See Digital Australia: Seizing opportunities from the Fourth Industrial Revolution, McKinsey, May 2017.

Transcription

1 1 See Digital Australia: Seizing opportunities from the Fourth Industrial Revolution, McKinsey, May 2017.

2 Introducing A 2 D 2 Food and Agriculture Organisation of the UN (FAO) predicts that food production will need to increase 60% to meet global demand by 2050, mostly driven by increased yields and cropping intensity. At the same time, markets are calling for safer, more nutritious and convenient food, and consumer scrutiny of environmental claims continues to grow. Digital technologies will play a central role in boosting the productivity and resilience of Australia s agrifood industry. However it is widely recognised that digital take-up is very low across Australia s agriculture sector 1. Unless digital technologies become more widely adopted and integrated across the agrifood value chain, Australia will not optimise industry outcomes. Food Agility CRC s mission is to empower Australia s food industry to grow its comparative advantage through digital transformation. To advance this critical transformation, the Australian Agrifood Digital Directions (A 2 D 2 ) platform will benchmark the digital maturity of Australia s agrifood system. It will invite businesses and stakeholders to visualise relevant adoption pathways and to learn from successful use cases. A 2 D 2 will measure and stimulate digital engagement and collaboration across the Australian agrifood sectors, regions and the value chain. Presently, there is no single source of truth or platform which measures and benchmarks digital maturity across Australia s agrifood value chain. This means that collaboration, sharing and trust throughout the agrifood value chain are not currently being optimised for the benefit of the industry and its stakeholders. Insight enables action, and through A 2 D 2 insights at enterprise, supply chain, regional and national levels, stakeholders will be encouraged to boost economic, social and environmental benefits through digital strategies. A 2 D 2 will shine a light to: Establish a base-line to better measure digital readiness/adoption and progress towards digital maturity over the next 10 years. Showcase the frontiers of Australian digital innovation across our regions and critical export markets. Stimulate value chain-wide systems thinking, revealing gaps and strengths that catalyse public and private R&D investment focused on improving digital maturity and the leveraging of digital innovation from one segment to another (e.g. from wine to olives). Stimulate investment in human and natural capital, and in digital technologies that boost enterprise and value chain commercial outcomes. Inform policy and regulatory practices that leverage digital solutions. A 2 D 2 : Converting data to insights. Empowering action. Inspiring better practice. Interactive, data rich index Dynamic digital maturity benchmarking and pathways Trusted and independent Design-led collaborative stakeholder input 1 See Digital Australia: Seizing opportunities from the Fourth Industrial Revolution, McKinsey, May /A 2 D 2 Australian Agrifood Digital Directions

3 The value of A 2 D 2 A 2 D 2 will deliver a scalable, data-rich, interactive platform that benchmarks digital maturity across the Australian agrifood value chain over the next ten years. It will engage diverse audiences for benefits across the agrifood sector, as well as create thought leadership to influence domestic and international agrifood digital policy and practice. It will promote Australian digital innovation into export markets. A recent Food Agility Digital Index Workshop helped articulate the value proposition of A 2 D 2 to key stakeholders across the agrifood value chain and it was unanimously agreed that A 2 D 2 would be of significant benefit to the industry. For the agrifood value chain The A 2 D 2 platform will reveal differences in digital maturity levels by sector (for relevance across all RDCs and food processing segments) and across all regions. With the ability to benchmark at enterprise, supply chain, and regional levels, agrifood stakeholders will be better informed to make decisions about investment, engagement, and research opportunities to support productivity and competitiveness. A 2 D 2 's focus on collaboration and enabling productivity will leverage and advance the initiatives, engagement, data and insights of both the Precision to Decision (P2D) Project and Food Innovation Australia Limited (FIAL). Potential benefit to agrifood stakeholders Capital Government Inputs RDCs Research RDCs Supply Chain Consumer Retailer & Risk & Regulators & Service & Research 2 -/A 2 D 2 Australian Agrifood Digital Directions

4 Agrifood value chain stakeholders All stakeholders Self-assess your digital readiness to benchmark according to metrics tailored to your circumstances. Provide awareness of diverse digital adoption pathways across different regions. Track your position compared to similar enterprises. Connect with networks, peers, initiatives, and partners active in the digital agrifood ecosystem. Retailer Reveal data gaps in provenance and traceability. Apply insights from use cases for digital provenance to improve the supply chain connection to the customer. Stimulate investment and practices that enable demand to be signalled back to producers and their service providers. Supply Chain (including producers and processors) Identify regions where readiness is advanced to fast track collaboration and encourage adoption. Highlight use cases of leading digital transformative pathways. Learn more about specific technologies and practices addressing digital adoption challenges. Explore opportunities for research programs that can facilitate better decisions and greater insights from digital technology. Capital & Risk Inform product development, risk pricing through supply chain readiness indicators at sector and regional level. Identify clusters of digital leadership stakeholders which provide opportunities for new product development. Reveal alternate investment and financial models. Government & Regulators (including departments, trade, export and data agencies) Identify opportunities for investment that fast track both system level digital maturity and discrete sector pathways through insights from benchmarking against other jurisdictions. Identify opportunities for research investment that can facilitate better decisions and greater insights from digital technology. Explore opportunities and provide supporting insights for trade and investment attraction. Access insights to drive and influence government policies, regulation and investment. Inputs & Services (including input suppliers, agtech companies and entrepreneurs, and service providers) Tailor services to address opportunities revealed by A 2 D 2. Access insights and digital transformation use cases. Empower strategic conversations with producers and supply chain stakeholders to advance digital maturity and capture growth opportunities. Anticipate and respond to digital trends and best practice opportunities to inform policy and drive regulatory efficiencies. RDCs & Research Identify opportunities for collaborative investment for impact in specific locations or points in sector value chains. Reveal opportunities for research investment and industry engagement that can facilitate better decisions and greater insights from digital technology. Enable digital strategy development for RDCs that build on A 2 D 2 maturity pathways tailored to specific value chains. 3 -/A 2 D 2 Australian Agrifood Digital Directions 3 -/A 2 D 2 Australian Agrifood Digital Directions

5 Research with impact The A 2 D 2 platform will provide awareness of the Australian Agrifood sector s digital maturity, enabling researchers to generate real insights in a modern, data-qualified context. A 2 D 2 research activities will include a focus on: Building an evidence base through multi-dimensional data capture and integration. Understanding the drivers and process of digital innovation. The development of systems level change models. As the platform evolves, revealing strengths and gaps across multiple dimensions of each agrifood value chain, A 2 D 2 will stimulate systems thinking and will reveal researchable questions that, when addressed in agile ways, can advance the pace and depth of research and its impact across the agrifood innovation system. 4 -/A 4 2 D-/A 2 2 Australian D 2 Australian Agrifood Agrifood Digital Digital Directions Directions

6 The Precision 2 Decision (P2D) Project has identified digital take-up barriers related to appropriate legal frameworks, data systems, access to critical datasets, and required data communications systems. A 2 D 2 will benchmark and accelerate our progress in overcoming these barriers, so that digital technologies can transform the agrifood industry s profitability and resilience. FIAL s vision is that by 2025, the industry is working together to grow the share of Australian food in the global marketplace. Through benchmarking digital maturity across Australia s agrifood value chain and sharing digital success stories, businesses will be inspired to use A 2 D 2 to support prosperous opportunities that bring this industry vision to life. Richard Heath General Manager Research Australian Farm Institute Dr Mirjana Prica Managing Director FIAL 5 -/A5 2 D 2 -/A Australian 2 D 2 Australian Agrifood Agrifood Digital Digital Directions Directions

7 How we will deliver An agile, collaborative build A 2 D 2 will measure and benchmark the digital maturity of Australian agrifood across sectors and regions. The platform will also provide use cases of successful digital transformation within Australian agrifood. An agile, collaborative approach to building A 2 D 2 is critical to the value and impact of the platform for the Australian agrifood value chain. Leveraging existing and developing data sets and insights will also be central to the development and maintenance of A 2 D 2 into the future. Design-led collaborative stakeholder input Collaboration with and feedback from stakeholders across the agrifood value chain through design workshops and platform testing, will form an important part of A 2 D 2 s initial development and future iterations. This process has already commenced with a Food Agility A 2 D 2 Workshop held in late 2017 which considered the opportunities and value proposition for a digital maturity platform. Connecting and collating data inputs A strong data framework is essential to ensure A 2 D 2 maintains integrity across multiple industry sectors, users and over time. Food Agility is working closely with the RDC community to ensure that A 2 D 2 directly aligns with and addresses barriers to digital adoption revealed by the P2D research program including data ownership, connectivity, privacy and other attitudinal information at the farm-gate level. P2D Project leaders will be closely involved in the co-creation process that will shape A 2 D 2 to capture priority metrics revealed through the Commonwealth Government s investment in P2D. A 2 D 2 will leverage existing data sources including: ABS, ABARES, FIAL, RDCs, government agencies, Food Agility CRC Partners (NAB, IAG, AFI, NFF), and more. A 2 D 2 Partners Food Agility CRC has developed a powerful partner network across business, state and federal government agencies, research institutions, industry associations, RDCs and regional development authorities. Strategic industry partners include Bosch, KPMG, NAB, IAG, The Yield, and our university partners include UTS, QUT, Curtin University, RMIT, Federation University, JCU and Charles Sturt University. Food Agility s network centric model will facilitate the scale up of the A 2 D 2 platform through collaborative marketing programs. A network of participating partners and their contributions can be found here Delivery milestones The first build (Minimum Viable Product, or MVP) of A 2 D 2 will be achieved through iterative design, build and quality assurance cycles. We will stage delivery to enable prototype releases in 2018, building in user feedback and new curated content as A 2 D 2 grows over a ten-year horizon. v2.0 and v3.0 releases will be staged in subsequent 6 month intervals based on market feedback on functionality and content use. MVP Build and Release Build starts: March 18 Release: EOM June 18 v2.0 Release v3.0 Release A 2 D 2 scales EOM December 18 EOM June 19 June 19 June /A 2 D 2 Australian Agrifood Digital Directions

8 A 2 D 2 functionality Drawing on leading international platforms A 2 D 2 will draw on examples of established platforms that are delivering transformational impact. The below digital platforms have been identified to provide insight into the look and feel of A 2 D 2 across its staged delivery. Global Infrastructure Project Pipeline Forms part of the Global infrastructure Hub, a G20 initiative with the goal of increasing the flow and quality of private and public infrastructure investments, by facilitating knowledge sharing, highlighting reforms and connecting public and private sectors globally. Integrated free digital platform that allows governments to promote public infrastructure projects to a global investor network. The project pipeline captures early stage information enabling investors to properly assess opportunities and engage in a global infrastructure market. Global Food Security Index Provides a worldwide perspective on which countries are most and least vulnerable to food insecurity and how resource risks increase vulnerability. Considers core issues of affordability, availability, and quality across a set of 113 countries. A dynamic quantitative and qualitative benchmarking model, constructed from 28 unique indicators that measure drivers of food security across both developing and developed countries. 7 -/A 2 D 2 Australian Agrifood Digital Directions

9 About Food Agility The Food Agility CRC aims to empower Australia's food industry to grow its comparative advantage through digital transformation. The Food Agility CRC brings together participants from food, technology and research sectors guided by agile methods to achieve our vision. The CRC will integrate the agile culture and processes of the digital economy through a whole-of-value-chain lens for fresh and processed food. Through a collaborative process, Food Agility has identified four strategic imperatives that will drive the adoption of digital technology in this vital sector of the economy: 1. PRODUCE THE RIGHT THING 2. LEVERAGE BRAND AUSTRALIA DEMAND DRIVERS SUPPLY DRIVERS 3. ACCESS TO FINANCE 4. BUILD FUTURE WORKFORCE Contact Details Dr Mike Briers CEO mike.briers@foodagility.com 8 -/A 2 D 2 Australian Agrifood Digital Directions Mara Bún Strategy & Development Leader mara.bun@foodagility.com