Recent research from McKinsey Global Institute shows the agricultural sector as having the lowest digital penetration rate of any industry.
Industries rated the highest, such as finance, have seen huge improvements in productivity and the addition of new services, while agriculture lags behind.
For many growers, the experience of digital technology does not live up to the hype. The return on investment is just not there yet. Most digital experiences and solutions in the market are still fragmented, and often just plain hard to use.
From hype to reality with the right business model Right now, much of the challenge lies in AgTech providers identifying the right business model. For example, Uber uses some fantastic data analytics to match drivers and fares. But it’s their business model that is currently driving the company’s success.
Uber disrupted the traditional taxi business by tapping the sharing economy, and redefining the relationship between drivers and customers.
Fares are calculated in advance for transparency, and both driver and customer can rate each other to provide valuable feedback to future users.