IT Organizations in the Digital Era
ISG_Perspectives_Oct2016
ISG_Perspectives_Oct2016
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Internet of plants:<br />
a world of<br />
opportunities<br />
BASSIM HAJ, CIO, YARA<br />
INTERNATIONAL ASA<br />
The global demand for food and food security is grow<strong>in</strong>g significantly,<br />
as <strong>the</strong> availability of arable land is shr<strong>in</strong>k<strong>in</strong>g. Moreover, <strong>the</strong> global<br />
population is on <strong>the</strong> rise, especially <strong>in</strong> countries like India, Ch<strong>in</strong>a and<br />
Brazil where <strong>the</strong> middle class is burgeon<strong>in</strong>g. The grow<strong>in</strong>g middle class<br />
is chang<strong>in</strong>g its eat<strong>in</strong>g habits and consum<strong>in</strong>g more meat, which is driv<strong>in</strong>g<br />
up <strong>the</strong> demand for cattle feed such as gra<strong>in</strong>s and grass. This is<br />
stimulat<strong>in</strong>g <strong>the</strong> need for fertilizers. All this grow<strong>in</strong>g demand <strong>in</strong> turn<br />
is prompt<strong>in</strong>g <strong>the</strong> need to address environmental issues such as <strong>the</strong><br />
level of CO2 emissions and clean<strong>in</strong>g up sewage, rivers and oceans.<br />
Yara plays a key role <strong>in</strong> all <strong>the</strong>se areas be<strong>in</strong>g <strong>the</strong> largest fertilizer and<br />
crop nutrition company <strong>in</strong> <strong>the</strong> world with 12 to 14 per cent of <strong>the</strong> global<br />
market share. Apart from fertilizers, o<strong>the</strong>r key areas of activity <strong>in</strong>clude<br />
<strong>in</strong>dustrial solutions, chemicals and <strong>in</strong>dustrial gases. Structurally <strong>the</strong>re<br />
are three ma<strong>in</strong> operat<strong>in</strong>g segments with<strong>in</strong> Yara; Upstream – production<br />
of fertilizers, Downstream – sales, market<strong>in</strong>g and distribution and<br />
Industrial – development of <strong>in</strong>dustrial solutions.<br />
TECHNOLOGY AND <strong>IT</strong> AT YARA<br />
Technology at Yara has two essential implications – technology<br />
related to production and technology related to <strong>the</strong> downstream<br />
segment of sales, market<strong>in</strong>g and distribution. In production, it is our<br />
relentless endeavor to optimize and ensure that our assets are runn<strong>in</strong>g<br />
efficiently. Technologies such as catalyst technology, sensor technology,<br />
CO2 abatement and emission to air are quite relevant for us.<br />
With<strong>in</strong> <strong>the</strong> Crop Nutrition bus<strong>in</strong>ess, on <strong>the</strong> o<strong>the</strong>r hand, most of our <strong>IT</strong><br />
is <strong>in</strong> <strong>the</strong> area of sales. Even so, we are look<strong>in</strong>g beyond just sell<strong>in</strong>g<br />
commodities. We’re explor<strong>in</strong>g technologies and solutions that could<br />
enable us to connect better with our consumers i.e. farmers, open up<br />
new <strong>in</strong>novative bus<strong>in</strong>ess models, enhance bus<strong>in</strong>ess process efficiency<br />
and ga<strong>in</strong> <strong>in</strong>sights <strong>in</strong>to our consumers through analytics and cloud<br />
adoption. We realize that <strong>in</strong> order to achieve <strong>the</strong>se goals, we must<br />
engage with our bus<strong>in</strong>ess colleagues closely, move to a new operat<strong>in</strong>g<br />
model and restructure our <strong>IT</strong> organization.<br />
CONNECTING W<strong>IT</strong>H CONSUMERS<br />
Farmers are very sophisticated when it comes to technology adoption.<br />
They all have tablets, <strong>the</strong>y are connected and have everyth<strong>in</strong>g readily<br />
available. For example <strong>in</strong> Africa, farmers are quite advanced, especially<br />
<strong>in</strong> terms of mobile usage, given <strong>the</strong> lack of general <strong>in</strong>frastructure.<br />
We see enormous opportunity to develop mobile solutions that would<br />
be attractive to farmers, allow<strong>in</strong>g <strong>the</strong>m to realize value while mak<strong>in</strong>g<br />
<strong>the</strong>m more profitable. Some areas we could immediately identify to<br />
engage with farmers <strong>in</strong>clude:<br />
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