McKinsey published an interesting article yesterday on improving returns in digital-farming. For the purposes of the Article, digital-farming was defined as "as any platform or application that processes input data to provide growers or crop advisers with agronomic decision-making support". It appears from their studies, that the success factors involved are not too dissimilar from those required in other verticals.
The stand-out factors include:
- high attention from CEO and top team
- clear strategy and business case linked to value creation
- at-scale investment
McKinsey also identified the following other factors to maximise returns:
- identifying value across the existing business in each domain and new sources of value
- clarifying objectives and prioritizing investments accordingly
- defining and tracking key performance indicators to prove the value to the business
- establishing the right enablers to ensure scalability
The article also notes that McKinsey found that no single monetisation approach correlated with high returns and it is of the opinion that companies should pursue multiple paths in parallel.
Agriculture is ripe for digital reinvention and, with the right approach, companies all along the value chain can deliver outsize value from digital investments