Five Signs Precision Agriculture is Moving into a New Paradigm

As the industry is showing signs of maturation—crossing its 20th anniversary—it is toning and shaping itself for the next big step in its life cycle. What market opportunities exist for your business, and are you taking advantage?

By Karol Aure-Flynn, Entira

Precision agriculture has maintained a swift and steady pace of progress over the past two decades, but there are new signals that the industry is about to make some major leaps forward.

A recent Precision Agriculture Systems and Services industry market research report by IBISWorld stated, “growth has been positive during the past five years, including a 3.7% gain expected in 2012 on the back of larger economic recovery and growing acceptance of precision agriculture’s technology.”

We’ve been curious about this topic at Entira. About a year ago we completed our own status report on precision agriculture through a broad multi-client study that analyzed the attitudes and behaviors of end-users and providers of precision agriculture tools and services. We’re proud to say this is one of the most comprehensive studies that has ever been done in the industry. Although it’s been several months since the study was closed, we continue to have clients asking to get their hands on this data because of the valuable insights it brings to their business planning.

Precision agriculture is an intriguing topic. Let’s consider these five signs that precision agriculture is getting in shape for the next big thing:

Big announcements by leading players in the precision ag business
Collaboration across the value chain, all in support of precision agriculture
Rapid technology advancement
Precision ag on the radar of non-ag sectors
Adoption of precision technologies and practices on the upswing

Looking at the corporate consolidations taking place, innovations, collaborations and standardization in the works, it’s like the precision ag industry is becoming a sleeker version of itself. Entira’s compelling precision ag multi-client study digs into the opportunities and gaps within this moving paradigm. Read more to learn more about our study and our perspective on each of these five signs.

What Agribusiness can Learn from Blockbuster and Netflix: Identifying a Disconnect in Customer Relationships

Blockbuster Video was one of the most talked about business implosions of 2010-2011. As the company moved from bankruptcy to being acquired by Dish Network, business media pondered why the once king of video rentals fell so far, so fast.

Blockbuster lost big to the more customer-centric model of Netflix—a company founded by a former Blockbuster customer after having a bad in-store experience. But fast-forward a few months, and suddenly Netflix is in the spotlight after grossly underestimating its customers’ response to a 60 percent price increase. Netflix not only lost 800,000 customers virtually overnight, its satisfaction rating tanked by 14 points in the last quarter of 2011, according to the American Consumer Satisfaction Index.

Netflix has since dropped the price increase and is showing signs of recovery. But other pressures are forcing the company to rethink its model or face more alienation of its customer following.

The lesson here? No matter how innovative your idea or how successful your business has been, you must continually keep in tune with what your customers are needing, wanting and expecting. It may be changing faster than you realize.

Agribusinesses are faced with the most celebrated period of change since the introduction of synthetic fertilizers. What’s on your customers’ minds these days, and how will your business respond?

If you’re not sure, it might be time to give your relationship a check-up. Talking to your customers is a good start, but it takes a disciplined and comprehensive process to truly understand and address any disconnect between your company’s brand promise and your customers’ real experiences.

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Inside This Issue

Five Signs Precision Agriculture is Moving into a New Paradigm

What Agribusiness can Learn from Blockbuster and Netflix: Identifying a Disconnect in Customer Relationships