Value Creation in the Digital Agribusiness Network Transform and Grow to Sustainably Feed the World

Value Creation in the Digital Agribusiness Network Transform and Grow to sustainably feed the world

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 collaboration are key radically. Consumers are the focus point of the food industry. They want to know the origin of 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 Strothkämper 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 Strothkämper VP SAP Agribusiness and Commodity Management

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

- 3 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved EXECUTIVE SUMMARY Big picture: The digital agribusiness is real and it’s 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 industry’s 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 tomorrow’s agricultural venture capital.3 technology today.6 Agribusinesses are trying to adopt innovations fast. If you have no drone in your • InVivo, France’s 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 • Nestlé is not only buying from rural digital economy will have a major impact on their industry, but less than 15% are 4 farmers, but is also investing into funding and executing on the plan. 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 who come in every morning to WHAT DOES THIS TELL US? 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 11 digital competitors emerge. data in real-time.

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 world’s 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 14 • Create transparent and sustainable food farmer. This makes Big Data a valuable asset 2050 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 world’s 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.

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. It’s when produce more than food companies to track, trace, and label their you can serve customers, not your process. It’s 79% of the world’s products. Complex food supply chains are when technology works for you, instead of the chocolate other way around. spanning the globe, with processing steps in • SAP customers various countries. Regulations from governments produce more than require endless efforts to achieve compliance. SAP doesn’t do simple. It creates simple. It 77% of the world’s Outsourcing, networking, and subcontracting are delivers simple. It engineers simple. beer abundant in the seasonal business of growing SAP customers crops. Agribusiness players are dealing with a SAP’s Run Simple approach integrates digital • distribute more than diverse group of suppliers and customers, often systems and enables reimagining for unrestricted 78% of the world’s due to the blurring lines more vertical integration innovation. 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, world’s 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

REIMAGINING DIGITAL BUSINESS FRAMEWORK Do you have the right strategy? Start by reimagining your SAP’s 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 REIMAGINE services in the different stages of the agricultural supply 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 REIMAGINE 4. Workforce engagement, including employees and 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. It’s 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 designer’s 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.

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

Top five technology trends that are enabling the digital economy and changing the landscape in 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, disrupting established rules in agribusiness. Connectivity drives the movement of goods, services, people, knowledge, and 1 wealth. Connectivity also reaches developing countries where agribusiness often contributes a significant share of the GDP.

SUPER COMPUTING 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 2 manage the huge amount of data that is created along the agricultural value chain by sensors and machines.

CLOUD COMPUTING 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 3 data on a global scale and includes the knowledge of a distributed network of business partners.

SMARTER WORLD Connected sensors, drones, and robots are reshaping the modern farming business, both for crops and livestock. 4 Platform-based technology bundles data and services.

CYBER SECURITY Cyber criminals have expansive new capabilities to attack, undermine, and disrupt businesses. Trust remains the ultimate currency, giving security-focused businesses a significant 5 advantage in brand reputation. Data protection is vital for agribusinesses to secure valuable IP and data, e.g., in crop sciences.

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 there’s 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

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 community’s 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 Africa’s 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

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, Accenture’s 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

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 company’s 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

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 industry’s future and is worth keeping an eye on.

A survey conducted by the American Precision agriculture can improve According to Eduardo Barros, Accenture’s 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

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

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.

DIGITAL INNOVATION IS REAL

Agribusiness companies understand that hyperconnectivity and Big Data are the keys to value creation. Based on SAP’s collaboration with thousands of businesses worldwide, we’ve 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 farmer’s 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.

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 today’s data-rich real-time and stored data. agribusiness environment requires nothing less than a new approach to data analysis. Predictive Data modeling Columnar OLTP+OLAP Text SAP HANA analyzes data in minutes, not in days. This Graph SAP Planning translates into faster and more precise farming activities, better Dynamic tiering Multitenant containers agricultural product recommendations and prescriptions, and Spatial HANA 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

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.

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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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 world’s 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 reduce pricing risks. SAP Agricultural Contract Procurement Manufacturing Supply Chain Order management Management is used by agriculture originators and traders to effectively procure their goods from farmers. Finance

SAP HANA PLATFORM

- 22 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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.

86% These key trends are reshaping the customer experience: 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 42 Mobile sales of products and services in rural areas before a first interaction with sales. 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 BayWa’s 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 43 This optimizes sales processes and boosts the sale of products, data, and services. for farming equipment.

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 SAP Cloud for Customer CUSTOMER $ PHONE EXECUTION • 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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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 Nestlé in 2012. “We have to focus on the next generation of Changing of the guard farmers to make it happen that we 44 Millennials will make up as much as 75% of the U.S. workforce by 2025. 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. ConAgra’s 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, 47 labor and worker safety and health standards at supplying companies are hot topics. integrated processes.

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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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.

Networked companies are Companies in the agricultural industry need to reimagine business processes to remain competitive and best serve customers in the digital economy. From 50% more likely than their peers to sharing data securely and in real time, to providing personalized and have increased sales, higher profit 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 50–75% 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

SAP’s 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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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 world’s 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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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

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 Network Processing

Farm equipment

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 data data Field analytics, Business networks share/sell Receive field Workforce data, prescriptions plan benchmarking Farmer’s 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 Digital Farming. optimization 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

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 of Things and risk 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.

CLOUD, MOBILE, AND IOT COME TOGETHER IN SAP’S 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 of Things expected crop quantities and Track and trace 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/

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.

Vision Help the world run better and improve people’s 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 agriculture 191 countries 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 Good Quality Gender in the agribusiness value network to sustainably feed No poverty No hunger health education equality the world with fairly produced, healthy, and affordable food. This directly contributes to the UN’s #2 Good jobs sustainability goal to end hunger, achieve food Clean Innovation Renewable and Reduced water and and security, improve nutrition, and promote sustainable 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 Responsible Climate Life below cities and 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

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 world’s 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 SAP Fiori Cloud Platform

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 SAP’s 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

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. SAP’s 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

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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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, 5. “The Digital Advantage: how digital leaders /note/join/2014/529049/IPOL- http://www.theguardian.com/small-business- AGRI_NT(2014)529049_EN.pdf outperform their peers in every industry: 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) http://consumergoods.edgl.com/column/Smallh /Press%20Releases/2013%20Final/Dec-4-2013- 34. “Internet Security Threat Report (ISTR), Volume 10-00-00AM.pdf older-Farms-in-Developing-Regions-Join-the- Global-Supply-Chain100587 20”, Symantec, 2015, 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 23. Cocoa Market Update, World Cocoa Foundation, 36. “ESA and SAP cooperate in using satellite data”, 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 - SAP Digital Agribusiness Whitepaper (03/16) © 2016 SAP SE. All rights reserved 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”, Nestlé 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/

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