MANAGEMENT OF DIGITAL BUSINESS SYSTEM

(MDBS)
CIA-2-B

A Report submitted in partial fulfilment of the requirements for the

degree of Master of Business Administration

BY
SHUBHAM KAMBOJ
REGISTRATION NUMBER
2227558
UNDER THE GUIDANCE OF
PROF. RAVINDER VERMA
TOPIC: - Study of disruptive technologies and associated social & ethical
issues

MBA PROGRAMME SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
October 2022
Deere & Company
Deere & Company, an American business established in 1837, is known by the brand name John Deere
for its production of diesel engines, drivetrains (axles, gears, gearboxes), and lawn and garden
equipment. Nothing Runs like a Deere is the company's tagline. In 2019 it was placed 329th globally
and 87th in the Fortune 500 list of the United States. The company also offers banking management
services and other related tasks. The Group operates in three industry sectors: forestry and construction,
financial services, and farming and turf.

The company's agricultural and turf segment manufactures and sells a variety of agricultural and turf
equipment, including big, medium, and utilities tractors; loaders; mixers; cotton pickers, cotton stripers,
and sugarcane harvesters; as well as related service components. Systems for managing equipment are
available from this division. Its telematics systems are linked remotely to the owners, managers, and
dealers of field farming equipment and provide real-time updates and data on the location, use, and
performance of the equipment as well as maintenance.

Crawler dozers and loaders are among the many machines and service parts that are primarily produced
and sold in the construction and forest segment. These comprise landscape loaders, log skidders,
articulating dump trucks, engine graders, four-wheel-loading loaders, log harvesters, and other
accessories. The primary factory utilised in building construction is situated near a forest. Under the
brand names John Deere and Waratah, forestry products such as forestry components and construction
and forestry equipment are supplied.

The financial services industry offers funding for revolving retail charge accounts, extended product
guarantees, and wholesale financing to the aforementioned equipment vendors. Retail leases for
equipment are offered to customers by financial services organisations in the US. In order to conduct
their business, financial services are primarily available in Australia, Brazil, China, India, and New
Zealand, as well as in Russia, Thailand, Africa, Asia, Europe, and Latin America.
Artificial Intelligence (AI)

The capacity to learn and use a variety of abilities and information to address a particular issue is
referred to as intelligence. Additionally, using one's broad mental abilities to reason through problems
and learn new things is a component of intelligence. Multiple cognitive processes, including language,
attention, planning, memory, and perception, are interwoven with intelligence. In the past ten years,
there has essentially been a lot of research on the evolution of intelligence. Both human and artificial
intelligence are involved in intelligence. Critical human intelligence in this context is concerned with
problem-solving, reasoning, and learning. Additionally, humans can quickly learn simple complex
habits throughout their entire life.

Today's artificial intelligence (robotics) is able to mimic human intellect by carrying out a variety of
tasks that call for thinking and learning, solving issues, and reaching different conclusions. Artificial
intelligence refers to software or programmes that give computers, robots, or other comparable systems
the necessary capacity for thought.

However, a lot of the present robotic artificial intelligence systems are still up for debate because their
methods for tackling problems still require further study. Artificial intelligence systems or machines
should therefore be able to complete the necessary tasks without making mistakes.

Robotics should also be able to carry out a variety of tasks without any guidance from or aid from
humans. With high performance skills like traffic control and speed minimization, today's artificial
intelligence, including robotic automobiles, is fast advancing. From self-driving cars to the SIRI,
artificial intelligence is progressing.

Four different approaches of AI are:

 Thinking humanly.
 thinking rationally.
 acting humanly.
 acting rationally.
Artificial intelligence (AI) systems typically exhibit at least some of the traits listed below, including
planning, listening, thinking, problem-solving, information representation, vision, action, and
conditioning. Contrary to what is typically seen in humans and animals, intelligence is also seen in
computers. This phenomenon is known as artificial intelligence (AI).

Business Model for Deere & Company

For a very long time, John Deere has been proud of its technologically progressive outlook. Precision
farming, which incorporates technology in farming processes to increase production and yield, is the
company's primary technological focus. Since John Deere started fusing autonomous tractor technology
with precision agriculture in the 1990s, agricultural machinery has become just as sophisticated as its
other products.

Artificial intelligence (machine learning) has the ability to completely change how people farm. Every
stage of farming, including soil tilling, strategic seed placement, nutrient or fertiliser application, and
harvesting, can benefit from the use of computer vision and machine learning technologies. For instance,
the amount of corn in the soil is typically decreased by machines that generate maize. Only by catching
more crops could a system with blades that can dynamically adapt to the width of a maize stalk boost
yield. Predictive analytics, agricultural robotics, and crop and soil surveillance are some more sectors
with the most potential (Grosch.K, 2018). The business plans, strategies, and business model of Deere
and Co. work exceptionally well with the technology option (AI).

Customer Segments Value Propositions Channels

Key resources Key Activities Customer’s relationships

Cost Structures Revenue Streams

the business strategy utilised by Deere & Co., which incorporates AI in some capacity.

1. Customer Segment:
The following industries are among the many to which John Deere sells its goods: Industrial, which
includes businesses engaged in manufacturing, engineering, leasing, and oil and gas; Agricultural, which
includes businesses engaged in the production of crops; Marine, which includes shipping firms and
leisure boaters; Retail and Distribution, which comprises producers, dealers, and independent sales
representatives; and Customers, which includes private citizens.
2. Value Propositions:
John Deere provides value to its consumers in the following ways:
 Usability and user friendliness
 brand recognition and rating
 track record of providing high-quality
 reasonably-priced goods;
 global marketing and distribution scope

3. Channels:
The majority of John Deere's sales are made through a network of both small and large retail stores that
directly compete with the organization's internal sales teams. About 2,381 distributor locations, the
majority of which are privately owned and operated, receive John Deere's products for sale.
4. Customer Relationships:
In addition to a variety of online resources including manuals, frequently asked questions, and
information retrieval, John Deere offers customer services for safety help, training, materials, repairs,
and compensation and protection measures. Customers can get in touch with the business directly and
get tailored support by phone or email.
In addition, John Deere runs a number of social media accounts on sites like Facebook, Twitter,
YouTube, LinkedIn, and Instagram from which it can communicate with its clients.
5. Key Activities:
This business has a presence in three main markets: agriculture and turf, primarily responsible for the
manufacture and sale of a broad collection of farms, turf equipment, and related service parts;
construction and forestry, mainly for machinery and service parts used in building, land clearing,
material handling and wood processing.
6. Key resources:
The main resources of John Deere include its intellectual property, manufacturing facilities, storage and
distribution networks, sales and marketing networks, associates, and personnel.
7. Cost structures:
In order to operate its distribution and storage facilities, maintain its relationships, manage its sales
networks, and keep its staff, John Deere must pay for the design, production, manufacturing, and
shipping of its products.
8. Revenue Streams:
The sale of agricultural and industrial machinery and parts, as well as the myriad fees and obligations
related to his financial service business, are how John Deere makes its money.
Market Need for Choosing & Implementing Artificial Intelligence (AI6): -

Most people won't think of "Artificial Intelligence" as the biggest and most prevalent
manufacturer of forestry, building, and agricultural machinery in the world. However, given that
the human population would only increase by 10 billion over the course of the following three
decades and that the increasing production and distribution of food the nearly 200-year-old
corporation (established in 1837) has invested in AI and transformed it into a data-driven
business over the previous ten years. This would require increased productivity and effectiveness
to the economy.

The adoption of knowledge management systems and new technologies to increase crop
productivity, the introduction of in-depth learning techniques, and global government initiatives
to encourage the adoption of contemporary agricultural practises are the main drivers of artificial
intelligence in agriculture. These factors also contribute to the growing demand for agricultural
production as a result of population growth. (2018's Bharti & Bhan)

This particular solution boosts the effectiveness of the business threefold:

 first it will first help customers save money. If field sprinklers can be used with 80–90%
less herbicide, the amount purchased will last 80–90% longer.
 Second, it saves time for a farmer, who can work on other duties while overseeing
machinery from home rather than trying to kill time behind the wheel.
 Thirdly, it encourages convenience because it is much easier to watch machinery running
inside your warm home than on sweltering summer days outside.

The limited crop variety and low production are the primary drawbacks. A disadvantage would
be the continuation of rural poverty and the failure to transform industrial and commercial
agriculture. The main justification for this is that the sector doesn't generate savings and create
money for a move to agricultural sectors, which are normally the first signs of a nation's
developed industries. Without needing to visit the farm, AI enables farmers to track their crops.
A lot of start-ups and businesses anticipate the production of agricultural AI.

AI is changing how conventional farming is done. Future AI in agriculture offers a variety of

futuristic approaches for gradual change.
Benefits of applying AI to farming

 Weather forecasts.
 crop and soil health monitoring.
 A reduction in pesticide use.
 AI agricultural bots.

Implementation Process of Artificial Intelligence (AI) in the Company

One of the first industries to adopt cutting-edge technologies like artificial intelligence (AI) is not
agriculture. According to John Deere, a manufacturer of agricultural and construction machines,
AI has also started assisting farmers in increasing crop yields and maintaining better control over
daily tasks.
A Californian business called Blue River Technology that creates agriculture machine learning
software has been acquired by John Deere. The $305 million acquisition (through the Quartz
system) is a part of a ten-year
The tractor company is looking into agro automation. By purchasing a computer vision firm, the
company accelerates its mission of assisting farmers in producing adequate food in an exploding
global economy.
They strive to have farmers work for less money rather than trying to duplicate their labour. Crop
spraying is more efficient because to its technology, much like modern fertilisers were decades
ago. The difference today is that creativity is mechanical as opposed to chemical.
Managerial Implications of AI

Administrators can be notified of meetings so they can address problems or obstacles using
artificial intelligence and machine learning. As issues arise, it can also construct a meeting to
include the appropriate parties. The depths and application areas of autonomous systems in
logistics present a new degree of challenge for those engaged in the study and design of
machine-machine interaction concepts. Due to the shortage of highly skilled labour in many
places and the objectives of increasing efficiency and sustainability, logistics operators must
adhere to technological developments, including automation, at all costs (Klumpp, M. 2018).
compassion and inventiveness. Increased engagement at work will increase productivity and job
happiness. When AI does laborious or dangerous tasks, it frees up workers for the occupations
for which they are best qualified, including those requiring creativity and compassion. Increased
engagement at work will increase productivity and job happiness.

Although AI has numerous uses, the business must be aware of and plan for the issues it may
provide in the future. Lack of straightforward ways to implement and enforce AI in agriculture is
the main obstacle to its widespread adoption. The majority of farmers don't have the time or
expertise to independently experiment with AI solutions.

In response to industry-wide concerns like crop yield, soil health, and herbicide resistance, AI-
driven technologies are developing to help increase productivity. To ensure that the technology is
used and developed further, farmers will need to receive modern training.

Managers would need to figure out how to effectively divide labour between people and
machines. People may always be involved in some tasks that need judgement and decision-
making, but many other duties can be partially or totally delegated to intelligent robots. The
proper balance of that division of labour will depend on each individual's background and
circumstances. Teaching management staff and employees about the advantages and
disadvantages of AI and ML technologies will continue to be one of the most difficult challenges
for managers. Managers will also need to continuously look for new markets where such
innovations in goods and services might flourish.

Associated Social & Ethical Issues of Using Artificial Intelligence

As a typical reaction to new technologies, AI ethics is always concerned with various
"concerns." Many of these concerns turn out to be considerably exaggerated; some are inevitably
erroneous in their assertions that technology will fundamentally alter human nature; some are
slightly accurate but of just marginal significance; while others are usually true and of profound
significance. The following are ethical concerns with AI:
1. Sustainability: - Farmers and the agriculture industry place a high priority on
sustainability, so any AI implementation must be able to go beyond already accomplished
sustainability goals (Ryan 2019). Drones, sensors, and robots have the potential to leak
dangerous substances and release smells on farms. They also have a significant
environmental cost associated with their initial production (Ryan 2019). Artificial
intelligence (AI) might, for instance, lead to "surface water run-off, encroachment on
habitats, or overall contamination to the surrounding region."
2. Accuracy: Improving decision-making and adapting to situations and requirements is the
main goal of incorporating AI technologies in the agricultural business. However, some
contend that machine learning is unfit for its intended function because the algorithms are
limited to small datasets. Additionally, there is a chance that data processing will be
incorrect or deceptive as a result of external factors. Data interpretation can be
challenging due to regional variances, which is another potential issue. In order to make
informed decisions, it is crucial to analyse the facts qualitatively.
3. Data ownership: - is one of the most contentious topics in relation to the use of AI. Who
owns the data and who can monetize, in essence Some farmers are concerned that their
information will be acquired and given to governmental authorities, organisations, and
regulatory bodies.
4. Economic concerns: The agriculture industry, which employs the most people in
LMICs, must expand significantly in the coming years to fulfil rising food demand.
LMIC nations represent one of the SIS's most significant prospective markets.
 Consequently, there is a trend to transform unstructured data into realistic LMIC growth
objectives.
5. Privacy and security: Despite the potential for anonymizing personal data, using big
data in agriculture could still have detrimental effects on certain social groups. According
to reports, the agricultural industry is less prone to big data privacy and security problems
than other industries. This is so that it is clear that ATPs do not gather sensitive
information such information about children, financial information, or medical records.
Farmers nonetheless provide a variety of information on their farms.
6. Beneficence: - Farmers are boxed into certain groups, those who are forward-looking and
progressive, or those who want to remain in the past. Farmers are put in a difficult
position, as they must modernise or be left behind—both socially and economically
Conclusion
Even if the organisation has made significant progress, much work must still be done before ML
can officially join the team. Focusing on the advancement of Blue River Sea and spray
technology is one of John Deere's top focuses. The acquisition is quite hopeful, but the AI
revolution won't succeed until John Deere can assist Blue River in implementing its solution on a
large scale. The commodities will be distributed to cotton producers first, and then soybean
farmers shortly after. The 4 G LTE modem for storing and processing data is included with the
John Deere tractors. If the organisation wanted to utilise more computationally complex methods
on a large scale, the time of upload would make it prohibitively expensive to use, especially in
rural poor areas. More algorithms can be implemented at scaling if the corporation hosts any of
the pre-processing data at the edge, probably through a GPU mounted on the tractor. Additional
machine learning capabilities might be added to Farm sight’s Farm Sight product range.
Currently, with a straightforward review of farming decisions Processing and visualising data is
the main focus of Farm sight. However, the tool's enormous user base and the volume of data it
gathers make it the ideal setup for assessing ML capabilities. Finally, the business might go into
the field of predictive servicing. Machine learning is the ideal method for manage predictive
References
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(2019, December 3). Digital Innovation and Transformation.
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 John Deere – Bringing AI to Agriculture - Technology and Operations Management.
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 D. (2017, September 8). John Deere acquires Blue River Technology for $305 million,
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 Plagiarism report: -