{"id":4142,"date":"2017-02-26T17:59:21","date_gmt":"2017-02-26T22:59:21","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/from-product-to-platform-john-deere-revolutionizes\/"},"modified":"2017-02-26T17:59:21","modified_gmt":"2017-02-26T22:59:21","slug":"from-product-to-platform-john-deere-revolutionizes-farming","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/from-product-to-platform-john-deere-revolutionizes-farming\/","title":{"rendered":"From Product to Platform: John Deere Revolutionizes Farming"},"content":{"rendered":"

John Deere is the number one farm equipment manufacturer in the world with 2016 worldwide revenues of $26.6B.[1]<\/a> In 2012 John Deere created the open platform, MyJohnDeere, an information system to help agricultural producers optimize the management of production data, equipment information and farm operations. The company provides an interesting case study to see how product-centric firms can strive to utilize platform-centric models to compete in the digital age.<\/p>\n

Value Creation through Ag Big Data & Platforms<\/strong><\/p>\n

The USDA\u2019s Agricultural Research Service highlighted several examples of how Big Data can create value in the Agricultural industry including, \u201cincreasing the resilience of production systems; improving understanding of genotype by environmental interactions; and enhancing human and animal health.\u201d The industry is already seeing a competitive edge given to those players who are data focused. This includes a general shift to those who are familiar with technology and platforms in other areas of their life, a shift from supply to a demand-driven industry in which farmers are expected to react quickly to consumer food demands, and a move towards open communication between members of the community.[2]<\/a><\/p>\n

John Deere saw the opportunity to enter the Big Data space with their platform, MyJohnDeere. In 2012 the company launched several software products that connected John Deere equipment with other\u00a0machines, owners, operators, dealers and agricultural consultants. This software analyzed individual data through sensors added to the latest John Deere equipment combined with historical data on everything from weather and soil conditions to crop features. This information is shared across stakeholders to help farmers manage their fleet, reduce downtime inefficiencies, and save on fuel costs.[2]<\/a> Consumers manage all of this information through smart phones, tablets and computers, allowing information to be accessible at all times.<\/p>\n

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Utilizing an Open Platform to Capture Value<\/strong><\/p>\n

In 2013 John Deere opened their platform to allow input suppliers, agriculture retailers, local agronomists, and software companies to provide applications and software that connect through the platform. A spokesperson for the company said \u201cthese collaborations will greatly benefit our customers by expanding the choices they have to improve productivity, efficiency and yield.\u201d[3]<\/a><\/p>\n

MyJohnDeere is free for consumers who purchase John Deere equipment, and from what can be seen from the website it does not look like John Deere is charging 3rd<\/sup> party developers a fee for integrating on their platform (however all applications must be approved by John Deere). While the benefit to the consumer is straightforward, the move towards bringing in 3rd<\/sup> party developers highlights John Deere\u2019s strategy to become a central platform for farm equipment hardware and software. It seems the company has learned about the importance of\u00a0open systems in winning a platform game, and several other benefits are likely to come out of this:<\/p>\n