Introduction
In modern agriculture, many farms still rely on paper records for management. However, that situation is about to change.
This blog post discusses agricultural machinery manufacturers.Kubota CorporationThis presentation will explain in detail how agriculture is being digitized through the "Agricultural Support System (KSAS)" developed by [company name], what effects it has actually had, and how it can be utilized in the business of general companies.
This system, already in operation in 161 TP3T of fields (equivalent to 161 TP3T of rice paddies) across Japan and proven to increase yields, offers valuable insights that may be useful for your own work or projects.
Why Kubota's "Visualization" Strategy Transformed the Agricultural Industry
Collecting data is the key to success.
Yuichi Kitao, president of the Kubota Agricultural Machinery Group, clearly states, "The one who collects the data wins." This is not just empty words; it's a statement that captures the essence of business.
Similar trends are underway in the automotive industry. New players are emerging one after another, such as Waymo (a subsidiary of Alphabet) in the United States, which is making its presence felt in autonomous driving technology. President Kitao said that "the agricultural and construction machinery market is about twice as small as the automotive market," but expressed concern that "they might be next in this industry."
A system for managing fields using digital maps.
KSAS allows you to manage the following three things on a digital map:
- Planting plan
- Daily work log
- Final harvest information
With traditional paper-based management, many farmers disliked the tedious process of data entry. However, Kubota has implemented the following improvements:
- We formed a caravan and visited each house one by one to explain the benefits.
- Improved usability
- The plan is set up so that "fields of 100 plots or less are free."
As a result of these measures, the number of contract farmers reached over 32,000 by the end of 2024, approximately tripling in four years.
Actual effects: Increased yield and optimized fertilizer management.
Here are some specific benefits of using data:
- Increased yield: Data analysis has shown that by meticulously managing fertilizer amounts for each field, yields have increased by 151 TP3T in some cases.
- Work efficiency improvement: By visualizing when and how much work was done in each field, we were able to eliminate unnecessary work.
- Load distribution: The workload can be equalized across each field, reducing farmer fatigue.
Key points for efficient management using digital maps
Point 1: Detailed data management for each field is crucial.
In Kubota's case, the key to success lies not just in acquiring data, but in running a cycle of "accumulating and improving" it. While many IT companies that entered the market have ended up withdrawing, Kubota has the advantage of being able to secure revenue opportunities by combining data with machinery.
- It is difficult to acquire data in a short period of time, so the time it takes to accumulate it is important.
- The key to success is to leverage data to drive a continuous improvement cycle.
- It's difficult to generate profits on its own, but it can be monetized through collaborations with other industries.
Point 2: User-friendly design choices determine the speed of adoption.
Initially, "we had no choice but to set it up and have people use it," recalls President Kitao. The following approach, learned from this struggle, is important:
- Prioritize improving usability.
- Creating a system that reduces the burden (such as field registration) and minimizes the effort required.
- Increase contracts by making plans easy to understand.
Point 3: We are also considering expanding into Europe and the United States.
KSAS has a proven track record of success in Japan, but faces the following challenges in expanding overseas:
- The system cannot be used as is because the types of crops are different.
- It is necessary to develop data acquisition systems in each region while sharing know-how.
- "The most important thing is to get more and more involved in agriculture itself," said President Kitao.
It appears that they are also considering collaborations with IT companies as part of their future strategy.
Supplementary Information: Success Factors and Points to Note Regarding Agricultural IT
It is difficult to secure profits with farming support systems alone.
Based on the accounts of those involved, the following can be inferred:
- The current situation is that "it is difficult to secure profits solely through agricultural support systems."
- Because harvesting occurs only once a year, it's difficult to complete the data accumulation cycle.
- A cautious approach is necessary due to the history of IT companies entering and withdrawing from the market.
The evolution of "visualization" through data utilization
KSAS has the following vision for the future:
- Predicting crop growth: Estimating crop growth from data.
- Task suggestion function: Automatically advises on tasks to be performed at the appropriate time.
- Integration with automation: When combined with automated farming machinery, it becomes possible to give instructions and execute tasks without human intervention.
Collaboration with companies in different industries is key to monetization.
President Kitao outlined the following strategy:
- "We'd also like to consider collaborating with companies from other industries that have entered the agricultural sector."
- It's more advantageous to create your own platform than to rely on large corporations like GAFA.
Summary: Data utilization and continuous improvement are what will drive the future.
Creating new value in agriculture, starting with "visualization"
In modern society, when something changes, it often begins with "making the invisible visible." Looking back at Kubota's case, it was because they were able to translate farmers' daily tasks, fertilizer application amounts, and even harvest results into a common language—digital—that new value was created in the venerable industry of agriculture.
The important thing is not simply to implement a tool, but how to continuously utilize that data. Starting with "seeing," then "predicting," and finally "proposing," in order to reliably take these three steps, it is essential to avoid seeking short-term results and instead focus on a long-term perspective, driving a cycle of data accumulation and improvement.
The same may be true for your business. Visualizing customer experience, streamlining internal operations, analyzing market trends—all of these can be achieved as a result of aggregating and utilizing data. The important thing is not to aim for perfection all at once. Start by building small successes and accumulating them, and eventually you will be able to build a large platform.
Agriculture is not unique in this regard; every industry is similarly exploring new value amidst the wave of "digitalization." Therefore, it's crucial to pay attention to developments in other sectors and prepare for the emergence of the "next players." Those who collect data will win, and that will be those who have the platform first. You should aim to become the de facto standard for your own operations and products as soon as possible.
Finally, one more point. President Yuichi Kitao's statement, "We won't lose to GAFA in the few meters above and below ground," is not merely enthusiasm, but reflects his conviction in the value of data in the field of agriculture. Whether the market is small or large, with the right strategy, you can surpass your competitors. Similarly, in your business, wouldn't it be important to adopt an approach that maximizes your own strengths while incorporating the strengths of other industries?
