Hacking the connected vehicle

American farmers hacking their tractors with Ukrainian software are a taste of what’s to come in the connected economy.

What happens when a vehicle manufacturer locks down their products’ software? John Deere’s customers are finding out as American farmers turn to Ukrainian software vendors for software to maintain their tractors.

John Deere’s behaviour is extreme as almost every component of a modern tractor has a software component which leaves farmers at the mercy of the company’s dealers and authorised mechanics.

So understandably the farmers are finding ways to hack their equipment to reduce downtime and costs, something permitted in the US after an exemption to the Digital Millennium Copyright Act (DCMA) was granted to vehicle software.

Vendor control over connected vehicles is a bigger problem for consumers than just maintaining the software, as the information collected from these devices becomes more valuable who controls that data becomes more important.

With global supply chains, increased regulatory requirements and demanding markets, the agricultural industries are probably leading the world in applying the Internet of Things and Big Data, so the challenges faced by farmers are things which will affect us all.

As everything from toasters to motor cars become connected and dependent upon code, the conflict between proprietary software, open markets and user rights is going to grow.

Consumers and the free market can only do so much to control the flows of data and who owns them. It’s hard to see how governments can’t become involved in how information is owned, traded and stored.

Not following the herd – Investors discover agtech

Agriculture technology is a neglected space, which means opportunities of savvy investors.

One of the most ignored industries when it comes to technology is agriculture, which is odd as farmers and their downstream supply chain are probably on of the most tech intensive industries of all.

That may be changing though, New York analyst firm CB Insights reports Agtech deals jumped three fold last year following Monsanto’s acquisition of Climate Corporation.

A $150 million a year in investments though is still quite small compared to some of the sectors investors are piling money into.

That there is comparatively little attention paid to agricultural technology companies probably tells us much about the herd mentality of investors, it also suggests there’s some great opportunities for savvy business people.

Putting machine learning into wine

Two South Australian students are showing how the wine industry can use machine learning and cloud computing

As we gather more data, the opportunities to apply it become wider. A good example of this is Seer Insights, a South Australian company started by pair of university students that calculates the likely grape yields for vineyards.

Seer Insights’ product Grapebrain is made up of two components, a mobile app that the farmer uses to count the grape clusters on the vines and then a cloud service that analyses the data and produces web based reports for the farmers.

The current methods are notoriously unreliable with Seer Insights estimating mistakes cost the Australian viticulture industry $200 million a year as harvests are miscalculated resulting in either rotting fruit or wasted contractor fees.

Born in an elevator

Seer’s founders, Harry Lucas and Liam Ellul, started the business after a chance meeting on their university campus. “We started off doing this after being stuck in a lift together,” remembers Liam. “Originally we were looking at the hyper-spectrum imaging for broadacre farming but when we started looking at the problems we ended up talking to wine organisations about this.”

“The technology predicts how many grapes will be coming off the vineyards at the end of the season to enable people to sort out their finances,” Harry says. “The growth process grapes go through is difficult to model so we use machine learning to do that.”

For both the founders having an off the shelf product, in this case Microsoft’s machine learning tools, to run the data analysis made it relatively easy to launch the product.

As a winner of Microsoft’s Tech eChallenge, the startup has won a trip to the United States as well as being profiled by the company as a machine learning case study.

Over time as these tools become more accessible to small companies we’ll see more businesses accessing machine learning services to enhance their operations.

As companies face the waves of data flowing into their businesses over the next decade, it will be those who manage it well and gather valuable insights from their information that will be the winners.

Automating the farm with drones

Drones promise to further automate agriculture

Can unmanned aircraft solve Australia’s feral animal problem? Startup Ninox Robotics believes sending military-grade unmanned aerial vehicles (UAVs) into the country’s outback can help farmers control pests such as wild dogs and pigs on their sprawling properties.

“Australian landholders and managers have been struggling against the problem of invasive pest species for decades, including feral dogs, pigs, deer and rabbits,” says the co-founder and CEO of privately owned Ninox, Marcus Elrich.

Government steps in

Regulatory requirements on commercial drones such as their only being allowed for line of sight operations during daylight hours and below 400m has limited the deployment of UAVs in large scale agricultural applications, particularly with feral animals that tend to come out at night.

Ninox’s drones, supplied and operated by Israeli UAV supplier Bluebird, are licensed to operate in the dark and up to 50km from their base. They also have a detachable head that allows operators to switch cameras for different operations, allowing for normal cameras during daytime and infrared at night.

The trial, being conducted by Ninox Robotics, is the most ambitious civilian drone trial ever conducted in Australian airspace. It utilises state of the art UAVs with advanced real time thermal imaging capabilities to detect invasive pests in rural areas.

Currently Ninox only has approval from the Australian Civil Aviation and Safety Authority (CASA) to run three-week trials at selected sites in southern Queensland and northern New South Wales.

Services to farmers

Should the trials be successful and Ninox obtain a wider operating license from CASA, Elrich is looking at offering the service to farmers, government agencies and utility companies for operations ranging from pest control to asset and stock management along with search and rescue roles for emergency services.

While the use of military drones is substantially more expensive than commercial drones with the costs currently around $3,000 per flight, Elrich believes the service is competitive with manned helicopter operations that many properties in rural Australia require.

Should the drones be successful on Australia’s sprawling farms, it’s going to be another example of how the current wave of technologies is further automating agriculture. There’s a lot more labour to be saved with these devices.

At present Elrich and Ninox see pest management as the initial application, but there’s many other ways farmers can be using robot technologies.

Small business in the future workforce

An evolving workforce means changing markets, something that businesses have to pay attention to

While the discussion of the workforce of the future focuses, quite rightly, on the role of workers how employers and businesses fit into a changed economy is important as well.

For businesses, the future of work affects not just the staff they employ but also the markets they cater for as those workers are also their customers. This is even truer for small businesses catering for local markets.

The Committee for Economic Development Australia (CEDA) report issued last week describes some of those shifts in the economy and they are as important to businesses as workers.

Where the money is

The key thing from the report is that some communities are going to be more seriously affected by automation than others. The map of Australia that accompanied the CEDA report showing the likelihood of jobs being lost in across the nation underscores that imbalance.

australia-likelihood-of-losing-jobs-to-automation

In those areas expecting large disclocation, business is about to get tougher as workers find their skills are no longer valuable in the face of automation.

Similarly, if local industries are becoming more automated then businesses servicing those industries are also going to need the skills to meet their customers’ more advanced needs.

Consumer facing risks

So small businesses in those districts of great disruption have to consider their markets; if they are consumer facing then their customer base could be shrinking while if they cater to other businesses then capital investment and finding skills in the new technologies are going to be required.

Even there, the picture is cloudy as upstream industries will be affected. A town that serves as an agricultural centre, for example, will see smarter farms using less labor.

In that town, those businesses servicing other businesses that serve local consumers will see their market getting thinner while those servicing the smarter farms and processors will need to buy new equipment and find workers with the skills to operate it.

This isn’t a new phenomenon, it describes what’s happened to rural communities around the developed world as farming became industrialised through the Twentieth Century and the process is continuing as combines become self driving and automation replaces a lot of tasks currently done by labourers or manually operated machines.

Challenging the commuter belt

The question though is not just for rural enterprises, it applies for businesses everywhere as the workforce changes. It may well be the areas affected the most are commuter belt suburbs where white collar workers are displaced by artificial intelligence and algorithms creating problems for the local economy that’s based on services the needs of those middle class households.

It’s difficult to say for sure and that’s why the CEDA measures are based upon probability. For business owners and managers though, they’ll need to watch shifts in their marketplaces closely and watch for the opportunities that will undoubtedly arise from a changing economy.

Then they came for the sheepdogs – drones take to the farm

Could even the humble sheepdog’s job be at risk from robots

While we focus on how technology is changing the workplace and displacing jobs, we often overlook how it affects animals as well.

A video posted by Irish farmer Paul Brennan shows how a drone can be used to herd sheep, putting the humble sheepdog out of work.

The possibilities in using drones on farms are endless, they free farmers up to do substantially more tasks and if they’re equipped with sensors to communicate with stock, crops or farm infrastructure they can be pulling in more information about the property.

For the poor sheepdog this isn’t the first time a farm animal has been displaced. Until the arrival of the steam engine and then farm tractor horses had been an essential part of agriculture for thousands of years.

But while news isn’t good for sheepdogs not all animals are intimidated by drones as one unfortunate owner found out when he decided to harass a mob a kangaroos.

Artificial meat and disruption of the cattle market

Cultured meat promises to disrupt agriculture as growing beef moves from the farm to the laboratory.

In thirty years ‘cultured meat’ will be commonplace and it will disrupt the cattle market Professor Mark Post warned the Northern Territory Cattlemen’s Association earlier this week.

Artificial, or ‘cultured’, meat is a dramatic change for the food industries and it promises, or threatens, to radically transform the cattle grazing business.

This is another example of an industry that wasn’t expected to be affected by change facing a radical transformation. It shows again few of us are immune from change.

You can’t wait for government to lead digital change

If you want digital leadership you’re going to have to provide it yourself, waiting for the government is no answer.

Last week’s events in Canberra shows business can’t wait for the government to lead industry change. If you want to keep up with technology, you’re going to have to do it yourself.

In the wake of the Global Financial Crisis many of my business clients were in trouble as banks tightened their lines of credit and consumers slammed their wallets shut. After a decade of running businesses, it was time to get a job.

The job I found was with the small business division of the New South Wales Government’s then Department of State and Regional Development where I quickly discovered how many companies and ‘entrepreneurs’ came looking to the government for money and leadership.

While there were some state government support programs available for exporting, high-tech and biotech businesses almost all of those approaching the Department were hopelessly unqualified for the assistance that was at best only involved marginal amounts of money.

The toughest part of my job was gently turning those people away without upsetting them too much. Often I failed and part of the reason for that was that many of those believed the government would take leadership in a changing digital world and fund ideas that would help the state’s and nation’s competitiveness.

I was reminded of my brief period as a public servant and the futile attempt for  with last week’s disasters for the Australian tech sector; the Prime Minister’s claim that social media is little more than digital graffiti and the still born announcement of a Chief Transformation Officer.

Last week’s announcement of Chief Transformation Officer who happens to have no budget – the UK office the local initiative is based upon received more than a hundred million dollars in the Brits’ last budget –  is probably the best indication of how far behind the ball Australian governments, particularly the Federal level, are in dealing with a changing economy.

A Chief Transformation, or Digital, Officer can be an important catalyst for change but to achieve that they have to have the support of the organisation’s leadership; if the CEO or minister isn’t on board then the CTO or CDO is doomed to irrelevance.

The Prime Minister’s blithe dismissal of social media as being digital graffiti over the weekend shows just how little support an office charged with managing the Australian government’s transition to digital services will get from the executive. The sad thing is none of the likely alternatives – on either side of politics – to the current Prime Minister seem to be any more across the changes facing governments in a connected century.

One good example of the profound changes we’re seeing is in agriculture; this feature on farming robots shows just how technology and automation is changing life on the land. These applications of robotics are going to affect every industry, including government.

As we’ve discussed before, if you want digital leadership then you’re going to have to provide it yourself . If you’re going to wait for the government, then times are going to overtake you. How are you facing the changes to your business and marketplace?

Protecting the world’s soil

How we protect the world’s soil could be the clue to our future prosperity argues National Geographic’s Jim Richardson

One of the speakers at the recent Economist World in 2015 event in Sydney was National Geographic photographer Jim Richardson who described the challenges facing the world’s agriculture industry.

Much of Richardson’s presentation was taken from his series of photographs featuring farmers with their soil and National Geographic’s Feeding Nine Billion People feature.

A striking comment Richardson made in his presentation was how a poor rice farmer in South Asia is actually able to feed from people from their small landholding than a US broadacre farmer. This speaks volumes about how we’ve organised our food supply chains and raises questions on how sustainable our practices are.

In Agriculture, as in many other fields of our life today, we’re looking at major changes to the way we organise production and distribute goods. Richardson’s presentations are well worth considering in how the western world maintains it’s own standards of living while the rest of the planet looks at how it improves their’s.

Despite being essential to our very lives, the quality and availability of arable soil is one of the most neglected aspects of our global development. Jim Richardson’s photos remind us of its importance.

Sense-T and the Tasmanian economy

Tasmania’s Sense-T is a brave project to reinvigorate the state’s economy through the internet of things

On Networked Globe I have an interview with Sense-T’s director, Ros Harvey.

Sense-T is a project to connect the entire state to the internet of things using a sensor network monitoring soil, water and other environmental conditions to help the state’s agriculture and business communities.

Harvey’s ambitions for the project are high where she sees Sense-T even having the potential of rekindling the interest of the state’s students in science and technology courses.

It’s a brave project that means a lot to a state that’s doing it tough.

Where will the jobs come from in the internet of things?

The internet of things promises to make industry more efficient, but what will happen to employment?

One of the common worries about the internet of things and the automation of business processes is that many jobs are going to be lost as a consequence.

This is a fair concern however we need to keep in perspective just how radically employment has changed in the last century.

Concerns about technology displacing occupations is nothing new; in the eighteenth century the Luddite movement was a reaction to skilled workers being displaced by new innovations.

In an interview with GE’s Chief Economist Marco Annunziata, published in Business Spectator, we covered this topic and Marco had a valid point that the bulk of the Western world’s workforce was employed in agriculture a hundred years ago.

Today it’s less than two percent in most developed country as agriculture became heavily automated, yet most of those workers who would once have worked in the fields have productive jobs. “As an economist I look at this over a long term perspective and I’ve heard this concern about technology displacing jobs over and over again.”

Annunziata sees new roles being created, among them what he calls ‘mechanical-digital engineers’ who understand both how the actual machines work as well as the data and the software used to run and monitor them.

This isn’t to say there won’t be massive disruption – John Steinbeck’s Grapes of Wrath described the massive dislocation that happened in the United States with the first wave of agricultural mechanisation in the 1920s and the decline in rural communities is due directly to modern farms not needing the large workforces that sustained many country towns.

We can’t see where the jobs of the future will be and just roles like as Search Engine Optimisation and ecommerce experts where unheard of twenty years ago, our kids will be working in occupations we haven’t contemplated.

It’s up to us to give our kids the skills and flexibility of thinking that will let them find opportunities in a very different workplace.

Australia in the Asian Century – Building the agriculture industry

How can Australia improve agricultural exports to Asia?

Before going into Chapter 8, the Australia in the Asian Century report has a detailed look at the agriculture industry. Which kicks off with National Objective number 19;

National objective 19. Australia’s agriculture and food production system will be globally competitive, with productive and sustainable agriculture and food businesses.

While this objective seems to have already been achieved, the bulk of the chapter does a good job of identifying the opportunity and challenges for the industry.

The examination of trade treaties, biosecurity and food security is a good overview of the industry however it does suffer from a rose coloured view of prospects and government programs.

Issues such as protectionism, genetically modified foods and the running sore of live cattle exports don’t get a mention.

Another aspect of this section is how the aspirations don’t match the actions of governments, for instance the industry capture of regulators – the case of defining free range eggs being a good example – is a real barrier to Australia selling quality produce internationally.

While the section does discuss ‘value adding’, the tenor of the section seems to be focused on bulk exports and really doesn’t identify industries such organics and free range which are an opportunity for the agricultural industry.

Overall though, this section at least does give a reasonably detailed snapshot of an industry and its a shame the paper doesn’t attempt to profile other sectors in the Australian economy.