It’s interesting that Eka’s analytics solution sits at the meeting point of one of the oldest industries (no, not that one), agriculture, and one of the newest and most advanced, the Internet of Things (IoT).
IoT is defined as a network of physical objects, devices, vehicles, buildings, and other items that are embedded with electronics, software, sensors, and network connectivity, all of which enables these objects to collect and exchange data. IoT allows objects to be sensed and controlled remotely across existing network infrastructure creating opportunities for more direct integration between the physical world and computer-based systems, and resulting in improved efficiency, accuracy, and economic benefit. (Learn more in "Making Bulk Material Handling Completely Smart with IoT.")
Where Does Precision Farming Fit In
When it comes to agriculture, the IoT term is precision farming. A combination of sensor data and analytics enables farmers to uniquely manage intra- and inter-field variability. This enables the farmland yield to be optimized. Farmland can vary dramatically due to climatic conditions (hail, drought, rain, etc.), soils (texture, depth, nitrogen levels), cropping practices (no-till farming), weeds, and disease.
Precision farming is not a nice-to-have and a way to get better margins – although farmers will improve margins. The world’s population is expected to grow from around 7 billion to roughly 9.1 billion by 2050. That’s a 30% growth in population in roughly 30 years. The FAO has projected that food production would have to grow by ~70% (from a 2007 estimate) to feed the 2050 population. I’m not sure how they calculated 70% (on a 30% population growth) but we can all agree we will need a big increase in food production. However, there is not enough new arable land. It’s estimated that 90% of the increase in food production will come from improved yield and only 10% will come from land expansion. To net it out, we have a tremendous increase in population in the next 30 years and the only way to feed the population is by improving food production yield – precision farming!
Eka Continues to Provide the Innovative Solutions Needed for Tomorrow
Eka’s first solution targeted the agriculture industry and was an advanced commodity trading and risk management (CTRM) system for coffee. The CTRM software platform quickly expanded to include all agriculture products including all softs, grain, oilseeds, etc. Over time, Eka expanded to energy trading and risk management (ETRM) including natural gas, oil, power, and LNG.
Eka has consistently been an innovator in providing CTRM and ETRM software solutions and is leading the next generation of commodity management solutions in big data, IoT, and advanced analytics. Eka currently provides IoT solutions for bulk handling sites using data from sensors on equipment and providing analytics to better manage labor costs, improve production, gain real-time visibility on inventory, lower compliance costs, and justify infrastructure changes. We will continue to add IoT and analytics solutions throughout the agriculture and energy supply chains.
Eka’s analytics platform delivers industry-specific apps that cover P&L, procurement, risk, and supply chain. Unlike generic business intelligence tools, our advanced analytics platform has been built with the specific needs of commodities companies in mind.
»»» Download brochure on Eka's analytics platform for commodities. «««
Recent research conducted by Eka shows that a whopping 66% of commodity companies rely on spreadsheets for analytics. Using spreadsheets as the main analytics tool hasn’t worked well in the past (ETRM and CTRM days), and it’s an even worse strategy as technology moves forward into big data and IoT. It’s not that companies feel that spreadsheets are the correct tool for analytics, but rather a recognition that until now, available analytics options for commodity companies have been less than ideal. Eka’s research also showed that only 12% of commodities companies use corporate BI tools for analysis. The low percentage is not surprising as generic BI tools do not fit the needs of commodities companies. Likewise, CTRM and ETRM software was designed to manage commodity transactions, not analytics, so it doesn’t fit the bill.
The business environment is advancing rapidly and fact-based decision making will be a game-changer for companies. Eka is leading the way in providing analytics designed specifically for commodities companies.
