Product Success – EMPOWERING SMALLHOLDER FARMERS WITH THE CAPACITY TO PRODUCE HIGH YIELDING PESTICIDE FREE FOOD
SAP S/4HANA Cloud is front and center in CrowdFarmX’ s Vision for Sustainable Farming practices to maximize food safety and production.
This blog features Netatech Engineering Pte Ltd, a Singapore based organization pioneering sustainable and safe farming practices for global impact. Netatech Engineering Pte Ltd, is one of the most innovative providers of water and food sustainability technologies. Working closely with Singapore government agencies, Netatech specializes in integrated solutions for rain, sun and crop harvesting spanning different areas like water reuse treatment, telemetry remote sensing and open field irrigation. Netatech is focused on purpose driven innovation and tightly aligned to SAP’s purpose of helping the world run better.
By 2050, the world population is expected to exceed 9 billion. As a result, global food supply must increase by at least 60% to meet global food demand. However, the world population is also increasingly living in urban cities who are dependent on around 80% food supply provided by smallholder farmers in a US$6 trillion industry. The farmers receive low economic returns for their labor despite increasing consumer demand, thus aggravating the problem. In order to tackle the aforementioned challenges, Netatech has been working for over a decade to develop a cooperative platform for farmers. This platform called CrowdFarmX is the world’s first cooperative farming platform on blockchain.
Together with SAP, CrowdFarmX have embarked on this journey towards Farm transformation. Netatech chose SAP’s S/4HANA Cloud as its ERP platform to integrate processes from production planning to operations to finance to optimize their food production process. The CrowdFarmX Platform with its highly scalable S/4HANA Cloud solution and the SAP Cloud Platform (SCP), connects farmers directly to the global market and equips them with technology know-how to deliver higher quantity and quality yields with direct access to the best-practice planting protocols, monitoring and control of their farms to maximize food safety and production.
Why SAP S/4HANA Cloud
Netatech after due evaluation decided on S/4HANA Cloud as the preferred choice for the following reasons
- Localization to comply with multinational regulations
- The ability to deploy in phases
- Easy and quick to scale
- A full suite of core ERP functionalities
- Additional functionalities that can be flexibly extended
The Netatech S/4HANA Cloud implementation spanned a short time frame of 10 weeks, with the entire implementation being done by the in-house team leveraging standard best practice content delivered by SAP. They also aggressively leveraged the SAP Activate methodology which provides detailed step by step instructions, accelerators and templates that enable customers to implement S/4HANA Cloud in the shortest possible time frame.
SAP and CrowdFarmX – Architecture
The CrowdFarmX platform architecture represents a shift from the traditional IT strategy that focuses solely on in-house control and management of a stable system (Mode 1) to a bimodal approach with additional ﬂexible and agile Mode 2 systems that enable the platform to explore and experiment with new technologies and best practices.
SAP S/4HANA Cloud runs as CrowdFarmX’ s digital core, its Mode 1 system that provides the core Supply Chain capabilities that are stable, scalable and hence have a lower Total Cost of Ownership (TCO).
The stable but agile S/4HANA Cloud ERP solution enables the CrowdFarmX platform to undergo quarterly updates to incorporate new innovative capabilities and up-to-date regulatory changes.
The S/4HANA Cloud solution provides capabilities for planning and controlling of aggregated farm production based on accurate and realistic market demand. The material ﬂow can be easily modelled, planned and controlled and actual cost can be collected and analyzed. The business process includes analysis, material requirements planning, and the evaluation of the planning results.
SAP’s Cloud Platform Integration will be the Mode 2 systems to provide the ﬂexibility to extend the Core ERP capabilities and to catalyze innovation by capitalizing on new sources of data, leading-edge technologies such as blockchain, artiﬁcial intelligence, machine learning, predictive analysis and massive compute power and storage functionality at scale. The ERP Cloud Platform and integration with the IOT module will enable CrowdFarmX to perform data-driven analytics and demand-driven production planning on top of its core functions. Using machine learning and predictive analysis, CrowdFarmX will optimize its key operational processes and manages its production with farmers.
Netatech plans to impact 60 million farmers, which is about 10% of the current 570 Million, by 2050 . The CrowdFarmX platform aims to help them improve average net yield up to 10 times from their current low yield. With this vision, the CrowdFarmX platform will play a key role in solving one of the most pressing issues, food crisis, of the world facing today. SAP is happy to partner with CrowdFarmX as they create a future for sustainable farming at the same time creating a safer pesticide free world.
(Sven Denecken, SVP SAP S/4HANA Product Management and Co-Innovation, with Vincent Ng, Founding Partner, Head of Global Supply Chain at CrowdFarmX)
This exciting customer story from Netatech is the first in a series of blogs that will highlight some of our customer innovations and the use of S/4HANA Cloud to achieve their business objectives. As I meet and co-present with customers and partner around the globe, their stories continue to inspire and impress me….it’s time to start sharing these with you!
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- My 1905 blog on SAP News here
- Best practices for SAP S/4HANA Cloud here
- What’s New here
- Implementation Portal here
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Great customer success story Sven Also happens to be the first SAP Cloud ALM customer reference in the region.