing and consumers have a growing Farmer-centricity by more than 50%15
interest in food safety and sustainability. Farmer-centricity is a new driving force in The amount of arable
People want to know the exact origin of what agribusiness. Many companies buying from land to feed the worlds
they eat and how it was processed. This requires farmers still consider farmers their upstream population is shrinking.
the ability to track and trace ingredients and customers rather than traditional vendors. With In 2005, 2,300 square
processes all the way back to the farmers and challenging market conditions and new, meters of farmland
even beyond to the seed and crop input innovative farming products and solutions, was available per
businesses. It creates the need for a connected, farmers need to act as entrepreneurs who person, but by 2030,
efficient supply chain that helps to reduce food operate their business in a complex and dynamic there will only be 1,800
waste. The food chain is under government and environment. This also increases the need for square meters 16
NGO scrutiny, which leads to increasing and specialized neutral agronomy consulting
changing regulations. services, strong relationships, and close
Manage supply and price volatility collaboration across the ecosystem.
Agribusinesses find themselves in an Local commodity marketplaces
environment of highly volatile commodity With growing connectivity, new channels are
prices and crop supplies. Companies therefore opening up for farmers to sell their crops. This
have a stronger than ever need to react to lowers the barriers for new players to collect
supply and demand shortages as well as market supplies from the farmers and create new online
price changes in real time. They need to put marketplaces where bids and offers for
efficient risk management and hedging commodities are published.
processes in place. At the same time, new While agribusinesses reinvent their business
technologies are opening up new sales channels models, they need to engage with new partners
for producers and enable the emergence of new and become more agile in establishing new
commodity marketplaces business relationships. Business networks
provide unprecedented opportunities to tap into
new segments and are a logical evolution of classic
supply chains in a digital world.
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EXECUTIVE SUMMARY
Burning platform: Complexity is an obstacle to digitization
Complexity in agribusiness How do we pull ourselves out of this

Complexity is the most intractable issue of our
quagmire of complexity?
time. It is an epidemic of wide-ranging proportions, The answer is simple:
affecting our lives, our work, and even our health.
To get the most out of this new world of digital
Why are we not getting the maximum value out business, you need to run simply. SAP customers
of the technology? Why is the speed of adaption produce more than
and change so slow? Finding ways to run simply matters more than 82% of the coffee and
ever in order to drive business innovation. When tea we drink each day
Agribusiness is getting more and more complex. you reimagine business models based on real SAP customers
Increasingly demanding customers are forcing insights, not trends, you can run simply. Its when produce more than
food companies to track, trace, and label their you can serve customers, not your process. Its 79% of the worlds
products. Complex food supply chains are when technology works for you, instead of the chocolate
spanning the globe, with processing steps in other way around. SAP customers
various countries. Regulations from governments produce more than
require endless efforts to achieve compliance. SAP doesnt do simple. It creates simple. It 77% of the worlds
Outsourcing, networking, and subcontracting are delivers simple. It engineers simple. beer
abundant in the seasonal business of growing
SAPs Run Simple approach integrates digital SAP customers
crops. Agribusiness players are dealing with a
systems and enables reimagining for unrestricted distribute more than
diverse group of suppliers and customers, often
innovation. 78% of the worlds
due to the blurring lines more vertical integration
food
within the industry.
SAP HANA is the great simplifier. SAP customers
Need to standardize produce 85% of the
The basis of digital business is a flexible, secure, worlds pet food
For 20 years businesses invested in standardizing real-time innovation platform SAP HANA. By Source: Fast Facts SAP Marketing
business processes and implementing productivity combining the simplicity and power of SAP HANA Research 17
tools to address this complexity. The results were with the endless possibilities of the cloud from the
remarkable significant business value was SAP HANA Cloud Platform, we have a universal
achieved in terms of productivity, use of assets, digital platform to manage Big Data,
and compliance. hyperconnectivity, and the Internet of Things. This
is the foundation for the digitized agricultural
But still, complexity is ubiquitous with the reality where business networks are forming and
proliferation of products, business networks, connecting and all members of the ecosystem are
regulations, etc. collaborating closely.
But how can you develop your road map to run

simply?
FROM: TO:
STANDARDIZATION SIMPLIFICATION AND INNOVATION
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EXECUTIVE SUMMARY
Road map to Run Simple: Three steps to digitize your business
REIMAGINING DIGITAL BUSINESS FRAMEWORK

Do you have the right strategy? Start by reimagining your SAPs digital business framework is based on the five key
business, with business outcomes and customers at the center. pillars of a digital plan and architecture:
1. Customer experience to successfully market products and
services in the different stages of the agricultural supply
REIMAGINE chain both to existing and new customers, through the
BUSINESS MODELS appropriate channels
Drive competitive advantage by expanding beyond 2. Supplier collaboration across all spend categories. In a
traditional industry boundaries and transforming large network of different players, agriculture-specific
from an asset to a service/ outcome-based goods are sourced starting from crop inputs like fertilizer
organization and planting services, to the produced agricultural goods.
This requires close collaboration with suppliers
3. Core business processes: Agribusinesses rely on solid
back-office functions in logistics and financials to maintain
consistent data along the whole value and supply chain
4. Workforce engagement, including employees and
REIMAGINE contractors. In agribusiness, subcontractors are employed
BUSINESS PROCESSES on a seasonal basis and tasks are shared among different
Change or eliminate fundamental business processes people
with digitization 5. Assets and the Internet of Things: With sensors, drones,
Big Data, and mobile technologies, farming can become
more precise and sustainable
ROI drives this significant phase of the transition to digital.

Its not about any one of the five pillars, but rather how they all
REIMAGINE interconnect to achieve business outcomes.
WORK
We leverage Design Thinking as a our key approach to the
Step-change improvements to existing processes
reimagining phase. Design Thinking can be described as a
based on real-time information used to make the
discipline that uses the designers sensibility and methods to
right decisions and drive immediate impact
match business needs with what is technologically feasible and
what a viable business strategy can convert into customer
value and market opportunity.
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EXECUTIVE SUMMARY
Road map to Run Simple: Three steps to digitize your business
DIGITAL AGRIBUSINESS PLATFORM Connecting to the agricultural Internet of Things, including

smart machines, drones, and robots the platform enables
In order to reimagine your business, you need to have the right smart data collection and automation
platform in place. You need to have a neutral partner who is Through standardization and open interfaces the platform
committed to an open ecosystem. SAP focuses on creating facilitates collaboration and allows to offer outcome-based
business value for our customers as empowered participants in digital services in an open agribusiness network.
the agricultural ecosystem, instead of implementing business
models where data ownership is transferred away from the
agribusiness to the solution provider.
The digital agribusiness platform enables innovation and agility

for applications along the agricultural value chain. At the same Connect your
time, it ensures data security and trust in collaborative Empower your enterprise to the Deliver open,
scenarios and protects intellectual property (IP), for example, lines of business digital economy agile, flexible apps
in the form of precision agriculture algorithms.
Digital agribusiness platform
The platform helps agribusinesses to offer precise, outcome-
based agricultural solutions leveraging agricultural Big Data.
It creates insight and supports constant optimization of IOT Mobile Spatial Integration Predictive
processes and practices by leveraging smart algorithms.
SAP HANA CLOUD PLATFORM
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TOP FIVE
TECHNOLOGY
TRENDS
Top five technology trends that are enabling the digital economy
and changing the landscape in agribusiness
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EXECUTIVE SUMMARY
Perfect storm: Five technology trends changing agribusiness
We are witnessing an unmatched era of true innovation in agribusiness. Breakthrough technologies have matured
and hit scale together, enabling five defining trends:
HYPERCONNECTIVITY
Every market participant and every machine is connected,
1
disrupting established rules in agribusiness. Connectivity drives
the movement of goods, services, people, knowledge, and
wealth. Connectivity also reaches developing countries where
agribusiness often contributes a significant share of the GDP.
SUPER COMPUTING
2
The limits of 20th century computing power are gone.
Networking and in-memory computing will play a key role in
feeding over 9 billion people by 2050. This is a prerequisite to
manage the huge amount of data that is created along the
agricultural value chain by sensors and machines.
CLOUD COMPUTING
3
Technology adoption and business innovation now move at
lightning speed. Agribusiness companies need a flexible and
cost-efficient IT infrastructure that allows them to manage their
data on a global scale and includes the knowledge of a
distributed network of business partners.
SMARTER WORLD
4
Connected sensors, drones, and robots are reshaping the
modern farming business, both for crops and livestock.
Platform-based technology bundles data and services.
CYBER SECURITY
Cyber criminals have expansive new capabilities to attack,
5 undermine, and disrupt businesses. Trust remains the ultimate

currency, giving security-focused businesses a significant
advantage in brand reputation. Data protection is vital for
agribusinesses to secure valuable IP and data, e.g., in crop sciences.
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1
2 3 4 5
Hyperconnectivity
In the digital world, everything is connected. Your business partners are connected over the whole
agribusiness value chain. Sensors and connected equipment are omnipresent in agricultural production,
transportation, storage, and processing, providing a real-time view into the agribusiness value chain.
Imagine agriculture when every machine and piece of 1. Sensors and aerial imagery in farming
equipment provides sensor data. Crop farmers and Sensors in the field measure soil and weather conditions
contractors are connected and able to operate based on (e.g., humidity, temperature) and livestock data, while
precise aerial image data. sensors on farming equipment give a real-time insight into
yield and quality parameters. Aerial imagery from drones
Hyperconnectivity in agribusiness requires an exchange of and satellites has become more accurate and affordable and
data and digital services between farmers, seed producers, is used to manage huge areas in amazing detail.
agrichemical companies, laboratories, equipment
manufacturers, agricultural service providers, contractors, 2. Robots and drones
agronomists, commodity markets and originators, food Robots are already common in the dairy industry and are
producers, financial service providers, governmental entering the farm field space. Drones can collect field
organizations, and other stakeholders. imagery and sensor data to detect crop health and growth
and support precise farming activities such as dropping
Standardization of data services and the establishment of beneficial bugs into fields as a natural pest control exactly
common data standards across the industry are ongoing where required. Robots will soon automate many farming
requirements. Flexible solutions are also required so that processes and take over tasks such as weeding, fertilizing,
participants can simply adapt when new strategic partnerships seeding, or pruning plants.
are established and the ecosystem consolidates technology
3. Track and trace connected goods
standards. A neutral network orchestrator that is unbiased and
Digital transmitters and sensors revolutionize storage,
familiar with different industry perspectives can provide an
transportation, and processing. Tracking and tracing raw
open platform.
materials and processed goods along the whole agricultural
and food value chain will become standard practice.
Exchange of expertise will be one of the core efficiency drivers
resulting from the digitization of agriculture. Data and 4. Mobile devices in farm management
technology alone will not provide value is theres no exchange Tablet PCs are already commonly used in tractors. Through
of expertise. Digitization provides the technology to share online connection to the farm management system, the
experience locally and globally. Benchmarking and agronomy farmer stays informed about planned and completed tasks,
services will help to identify best practices. Communities and often combined with GPS/GNSS and a GIS map of his fields.
relationships can be strengthened when individuals are In developing countries, mobile phones are attractive for
connected via the Web or, in developing countries, via SMS, farmers, e.g., for micro-payments or agronomy information
helping farmers to increase their yields and efficiency. services.
5. People and communities
Building relationships and communities to share knowledge
is key for farmers and their success. Farmers have specific
requirements when it comes to the right channel and
technology. Whether via omni-device farmer portals with
embedded analytics in industrial countries, or SMS
communication with farmers in rural areas in developing
countries, it is the content and service that drive value and
participation within a community.
Agriculture is expected to make 60% of farms in the United The market for agricultural robots
up 80% of the potential market Kingdom are already using is expected to reach $16.8 billion
for drones in the near term.18 IoT technology.19 by the end of 2020.20
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2 3 4 5
Hyperconnectivity
In a digitized world, enterprises are connected with every part of their supply chain up to smallholder
farmers in developing countries. They collect electronic data from farmers even if they are located in the
remotest areas, such as rural Africa, and support a sustainable and traceable supply chain, while at the
same time improving the communitys livelihood.21
Digitization example: Smallholder farmers in Africa supply chain and allows for the capture of detailed data, such as
digitally integrated in the global food supply chain single received bags of commodities like shea or macadamia
nuts, coffee, cocoa, and many others.
Imagine that mobile applications enable smallholder farmers in Digitizing means improving the agricultural value chain - in
Africa to get SMS notifications on deliveries, weather updates, particular for smallholder famers.
and information on agricultural practices and prices from their
customers. These customers are the big commodity trading Increasing transparency, efficiency, and accountability and
and processing companies that want to ensure traceability as avoiding fraud in the commodity value chain through
well as high quality from the very first stage of the value chain. integrated paperless processes
Enabling end-to-end traceability for certification
Conducting business in more sustainable ways is becoming
increasingly relevant, as is the demand to adhere to global and Sharing and ensuring farming best practices and regulations
national trade standards. To stay ahead of competition,
Communication and training, also in areas where no Internet
agribusinesses and their customers need to track, trace, and
connections are available, through SMS
document in detail where the product is coming from and how
it has been produced. Consequently, smallholder farmers need Mobile collection of data through mobile phones and central
to be fully integrated into the supply chain to assure food monitoring of data
safety.
Efficient and transparent processing of advances and
By using mobile devices and smart processes in rural areas to payments through mobile payments using various local
identify the farmers and digitize the procurement process, standards
agribusiness enterprises are collecting electronic data from Crowd-sourced translation into local languages
farmers, even if they are located in the remotest parts of rural
Africa. This helps to identify the producers and support a Opening the door to financial services from banks and
sustainable and traceable insurance companies for smallholder farmers, thereby
improving their livelihood
Agriculture is the main industry in 80% to 90% of world Almost 70% of all mobile phone
sub-Saharan Africa, employing cocoa production comes users in Kenya are using their
65% of Africas labor force and from 5 to 6 million mobile phone to make or receive
accounting for about one-third smallholder farms.23 payments.24
of its gross domestic product.22
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1 3 4 5
Super Computing
Digital agribusiness creates a huge amount of data; crop, livestock, machines, and processes are
constantly observed with sensors and aerial imagery. Commodity markets are streaming real-time market
data around the world, making supply and demand more transparent than ever before. Analyzing this data,
drawing the right conclusions, making the right decisions, and executing on them are key to mastering the
digital shakeup.
Supercomputing will play a tremendous role in feeding over 9 Precision agriculture algorithms
billion people by 2050. Processing the enormous amount of Algorithms that optimize agricultural production activities will
data that is collected in all parts of the agricultural supply chain be a key differentiator and competitive advantage when
is only possible through a huge increase in computation power. agribusinesses make the transition to digital. By correlating
Leveraging this data will increase efficiency in agricultural data and applying smart models, algorithms, and machine
production, commodity markets will become more transparent, learning to agricultural data, it is possible to create insight
and the commodity supply chain more agile. and optimize farming activities such as irrigation, application
of fertilizer, and crop protection.
After eight years of innovation and development, SAP, with
Predictive analytics and simulations
the Hasso Plattner Institute and our strategic partners, created
Shortages and disruptions will be predicted before they
a completely new platform that eliminates the separation of
happen by combining data both structured and
transactions and analytics. This technology, SAP HANA, has
unstructured from a large range of sources such as field,
provided a massive breakthrough to the business world.
weather, economic, and market data and agricultural news.
Data scientists and quants will become a vital part of
SAP HANA will enable agribusinesses to simplify supply chain,
businesses.
finance, and other processes and run them in minutes, not
hours or days, changing how people work. Changes such as Research and genomics
reorganizations, product launches, etc. can be made in one- Data generation in agricultural production will create huge
tenth of the time. Huge amounts of agricultural data from opportunities for research and genomics. The availability of
sensors and machines, about weather and a multitude of other this data, produced under real conditions, will allow
sources together with geospatial information, can be crunched researchers to constantly and more efficiently optimize their
by smart algorithms. This adds tremendous agility and speed to models, algorithms, and products.
the business.
According to Eduardo Barros, Accentures The precision agriculture market is Conventional weather models have a
Global Products Agribusiness Lead , a six- growing at over 13% per year, resolution of 12 km. Researchers from
month pilot study found that precision reaching $3.7 billion by 2018.26 IBM and the U.S. Dept. of Agriculture
farming may already directly increase are building weather models on parallel
crop size by 15%, with further potential for processing supercomputers with a
improvement.25 resolution down to 1.5 km.27
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Cloud Computing
Cloud computing will accelerate time to value, drive higher adoption of new technologies, and connect
value chains in real time. Agribusiness companies need a flexible and cost-efficient IT infrastructure to
manage their data on a global scale that includes the knowledge of a distributed network of business
partners.
By moving parts or all of the IT infrastructure into the cloud, our 1. Software-as-a-service (SaaS)
customers can innovate with faster time to value and focus on SaaS is a mature trend, with companies like Ariba providing
their real business, whether they manufacture agriculture solutions via the cloud. SAP has 80 million+ users
machinery, produce seeds or fertilizers, or raise livestock and leveraging SaaS and helps companies like machinery
plants. manufacturers or agrichemical producers standardize their
business processes.
Agribusiness companies are dealing with a network of suppliers
and customers that all are sources of valuable data. A shared 2. Platform-as-a-service (PaaS)
source of common data allows all players to execute their PaaS provides an entire computing platform in the cloud,
business in a more coordinated manner based on real-time including hardware, software, and open APIs, to build new
data. businesses and create new solutions. An agriculture PaaS
with a real farming data model and a set of open services
What if a cooperative, which acts on behalf of hundreds of can be the foundation for a farmers network. Shared
farmers, provides a single cloud-based instance of all their services allow farmers and agriculture companies to work
assets and activities? And what if the individual farmer can with a wealth of real-time farm field and livestock data.
access his and his parent companys data directly from his
3. Infrastructure-as-a-service (IaaS)
office or even from his tractor? New market and sales data are
Businesses are leveraging IaaS to get up and running in a
available at his fingertips, whenever the cloud-held system is
matter of hours, without spending significant capital
fed with new data or functions.
expense. This increases time to value and leaves them to
focus on their core agriculture business.
A farmer can make bids and sell his or her products through a
farmer portal, thus accessing the world of agriculture without 4. Business networks
making lengthy phone calls with numerous partners. Agriculture companies are engaging and sharing
information and transactions with their business partners
over business networks. This collaboration changes how
commerce is done in agribusiness and enables companies
to develop new partnerships and stay agile in a digital world.
Global SaaS software revenues are forecasted to reach $106 Projected spending on cloud computing infrastructure and
billion in 2016, increasing 21% over projected 2015 spending platforms will grow at a 30% CAGR from 2013 through 2018,
levels.28 compared with 5% growth for overall enterprise IT.29
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Smarter World
Connected sensors, drones, robots, and artificial intelligence will completely reshape the modern farming
business, both for crops and livestock. Affordable and abundant technologies are digitizing the farm and
the farm-to-fork supply chain.
The world is becoming smarter with the digital economy, and There are a number of key innovations enabling the world of
this is influencing agribusiness and modern farms in dramatic agriculture to become smarter:
ways. Farmers can leverage Big Data and new technologies to
completely change the ways they produce crops and food. 1. Digital farming smartly combines several technology
trends to make farming more efficient, sustainable, and
Technology adoption increases as the next generation of resilient. It relies on the data collected by sensors and aerial
farmers takes over responsibility as farming entrepreneurs .It imagery, bringing this data together with the domain
helps these farmers to drive their business towards becoming a experience brought into precision agriculture algorithms.
sustainable and profitable operation. This combination enables predictions, simulations, and
optimizations. Digital farming helps to boost yields, increase
All members of the agribusiness network are creating new quality, save input resources, and reduce the impact of
business models, embedding software in products, and negative events like droughts, flooding, or pest infestation.
focusing on business outcomes.
2. Smart procurement and trading
Originators or traders can develop and adapt procurement
and trading strategies by combining fundamental
agricultural data with real-time market data, thus reducing
their risk exposure.
3. Agricultural data and service marketplaces
Changing business models and partnerships will create the
need for flexible, secure ways to exchange and market data
and digital services to allow collaboration and integration
between all participants in the agribusiness ecosystem. This
will help participants monetize the value of the exchanged
data and digital services.
4. 3D printed food
A recent technology innovation is the printing of food, which
enables a quick and customer-specific food experience.
While this is still in early days, it has high potential for
disruption in the industrys future and is worth keeping an
eye on.
A survey conducted by the American Precision agriculture can improve According to Eduardo Barros, Accentures
Farm Bureau indicated that the use of Nitrogen fertilization efficiency by Global Products Agribusiness Lead, data-
precision technologies has reduced input 10-15%. This reduces the required driven decisions about irrigation, fertilization,
cost by 15% on average and increased amount of nitrogen fertilizer without and harvesting can increase the profitability
crop yield by an average of 13%.30 an negative impact on crop yield. 31 of corn farms by $5 to $100 per acre. 32
- 15 -
5
1 2 3 4
Cyber Security
With ever-increasing risk of corporate spying and digital theft, cybersecurity must be addressed as
organizations in agribusiness set and execute their digital strategy.
Corporate spying and digital theft are on the rise, and The following cybersecurity elements should be addressed:
organizations need to address cybersecurity at the corporate
level. Farmers are increasingly creating and owning valuable 1. Securing data
and sensitive data, which need to be secured in a business with Securing data requires that companies and their partners
relatively low margins. adhere to data privacy and compliance regulations,
understand local data controls, and establish encryption
Managing security across your digital business must be and classification criteria. All data collected from farms
accomplished through proper governance. This reduces TCO, requires secure and controlled networks, storage, and
business risk, and compliance breaches and solidifies the trust distribution. As most agricultural data is geo-tagged, it can
of your customers. be traced back to the farmer. The seed and crop input
business also needs to secure highly confidential and
competitive data.
2. Securing interactions
Value chain interactions must be secured. Joint SLAs should
be in place with partners, checks should be at the
application level to prevent wide-spread impact, and
connectivity should be safeguarded.
3. Securing identities
1101101010001101010
11001001010100100100 Access to digital information should be restricted to
1010110001010101110001
110101001110100100100111
authorized users. There should be central authentication
0010010111011101011010010 regardless of device, and devices must be maintained to
110110111000001001010010
01001001011010010010011 prevent hackers from gaining access to your digital IP.
0010100100111010101011
1101110110110000101010
4. Partner with trusted suppliers
Securing data Supplier relationships are key in establishing trust as more
non-core processes are outsourced. Companies, co-
Securing interactions
operatives and farmers should build relationships with a few
Securing identities partners who will meet the highest security standards. This
will also result in a more simple and nimble architecture.
5. Securing intellectual property
Agribusinesses are investing billions of dollars into research
and innovation. Safeguarding intellectual property and
patents is a matter of survival. Services and algorithms that
are being developed in the new era of smart farming have to
be safeguarded.
In 2014, 47% of adults in the United States In 2014, five out of six large companies Globally, cyber crime costs businesses
had their personal information exposed by were targeted by cybercriminals, a $375-$575 billion annually and a net
hackers.33 40% rise on the previous year.34 loss of up to 200,000 jobs in the United
States alone.35
- 16 -
REIMAGINING
THE DIGITAL ECONOMY OFFERS

INFINITE NEW OPPORTUNITIES
The ecosystem of agricultural companies, partners, and farmers is
becoming a digital network. Smarter products and services will
refocus commerce on business outcomes.
- 17 -
REIMAGINE EVERYTHING
DIGITAL INNOVATION IS REAL

Agribusiness companies understand that hyperconnectivity and Big Data are the keys to value creation.
Based on SAPs collaboration with thousands of businesses worldwide, weve seen that winning companies
are moving quickly in three strategic areas.
REIMAGINE REIMAGINE REIMAGINE

BUSINESS MODELS BUSINESS PROCESSES WORK
A focus on outcomes, specialized When analytics and transactions are Employer of choice status goes beyond
agronomy, and evolving marketplaces combined in real time on the same recruitment and retention to
drives new agribusiness models. platform, business processes will never fundamentally revolutionizing the way
look the same. people engage.
Outcome-based services:
Agribusinesses are increasingly Farm-to-fork traceability and Empower the information worker:
leveraging Big Data (e.g., field, livestock, transparency: By achieving visibility of By enabling users to access the right
machine, sensor, and weather data) and materials and goods along the whole information at the right time on any
aerial imagery to achieve better yields value chain, agribusinesses can react to device, you enable better decisions.
and outcomes for themselves and their the growing consumer demand to Work and critical processes can be
customers. An example of this is smart understand where their food is coming completed faster, with reduced time
bundling of digital farming insights and from and how it was processed. pressure on the information workers.
optimizations with products and Achieving traceability in commodity Achieve frictionless execution:
services. Businesses can thereby provide processes is complex, but agribusinesses Straight-through processing of
precise and integrated agricultural can gain a significant competitive transactions between companies over
solutions, optimizing outcomes based on advantage and realize premium prices business networks, e.g., for trading
each individual farmers requirements. with these process capabilities. and origination of agricultural
Big Data is a valuable asset and creates Self-optimizing processes: Processes products helps users resolve
completely new opportunities and across the value chain can be optimized exceptions instead of wasting energy
revenue channels. by smart algorithms that help save input on creating redundant data.
Farmer-centricity: Many companies resources and boost productivity in Leverage subcontractors: Find
buying from farmers still consider them agricultural production, transportation, workers for seasonal or one-time
as their upstream customers rather and processing. Self-optimization, e.g., of tasks on the fields, farm, and
than traditional vendors. With stock levels, supply, and demand, helps throughout the value chain.
challenging market conditions and new, reduce cost and waste and increase both Fair and sustainable working
innovative farming products and margins and environmental conditions: Workers and farmers in
solutions, farmers need to act as sustainability. rural areas can enjoy improved
entrepreneurs who operate their Agile enterprises: Business processes working conditions by integrating into
business in a complex and dynamic need to seamlessly cross organizational, the supply chain. With mobile phones,
environment. This also increases the technical, and geographic boundaries. As it becomes possible to collaborate
need for specialized neutral agronomy business becomes more agile, processes closely, exchange best practices, and
consultancy services, strong have to adapt to unanticipated situations assure compliance to standards and
relationships, and close collaboration. and changes without causing certifications.
Local commodity marketplaces: With disruptions. By predicting malicious Simple: If we simplify everything, we
growing connectivity, also in rural areas, events in machines or in production, it is can do anything. By making work
new channels are opening up that lower possible to react earlier and avoid cost simple, workers can focus on creating
the barriers for new players to collect and disruptions. value.
supplies and create new marketplaces.
- 18 -
SAP HANA: THE GREAT SIMPLIFIER
In order to reimagine everything in a digital agribusiness SAP HANA enables simplification with a unified platform,
ecosystem, agility and flexibility are required to adjust course at bringing together transactions and analytics for a variety of
any time. This involves two key concepts: simplification and data sources and integrating all types of data:
innovation. Geospatial data
IoT, machine, and sensor data
Simplification is all about doing what we are already doing, Weather data
but better, faster, and cheaper Aerial imagery
Innovation is all about reimagining business models and Real-time data streams (market data)
customer value by leveraging the five technology trends Unstructured text (processing of rules and regulations)
Genomics data (for R&D applications)
What is the SAP HANA platform? SAP HANA is a Social media data (for sentiment analysis)
revolutionary approach to data analysis. As an in-memory data Third-party data sources and databases
platform, it enables information analysis on large volumes of
data at unprecedented speeds. You can process literally However digital agribusiness needs information not only
hundreds of millions of complex data records in seconds. This data:
real-time platform utilizes data that is resident in-memory. Extensive data preparation adds time and cost to any system.
Because the data is not written to disk and does not need to be Agribusinesses need to be able to analyze complex variables
pre-aggregated, information is instantly available for use. across diverse data types and sources in real time, and without
having to aggregate data a process that often lacks detail and
The platform enables flexible analytical models that use both analysis options. Taking full advantage of todays data-rich
real-time and stored data. agribusiness environment requires nothing less than a new
approach to data analysis.
Predictive Data modeling
SAP HANA analyzes data in minutes, not in days. This
Columnar OLTP+OLAP
Graph SAP Text
Planning translates into faster and more precise farming activities, better
agricultural product recommendations and prescriptions, and
Dynamic tiering
Spatial HANA Multitenant containers
Functions more efficient and precise agricultural supply chain
Search Time series management, operations, and planning. With flexible analytical
models, smart real-time analytics, predictive algorithms, and
On-premise | Cloud | Hybrid machine learning, agribusinesses can generate valuable
insights. These insights enable agribusinesses to make faster,
better decisions and be better informed than ever before.
The SAP HANA platform ecosystem is constantly growing SAP HANA innovation example: Meteo Protect is a French
with new customers, development partners, and innovative insurance and reinsurance broker that helps agribusiness
startups constantly adding to the base of solutions, expertise companies and cooperatives manage weather risks.
and content for SAP HANA.
The company provides customized policies based on specific
SAP enters into new partnerships to facilitate collaboration and parameters (analyzing geo-location, risk period, weather
integration. We cooperate with the European Space Agency parameter, and value insured). Pricing is individual to each
(ESA) to process large amounts of earth observation data from policy based on sophisticated climate models. Each quote is
the Sentinel satellites in the Copernicus Space program. This based on the weather history and climate model tailored to the
data can be used by agribusinesses to observe fields and crops. specific risk parameters. SAP HANA calculates the risk and
Enabling fast and efficient access to such new data sources provides the quote in real time.37
creates opportunities for applications and scenarios that once
were unachievable.36
- 19 -
DIGITAL BUSINESS
FRAMEWORK
A SIMPLE APPROACH TO VALUE

CREATION THROUGH DIGITIZATION
Every agribusiness company requires a simple digital approach to
build a pragmatic and executable vision of its digital strategy.
- 20 -
DIGITAL BUSINESS FRAMEWORK
Every company needs to think about digitization across five key pillars
SAP understands the five technology trends, and we also 1. Outcome-based customer experience: An
understand that these ever-changing requirements are big optimized customer experience is required to
challenges for businesses. The reimagining process helps
market products in the different stages of the
crystalize the future business model.
agricultural supply chain
We have built a structured framework to help develop and 2. Supplier collaboration to accelerate growth
execute on your digital business strategy: the digital business innovation
framework. With this framework, the entire agriculture value 3. Re-platform core business processes and bring
chain will be digitized, including the core, which serves as the together transactions and analytics in real time to
platform for innovation and business process optimization.
be smarter, faster, and simpler
Every agribusiness company can develop a digital strategy 4. A smarter and engaged workforce across all
across these five pillars. employees and contractors
5. Harness assets and the Internet of Things to drive
real-time insights and new business models
Workforce Supplier collaboration

engagement Business networks
Digital Core
Assets & Customer Experience

Internet of Things Omnichannel
SAP HANA PLATFORM
- 21 -
THE DIGITAL CORE
A new generation of ERP solution, running in real time, integrating predictive, Big
Data, and mobile, will change how agribusinesses work.
John Deere
With advanced in-memory computing, you can run simply and unleash the full built innovation on the SAP HANA
power of the digital business. platform. Larry Brewer: "We believe
this will let us identify problems in
Real-time business the field much quicker. In some
Real-time optimization of business-based changes will have massive implications for how we cases we've estimated we'll be able
work, how we do business, and how we organize. to spot problems two to three
months faster than before.38
Simplified financials
Finance organizations need to embrace the digital age to keep up with new and evolving
business models and provide decision makers with instant insight. You can achieve a Florida Crystals
common view over all financial and operational data as well as flexible, easily consumable
took only four weeks to upgrade to
reporting and automated processes and instantly evaluate the financial implications of
SAP S/4HANA and SAP S/4HANA
business options with prediction and simulation.
Finance (formerly SAP Simple
Finance) 2.0. That upgrade into full
Commodity trading and risk management
production was a first for any SAP
With SAP Commodity Management, the digital core provides insight into the commodity
customer.39
price risk positions. Within a fully integrated suite, you have all the tools to hedge market
price risks, including position reporting, mark to market, and financial instruments.
Origination Manage complexity

With SAP Agricultural Contract Management, food companies and agricultural traders or Don Whittington of Florida Crystals:
originators can procure agricultural products from cooperatives and farmers based on Our business has grown into the
contracts. After the recording of quantities and qualities, the loads can be assigned flexibly worlds largest cane sugar refiner,
to existing contracts. which means we are managing
complex operations amidst the
Deployment choice and lower TCO volatile commodities market and
The consuming solution to run the core has to be simple. Companies now have the choice to ever-changing cost structures ()
deploy in-house or in the cloud. In-memory computing will also have a significant impact on SAP S/4HANA Finance (formerly
TCO, as it will free up more budget for innovation. SAP Simple Finance) enables our
financial management to run
Consumer-grade user experience simple, with instant insight and ease
User experience is key to success. It drives adoption, user engagement and, ultimately, of use, helping us to stay
productivity. competitive and retain our industry
leadership position.40
Simplify with SAP
SAP S/4HANA is the only end-to-end solution that covers

all business processes in the agriculture business and runs
in-memory.
The SAP Commodity Management solution helps food

companies manage their commodity value chain and
Procurement Manufacturing Supply Chain Order management
reduce pricing risks. SAP Agricultural Contract
Management is used by agriculture originators and traders
to effectively procure their goods from farmers. Finance
SAP HANA PLATFORM
- 22 -
CUSTOMER EXPERIENCE
Digital technology has changed the face of agribusiness. But farmers have also
changed. In addition to products and services, agricultural solutions are also sold.
These key trends are reshaping the customer experience:

86%
of customers are willing to pay more
for a better customer experience41
Sell through a network
In a network of networks, the agricultural producer will sell products with high visibility on
quality and price through a farmer portal. The agricultural platform enables farmers, farm
machinery and equipment producers, and agrichemical companies to collaborate and
conduct business in a standardized way. 57%
of the buying process is completed
Mobile sales of products and services in rural areas before a first interaction with sales.42
In rural areas, especially in Africa, the farmer is included in the agricultural value chain in a fair
manner. In this win-win situation, food companies and the producer benefit from sustainable
and high-quality food. Mobile technology (e.g., payments via SMS, mobile services through
SAP HANA Cloud Platform mobile services, or SAP Mobile Services) play an increasing role. 1 Million
Spare parts are available to order in
a catalogue on a B2B platform
Big Data, services, and market prices
directly connected to BayWas SAP
By gathering Big Data from fields and sheds, the farmer will enter into a completely new, system. This international trading
profitable business. Other partners in the network provide services in exchange for and services group runs an
knowledge, such as farm field data. integrated B2B platform based on
SAP Hybris in cooperation with
Sales channels machine manufacturer Claas to
Cloud technology leverages sales processes into various channels (SAP Hybris solutions). facilitate the ordering of spare parts
This optimizes sales processes and boosts the sale of products, data, and services. for farming equipment. 43
Digitize your end-to-end customer experience with SAP
A single platform brings together marketing, sales, services, and

commerce (including SAP Hybris omnichannel solutions) to
ensure seamless digitization of the entire customer experience.
SAP customer engagement and commerce solutions, powered by
SAP HANA, enable a 360-degree view of your customer, real-time
interaction, and sophisticated predictive analytics, fully integrated VIDEO
TV SHARING SOCIAL
to the core transactional system. With additional agribusiness- MEDIA
specific applications, such as SAP Rural Sourcing Management
CALL
and a farmer portal for agricultural food companies, there is a CENTER MOBILE
unique customer experience for farmers and originators.
SELF
$
SERVICES QUOTE
TO CASH
CUSTOMER
SAP Cloud for Customer EXECUTION
PHONE
Orchestrate business processes across marketing, SMS
commerce, sales, and service

E-COMMERCE
Deliver personalized experiences in context with each TRADE
RETAIL
interaction
Create a single, harmonized experience for your customer
while reducing the burden on employees
Be prepared to engage your customers on the channels they
choose at any moment in their journey
Achieve full integration with your core business processes
SAP HANA PLATFORM
- 23 -
WORKFORCE ENGAGEMENT
The world is getting smarter in the digital agricultural industry, but complexity is
hampering the workforce in this pursuit.
All along the agricultural supply chain, the required workforce fluctuates heavily Over 1 billion people are
employed in world agriculture,
throughout the year, driven by harvest seasons and yield. Assuring the right representing 1 in 3 of all workers.45
resources are in place while still staying competitive is a mayor challenge for
agribusinesses. Organizational complexity is driving costs up in this area and Around 273,000 farmers were
slowing down progress and flexibility. Three forces need to be addressed: trained by Nestl in 2012. We have
to focus on the next generation of
Changing of the guard farmers to make it happen that we
Millennials will make up as much as 75% of the U.S. workforce by 2025.44 This will require a really have long-term ensured
workforce strategy to address this new reality, especially since working in the agriculture supply.46
sector is losing popularity in developed countries, where, more and more, people are moving
into the big cities.
ConAgra Foods
Contingent labor is on the rise success is its people. With SAP
To drive agility, lower fixed-cost companies are frequently turning to contractors and SuccessFactors solutions, the
services providers. Often farmers use subcontractors on a seasonal basis, and tasks are company standardized its systems
shared among different people. SAP Fieldglass solutions are used to manage the seasonal to capture succession planning,
workforce, both on the farm and along the supply chain when additional resources are talent reviews, and other key data to
required. spur change management and
growth. ConAgras HR team now
Sustainability and social responsibility benefits from more available data on
Agricultural companies do business on a global scale, with a value chain spanning several staff, more engaged and productive
countries. This food chain is under scrutiny by NGOs, local governments, and the end employees, and improved
customer, and needs to develop towards a more sustainable and social value chain. Child efficiencies from standardized,
labor and worker safety and health standards at supplying companies are hot topics. integrated processes.47
Improve your total workforce productivity. Simplify with SAP
Digitize your workforce with SAP: SAP S/4HANA + SAP SuccessFactors solutions + SAP Fieldglass solutions + SAP Fiori provide the
tools for total workforce engagement and advanced analytics.
Attracting the best workforce
Recruit and onboard the best workforce, simplify their work, and ensure that regulatory and compliance requirements are met.
Fitting the right role with the right skills is mandatory
Managing the total workforce lifecycle
From recruiting and onboarding, to performance, compensation, and learning all in one place
Smarter apps with greater user experience
Enable the workforce to easily access the right information across any device and through a dramatically simplified user experience
EMPLOYEE LIFECYCLE SMARTER APPS WITH FLEXIBLE WORKFORCE LIFECYCLE

IMPROVED USER EXPERIENCE
Recruiting/onboarding Recruiting/onboarding
Performance and goals Contextual Time and expense
Succession and development Intuitive Invoicing/payment
Compensation Adaptive and predictive Statement of work
Employee record and payroll Anywhere/anytime Performance management
Travel and expense Secure Workforce analytics
Workforce analytics
Learning
SAP Fiori
- 24 -
BUSINESS NETWORKS AND SUPPLIER COLLABORATION
All players in the agricultural industry are collaborating in networks by market
segment. With blurring industry boundaries, these will converge into a network of
networks. The agricultural industry needs a solution to simplify its networked business.
Companies in the agricultural industry need to reimagine business processes

Networked companies are
to remain competitive and best serve customers in the digital economy. From 50% more likely than their peers to
have increased sales, higher profit
sharing data securely and in real time, to providing personalized and
margins, and be a market leader.48
contextual insights, to changing how companies exchange and offer products
and services, collaboration across entire vertical markets is key to value 5075% faster transaction cycles
creation. Several trends in the agricultural industry are redefining the game: are being achieved with the Ariba
Network.49
Farm-to-fork transparency and traceability
The digital core provides an end-to-end view over the whole value chain, with the ability to Dole is achieving efficiencies with
track and trace products from the farm, through processing, to the end consumer. the Ariba Network and was able to
trim its 16-day purchase order
process down to just a few hours.50
Farmer collaboration
Working directly with farmers as customers, vendors, or both requires close collaboration A leading consumer food processing
over the right channels to increase farmer retention. This can be achieved through company connects to more than 450
customized farmer portals to share relevant content like market information, best practices, suppliers from over 17 countries
trainings, or agronomy advice. In rural areas where connectivity is limited, SMS services can through the Ariba network. With
be offered. Often an expert team that maintains direct contact and travels to the farmers is $346 million in annual spend
also required. over the network, the company can
keep its supply chain moving faster
Services and consulting than ever.51
Agrichemical companies, machinery providers, and cooperatives are increasingly
The global food traceability market
leveraging Big Data (e.g., livestock health and farm field data) and services (e.g., consulting,
(farm to fork) had an estimated size
planting services, etc.) to provide integrated agricultural solutions to their customers. This
requires the selective sharing of useful data, such as expected or actual crop data, or of $7.8 billion in 2014, and may
forecasted milk production. reach over $19.0 billion in
2022.52
Connect businesses to the world of agriculture and the world of agriculture to your business
SAPs solutions for procurement give you incredible capacity to digitize business processes across your value chain. Companies have
end-to-end supply chain visibility from farm to fork.
SAP Global Batch Traceability can track and trace raw materials through processing to finished goods. SAP Commodity
Management and SAP Agricultural Contract Management for agricultural traders and originators enable you to extend processes
across company borders
Business networks operate on a global basis, meet data security standards, and operate using industry best standards
Services from partners vastly extend the value of core offerings
Travel and entertainment Direct and indirect material Labor and services
- 25 -
ASSETS AND THE INTERNET OF THINGS
The most dramatic change in the digital agribusiness will be driven by hyperconnectivity .
and Big Data science.
39% of corn and wheat

Agribusiness companies are finally understanding the full potential of the
farmers in the United States
interconnection between physical and digital assets and the Internet of things. We are using sensor-driven
are witnessing new use cases with breathtaking results. Below are some key trends: technologies.53
Digital sensors and IoT

Digital sensors that measure humidity, temperature, soil, etc., are providing a huge amount of data. $1.77 Billion
Together with GPS-based coordinates, they provide a real-time view of the farm. Estimated size of Precision
Farming Software and Services
Big Data and cloud platform market by 2020.54
Huge amounts of data are collected, analyzed, and retrieved. Data models and algorithms turn
such time series data into intelligent application-specific data.
Up to $1 Billion
Mobile technology investments into more than
With tablet PCs, information can be collected on remote fields and on the farm, making it 150 startups in
immediately available in the back office. Electronic steering devices control machines on the field agriculture and food in 2014.55
or in the sheds.
Intelligent machinery, robots, and drones 1.8 billion mobile

Self-driving tractors and intelligent machinery use the prescription data calculated by algorithms. messages are reliably
Robots can both collect data and help replace repetitive, manual work on fields or in the dairy processed by SAP Mobile
business. Drones collect crop data, such as height of plants or insects and mold. Services worldwide every day.56
Machinery assets
Modern farms have a wide variety of machinery that needs to be documented and have 97% of worlds mobile
maintenance performed at regular intervals subscribers can be reached
through SAP Mobile Services.56
Connect, transform, and reimagine with SAP
With SAP HANA, Internet of Things edition, organizations like agrichemical companies, food processing companies, and cooperatives
can now take embedded device data, analyze this data into information in real time, and leverage this information across the value
chain to drive business insights and create new business models.
SAP HANA
Hadoop
Predicative analytics
- 26 -
THE DIGITAL AGRIBUSINESS PLATFORM
To survive in a digital world, businesses need to be able to transform innovation into
value.
In order to reimagine business, agricultural organizations need The digital agribusiness platform supports your
to have the right platform strategy in place to enable applications, SAP's own applications, and partner
innovation. Innovation can come from your own company or applications.
come from others. The challenge is to get value out of
innovation and make it consumable for your organization. Security: Data and process security are key to gain your
Agribusinesses need to work smarter using the right skills and customers trust. The platform enables you to safeguard your
tools to make that happen. Building and leveraging innovation experience and IP about the specifics of your domain.
often means trying, failing, learning, and trying again.
Agribusinesses throughout the supply chain need a digital Full integration: Access large volumes of data from a variety of
agribusiness platform so they can dream big, develop fast, sources to unlock insights never seen before. The platform
and deliver everywhere. allows you to integrate with everything inside and outside your
business and facilitate data exchange via standard protocols,
This can only be achieved with the SAP HANA Cloud Platform, APIs, and an open architecture.
with the simplicity of SAP HANA at its very heart, as the
foundation of the digital agribusiness platform. The IoT scenarios: Many value scenarios in agribusiness require
agribusiness platform must support these new digital business data that are collected by sensors and machines, whether on
processes for every part of the agricultural value chain. Though the field, in the supply chain, in transportation, or production
provisioning of input materials, farming, origination and trading, the platform makes data easily consumable for applications,
and downstream food processing and marketing to the smart algorithms, and users to support insight, optimization,
customer require different domain-specific features from the and automation to create maximum business value.
digital platform, it must provide a connected, open, and
integrated foundation across all processes, with no silos or Mobile: Applications need to be consumable where
barriers, to empower the business. A digital platform commodities are produced, processed, transported, and
architecture has to follow these key principles: consumed. When connectivity is unstable, the platform
1. Integrated with every necessary system and network, supports applications that are offline-capable by synchronizing
whether on premise or in the cloud data and transactions at a later time. When farmers have no
2. Open for you and your partners in the ecosystem smartphones available, they can still be reached via SMS.
3. Business aware to support the specifics of your segment
and every segment you want to disrupt Spatial: The platform provides functions to analyze and
process geospatial information. For insight and optimizations,
SAP focuses on creating business value for our customers as weather and sensor data and aerial imagery are mapped and
empowered participants in the agricultural ecosystem instead brought into context with spatial data from fields and yield.
of implementing business models where data ownership is Users can create interactive, real-time visualizations.
transferred away from the agribusiness to the solution provider.
Smart algorithms: To transform Big Data into smart data,
The digital agribusiness platform ensures agility and a rich algorithms that support simulations, optimization, and
environment for innovation that supports functionality and predictions can run on the platform to create value out of your
scenarios that are required in farming. data, domain experience, and IP. This will help agribusinesses
optimize yield for a specific crop variety, make smarter
decisions in commodity trading, and optimize operations in the
supply chain.
And much more

Connect your For example, processing real-time data streams, e.g., from
Empower your enterprise to the Deliver open, market data providers, analysis of unstructured information
lines of business digital economy agile, flexible apps and text, e.g., from news feeds or social networks.
Digital agribusiness platform
IOT Mobile Spatial Integration Predictive

SAP HANA CLOUD PLATFORM
- 27 -
HOW DOES IT ALL COME TOGETHER?
The formation and evolution of business networks create unprecedented opportunities
Agricultural traders are buying farmland, consumer products conversion of one-to-many communication to many-to-many
companies are engaging directly with farmers, cooperatives are collaboration over communication hubs, where smaller
processing and selling food, and commodity producers are networks exchange data and services. Data security in these
extending into new segments, such as bio-energy. There is networks will be key, as farmers will want to retain control of
increasing vertical integration along the agricultural value chain, their data.
and industry boundaries are blurring.
Business networks based on stable cloud platforms enable data
While agribusinesses reimagine their business models, exchange and reflect the growing focus on the farmer and the
business processes, and work, they need to engage with new agricultural production, where highly valuable data is created.
partners and increase their agility in establishing new business They will provide integration and interoperability, while at the
relationships. In this environment, business networks provide same time assure security and privacy of agricultural data. Big
unprecedented opportunities to tap into new segments and are Data can then be leveraged to optimize processes in farming
a logical next step of evolution for classic supply chains in a and across the end-to-end supply chain.
digital world.
In a digitized world where technology is not a barrier but a
Business networks are connecting companies in areas like driver, these business networks will evolve to become a
procurement, travel, labor, sustainability, and financial services. network of networks in which all members realize maximum
In agribusiness, we are now also seeing the process of value by collaborating closely across technical, organizational,
transformation to business networks, beginning with the and industry boundaries.
WE SEE THE INDUSTRY TAKING AN EVOLUTIONARY APPROACH FROM TRADITIONAL VALUE CHAIN TO A NETWORK
Seed, fertilizer, and

crop protection
Farmer or grower Originator or agricultural Processing Consumer
trading company products company
Farm equipment
Network Network
Consumer products
Originator or agricultural company
Seed, fertilizer, and trading company
crop protection
Farmer or grower Network

Network
Processing
Network
Farm equipment
- 28 -
HOW DOES IT ALL COME TOGETHER? EXAMPLE
While the five digital business pillars deliver significant value as stand-alone capabilities, the ultimate goal is to
design the next generation of agricultural business processes that will span all the digital pillars.
IOT AND BIG DATA ARE THE KEY DRIVERS OF DIGITAL FARMING AND PRECISION
AGRICULTURE. THEY PROVIDE REAL-TIME INFORMATION TO THE FARMER TO OPTIMIZE
FARMING ACTIVITIES.
Get
Apply field
benchmarking Collect field Supplier collaboration
prescriptions Field analytics,
data data Business networks
share/sell
Receive field data,
Workforce
prescriptions benchmarking
plan
Farmers Buy seed, Workforce
business fertilizer, Field engagement
plan chemicals operations
Resource Activity Crop

planning planning Manage marketing
Hedging workforce and Assets & Internet
and risk subcontractors of Things
Watch this video on management Field
optimization
Digital Farming.
with agronomic
https://www.sap- data Financials and
tv.com/video/37043 payments Digital core
Time
Example 1: Digital farming a complete and real-time overview of farm operations, from
The diagram shows how farmers can leverage services and business, workforce, and resource planning, to scheduling farm
individualized agricultural solutions provided by agribusiness activities and field operations, to integrated crop marketing and
companies. transparent financial execution.
Agribusinesses can use algorithms on field data shared by the Digital farming helps improve efficiency and provides
farmer to calculate prescriptions that optimize efficiency for opportunities within the ecosystem brings, such as:
each individual farmer. These prescriptions can be published to More precise application of input products leads to lower
farmers with recommendations on irrigation, fertilization, costs and higher revenues through better yields and quality
application of crop protection, or harvesting. Based on these Holistic digital service, solution offerings, and agronomy
prescriptions and recommendations, farmers can choose the advice from cooperatives through the digital agribusiness
services, solutions, or input materials that are best suited to platform to help farmers achieve optimal prices for input
their needs. Prescription and task maps can then be transferred products
to smart field machines or forwarded to contractors for Fertilizer or crop protection producers provide prescriptions
execution. and more precise agricultural solutions to farmers
Machine and equipment manufacturers collect huge
Field and actual yield data can be used for benchmarking and amounts of valuable IoT data directly on the field and offer
developing best practices. Digital farming services can also help value-adding services and applications
farmers comply with the growing number of regulations around Originators and food processors and producers offer
farming activities, e.g., the application of crop protection or complementary digital services to farmers, thereby obtaining
water consumption, by making the collected sensor data additional information about available supply to ensure high
available and consumable for reports and audits. quality
Agricultural labs, contractors, or financial services
By leveraging Big Data and connected mobile devices together organizations provide digital offerings supporting completely
with a digital farm management application, the farmer can get new business processes and outcome-based scenarios
- 29 -
WHILE THE DIGITAL CORE IS THE MAIN HOLDING INSTANCE OF ALL CONTRACTUAL AND
FINANCIAL DATA, COLLABORATION WITHIN A SUPPLIER NETWORK IS HAPPENING
THROUGHOUT THE WHOLE ORIGINATION PROCESS.
Link with Invoicing and Supplier collaboration

shippers settlement Business networks
Demand Logistics
plan execution Payments
Liaise with Plan logistics Assignments of Workforce
farmers or and loads to engagement
cooperatives shipments contractors
Negotiate Record Financials and

contracts loads controlling
Hedging Assets & Internet
and risk of Things
Quality
management sampling
Analyze market Receive load
prices and and
information quality data Digital core
Time
Example 2: Origination processes in agribusiness Customer benefits:

Building and maintaining relationships with farmers and Fully supporting the highly dynamic requirements for flexible
cooperatives is key for companies that directly originate pricing, load assignments, and frequent reassignments and
commodities. Depending on their business model, they either complex settlements
enter into contracts based on demand plans or are supply- Catering for high volume processing and business-by-
driven and try to maximize the contracted volumes. exception based on user-definable business rules
Providing full transparency and control over all business
To optimize procurement and pricing strategies, aspects of the entire contract lifecycle
agribusinesses have to constantly analyze market and price Integrated risk management enabling efficient hedging of
information, establish adequate hedging and risk management commodity risks
strategies, and execute them efficiently. Integrated supply
chain management is needed to effectively store and transport Offering the right information and making services simple to
the procured commodities. This also includes efficient handling consume builds closer relationships and increases loyalty and
of commodity contracts, such as flexible assignment of loads retention with farmers.
to contracts, offering storage programs, and an integrated
quality management along the supply chain. This is the basis Farmers portals offer individualized services and information
for efficient invoicing and settlement procedures. directly to farmers on smart devices and can integrate with
contract management systems that support seamless
Relationship management with farmers is a crucial aspect for execution of agricultural contracts and origination processes.
origination. Farmer portals can run as part of an agricultural
industry platform.
- 30 -
CLOUD, MOBILE, AND IOT COME TOGETHER IN SAPS LATEST DEVELOPMENT TO MANAGE A
NETWORK OF SUPPLYING RURAL FARMERS.
Truck Supplier collaboration

loading Business networks
Broadcast Consult and

prices train farmers
Workforce
Identify Truck Mobile data engagement
farmers off-loading exchange
Plan (mobile/SMS) Financials and

logistics Payments controlling
Assets & Internet
Identify Record
Track and trace of Things
expected crop quantities and
yields qualities standards
Digital core
Time
Example 3: Rural sourcing SAP Rural Sourcing Management is a cloud based and mobile-
The following diagram shows the main process steps of enabled application to manage the crop receipts from farmers
sourcing in rural areas. An integrated sourcing process for and payments to farmers based on delivered products.
commodities grown in rural areas helps farmers by making
best practices and training available. A direct connection to With SAP Rural Sourcing Management the cooperative or
farmers is a prerequisite and allows track and trace of products farmer group manages its farmers and the collection of crop
from farm to fork. It helps improve transparency of the produce. The solution is fully mobile enabled with offline and
origination and settlement process and reduce fraud risk. synch working modes.
Companies can promote sustainable, fair processes and
working conditions and check if the farming practices are in line
with fair trade labels or other certifications.
Watch this video on

SAP Rural Sourcing:
https://www.sap-
tv.com/video/#/7313/
- 31 -
WHY SAP?
BUSINESS DIGITIZATION IS A
NATURAL NEXT STEP FOR THE
#1 BUSINESS APPLICATION
COMPANY
It took years of innovation, strategic investment, and the
forging of new strategic relationships to build the end-to-
end digital business platform for agribusiness.
- 32 -
SAP IS COMMITTED TO HELPING THE WORLD RUN BETTER AND IMPROVE
PEOPLES LIVES
Vision Help the world run better and improve peoples lives
Mission Help our customers run at their best
Strategy Become the cloud company powered by SAP HANA
GLOBAL DIGITAL
INDUSTRY AND INNOVATION
PRESENCE AND ECONOMY
LOB FOCUS LEADER
RELEVANCE - READY
77K employees Solutions specifically 95 million business 2011 SAP HANA launched
representing 120 for the agriculture cloud users 2012 SAP Cloud launched
nationalities industry 2.0 million connected 2014 SAP business
300K customers Separate industry businesses networks the largest
SAP operates in business unit for $740 billion+ in B2B marketplace in the world
191 countries agriculture commerce 2015 SAP HANA Cloud
99%+ of mobile Platform
devices connected 2015 SAP S/4HANA: the
with SAP messaging most modern ERP system
Sustainable development goals

Source: United Nations Sustainable Development 57
We strongly believe in the collaboration of all players

in the agribusiness value network to sustainably feed No poverty No hunger
Good Quality Gender
health education equality
the world with fairly produced, healthy, and affordable
food. This directly contributes to the UNs #2
Good jobs
sustainability goal to end hunger, achieve food Clean
Renewable and
Innovation
Reduced
security, improve nutrition, and promote sustainable water and and
energy economic inequalities
sanitation infrastructure
agriculture. In addition, we are convinced that all growth
players in the value chain can significantly impact

Sustainable
many of the other development goals connected to cities and
Responsible Climate Life below
Life on land
consumption action water
poverty, environment, both of land and water, health, communities
and education.
Peace and Partnerships THE GLOBAL GOALS
justice for the goals
For sustainable development
- 33 -
END-TO-END DIGITAL BUSINESS SOLUTION
Through our innovations and over $30 billion in strategic acquisitions, SAP has the best solution portfolio and expertise required to
enable your digital agribusiness strategy. SAP is the largest cloud company with 80 million+ users and has the fastest growing solution
portfolio to support the entire digital value chain. With 74% of the worlds transactions running through SAP, we are the preferred
choice to turn your digital vision into reality.
Operator experience Supplier collaboration Personnel Assets &

Omnichannel Business networks Digital core engagement Internet of Things
SAP HANA
SAP Cloud for Customer Cloud Platform
SAP Fiori
SAP will bring expertise, assets, and the proven methodologies required to support the development of your digital business strategy.
These capabilities will be leveraged throughout SAPs collaborative value and innovation framework.
EXPERTISE ASSETS METHODOLOGY

Solution management team for Executive overview for SAP agribusiness Business case methodology
agribusiness offerings Design Thinking
SAP Agricultural Contract SAP Solution Explorer content for Benchmarking
Management and Sap Commodity agribusiness Value partnership framework
Management development unit Prototyping and Design Thinking with Co-innovation
Customer co-innovation and custom selected customers
development work streams with major
players in agribusiness
Agribusiness customer council
Strong customer and partner base in all
segments along the agribusiness value
chain
- 34 -
SAP GLOBAL SERVICES AND SUPPORT TO DRIVE YOUR SUCCESS
In the digital economy, simplification and business innovation on premise, cloud, or hybrid. GSS offers the expertise, assets,
matter more than ever. SAP has a broad range of services to and the proven methodologies required to accelerate business
cover the end-to-end digital transformation journey, ranging innovation, reduce TCO, and run a stable platform (on premise
from advising on a digital innovation road map and plan, to or in the cloud).
implementing with proven best practices, to the ability to run
across all deployment models, ultimately optimizing for SAP Activate is a new, simplified consumption experience
continuous innovation across your digital journey. SAP introduced for SAP S/4HANA and cloud adoption. It provides a
provides both choice and value within our services, allowing you combination of SAP Best Practices, methodology, and guided
to tailor the proper approach based on your needs. configuration. In addition, our leadership in learning drives
quick time to value realization and a solid engagement
Turn to the 30,000 consultants and support professionals who foundation with SAP MaxAttention, SAP ActiveEmbedded, and
can bring your digital strategy to life. SAPs Global Service & SAP Value Partnership across the end-to-end customer
Support (GSS) organization provides a consistent experience lifecycle.
OPTIMIZE
for continuous innovation
RUN Optimize to realize value

all deployment models Continuously capture and
realize benefits of digital
Run with one global support transformation
One global, consistent
experience
IMPLEMENT End-to-end support on
with proven best practices premise, cloud, hybrid
ADVISE
Implement with SAP
Simplify and innovate Activate
Digital innovation Simplified consumption
road map and plan experience for SAP S/4HANA
Co-innovation with SAP Best Practices,
agribusiness customers methodology, and guided
configuration
Learn | Extend / Innovate | Engagement Foundation | Support
- 35 -
SAP COMPREHENSIVE ECOSYSTEM
Orchestrating the world to deliver faster value
SAP has a strong customer and partner base in all segments along the
agricultural value chain. This includes cooperatives, producers of farming Our partner ecosystem includes,
input products such as agrichemical companies, machine manufacturers, among others:
growers, originators and traders, food processors and producers, and also
consumer products companies. We are collaborating closely with many of
these companies and partners to reimagine the agribusiness ecosystem.
We also see that industry boundaries are blurring. Our comprehensive

ecosystem offers:
A wide range of business services (transportation, banking, insurance,
travel, etc.)
Open architecture: choice of hardware and software
Complementary and innovative third-party solutions
Reach partners to serve your business of any size anywhere in the world
Forum for influence and knowledge
A large pool of industry experts with broad and deep skill sets
BUSINESS NETWORK
2 million suppliers
Fieldglass manages 1.5 million temporary workers/ yr.
200 major travel partners (air, hotel, car)
IMPLEMENTATION
INFLUENCE FORUMS AND EDUCATION SERVICES
32 user groups across all regions
13.3 K partner companies
40+ industry councils
3,200 service partners
SAP community >24 million unique
Delivering 1,300+ industry-
visitors per year
DRIVING specific solutions
2,650 SAP University Alliances CUSTOMER
VALUE
PLATFORM AND
INNOVATION INFRASTRUCTURE
1,900+ OEM solution partners 1,400 cloud partners
to extend SAP solutions
1,500+ platform partners
2,700 startups developing SAP
HANA apps CHANNEL AND SME
4,800 channel partners
- 36 -
ADDITIONAL RESOURCES
Outlined below is additional external research that was used as supporting material for this white paper.
1. World Population Prospects 2015 revision, 050.pdf and-market-estimates-2015/ (Soundbite used is

United Nations, page 7 15. FarmingFirst, Webpage, 2015, from Forrester)
http://esa.un.org/unpd/wpp/publications/files/k http://www.farmingfirst.org/Post2015- 29. Roundup Of Cloud Computing Forecasts And
ey_findings_wpp_2015.pdf Food#Slide4 Market Estimates, 2015 Goldman Sachs, 2015,
2. Feeding the World, National Geographic Society, 16. Achieving sustainable gains in agriculture, FAO, http://www.forbes.com/sites/louiscolumbus/201
2014 Publications, 2011 5/01/24/roundup-of-cloud-computing-forecasts-
http://www.nationalgeographic.com/foodfeature http://www.fao.org/docrep/014/am859e/am859 and-market-estimates-2015/ (Soundbite used is
s/feeding-9-billion/ e01.pdf from Goldman Sachs)
3. Silicon Valley startups go farming, Fortune.com, 17. SAP Marketing Research, SAP Fast Facts, 2015 30. The Digital Transformation of Row Crop
July 2015, Agriculture, December 2014, (Page 21)
http://fortune.com/2015/07/22/farm-tech-data- 18. Agriculture could be biggest user of commercial https://www.iowafarmbureau.com/page/file?pat
funding/?xid drones, Minneapolis Star Tribune, July 25, 2015, h=Files%2Fwebsite%2FNews%2FPDFs%2Fexecs
http://www.startribune.com/agriculture-could- ummary.pdf
4. Embracing Digital Technology MIT Sloan and be-biggest-user-of-commercial-
CapGemini, 2013, drones/318541371/ 31. Precision Agriculture: An Opportunity for EU
http://sloanreview.mit.edu/projects/embracing- Farmers, European Parliament, 2014, page 23
digital-technology/ 19. Drones and driverless tractors is this the future http://www.europarl.europa.eu/RegData/etudes
of farming? , The Guardian, July 20, 2015, /note/join/2014/529049/IPOL-
5. The Digital Advantage: how digital leaders http://www.theguardian.com/small-business-
outperform their peers in every industry: AGRI_NT(2014)529049_EN.pdf
network/2015/jul/20/drones-driverless-tractors-
CapGemini and MIT Sloan, 2013 (Page 7) future-farming 32. Forbes, Aug. 2015,
https://www.capgemini.com/resource-file- http://www.forbes.com/sites/kurtmarko/2015/0
access/resource/pdf/The_Digital_Advantage__H 20. Agricultural Robots, Tractica, July 2015, 8/25/precision-ag-cloud/
ow_Digital_Leaders_Outperform_their_Peers_in_E https://www.tractica.com/research/agricultural-
robots/ 33. Staggering figures: Half of all US adults hacked in
very_Industry.pdf last 12 months, CNNMoney, 2014,
6. Land O'Lakes, Inc. Acquires Geosys, December 21. Smallholder Farms in Developing Regions Join http://money.cnn.com/2014/05/28/technology
2013 the Global Supply Chain, Consumer Goods /security/hack-data-breach/ (Soundbite used is
http://www.landolakesinc.com/lolinc/media/Pdf Technology, September 2015, from Ponemon Institute)
/Press%20Releases/2013%20Final/Dec-4-2013- http://consumergoods.edgl.com/column/Smallh
older-Farms-in-Developing-Regions-Join-the- 34. Internet Security Threat Report (ISTR), Volume
10-00-00AM.pdf 20, Symantec, 2015,
Global-Supply-Chain100587
7. inVivo, Company Website http://www.invivo- http://www.cioinsight.com/security/slideshows/
group.com/en/big-data-agriculture-whats-value 22. Fact Sheet: The World Bank and Agriculture in how-cyber-criminals-infiltrate-the-enterprise.html
Africa, The World Bank
8. Cargill Releases Data-Analysis Service for http://web.worldbank.org/WBSITE/EXTERNAL/ 35. Net Losses: Estimating the Global Cost of
Farmers, The Wall Street Journal, September 8, COUNTRIES/AFRICAEXT/0,,contentMDK:219355 Cybercrime, McAfee, 2014, (Page 2)
2014 http://www.wsj.com/articles/cargill- 83~pagePK:146736~piPK:146830~theSitePK:258 http://www.mcafee.com/us/resources/reports/r
launching-data-analysis-service-for-farmers- 644,00.html p-economic-impact-cybercrime2.pdf
1410201672 36. ESA and SAP cooperate in using satellite data,
23. Cocoa Market Update, World Cocoa Foundation,
9. Creating Competitive Gaps in upstream supply April, 2014 (Page 2) ESA, 2016.
chains, Nestle investor Seminar, June 2011 http://www.worldcocoafoundation.org/wp- http://www.esa.int/Our_Activities/Observing_the
http://www.nestle.com/asset- content/uploads/Cocoa-Market-Update-as-of-4- _Earth/Copernicus/ESA_and_SAP_cooperate_in_
library/documents/library/presentations/investo 1-2014.pdf using_satellite_data
rs_events/investor_seminar_2011/nis2011-02- 37. Meteo Protect: Empowering the Bottom Line with
supply-chain-competitive-gaps-hjoehr.pdf 24. Emerging Nations Embrace Internet, Mobile
Technology, Pew Research Center, Feb. 13, 2015, Weather Modeling , SAP Startup Focus, 2015.
10. Monsanto CEO: data science key part of long- http://www.pewglobal.org/2014/02/13/emergin http://startupfocus.saphana.com/meteo-protect-
term growth, Reuters, November 2015 g-nations-embrace-internet-mobile-technology/ empowering-the-bottom-line-with-weather-
http://www.reuters.com/article/us-monsanto- modeling/
outlook-data- 25. Precision Agriculture Eats Data, CPU Cycles: It's
A Perfect Fit For Cloud Services, Forbes, August 38. John Deere: Technology vendors need to feed
idUSKCN0T72M520151119#oQoHyiHGKY6SbXRe. agriculture's big data needs, V3.co.uk, June 5,
97 2015 (Page 1 and 2)
http://www.forbes.com/sites/kurtmarko/2015/0 2014
11. To Feed Billions, Farms Are About Data as Much 8/25/precision-ag-cloud/ http://www.v3.co.uk/v3-uk/news/2348372/john-
as Dirt, The Wall Street Journal, August 2015 deere-technology-vendors-need-to-feed-
http://www.wsj.com/articles/to-feed-billions- 26. Forbes, Aug. 2015, agricultures-big-data-needs
farms-are-about-data-as-much-as-dirt- http://www.forbes.com/sites/kurtmarko/2015/0
8/25/precision-ag-cloud 39. Florida Crystals Groundbreaking SAP S/4HANA
1439160264 and Simple Finance 2.0 Story, ASUG News, May
12. UN, World Population Prospects 2015 revision 27. Big data key to bringing hyperlocal weather 15, 2015
http://esa.un.org/unpd/wpp/publications/files/k forecasts to Georgia farmers:, Computerworld, http://www.asugnews.com/article/florida-
ey_findings_wpp_2015.pdf April 2014 crystals-sap-s4hana-simple-finance-upgrade
http://www.computerworld.com/article/2488618
13. National Geographic Society, Feeding the World, /big-data/big-data-key-to-bringing-hyperlocal- 40. Don Whittington, CIO of Florida Crystals, in SAP
2014 weather-forecasts-to-georgia-farmers.html News, May 6, 2015,
http://www.nationalgeographic.com/foodfeature http://news.sap.com/sap-announces-sap-
s/feeding-9-billion/ 28. Roundup Of Cloud Computing Forecasts And s4hana-cloud-edition/
Market Estimates Forbes, 2015,
14. FAO, How to feed the world in 2050, Oct. 2009, http://www.forbes.com/sites/louiscolumbus/201
http://www.fao.org/fileadmin/templates/wsfs/d 5/01/24/roundup-of-cloud-computing-forecasts-
ocs/expert_paper/How_to_Feed_the_World_in_2
- 37 -
ADDITIONAL RESOURCES
Outlined below is additional external research that was used as supporting material for this white paper.
41. 2014 Global Consumer Barometer Index, 54. Markets and Markets, April 2015, see PR
American Express and Ebiquity, 2014, Newswire, April 24, 2015,
http://about.americanexpress.com/news/docs http://www.prnewswire.com/news-
/2014x/2014-Global-Customer-Service- releases/precision-farming-software--services-
Barometer-US.pdf market-worth-177-billion-by-2020-
42. The Digital evolution in B2B Marketing 501205501.html
Customer Executive Board, 2012, 55. Silicon Valley startups go farming,
http://www.executiveboard.com/exbd- Fortune.com, July 2015,
resources/content/digital-evolution/pdf/Digital- http://fortune.com/2015/07/22/farm-tech-
Evolution-in-B2B-Marketing.pdf data-funding/?xid
43. Neue B2B-Plattform an SAP-Systeme 56. Proof Points from SAP for Telecommunications,
angebunden, CIO.de, 2012 2014
http://www.cio.de/a/neue-b2b-plattform-an- http://www.sap.com/bin/sapcom/en_us/downl
sap-systeme-angebunden,2879526 oadasset.2014-12-dec-04-14.sap-for-
44. 11 Facts about the Millennial Generation, telecommunications-creating-competitive-
Brookings, June 2014 advantage-through-innovation-
http://www.brookings.edu/blogs/brookings- pdf.bypassReg.html
now/posts/2014/06/11-facts-about-the- 57. Sustainable Development Goals, United Nations
millennial-generation https://sustainabledevelopment.un.org/sdgs
45. FAO, Publications, 2011 (Page 1) Note: All sources sited as SAP or SAP
http://www.fao.org/docrep/015/i2490e/i2490 benchmarking are based on our research with
e01b.pdf customers through our benchmarking program
46. Talking Points agriculture - Hans Joehr, Nestl and/or other direct interactions with customers
IR, August 2013 (video) approx. 2:20 Note: Some images used under license from
https://www.youtube.com/watch?v=Vk0cT5My Shutterstock.com
OL0 Note: Logos contained in this document are used with
47. SAP Customer Success Story, ConAgra Foods, the permission of SAP's partners.
SuccessFactors, 2015
http://www.successfactors.com/content/dam/
successfactors/en_us/resources/customer-
success-profile/conagra-csp.pdf
48. The rise of the networked enterprise: Web 2.0
finds its payday McKinsey, 2010,
http://www.mckinsey.com/insights/high_tech_t
elecoms_internet/the_rise_of_the_networked_en
terprise_web_20_finds_its_payday
49. Building the Networked Business of the Future,
SAP Insider, April 2015
http://sapinsider.wispubs.com/Assets/Articles/
2015/April/SPI-building-the-networked-
business-of-the-future
50. How Dole is Achieving Efficiencies with the Ariba
Network, SAP Ariba, July 2015,
http://www.ariba.com/resources/library/dole
51. Automating Global Supply Chain Transactions
through the Ariba Network, SAP Ariba, 2015,
http://www.ariba.com/download/4840/6005/l
eading-consumer-food-processing-company.pdf
52. Global Food Traceability Market Outlook (2014-
2022), PR Newswire, August 2015,
http://www.prnewswire.com/news-
releases/global-food-traceability-market-
outlook-2014-2022-300130817.html
53. Survey by American Farm Bureau Federation,
MIT Technology Review, May 2015,
http://www.technologyreview.com/news/53759
6/internet-of-farm-things/
- 38 -
COMMENTS AND NOTES
- 39 -
www.sap.com/contactsap
SAP Statement of Confidentiality and Exceptions

The information in this presentation is confidential and proprietary to SAP and
may not be disclosed without the permission of SAP. This presentation is not
subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business
outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation
and SAP's strategy and possible future developments, products and or platforms
directions and functionality are all subject to change and may be changed by
SAP at any time for any reason without notice. The information in this document
is not a commitment, promise or legal obligation to deliver any material, code or
functionality. This document is provided without a warranty of any kind, either
express or implied, including but not limited to, the implied warranties of
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document is for informational purposes and may not be incorporated into a
contract. SAP provides this information as guidance only to illustrate estimated
costs and benefits of the predicted delivery project. These materials may be
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errors or omissions in this document, except if such damages were caused by
SAPs willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that
could cause actual results to differ materially from expectations. Readers are
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which speak only as of their dates, and they should not be relied upon in making
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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business
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any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking
statements are subject to various risks and uncertainties that could cause actual results to differ
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Value Creation in The Digital Agribusiness Network

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Top 5 Technology Trends 9

Digital Business Framework 20

The Digital Economy in Agribusiness

Transformation drivers New business models

Complexity in agribusiness How do we pull ourselves out of this

But how can you develop your road map to run

REIMAGINING DIGITAL BUSINESS FRAMEWORK

ROI drives this significant phase of the transition to digital.

DIGITAL AGRIBUSINESS PLATFORM Connecting to the agricultural Internet of Things, including

The digital agribusiness platform enables innovation and agility

5 undermine, and disrupt businesses. Trust remains the ultimate

THE DIGITAL ECONOMY OFFERS

DIGITAL INNOVATION IS REAL

REIMAGINE REIMAGINE REIMAGINE

A SIMPLE APPROACH TO VALUE

Workforce Supplier collaboration

Assets & Customer Experience

SAP HANA PLATFORM

Origination Manage complexity

Simplify with SAP

SAP S/4HANA is the only end-to-end solution that covers

The SAP Commodity Management solution helps food

SAP HANA PLATFORM

These key trends are reshaping the customer experience:

Digitize your end-to-end customer experience with SAP

A single platform brings together marketing, sales, services, and

commerce, sales, and service

Improve your total workforce productivity. Simplify with SAP

EMPLOYEE LIFECYCLE SMARTER APPS WITH FLEXIBLE WORKFORCE LIFECYCLE

Companies in the agricultural industry need to reimagine business processes

39% of corn and wheat

Digital sensors and IoT

Intelligent machinery, robots, and drones 1.8 billion mobile

Connect, transform, and reimagine with SAP

And much more

IOT Mobile Spatial Integration Predictive

Seed, fertilizer, and

Farmer or grower Network

Resource Activity Crop

Link with Invoicing and Supplier collaboration

Negotiate Record Financials and

Example 2: Origination processes in agribusiness Customer benefits:

Truck Supplier collaboration

Broadcast Consult and

Plan (mobile/SMS) Financials and

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Mission Help our customers run at their best

Strategy Become the cloud company powered by SAP HANA

Sustainable development goals

We strongly believe in the collaboration of all players

players in the value chain can significantly impact

Operator experience Supplier collaboration Personnel Assets &

EXPERTISE ASSETS METHODOLOGY

RUN Optimize to realize value

Learn | Extend / Innovate | Engagement Foundation | Support

We also see that industry boundaries are blurring. Our comprehensive

1. World Population Prospects 2015 revision, 050.pdf and-market-estimates-2015/ (Soundbite used is

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