Sustainable Precision Agriculture:

Research and Knowledge for Learning

how to be an agri-Entrepreneur

Handbook for BUSINESS

MODEL CANVAS in the field
of SUSTAINABLE PRECISION
AGRICULTURE
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TABLE OF CONTENTS

1. Introduction: Content and Aim of this Vademecum ...........................................................................................................2

2. Business Model Canvas: Methodology and Tools ..............................................................................................................3
2.a Guidelines for Interviewer: How to Design a BMC ............................................................................................................11
2.b Business Model Canvas: “Key Questions Check List” ........................................................................................................15
2.c Expected Outputs .............................................................................................................................................................22
3. Practical examples: Sparkle’s BMC collection .................................................................................................................. 23
3.a GREECE .............................................................................................................................................................................24
3.b ITALY.................................................................................................................................................................................33
3.c PORTUGAL ........................................................................................................................................................................43
4. Lesson learnt ................................................................................................................................................................... 53
4.a Key Factors Facilitating PA Adoption (IMPACT Analysis) ...................................................................................................53
4.b Analysis of experience assessment questionnaires (point of view of interviewed entrepreneurs) ...................................66
4.c Focus group of experience assessment .............................................................................................................................74
4.d Conclusions ......................................................................................................................................................................75
Annex a) - PA IMPACT analysis ..............................................................................................................................................78
Annex b) - More about the methodology: presentation Business Model Canvas (slides Pisa International Meeting, June
2018) ......................................................................................................................................................................................79

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1. Introduction: Content and Aim of this Vademecum

This document has two main purposes:

 to create a new educational tool addressed to students with a special focus on Smart Agriculture;
 to collect and present a panel of 21 business models of successful companies operating in the field of agriculture in south Europe, that can be
considered as best practices in the field of Precision Agriculture (PA).

The aim is to design the guidelines for future Agripreneurs 4.0 and consultants who will be able to analyse business cases in order to facilitate the adoption
of PA techniques and tools in SMEs in European agriculture.

This Vademecum includes three main chapters:

 Model Canvas:

 21 successful business models, in the field of smart agriculture, collected by the partners of the Sparkle Consortium in four different countries of

 the assessment of the effectiveness of the BMC methodology from the point of view of interviewed entrepreneurs and of

 Business Model Canvas: Key Questions Check List

 an IMPACT analysis specifically modified to investigate barriers, drivers, benefit and impact related - to the
introduction of PA within the production system of his/her company.

Please note that Business Model Canvas poster and Precision Agriculture IMPACT ANALYSIS
are available on Sparkle Google Drive, we invite you to download Sparkle tools from http://tiny.cc/quam6y

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2. Business Model Canvas: Methodology and Tools

The Business Model Canvas, designed by A. Osterwalder, Y. Pigneur & others, is a strategic management and entrepreneurial template, based on lean
startup, enabling both new and existing enterprises visually represent their business to focus on operational as well as strategic management and marketing
plan.
It allows the entrepreneur to describe, design and innovate his/her business model, sharing it with management and partners.

The template consists of nine steps needed to create a business model using the Business Model Canvas.

A business model is defined as:

 A plan for the successful operation of a business, identifying sources of revenue, the target customer base, products, and details of financing.
Essentially, it tells us how the key drivers of a business fit together.
The Business Model Canvas rapidly spread and is widely used because it gives a way to create a pretty clear business model using just a single sheet of
paper. And what is great about it is it can be used to describe any company from the largest company in the world to a startup with just one employee

Advantages of the Business Model Canvas:

 Easy to understand: Because the canvas on just a single page is very visual.
 Focused: It removes any redundant information that might have been present in a traditional business model.
 Flexible the model and sketch out different ideas.
 Customer Focused: the canvas forces first of all to consider the value the business is providing to the customers, and only then what it takes to
deliver that value.
 Shows Connections: The single page graphical nature of the canvas shows how the different parts of the model interrelate to each other.
 Easy to Communicate: Because the canvas is so easy to understand. It can be easily shared and explained.

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Using the Business Model Canvas

The first thing to notice is that there are nine elements or building blocks, which make up the canvas:

Each building block of the canvas tries to answer the following questions:
1. Customer Segments: Who are our customers?
2. Value Proposition: Why do customers buy from us? What is the gain we provide or the need we satisfy?
3. Channels: How are our products and services delivered to the market?
4. Customer Relationships: How do we get, keep, and grow our customers?
5. Revenue Streams: How does our business earn money?
6. Key Resources: What unique strategic resources does yor business have or need?

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7. Key Activities: What unique strategic activities does our business perform to deliver your value proposition?
8. Key Partnerships: What non-key activities can we outsource to enable us to focus more on our key activities?
9. Cost Structures: What are the major costs incurred by our business?

Left/Right Split
We can say that those elements on the left-hand side of the canvas represent costs to the business, whereas elements on the right-hand side generate
revenue for the business.
However, the Business Model Canvas comes to life when you see it in action.
Let us look at three different examples of the Business Model Canvas so you can see just how useful it can be.

Nespresso
The first and most famous example is the Nespresso case of business model innovation. Nespresso is a machine-and-pod coffee concept for making
espresso, developed by the food multinational Nestlé. By fitting an aluminum coffee pod into the machine, perfect espresso can be made at the push of a
button.
Specifically, what makes the Nespresso case appealing is that the model:
 attracts clients through an upper segment marketing stra
 ties customers directly to Nespresso through direct sales systems for the cups that go into the machine, both online (10 million online subscribers)
and through boutiques (over 200 worldwide). This keeps margins close and warm for the company.
 O these
manufacturers function as part of the distribution channel, as customers buying the machines are also tied to using the cups
 -tech processing facilities, which put coffee
in the cups and seal them
When the Nespresso business model is drawn out on the business model canvas, the overview looks more or less like this:

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PICTURE 1: SOURCE HTTPS://VALUECHAINGENERATION.FILES.WORDPRESS.COM/2011/12/NESPRESSOMARKET.PNG

Check the Video of A. Osterwalder https://youtu.be/_UECTWQCYxQ

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Google
-sided. This means that it brings together two distinct but related customers.
search users and its advertisers. The platform is only of interest to advertisers because search users are also
present. Conversely, search users would not be able to use the platform free of charge were it not for advertisers.
The Business Model Canvas for Google is shown below:

PICTURE 2: SOURCE HTTPS://WWW.STRATEGYZER.COM/

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As you can see the diagram gives you an immediate understanding of the
We can see that:
 Google makes money from the advertiser customer segment, whose ads appear either in search results or on web pages.
 This money subsidizes a free offering to the other two customer segments: search users and content owners.
it attracts. And the more
advertisers it attracts the more content owners it attracts.
is its search platform including google.com, Adsense (for content owners) and Adwords (for advertisers).
The key strategic activities that Google must perform are managing the existing platform including its infrastructure.
sly the content owners from whom a large part of its revenues is generated. OEMs (Original Equipment Manufacturers)
also form a key partner.
OEMs are companies who produce mobile handsets to whom Google provides its Android operating system to for free. In return, when users of these
handsets search the internet they use the Google search engine by default, thus bring more users into the ecosystem and generating even more revenue.

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Skype
In the diagram below you can see the Business Model Canvas for Skype:

PICTURE 3: SOURCE HTTPS://WWW.STRATEGYZER.COM/

From the Business Model Canvas we can see that Skype has two key value propositions:
 The ability to make calls over the Internet, including video calls, for free.
 The ability to make calls to phones cheaply.
Skype operates a freemium

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calls over the internet, with just 10% of users signing up to the prepaid service.
We can see from the customer relationship building block that customers typically have a help themselves relationship with Skype. Typically, this will be
by using their support website.
The channels Skype uses to reach its customers are its website, skype.com, and partnerships with headset brands.
Looking at key partnerships, key activities, and key resources together, the main thing to notice is that Skype is able to support its business model of
offering
much infrastructure at all, just backend software and the servers hosting use accounts.
Business Model Canvas and Precision Agriculture
From this short list we understand that even if the BMC is widely used in business analysis, it is not yet being used when analysing farms and agriculture.
Yet, we know that thanks to its visual approach and flexibility, it can be applied to all kinds of businesses and in all sectors.
Here we have the possibility to apply the model to businesses in the agriculture sector and test the performance in explaining how the different elements
fit together and in planning future management.

To learn more:
 A Handbook for Visionaries, Game Changers, and Challengers
A. Osterwalder, Y. Pigneur, ed. Wiley 2010
https://strategyzer.com/
 https://strategyzer.com/canvas/business-model-canvas
 http://www.businessmodelgeneration.com/book
 https://canvanizer.com/ (BMC co-designing and sharing platform)

NOTE

All tools in this Vademecum are in the English version. As farmers may not feel comfortable with English, you should always use the versions translated
in your language.

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2.a Guidelines for Interviewer: How to Design a BMC

The process of al activity

of writing, sticking, moving around post-it and paper sheets. Thinking, writing, standing, sticking, stepping back for a look, changing the order of paper
sheets, all this helps developing and sharing the train of concepts in the mind of the entrepreneur and of the management.

Materials
 One BMC large poster printed (140cm by 100cm)
 Post-it of at least 2 different colors; one for the activities of the business and one specifically for the Precision Agriculture activities.
 Felt-pens
 A copy of the guide lines and list of questions
 A copy of the IMPACT ANALYSIS template
 A tape-recorder

the entrepreneur fill in the 9 blocks of the template through key questions.
The visualization of BMC, during its completion and in its final version, allows the sharing of analysis and the validation of the graphic representation of
the business formula of the company.

Using the BMC methodology to guide an entrepreneur in analyzing the business model of his/her company or start up is co-designing the entrepreneurial
formula by using questions, examples, interaction and, above all, active listening!

Thus, the analysis must be done together with the entrepreneur, possibly at his company.
Filling out the BMC tool from remote, for instance by email or by phone, would bring to a depletion of data which can be collected only by filling it out
together with the entrepreneur and by interacting with questions and validating in real time the Canvas obtained.

Hence, the analysis should be done in cooperation, interaction and exchange with the farmer using a Canvas model, printed on paper and hung on the
wall. On this BMC poster answers, contributions and considerations that might arise from the exchange with the entrepreneur will be written down using

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post-it notes.

The consultant will lead in the compilation of the 9 blocks using the list of key questions that follows (page 13).

The ideal team for the BMC analysis should be composed of 2 resources: one researcher who interacts with the entrepreneur, while the other one
writes down the answers on the post-it notes and attaches them on the poster. Both note down, separately, all considerations and significant answers
which have not enough place on the post-it notes, but can be written in the meeting report.

The list of key questions is only for reference, both researchers should be acquainted with the methodology to guide the thinking but ready to follow
the train of thoughts of the entrepreneur, underlining the connections and.

Each BMC analysis requires at least 1 working hour with each entrepreneur.
Hence, we ask you to take into account for 1,5/2 hours commitment with each company.

to combine the necessary

time for an effective BMC assessment with the availability and the time of the entrepreneurs involved.

NOTE

The first aim of this analysis is to design the entrepreneur formula of the company.
Hence, the invitation for the entrepreneur is to describe with your help their own personal business formula as it is today, without thinking in particular
about PA.
Once you will have filled out the BMC in all its sections, you will focus on the role of PA in this business model. Hence, you will ask the entrepreneur to
consider how PA interpolates in the company system, where PA is placed in the BMC, in relation to which section.

For a better Canvas visualization, we suggest to use post-it notes of a color for designing the business formula, proceeding then to use post-it notes of
another color to collect considerations and answers concerning the use of PA in the company system.

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Preparation of the BMC analysis and necessary tools

 and direct telephone call; then send a brief e-mail as reminder (date, time and approximate
duration of the activity, name of the consultants);
 -degree laboratory for the analysis of their business model, therefore if they need to
involve other associates or partners, who deal with the different stage of production, they can do it;
 the entrepreneurs do not like to receive information material on BMC or in-depth links before the meeting; it will be possible eventually to send links
or material afterward in case of interest;
 for each company print the following materials (download from goo.gl/4ybWfA
o a BMC in poster format A0 (size 84 cm x 120 cm)
o a Precision Agriculture IMPACT analysis matrix in A4 format
 bring
o paper tape to hung the BMC poster on the wall;
o post-it notes in two colors (one for filling out the BMC, the second color to note down considerations about PA);
o markers for writing on the post-it notes;
o a notebook to write down everything does not fit on post-it notes
o camera/tablet/Smartphone to take pictures and videos during the work with the entrepreneur. It is necessary to take at least one or two
pictures of the BMC completed at the end of the interview.

Meeting Plan:
 start the meeting by explaining how the BMC session works: clear the aim, the proposed methodology and the necessary time;
 hung the BMC poster on the wall, explain it to the entrepreneur (what is a BMC, what is it for, show quickly the 9 sections);
 give them a few minutes for considerations and/or clarifying questions;
 before starting with BMC analysis, collect all data concerning the company profile (see Note below)
 -it notes for writing down contributions and
considerations;
 keep the BMC poster of each company, with the post-it sticky notes on it and the completed PA IMPACT ANALYSIS template;
 Write down date, place, name of the consultant, duration of the activity.

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NOTE

1) The logical BMC sequence, which leads However, in real life

the discussion can be very rich and fast, always possible to follow a strict logic of completion. We suggest to listen and possibly collect all
contributions of the entrepreneur although they come in a confused way. Do not stop them, listen actively doing some follow-up questions when
necessary.
2) Data concerning the company profile are fundamental to complete the analysis of Business Model Canvas.

Hence, we recommend you to start the BCM session taking note of all the necessary data:
1. Company name, headquarters/address and starting date
2. Type of crops and extension in hectares
3. Number of employees
4. Type of PA investments, clarifying
 when and why they introduced it?
 what problems they wanted to solve with it?
 how did they learn about it?
 who guided or supported them in finding the best PA solution?
 did they get any specific training?
 did they get any public grant/funding for implementing the PA?
5. Name of the entrepreneur and of the other people eventually involved for the BMC analysis, their role in the company
6. Contact person and contact details (email, skype, telephone)

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2.b

leads the compilation from a section to another.

In the following list, we report the questions, reflections and examples suggested for each BMC section to help the interviewer interact with the farmer, to
facilitate his/her exchange with the entrepreneur and collect as many contributions as possible.

the exchange with the

entrepreneur is richer than what is proposed in the list. Therefore, we suggest to listen actively and collect possibly all contributions of the entrepreneur
although they come in a confused way, without following this logical structure.

Value Proposition
The Value Proposition is t exists.
We ask the entrepreneurs both the products and services their business provides, their farm produces, and the intrinsic worth for the customer, the
advantage they receive from it.
Key Key Customer Customer What value do we deliver to the customer?
Partners Activities Relationship Segments
Which
Value
helping to solve?
Proposition
Key Channels What bundles of products and services are we
Resources offering to each Customer Segment?
Which customer needs are we satisfying?
Cost structure Revenue Streams

Characteristics of the Product/Service

 Is it a new product for this market?
 Can improve the performance for the clients?


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 Is it basic and simply ?

 Is it characterized by an innovative Design?
 Is it a Brand bringing Status to customers?
 Is it convenient? (Price)
 Can help saving money, time? Cost Reduction
 Can reduce the risk for clients? Can it protect the client?
 Is it easily accessible? Easy to use? Convenient?

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Customer Segments
The BMC focuses on the relationship between the business and its clients. Here we ask the entrepreneurs to list the different segments of their market.
Key Key Value Customer Customer For whom are we creating value?
Partners Activities Proposition Relationship
Segments
Who are our most important customers?
Key Channels  Mass Market
Resources
 Niche Market
Cost structure Revenue Streams  Segmented
 Diversified
 Multi-sided Platform

Distribution Channels
Here we ask the entrepreneurs how they stay connected with their clients. Where do they sell their products and services?
Key Key Value Customer Customer Through which Channels do our Customer
Partners Activities Proposition Relationship Segments
Segments want to be reached?
How are we reaching them now?
Key
Resources Which ones work best?
Channels
Which ones are most cost-efficient?
Cost structure Revenue Streams How are we integrating them with customer
routines?

When addressing the issue, we must be aware of the different phases in staying in touch with the clients.
Channel Phases
1. Awareness: how/where/when does the client get to know about our product/service?
2. Evaluation: how do clients make up their mind? Who do they listen to?
3. Purchase: how do they buy? how do they pay?
4. Delivery: where do they prefer to buy? Retail, Great Distribution, Online?
5. After sales: how do we assist clients after sales?

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Customer Relationship
In this section we ask the entrepreneurs how they get, keep, grow their customers.
Key Key Value Customer Customer What type of relationship does each of our Customer
Partners Activities Proposition
Relationship Segments Segments expect us to establish and maintain with
them?
Key Channels Which ones have we established?
Resources
How are they integrated with the rest of our business
model?
Cost structure Revenue Streams
How costly are they?

Examples

 Personal assistance
 Dedicated Personal Assistance
 Self-Service
 Automated Services
 Communities
 Co-creation

Revenue Streams
Summing up the right-hand side of the Canvas, corresponding to the marketing plan of the business, we have the corresponding
ices.

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Key Key Value Customer Customer For what value are our customers really willing to
Partners Activities Proposition Relationship Segments
pay?
For what do they currently pay?
Key Channels How are they currently paying?
Resources How would they prefer to pay?
How much does each Revenue Stream contribute to
Cost structure Revenue Streams overall revenues?

Key Activities
Passing to the left- to
involve. Here we ask the entrepreneurs to tell us what he considers to be the strategic activities to perform to develop the business. Notice that here is
where, on average, most entrepreneurs introduce Precision Agriculture in their model.

Key Key Value Customer Customer What Key Activities do our Value Propositions require? Our
Partners Proposition Relationship Segments
Activities Distribution Channels? Customer Relationships? Revenue
streams?
Key Channels Categories
Resources
 Production
Cost structure Revenue Streams  Problem Solving
 Research & Development
 Platform/Network

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Key Resources
ents of PA

Key Key Value Customer Customer What Key Resources do our Value Propositions require?
Partners Activities Proposition Relationship Segments
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Key Channels
Resources Types of Resources
Cost structure Revenue Streams
 Physical (premises, equipment, technology, raw
materials)
 Intellectual (brand patents, copyrights, data)
 Human
 Financial
Key Partners
Here we ask the entrepreneurs what non-key activities they outsource to be able to focus more on key activities.
Notice that here we should find the educational system supporting PA introduction: universities, research centres, consultancy firms, providers etc.

Key Key Value Customer Customer Who are our Key Partners?
Partners Activities Proposition Relationship Segments
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Key Channels Which Key Activities do partners perform?
Resources

Cost structure Revenue Streams

Motivations for Partnerships
 Optimisation and economy
 Reduction of risk and uncertainty
 Acquisition of particular resources and activities

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Cost Structure
Summing up, the left-hand side of the Canvas corresponds to the structure of the business, which represents the investments, the costs involved.
Key Key Value Customer Customer What are the most important costs inherent in our business
Partners Activities Proposition Relationship Segments
model?
Which Key Resources are most expensive?
Key Channels Which Key Activities are most expensive?
Resources

Cost structure Revenue Streams

Cost Driven: leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing
Value Drive: focused on value creation, premium value
proposition

Sample Characteristics

 Fixed Costs
 salaries,
 rents,
 utilities
 Variable costs
 Economies of scale
 Economies of scope (a proportionate saving gained by producing two or more distinct goods, when the cost of doing so is less than that of
producing each separately

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2.c Expected Outputs

The expected outputs are:

 a shared and validated Business Model Canvas of the company in paper version (keep the filled in BMC poster as part of the final report);

 a completed PA IMPACT analysis;
 Pictures: at least 1 picture of each completed BMC, possibly pictures of the farmers with his/her BMC, of the farm or/and PA sample

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Within Sparkle project, the Consortium tested the BMC analysis on a panel of 21 study cases1 that can be considered as best practices in the field of Smart
Agriculture in South Europe.

This group of 21 companies is very rich and includes both micro family businesses and large companies, at the same time it includes agricultural production
companies and companies that provide customized PA services and solutions.
Furthermore, the farms involved in the survey belong to different crop sectors and to different geographical areas of South Europe: Greece, Italy, Spain
and Portugal.

The collection wants to show how to use BMC methodology to analyze the entrepreneurial formula of farms that have successfully adopted PA solution.
order to grow economically
and, at the same time, decrease the environmental impact.

1Only our partners’ BMC will be dealt with here, whereas the whole documentation is available on SPARKLE website: http://sparkle-
project.eu/resources/

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3.a GREECE

Greece
HIPPOCRATES FARM REZOS BRANDS

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INFO COMPANY

HIPPOCRATES FARM REZOS BRANDS

Address: Central Greece [Patras Industrial Area, 25200, Patras, Greece]

Founding date: 2010-2011
Extension: Remote sensing
Crops: FRUITS / Sea buckthorn
Number of employees: 2 (seasonal 15)

Contact
Name: Konstantinos Panagiotou
Telephone: +30 6944866030
Email: konstantinpanagiotou@yahoo.com

Website: https://hippocrates-farm.com
Social: https://www.facebook.com/HippocratesFarmGreece/

Date of the interview: 29.11.2018

Name of the interviewed person (specifying his/her role in the company): Konstantinos Panagiotou (farmer/owner)
Name of the interviewer: Maria Partalidou [assistant: Dimitra Lazaridou]

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INFO PA introduced

What kind of PA innovation was introduced in the company?

PA irrigation System using sensors. Data from sensors are transmitted via Wi-Fi in real-time to a mobile phone based on IOS/Android. In the light of
obtained data, the seasonal precision irrigation system was created depending on the amount of water required by the plants at each stage of their growth
stage. The required energy of the system was provided by solar energy.

When? 2010-2011

Why? What was the motivation/problem to solve?

The motivation was to introduce new cultivation methods and innovative processes that can upgrade the quality and nutritional characteristics of our
beneficial crops, through intensive R&D. Another major driver was the promotion of cultural food heritage, promotion of healthy living and healthy
entrepreneurship. Two problems that PA is trying to solve are the need to take care of assets and especially water and of course have a quality higher
crop yield.

How did you learn about these new technological solutions?

From other farmers outside Greece (networks of peers) that have already adopted PA.

Have you been supported / assisted / trained by someone?for the PA?

We were assisted by the project KATANA in terms of facilitating in th production of our first functional food via PA. Other partners such as :
 University Aristotle of Thessaloniki
 Hellenic Agricultural Organization DEMETER,
 Agroapps
 Institute of BioSense

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BMC - report

Value Proposition
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments
The fruit is an absolute power house of nutrients
 absolutely naturally/ organic farming
 functional food products
Key Resources Channels
 the production is a trusted source of high quality food
 less water usage than traditional agriculture
Cost structure Revenue Streams  waste reduction
 positive environmental impact
 loyalty with customers

Customer Segments
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Customers with a healthier approach in life
 Potential customers that need to build awareness on functional food
Key Resources Channels
 Impulsive customers
 Protection of the environment enthusiasts
 Field sales agent (having an ID for your field, rises its value)
Cost structure Revenue Streams

Distribution Channels
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Retail: hotels, e-shop, duty free shops, gift shops, shops with superfoods
 Wholesale
Key Resources Channels

Cost structure Revenue Streams

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Customer Relationship
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Customer analytics for customized products
 Super food community development
Key Resources Channels
 Social media

Cost structure Revenue Streams

Revenue Streams
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Cash
 Price list
Key Resources Channels
 Asset sale

Cost structure Revenue Streams

Key Activities
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Sales
 Logistics
Key Resources Channels
 Distribution
 Processing
 Marketing
Cost structure Revenue Streams  R&D in functional food

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Key Resources
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Researchers
 Agri-experts
Key Resources Channels
 Field farm labour
 Machinery

Cost structure Revenue Streams

Key Partners
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Research Institutes
 Ministry of Agriculture
Key Resources Channels
 Agri-Tech companies
 IT companies

Cost structure Revenue Streams

Cost Structure
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  GIS
 Equipment (pipes, drippers, water tanks, drones, sensors, server, laptops)
 Marketing promotion
Key Resources Channels

Cost structure Revenue Streams

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IMPACT ANALISYS

 more accurate decision on harvesting,

 Time consuming in order to understand PA watering etc.
 Money investment  conserve resources while reducing chemical
runoff.
 innovation
 employment,
 cultural food heritage
 promotion of healthy living
 healthy entrepreneurship.

 Decrease of water usage  positive impact on the environment

 Higher crop yield  nutrient management
 reduce environmental impact  pest management
 reduce staff costs  soil quality
 water quality

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3.b ITALY

Italy
MARCHESI MAZZEI SPA AGRICOLA

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INFO COMPANY

MARCHESI MAZZEI SPA AGRICOLA

Address: Estate Castello di Fonterutoli

Via Ottone III di Sassonia n°5, Loc. Fonterutoli
I-53011 Castellina in Chianti (SI)

Founding date: 1435

Extension: Estate Castello di Fonterutoli 640 Hectares

Crops: Vineyards, Olive Oil, Lavender (Essential Oils), woodland

Number of employees: 50 full time for Tenuta Castello di Fonterutoli. 110 employees with seasonal workers. Other 16/20 employees in the Guest
department

Contact
Name: Gionata Pulignani
Office: +39.0577.73.57.30 - Mobile: +39.335.82.63.536
E-mail: g.pulignani@mazzei.it
WebSite: https://www.mazzei.it/en/
Social https://www.facebook.com/marchesimazzei/
https://www.instagram.com/marchesimazzei/
https://www.youtube.com/channel/UCPdlctC3kGcHrY0JYYpwkCg

Date of the interview: 20/09/2018

Name of the interviewed person (specifying his/her role in the company):
Gionata Pulignani, technical director - Sergio Corridori, administrative director
Name of the interviewer: Euroteam Progetti

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INFO PA introduced

What kind of PA innovation was introduced in the company?

In 2006, Marchesi Mazzei developed a product traceability software from the vineyard, to the winemaking, up to the bottling. Since 2008 they have
developed a plan to analyse the vigor index with the purpose of creating a vigor mapping.

In 2010 they started a project to develop a new telemetry application that Marchesi Mazzei developed in collaboration with Professor Marco Vieri of the
University of Florence, Bibbiani Macchine Agricole (Monteriggioni, SI) and Soft 2000 (Florence), and which could become a marketable product.

A final project in chronological order, which takes place in collaboration with Syngenta and the University of Florence, is underway to develop a model that
allows adapting the dose rate sprayer to the real development of canopy.

They plan to continue with vigor mapping and telemetry together with a Spanish partner. The objective is to extend the telemetry to the entire fleet of
tractors for variable rate seeding and nutrition.

Finally they intend to acquire the FSSC Certification (Food Safety System Certification) 22,000 requested by importers.

Why? What was the motivation / problem to solve?

 Guarantee the traceability imposed by current regulations

 Standardize and minimize system errors
 Collect reliable certified data for process management to improve product quality.

How did you learn about these new technological solutions?

Thanks to research centres, partner universities and network of providers.

Have you been supported / assisted / trained by someone?

Yes, by partner network, research centres and universities, suppliers

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BMC - report

Value Proposition
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Wine (90%), 20 labels marketed
 Oil (10%)
Key Resources Channels  Lavender and essential oils
 Wine Tours and wine tasting
 Hospitality: B&B and tavern
Cost structure Revenue Streams
 Identity
 Sustainability
 Quality
 Brand equity
Marchesi Mazzei SPA is the agricultural company that owns the 3 estates:
 Castello di Fonterutoli, Siena, Tuscany
 Belguardo, Maremma, Tuscany
 Zisola, Noto, Sicily

In 2017 Marchesi Mazzei produced 1.400.000 bottles in all 3 estates. For over six hundred years the Mazzei family has been producing wines. In all
properties, the harvest is done exclusively by hand.
Marchesi Mazzei offers: transparency, authenticity, honesty. Visits to the vineyard and tastings let you know the company live in a total and immersive
experience.
The value offered goes beyond the sale of products and includes enjoying the environment, history and tradition.

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E.V.
Olive
Oil
Tradition

Wine
Enhanced
Product

Environment
History

Customer Segments
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Marchesi Mazzei sells its products mainly in Europe (35%), the rest is sold on other markets,
especially the USA and Japan
Key Resources Channels
 80% of the product is exported

There are approximately two types of customers:

Cost structure Revenue Streams

-scale distribution
60% of production concerns labels for the HORECA system

Recently the company has invested in hospitality, addressing a high-end tourist segment that in addition to wine is interested in other assets of the
company: tradition, history and territory.

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Distribution Channels
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments
Product Ambassadors: network of wine bars, restaurants, small quality shops - HORECA
large-scale distribution
Key Resources Channels

magazines are essential

Cost structure Revenue Streams
The digital communication system takes place through the site and social networks: Facebook,
Instagram and YouTube. The communication channel of wine bloggers was not interesting
because it proposes a generalist and not always transparent communication.

Customer Relationship
Key Partners Key Activities Value
Proposition 
Customer
Relationship
Customer
Social Media Marketing
Segments

 Newsletter
Key Resources Channels  B&B, Tavern, Società Orchestrale
 Wine Club/ Ambassadors
Cost structure Revenue Streams  Wine Tours and Tasting
 Events
 P.R.
The relationship with the customer communicates the lifestyle and philosophy of the company through the below-the-line channels: transparent,
sustainable, enthusiastic

Revenue Streams
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  90% wine sales
 10% oil sales
Key Resources Channels
 Wine Tours and Tasting
 Hospitality

Cost structure Revenue Streams In 2017 Marchesi Mazzei had a turnover of 13.3 million euros.
The sales margin to the final consumer is higher than in the horeca and large-scale distribution
system

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Key Activities
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Planning
 Viticulture
Key Resources Channels  Winemaking innovation in the process
 Marketing
 Selling
Cost structure Revenue Streams

Research for production innovation for a standardization and optimization of the system.
A careful financial and warehouse management is very important.
An efficient sales network for both large-scale distribution and Horeca products.

An increasingly optimization of the production / marketing chain.

Communication: it is very important to communicate with customers who cannot make a direct experience of the product in the company.
Communication: institutional communication must be resolved, at local, regional and national level.

Key Resources
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Uniqueness of the territory
 Brand: identity and history
Key Resources Channels  Wine Cellar
 Competent and motivated human resources
Cost structure Revenue Streams  The necessary financial means to make investments in PA too.
 Availability of customized equipment for harvesting, winemaking and bottling.
 Human resources are a critical success factor, in addition to technical skills, which should
increasingly integrate different fields there are passion and curiosity for the job too

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Key Partners
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Ambassadors
 Restaurants
Key Resources Channels  Wineshops
 Large-distribution supermarkets
 Importers
Cost structure Revenue Streams
 Suppliers
Companies: BASF, Bibbiani Macchine Agricole, Bucher Vaslin, CBC Bioguard Europe, Claas,
Oenodev, Soft 2000, Syngenta.
Research centres: CRA Entomology of Firenze, Horta Srl, University of Florence, University of
Pisa.
It would be desirable to improve the collaboration by the administrators, with whom to share a
project for the territory.

Cost Structure
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Selling
 Equipment
Key Resources Channels  Packaging and Label
 Certification fees
 Transport
Cost structure Revenue Streams
 Wine Growing
All PA projects have been self-financed by the company, without resorting to public or private
funding.
For this reason, it would be useful to have more flexible financial instruments, both public and

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IMPACT ANALISYS

 Administrative constraints  Respecting product specification

 Burocracy  Tracking
 Hard balance between standard PA  Rationalization of productivity
system and tailored system costs.
 It is complex to transfer to customer  Quality improvement
the pa investment.

 Rationalization
 Better care of the
 Scale economies: input
reduction less work hour, less
environment
diesel, less fertilizer, less  Increased sustainability.
treatment, less CO2.

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3.c PORTUGAL

Portugal
QUINTA DA CHOLDA

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INFO COMPANY

QUINTA DA CHOLDA SA

Address: Quinta da Cholda, 2150-066 Azinhaga do Ribatejo, Golegã

Founding date: 1987

Extension: 500 ha for corn and 1700 ha for forest

Crops: Corn and forest

Number of employees: 10 permanents

Contact
Name: João Coimbra
Email: geralcholda@gmail.com
WebSite: quintadacholda.pt
Social: www.milhoamarelo.com
milhoamarelo.blogspot.pt
www.youtube.com/user/jcoimbra1

Date of the interview: 2 October 2018

Name of the interviewed person (specifying his/her role in the company): João Coimbra, administrator and Nuno Tomé, tecnhician
Name of the interviewer: Manuela Correia and Luís Paixão

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INFO PA introduced

What kind of PA innovation was introduced in the company? (see WP1 Questionnaire for farmers Part I I.2)

Variable Rate Technology (VRT).

When? 2016.

Why? What was the motivation / problem to solve?

To spread nutrients in a non-uniform way.

How did you learn about these new technological solutions?

From literature and internet.

Have you been supported / assisted / trained by someone?

No, they learned by themselves.

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BMC - report

Value Proposition
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Corn.
 Forestry products.
Key Resources Channels  Electricity.
Quinta da Cholda produces high quality corn. Forest products are eucalypt wood and cork.
Cost structure Revenue Streams
Electricity is produced through solar energy.
In the scope of Precision Agriculture (PA), Quinta da Cholda produces information and
knowledge, mostly for internal use

Customer Segments
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Corn is for agri-food industry (livestock and human). The customer is a distribution company
that also exports. Since this is high quality grain, they are starting to reach baby-food market.
Key Resources Channels  Forestry products are for paper industry (eucalypts) and for stoppers since the cork is of high
quality.
Cost structure Revenue Streams
 Energy market has only one purchaser in Portugal
selling corn, but it can bring, in the
future, a preference advantage. Buyers may prefer a producer that applies PA methods rather than

Quinta da Cholda provides information to several service supplier enterprises and exchanges it
with services or discounts.

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Distribution Channels
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  There is a partnership with corn customer. This company also provides technical support to
corn production and evaluates quality along the campaign.
Key Resources Channels  Customers are responsible for transporting corn production.
 The transport of forest products is carried out by service providers.
Cost structure Revenue Streams  Customers were reached by persona
new customers

Customer Relationship
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  For corn and forestry products, there is a personal relationship with the customers.
 The energy market has a more impersonal relationship.
Key Resources Channels

Cost structure Revenue Streams

Revenue Streams
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments 
The payment is deferred.
Key Resources Channels  European Union and national funding are important incomes.
 Corn and forestry products prices are set by the market each year. The energy price is fixed
Cost structure Revenue Streams
and set by a period of 15 years.
 Scientific partnerships in research projects are an income.
 Profits can be increased by PA, because it can raise productivity and reduce costs.
Income is variable each year, due to cork production. However, about 64% of the company income comes from corn, 9% from cork, 10% from eucalypt
and 17% from energy. The farm has another small incomes

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Key Activities
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  For corn, cultural operations and resources acquisition are the key activities.
 For forest, the main activities are operations to reduce fire risk and waiting time since
Key Resources Channels plantation until trees to grow.
 For energy production the key activities are related with the initial investment in equipment
Cost structure Revenue Streams
and in maintenance. Besides, you can only sell energy if you buy it

Using PA changed the whole production process.

Key Resources
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Physical key resources are land (the most important), water supplies like dams, water holes,
water distribution network and permanent cultures.
Key Resources Channels  Financial key resource is the capability to invest.
 Human resources are a capital gain to this enterprise and a very important asset because
Cost structure Revenue Streams
they have the training and they are permanent workers.
 Another key resource is the right to receive funding, which is given for owning land, even if it
is rented.
 With PA techniques Quinta da Cholda can gather and analyse data, establish information
networks and collect information to build models that may be, in the future a key resource.

Key Partners
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  Suppliers also are partners and they exchange services by knowledge and data.
 Forestry products buyers are also important partners.
Key Resources Channels  The company buying corn is a partner both as a customer and as a supplier.
 Technical support is acquired to partners, for corn production.
Cost structure Revenue Streams  Another key partner is an enterprise that deals with government issues and has a connection
to a NGO for environmental questions.
 The company that supplies energy equipment is also a partner, providing equipment in
exchange for support to project elaboration.

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 A consulting company in PA gives technical support and receives new clients recommended by Quinta da Cholda.
 The company that performs the cultural operations and gives informatics support is another key partner.
 Quinta da Cholda also provides consulting services through international partnerships, using data they collect

Cost Structure
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments  From the most to the least important costs, we have raw materials, external services and human
resources.
Key Resources Channels  The company is cost driven, but they are trying to add value through the production of corn for
human food and popcorn.
Cost structure Revenue Streams
 The highest is depreciation cost because equipment is a big investment.
 They have economy of scale because sowing large areas reduces costs.
 PA equipment is more expensive (about 10% more) than conventional equipment, human
resources must have training to use it and more time is spent on management tasks. So, PA
raises costs.

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IMPACT ANALISYS

 Lack of knowledge on equipment and 

software. prices.
 Lack of training.  Raise environmental efficiency.
 Cost of new technologies.  Push the company out of its comfort
 Lack of advisory support. zone, leading to effectiveness.
 Not enough acknowledgement from  Political and social acknowledgement
customers. that leads to economic gain and society
support.

 Increased production and reduced  Cost reduction.

costs.  Knowledge acquisition leading to
 Less environmental impacts. the next point.
 New business opportunities  Change on decision making
(partnerships, research projects). process.
 Time spent (as a negative impact)
but it has gains in the long term.

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4. Lesson learnt

4.a Key Factors Facilitating PA Adoption (IMPACT Analysis)

litate or, on the opposite side,

hinder the adoption of PA solution.

To collect their contributions, we used an IMPACT ANALYSIS matrix, specifically modified to investigate barriers, drivers, benefit and impact related -
to the introduction of PA within the production system of the company.

Here is a synthesis of what entrepreneurs from different countries told us.

GREECE

BARRIERS DRIVERS

LACK OF KNOWLEDGE/SUPPORT FROM IMPROVEMENT OF THE BUSINESS

EXPERTS PERFORMANCE
 Lack of experience in IT technology plus hard to  Creating standard decision making
deepen in IT fields of knowledge mechanisms
 Inadequate technological background i.e remote  Find a way to take decisions (best time to
sensoring harvest a quality product)
 Lack of expertise / training in PA  More accurate decision on harvesting,
 Time consuming to understand PA watering etc

HIGH COSTS  Composing a method to control quantity and

 Cost of PA (mostly) quality of final product
 Money Investments  Standard quality (premium quality)
 High cost in case of wrong decisions
 Minimize food loss
 Minimize costs

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 High costs of the PA equipment -that is why we  Low prices that we used to have (due to the
previous-the low quality)

LACK OF A SPECIFIC NETWORK  Predict oregano growth patterns

 Reestablishing agreements with local providers  Range of products expansion
 ENVIRONMENTAL PROTECTION
fill in the knowledge gaps) this might be a disaster  Conserve resources while reducing chemical
runoff
RESISTANCE TO CHANGE  Safeguard a living standard for the small
 Difficulty in adapting new way of thinking farmer/small family farm
 Promotion of healthy living
 Healthy entrepreneurship

 Innovation
 Employment
 Cultural food heritage
BENEFITS IMPACT
HIGHER PRODUCTIVITY
 Higher field performance (productivity/economy) ENVIRONMENTAL PROTECTION
 Optimal harvest time  Environmental protection (reduce of
 Higher crop yield unnecessary spraying & less irrigation and
 Real-time monitoring of cultivation fertilizers)
 Better quality product  Protect the environment with less inputs /
Environmental friendly farming practices
HIGHER PROFITABILITY  Positive impact on the environment
 Higher negotiation margins  Protect the environment with less inputs /
 Higher yields of quality product Environmental friendly farming practices
 Make decisions easier effectively
 Branding  Food safety
 Minimize food loss (an economic and a social
DECREASE OF COSTS problem)
 Lower costs  Nutrient and pest management

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 Cost controlling  Soil quality

 Prevent food loss  Water quality
 Reduce staff costs

LOW ENVIRONMENTAL IMPACT

 Decrease of water usage
 Reduce environmental impact
 Reducing cost of farming
 High quality and competitive final products

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ITALY

BARRIERS DRIVERS

 It is complex to transfer to customer the PA PERSONAL ATTITUDE/KNOWLEDGE

investment  Passion for new technologies and innovation
 Pride and personal satisfaction in being
LACK OF KNOWLEDGE/SUPPORT FROM appreciated for our production system by the
EXPERTS University
 Lack of support to farmers and in particular lack
of experts and trainers to assist in implementing
PA in the farm ECOSYSTEM PUBLIC/PRIVATE
 Lack of poorly trained resources  State aids allow breaking down costs of PA
innovation still very high
HIGH COSTS  Research partners such as University
 High technology costs (not justified, moreover)

LACK OF A SPECIFIC NETWORK

 Difficulty to find innovative technologies and IMPROVEMENT OF THE BUSINESS
machinery PERFORMANCE
 Not yet ripe solutions 
 No suppliers of mechanical innovative custom mid and long term quality
made products  Respecting product specification
 Lack of and/or difficulty in finding service  Tracking
providers on the market: especially in the South  Rationalization of productivity costs
of Tuscany  Quality improvement
 Hard balance between standard PA system and
tailored system
FORMAL NETWORK OF MSMEs
 Administrative constraints
 Bureaucracy

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 Formal network agreement in order to to share

RESISTANCE TO CHANGE first of all the high costs of investments but also
 Innovation culture is still not widespread among knowledge and common benefits
entrepreneurs
 Small company size and parcels of land ENVIRONMENTAL PROTECTION
 Environmental sustainability: keeping land and
company safe, even for future generation

BENEFITS IMPACT

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HIGHER PRODUCTIVITY/ PROFITABILITY ECONOMICAL GROWTH OF LOCAL

 Rationalization AGRICULTURE
 Work rationalization: PA force to clean up the  Changing in agripreneurs mind-set
production system Equalize product quality in the
mid-term. (Of different years) ENVIRONMENTAL PROTECTION
 Increase in business productivity  Maintenance and safety of the environment
 Rationalization of work  Optimizing nutrient in organic productions
increase quality and quantity production (yield
INCREASE OF LIFE QUALITY FOR more similar to conventional production)
FARMERS/EMPLOYEES  Better care of the environment
  Increased sustainability

DECREASE OF COSTS
 Variable costs decrease
 Scale economies: input reduction less work
hour, less diesel, less fertilizer, less treatment,
less CO2

LOW ENVIRONMENTAL IMPACT

 Fertilizer optimization

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SPAIN

BARRIERS DRIVERS

LACK OF A SPECIFIC SUPPORT FROM  A driver would be acting on market trends, being
PROVIDER versatile
 Technologies are not user-friendly Provider of PA  Open markets (international) push margins down
equipment are not aware of the potential of their
own machinery, you need to learn its possibilities  Employing technology
after buying
 No explanation provided with machinery
 No knowledge of English  Professionalization of human resources, with
 Manufacturers do not give enough support after experts in new technologies can drive the change
sales
 Their application accuracy is 24x24m, so the
NETWORK OF MSMEs
more information than they can take from the  In the last 2 years even the smallest farms have
(free) satellite images adopted GPS technologies, even part-time
 The different treatment prescriptions in the farmers are now using it.
software appear as rectangles, even though the  A CUMA is a group of farmers or coops sharing
fertilizer is applied with spinning disks, so circular.their machinery
Triangle areas would already be an improvement 
from the squared areas they use now and send it to AgLeader software for actuation
 Farmers in the coop are not allowed to buy or sell  They combine soil analysis data of 15-20
anything other than to/from their own coop. The different farmers in the area, 3 fields per farmer,
only exception are things that are not available in to detect trends in the soil in their region.
the coop, such as e.g. ecological seedlings
 Upgrading machinery with additional IMPROVEMENT OF THE BUSINESS
sensors/equipment can only be done to machinery PERFORMANCE
that is already electric. 80-90% of the farmers in
Spain still work with purely mechanical machinery  Precision Agriculture technologies can help in
cutting costs
LACK OF EXPERTS/CONSULTANTS

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 Finding good personnel is difficult, keeping them

on even more so
 The playing field in the south of Europe is missing
consultancies, which would be their direct link to
the farmers
 Not enough knowledge / advice about PA available
 He wants to expand the area of spraying services,
but not clear how to do it

HIGH COSTS
 Overhead costs for office spaces and warehousing
and company cars
 Costs (fuel, mainly) are increasing
 Production costs are high
 Prices of agricultural commodities are low and
decreasing
 Local production supported mainly by EU subsidies

RESISTANCE TO CHANGE
 He uses some PA technology, but is afraid of using
other (i.e.drones)
 He has not seen yet other farmers using VRT in a
profitable way

BENEFITS IMPACT

HIGHER PRODUCTIVITY/ PROFITABILITY ECONOMICAL GROWTH OF LOCAL

 Higher productions AGRICULTURE
 Better commercial margin  Sharing (regional) knowledge
 Divide tasks  Sharing data across the region
 Decentralise all the different aspects of farming,  A high level of insight in their own fields/crops,
someone concerns themselves with market rates as well as in their region

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and pricing while another buys seeds or manages  Sharing knowledge on machinery and software
staff etc. with each other makes them a more helpful
 Absorb shocks from the market, by fixing prices at source than any machinery manufacturer could
the beginning of the year ever be
 Better management of local infestation of weeds  Modernization
(each area is different)  Benefits of new technologies will help the
 Reduce the dependence on subsidies farmers, maybe more than they realize
 Modernize Spanish farming practices
DECREASE OF COSTS  Only farmers with modernized production will
 Reduction in spraying costs: agrochemical, time, survive in mid term

 Less usage of agricultural inputs ENVIRONMENTAL PROTECTION

 Approximately reduction of 40 kg/ha of nitrogen
 Less productive costs fertilizer
 Reduction of usage of fuel and time

INCREASE OF LIFE QUALITY FOR FARMERS

 Happy farmers!!
 They see the benefit in terms of ease of usage
and reduction in costs

LOW ENVIRONMENTAL IMPACT

 Better use of resources
 Compliance with environmental legislation
 Lower environmental impact

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PORTUGAL

BARRIERS DRIVERS

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 Technology is not completely trustable IMPROVEMENT OF THE BUSINESS

 Not enough acknowledgement from customers PERFORMANCE
 Push the company out of its comfort zone,
VOLATILITY AND UNPREDICTABILITY OF leading to effectiveness
AGRICULTURE  Less risk
 The inability to replicate processes and the  Reduction of monitoring costs
waiting to complete the crop cycle  Diverse monitoring capability
 Operational constraints, for example,  Efficiency of production factors
heterogeneity of production causing trouble on  More income

harvesting operations

LACK OF KNOWLEDGE MORE AWARE AND SATISFIED

ENTREPRENEURS
 Knowledge - Technology
 Technology can be a barrier in the sense that  More knowledge
sometimes small problems constrain production
 Knowledge acquisition

difficult to find workers with training to operate  The ability to global monitoring
precision agriculture equipment  Diverse monitoring capability
 Lack of training  Self-esteem for seeing gains
 Lack of knowledge on equipment and software. 
 Specialized human resources equal to produce more
 Political and social acknowledgement that leads
LACK OF EXPERTS SUPPORT to economic gain and society support
 Knowledge - Technology  The self-will to do better
 Lack of advisor support  The enthusiasm of seeing that PA works and has
 Local and agronomic knowledge advantages
 Services suppliers for applications and systems  The ability to perform cultural operations that
that are reliable and adapted would be impossible without PA
 Establishment of a good connection between
ENVIRONMENTAL PROTECTION
measurements and why it is like that; the
 Be able to adapt to climate changes, production
processes and to ease decision making

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measurement interpretation often as to rely on  Raise environmental efficiency

third parties  Better for the environment
 Lack of service providers and technical support in
the region

HIGH COSTS
 Financial resources
 Cost of new technologies
 Time spent

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BENEFITS IMPACT
ECONOMIC, THE MOST IMPORTANT ECONOMICAL
ENVIRONMENTAL ENVIRONMENTAL
SOCIAL SOCIAL

HIGHER PRODUCTIVITY  Changes the way of seeing and doing

 Less dependence of daylight and climate agriculture; has an impact in the process and on
 Increased production knowledge about this activity

HIGHER PROFITABILITY  Qualitative, for example because there is a

 Cost reduction and higher profit reduction on pesticides and herbicides
 Increased production and reduced costs application
 Efficiency
 New business opportunities (partnerships,  Social, because other farmers became
research projects) motivated to use PA when they see it works
 Better planning, through access to historical data
 Increase in the difference between costs and  Knowledge acquisition leading to the next point
revenues
 Increased competitiveness
 Changes the way of seeing and doing
agriculture; has an impact in the process and on
DECREASE OF COSTS
knowledge about this activity
 Cost reduction
 Saving working hours and production costs  Change on decision making process
 Availability to do other tasks while the
 Time spent (as a negative impact) but it has
gains in the long term
LOW ENVIRONMENTAL IMPACT
 Decreases the environmental impact
 Less environmental impacts

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4.b Analysis of experience assessment questionnaires (point of view of interviewed entrepreneurs)

effectiveness of the Business Model Canvas analysis in the Smart Agriculture

Sector but also to measure the level of diffusion/knowledge and satisfaction about this tool within the group of interviewed entrepreneurs.

In order to make this assessment session, we asked the interviewed farmers to complete a short questionnaire to evaluate the experience, leaving them
the freedom to answer all or part of the questions.

We collected 16 questionnaires even if in some cases not all questions were answered. This evaluation therefore has a limited value from a scientific point
of view. However, we believe that it is very important to try to understand if this methodology can be effectively used with farmers and, even more important
to collect their suggestions to improve the methodology in the agriculture sector.

Yes 7 39%
1) Did you know the Business Model Canvas?
No 11 61%

Yes 4 22%
2) Had you ever used it before?
No 14 78%

If so, in which occasion have you used it?

 I practiced BMC within KATANA project

 Tested within Sparkle project
 When starting the company and in projects
 At classes in the University

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comfortable 9 82%
3) How did you feel doing this exercise?
uncomfortable 2 18%

 Positive comments
 good opportunity to see - on a piece of paper - my whole business (as I quoted)
 Very exciting, a good opportunity
 Interesting

 Very well!
 Very interesting, with the possibility of expressing one's own different opinions and impressions
 Well, at a synthetic and general level
 I found the analysis process extremely interesting
 Comfortable, I enjoyed it
 Very comfortable

 Negative comments
 with the Canvas methodology as every question had
to be elaborated and translated into his business. The majority of the questions were not relevant to him
 Comfortable and uncomfortable at the same time, wondering if the interview had any use

3.1) You filled it in By yourself 12 67%

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Together with other colleagues 6 33%

3.1a) In case you did it by yourself:

Yes 8 73%
Did you wish you could have the support of other colleagues?
No 3 27%

If YES, with which role/task in the business?

 A partner in the Company who is also an expert (and also wife of the farmer)

 President
 Colleagues from the department of marketing and administration
 My partner in charge of marketing and administration
 My partners and expert technicians
 Agronomists
 Informatics

 Managing partner
 Technicians for each activity area

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3.1b) In case you did it together with other colleagues, what roles/tasks do they hold in the business?

 Technician
 Director of production
 Administration manager
 Administrator and Technician

Yes 1 33%
Did you need to collect information from other colleagues, with other skills/competencies?
No 2 67%

If YES, which?

 Administration staff

4) How can we improve the process of delivering the Canvas methodology?

 Offering training on the methodology

 No suggestions, it was perfect

 With more experience
 To adapt the canvas to agriculture business
 Giving some feedback from my model, highlighting the business strengths and weaknesses and also some information about other models

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Yes 3 18%

Is there any information you wished you had received before the interview? No 13 76%

Maybe 1 6%

Comments

 Yes, share the experience with companies that have already used it
 Yes, general information about this method
 Yes, define exactly the final purpose


Yes 2 13%

Would you have preferred to receive the Canvas in advance to study it with more attention? No 12 80%

Maybe 1 7%

Insufficient 1 5%

How do you evaluate the explanatory presentation of the Canvas? Adequate 17 95%

Verbose 0 0%

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Insufficient 3 19%

How do you evaluate the time available for the completing of the Canvas? Adequate 13 81%

Too long 0 0%

If you

 The questions were quite large in number. Each box of the canvas if you had time could take a whole day of discussions
 The questions were quite large in number

 The whole procedure was rather difficult (out of scope). The questions were quite large in number

5) How do you evaluate the tool and the exercise of analysis of the Business Model Canvas, as a whole?

 Positive comments
 The tool is overall evaluated as helpful and more interesting from other mainstream and more quantitative indicators/tools the farmer already
knew
 The questions were quite good and interesting. Overall, the tool was evaluated as very helpful and very interesting
 Composing the BMC helped me answering questions that I have never thought about before like: who are my clients, do I want these clients,
what kind of clientele do I want, can I satisfy their expectations, am I selling as high as I can etc.
Therefore, I was able to see weaknesses and comparative advantages.
For the first time I felt as a businessman in agriculture and not as a farmer who wants to do business
 Useful, especially in case of analysis of the company organization
 Useful to trace the logical process towards objectives

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 Extremely interesting and useful

 Useful
 Positive
 Very positive for the possibility of involving more sectors and corporate roles at the same time
 Very good
 Very interesting and applicable to companies
 Good framework
 It was good, th

 The canvas model is important because it can serve as an important internal management tool

 Negative comments
 The tool is smart but not really helpful to my business
 Useful but rather in details, and not applicable for small farms. The questions were quite large in number, and not always with an answer
 I would rather evaluate it when I will have some output

Yes 12 100%
Would you use it again in your business?
No 0 0%

 They often use it

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 But only if I was starting a new business

 Yes, in another company

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4.c Focus group of experience assessment

(from the point of view of involved consultants/interviewer)

+ What worked? What could be improved?

 Methodology: physical framework  Possibly involve different figures in the company (administration,
 The tool very easy ownership, production) not only person involved in PA
 Staff: at least 3 persons  More figures as experts, someone entrepreneurship, research on PA
 Advanced farmers like talking to technicians who know PA and farmers
 Interesting, a good analysis of the farm  Need more people from the business
 Good opportunity to see the reality  Possibly involve in the staff some students to focus learning points
 Farmers like to see their BMC at the end  Prepare correct standard communication (by email) to clearly explain
 talk/share their true problems and the project and time needed
needs  Record the BMC session
 Network of trust farm entrepreneurs  GDPR agree needed
 Previous visit of the company business  It would be advisable to have more information before the interview
 A visit of the farm is very welcome in the farm
 Importance of the environment for the interviews (where farmers feel  Probably the duration of the interview is too long
comfortable) 
 Friendly environment (trust)  Farmers don ot see the need of filling in a BMC (what for?). Results
maybe incomplete
 BMC looks intimidating or difficult
 Understand how they feel themselves
 Questionnaire more easy for small farmer

 Instead of questionnaire co-work with farmers and other actors of the
chain

 Present some results to the famers.
 Synthesis of the interviews

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? Questions ! Ideas
 What happen when there are more partners?  A
 Can we let them do it themselves?  We tried to record the interviews
 
 Companies have tech but they need the knowledge for using it the other summarizes the
  Some farmers were not talkative
  Open questions or Yes/No?
for farmers (commodities, rigid structure, exit prices  Report are difficult to complete sometimes
  Adapting the BMC to farm business in order to focus a little bit and
complicated and maybe need advice for accounting to save time in the end form report
  Social network Instagram!
  More oriented to PA
companies  Webinar on students seminar
 ss their failures  Keychain! Some Sparkle gift is needed
 Finding farmers willing to sit down with us was difficult

4.d Conclusions
Comparing the 4 national IMPACT ANALYSIS matrixes, we can highlight common trends and specific issues that characterise the factors facilitating or
hindering PA adoption.

In the 4 countries barriers are recurrent and common, summarised in:

 Lack of knowledge among farmers, workers and even among experts

 High investment costs
 Lack of a supporting network

As to the drivers, the common elements are improvement of the business performance, reduction of costs, and a more environmentally sustainable
agriculture.

Among the benefits all farmers agree on:

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 Higher quality productivity

 Higher profitability
 Improved costs control
 Lower environmental costs

increase in the quality of the life of the farmers

The expected impact in all countries boils down to the development of local agriculture, a more sustainable agriculture and increased environmental
protection, economic development favouring a social development.

The reports indicate that there is a substantial common attitude towards PA in the perception of the four national samples.

More striking differences concern the extension of the farm, where big players are more keen on investing in PA, while small farmers tend to be more
cautious.

The same pattern divides the farmers according to their crops. For a Brunello winegrower, a product characterised by high price margins, PA is vital
primarily for Quality Improvement and traceability, complying the regulations of the consortium. For cereal crops, priority consists in using PA to reduce
costs to compete with the dumping prices of imports from non-European countries.

One last feature that seems to be shared by South Europe farmers, is the need to work in networks (public, private, sectorial or cross-sectoral) connecting
farmers, universities, administrators, distributors - in order to be able to face the investment. Last but not least, to be able to
rmer are aware of the
importance of collaborating to overcome these barriers.

Most interesting though, apart from the technical and economic factors taken into consideration, the report highlights the . The passion of
the farmer for agriculture, the personal satisfaction they get out of constant improvement in their profession. This last element is key to motivate farmers
to start introducing PA in their practice.

resist to change because they do not trust the innovation, because they are afraid
they will not be able to manage it,
ercome the lack of trust it is

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necessary to increase the number of pilot projects, scale the number of quality comparable data, disseminate and diffuse information among farmers,
select testimonials and model examples able to influence the mass of small and medium farmers.

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Annex a) - PA IMPACT analysis

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Annex b) - More about the methodology: presentation Business Model Canvas (slides Pisa International Meeting, June 2018)

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