Deere & Company has created a Smart Industrial operating model in order to accelerate its success in the integration of smart technology innovation with its legacy of manufacturing.
The new Deere Smart Industrial strategy was created to unlock new value for customers, while simultaneously “revolutionizing” the agriculture and construction industries through the rapid introduction of new technologies.
Under the new model, Deere plans to focus its actions on production systems, technology stack and lifecycle solutions.
“As Deere businesses and those of its customers become more competitive and dynamic, Deere’s track record of technological innovation puts it in a position to anticipate, respond and outpace those dynamics by offering cutting-edge solutions to enhance customers’ productivity, profitability, and sustainability,” said John May, Deere’s chairman and chief executive officer.
“The new operating model represents a leap forward in performance for the company from an already strong starting point.”
Through the Smart industrial strategy, Deere plans to strategically align products and solutions around its production systems roadmaps, which capitalizes on its knowledge of its customers and how they work.
The new production systems structure enables the company to drive an integrated product roadmap and related investments that span all aspects of a customer’s jobs and to more fully meet customer needs.
Deere plans to make investments in technology, as well as research and development, which deliver intelligent solutions to its customers through an intuitive technology stack made up of hardware, embedded software, connectivity, data platforms and applications.
The Deere family of “smart” machines, systems and solutions aim to unlock customer value through enhanced precision, automation, speed and efficiency not possible previously.
The Smart industrial system also includes enterprise integration of Deere’s aftermarket and support capabilities to more effectively manage customer equipment, service and technology needs across the full lifetime of a John Deere product. This includes a specific lifecycle solution focus on the ownership experience.
Smart Industrial R&D
To achieve the smart industrial vision, Deere will adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities.
As well, Deere plans to accelerate the speed with which the company brings priority technology to market to drive value creation and capture it more quickly.
“The new operating model will help us respond to changing market conditions with greater speed and efficiency,” May said.