Management & ICT in Agri-Food Supply Chain Networks - IIASA

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Business Information Systems Integration: .... between applications: one app calls ... Based on Business Process Management (BPM) and Service Oriented.
Business Information Systems Integration: Based on Chained Web Services. Future in multi-dimensional agri-food supply chain networks. By: Prof. Adrie J M Beulens, Dr. Sjaak Wolfert, Dr. Huub Scholten and Ayalew Kassahun (MSc).

Introduction:  

Agri-food enterprises operate in complex and dynamic environment. For compliance with rules and regulations and for competitiveness continuous innovation on level of Agri Food Supply Chain Network (AFSCN) is a necessity. Pertains to innovation of:   





Products, Processes (Management and Execution), Ways of cooperation and ‘ orchestration’ in AFSCN processes.

We pose: Information sharing and organizing ICT are main critical areas for that innovation. In turn: ICTdevelopment in AFSCN encompasses Information integration tasks even for Farmer.

Introduction (2):

   

Allow me to briefly commemorate a good friend who recently passed away (30/7/2009). Prof.dr. Jaap Wessels passed away at age of 70. He was the supervisor of a large number of now full professors in the Netherlands. He was a good friend and colleague of many of us and of IIASA.

Presentation outline 

What are the main challenges for information integration to enhance networked enterprises?



Problem context: agri-food Research objectives Research approach Major results

  

  



Integration framework State-of-the-art arable farming Future vision

Conclusions and outlook

Challenges in agri-food business 

Sector-specific characteristics include:   



Fresh products Seasonable production Many SMEs particularly at farm level

Main challenges 

‘license to produce’ • consumers & society • food safety and transparency

  



Global competition (EU, WTO) Demand-driven Innovation: knowledge-based production

Operate in multi-dimensional, dynamic networks

law & regulation horizontal fulfillment

multi-dimensional Agri-Food Supply Chain Networks (AFSCN)

innovation

geographic cluster

• information for communication and control • ICT plays a crucial role • farm is a focal company Vertical

Network governance: 1. managerial discretion (plan)

Network governance: 2. standardization

S

S

S

S

S

S

Network governance: 3. mutual adjustment

Network governance in multi-dimensional networks



managerial discretion (plan)



emphasis on standardization and mutual adjustment



flexibility between enterprises and processes through choice of goverance mechanism and associated information sharing

Approaches for information integration and standardization 

one standard system 



point-to-point interfaces  



only in case of managerial discretion costly complex

integration standards  

most desirable not easy to organize

S

Integration Framework ENTERPRISE 1

ENTERPRISE 2

Process

Process

co-ordination

INTRA Application interoperability

Data data sharing

Enter prise Inte gration

Application INTER Enterprise Integration

Physical Infrastructure

Data

Physical Infrastructure

connectivity Adapted from Giachetti 2004

Physical integration standardization

ENTERPRISE 2 Process

Application



connection between devices: 

Data

computers, machines, products, … Physical Infrastructure



standards:  

1. interface: PLC, RFID 2. communication: • network protocols: TCP/IP & PPP • transport protocols: HTTP, FTP, SMTP

Data integration standardization

ENTERPRISE 2 Process

Application

   

Data

message format and data definitions Physical Infrastructure XML has replaced EDI intra-enterprise: article coding (EAN), STEP inter-enterprise: eCommerce  

former: EDIFACT, ANSI X12 now/future: ebXML = set of standardized XML messages for transactions, businesss relations, etc.

Application integration standardization

ENTERPRISE 2 Process

Application

  

between applications: one app calls another and receives on-line response several applications are considered as components of one aligned system intra-enterprise:  

former/now: ERP now/future: web services

Data

Physical Infrastructure

Process integration standardization

ENTERPRISE 2 Process

Application

Data

Physical Infrastructure

  

reference process and data models intra-enterprise: CIMOSA, ERP-ref. models (SAP, Infor), ISA-95 inter-enterprise: VERA, SCOR, CPFR

Reflecting to the framework for arable AFSCNs  

physical connectivity: no major problems data exchange   



machines: ISOBUS/ISO11873 between field and farm level insufficient inter-enterprise: ‘EDI-teelt’ assocation

application  

intra: FMSs (should be like ERP but aren’t) inter: FMSs: some point-to-point interfaces

Reflecting to the framework for arable AFSCNs



process:  

currently no active reference models past: INSP, IMOPA (intra-enterprise level); could still be useful

Current situation “Arable NL”

research institute

advice

advisory service

p2p

field

fertilizers, pesticides, etc.

product information

EDI-circle

products transporter/ collector

products

operations

p2p input supplier

markets

EDI-Teelt

ISOBUS monitoring data

information

restrictions

instructions

OAI-PMH

knowledge

Artik+

farm management system

p2p

government

EDI-Teelt+?

farm

registration

data suppliers

registration regulations

weather, cultivars, etc.

processing industry

State of the art Arable Farming Process Integration Application Integration Data Integration Physical Infrastructure  

Intra +/-

Inter --

-

--

+/-

+/-

++

++

Other agri-food sectors are more or less comparable See paper for more details!

Problems



Conclusion: level of standardization for data, application and process integration is poor   

efforts and error-sensitivity for collecting, converting, exchanging of information are high decision-support/making is sub-optimal transparency/accountability  administrative burdens

Vision for the future 

Business in the lead and responsible!   



Business processes must be leading   



Human and organizational change Commitment and vision at both ‘CEO-level’ and ‘workers level’ Co-operation and co-ordination in all dimensions of AFSCNs (as much as possible) Rapid re-configuration approach using dynamic modelling and component repositories Based on Business Process Management (BPM) and Service Oriented Architecture (SOA) Alignment of and interdependency between all integration types and levels

Sector-specific, open models and standards  

Based on cross-industry models/standards (e.g. OpenGIS, ebXML, XBRL) Standards organizations • •

execution by (ICT) consultants innovation by researchers

ICT developments in general business

Island automation

ERP

skip this step?

Open architecture (SOA-BPM)

Solving the chicken-egg dilemma: organic growth

business case

business case

business case

joint

business case

business case

business case

egg!

egg!

egg!

Long-term vision: BPM/SOA architecture and Standards Organization Step 1

Step 2

Co-ordinate Joint Initiatives (KodA, Geoboer, Plantform, GrKN, etc.)

Statement 

developing AIS is not just building complete new information systems but primarily integrating existing information, holding a strong organizational component  complex issue price information

farm register

cost analyses

Waterfall approach – possible pitfall requirements

design (blueprint)

match or mismatch?

implementation

evaluation

Iterative approach - prototyping initial problem requirements

evaluation

design

implementation maintenance

General framework for development C. Iterative Implementation Overall Development

B. Basic Design

………

Pilot C

Pilot B

Pilot A

Prototyping

A. Analy sis

Generic Integration Framework • Technical Architecture • Reference Information Model • Technical Infrastructure • Organizational Infrastructure

KodA I&S: example pesticide case pesticide database

EDI-Teelt standard

web service farm

farm

web web management service service

system

spraying machine

crop history

field

instruction

BPM description “spraying”

registration

pesticide data

additional restrictions

web service

web service

food processor

Environmental conditions

Legal conditions   

Governmental organizations Quality assurance Regulations, rules

Society conditions

  

NGO, whole industry Observe the rules Own conditions

Market conditions   

Business partners, market as whole Own policies and regulations Demands and offers 30/2 1

Managerial decisions

Strategic   

   

Tactical

Supporting strategic statements More practically oriented Seasons life cycle plans Crop plan, resource planning

Strategic

Tactica l

Society conditions



Nature of business - Type of farming Long term resource plans Strategic partnerships Frames for tactical decisions

Legal conditions

Operational

Operational    

Integration strategic and tactical ideas Most concrete plans in steps Concrete plans of growing, harvesting Personal scheduling, accounting

Market conditions 31/2 1

Problem definition for pesticide application government/society • environmental impact • reduce  [usage(ai)/ha] environmental impact

food processor → consumer • residues •reduce product]  [usage/kg residues  [time applied] pesticide information

• reduce pests farmer • reduce costs • pest• apply reduction site-specific  [costs/ha]  [app/10m2]

not data but business processes are driving!

Challenges: Chaining Web Services 

Model the processes around pesticide application, taking into account:  



different environmental conditions managerial decisions at different levels

Integration/connection of different information systems: Chaining Web Services.  

keep the business processes leading – understandable for users keep it flexible

Business process modeling using SOA business process management layer

production process

business service layer get restrictions information

get field and crop data

get cost analysis

get legal restrictions/ environmen tal points

update administration

application service layer

application

application

application

application

application

market 1

market 2

farm

research institute

government

Actor model knowledge

Research institute

Advisory service

Government

data

advice

Data supplier

request regulations contract, restrictions, etc.

order

Farmer

Input supplier

fertilizers, pesticides, etc.

order

Distribution + warehouse

Processor

produce + information

POS data

products

Consumer / market

Retailer

products

food

Business context model Non-production processes

production planning

Production processes

sign up contract

sow/ plant

cultivate

harvest

ship produce

Production support

apply regulations

use ICT technology

get advice/ data

get machinery services

get subsidies

Processor

Input supplier

Government

Advisory service

supplier customer quality finance and relationship relationship management administration management management

Swimlanes Calculation model service provider

Soil data service provider

LAI map service provider

Farm

N advice service provider Farm Management System

Fertilizer Machine

Send recommendation request

Send request for LAI (GIS) data Receive fertilizer map

Determine LAI (GIS) data

Receive LAI (GIS) data

Send fertilizer map to fertilizer machine

Fertilizer process Send request for soil data

Receive fertilizing information

Determine soil data

Receive soil data

Send request for fertilizer map advice calculation

Fertilizer map advice calculation

Receive fertilizer map advice

Send fertilizer map advice

Store fertilizing information

Ordering process example

Pesticide application planning for each season for each crop Determine Field

Identify field history and cropspecific pests and diseases

+

yes

Sufficient information?

no

Define crop protection plan

Request advice

+

+

Schedule pesticide application

+

From BPMN to webservices Business context Non-production processes

finance and administration

human resource management

sign up contract

sow/ plant

cultivate

harvest

ship produce

Production support

apply regulations

use ICT technology

get advice/ data

get machinery services

get subsidies

BPMN

business service layer get restrictions information

quality management

Production processes

business process management layer

production process

customer relationship management

Processor

Input supplier

Advisory service

Government

SOA architecture

supplier relationship management

get field and crop data

get cost analysis

get legal restrictions/ environmen tal points

update administration

application service layer

application

application

application

application

application

market 1

market 2

farm

research institute

government

web services

BPEL code

XML code of webservices

Iterative implementation by Living Labs research & education

new knowledge/models

knowledge models practical problems

solutions

solutions

ICT business new solutions

agri-food business & government

open innovatio n process

innovations

Main challenges 







How to construct sector-specific SOA-architectures, adopting worldwide cross-industry standards and building upon existing industry standards? How to use business process management (BPM) concepts, including ‘best practice’ models, to allow flexible configuration of specific processes integrations? How to organize broad commitment, to embed developments in sustainable institutional arrangements, and to let it grow organically? Concerted Action is needed for coordination and knowledge exchange in different sectors and in different countries at the European level

Ideas, proposals for the future 

Set up an EU actions on ‘Information Integration and Standardization’ for knowledge-exchange and coordination    

   

FP7 – concerted action project? Interreg-IV-C? Competitiveness and Innovation Programme (CIP) – thematic network use EFITA as a vehicle?

Involve EU agri-food businesses Unite initiatives: EDI-teelt (NL), AgroXML (DE), AgroEDI (FR), …? Next step: EU-RTD projects Connect to initiatives in other sectors (CHESS).