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IT Organizations in the Digital Era

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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 />

13

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