340: M&A, AI, Electrification & More with Marc Kermisch, the Global Chief Digital and Information Officer of CNH Industrial
Mar 19, 2024
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Marc Kermisch, the Global Chief Digital and Information Officer at CNH Industrial, discusses the future of agriculture through innovative technology. He highlights the unique challenges facing the battery industry in agriculture compared to automotive. The conversation delves into the navigational strategies of ag tech companies, from acquisitions to internal development. Electrification and AI are pivotal, as Kermisch illustrates how electric tractors and machine learning are set to transform farming practices. The potential of autonomous farming and humanoid robots draws a vision of agriculture’s tech-rich future.
The integration of AI and machine learning in agriculture is revolutionizing efficiency by enabling real-time data analysis for better decision-making.
Challenges in the battery industry for agriculture stem from the need for customized solutions, contrasting sharply with the automotive sector's volume-driven pricing model.
Deep dives
Challenges in the Battery Industry for Agriculture
The structure of the battery industry poses significant challenges for agricultural companies, primarily because it is heavily tailored to the automotive sector. Flat pack batteries, commonly used in vehicles, benefit from easy design and delivery, which allows automotive companies to enjoy volume discounts. In contrast, agricultural firms may require diverse battery designs for different machinery, leading to difficulties in pricing and availability. Many agricultural companies, needing bespoke solutions for smaller production volumes, find themselves at a disadvantage in negotiations with battery manufacturers who focus on large automotive contracts.
The Role of AI and Automation in Farming
Artificial intelligence and machine learning are increasingly integrated into agricultural practices to improve efficiency and decision-making. These technologies enable real-time data analysis from machinery, allowing farmers to make adjustments during planting or harvesting. For instance, AI can dictate the optimal application of fertilizers based on plant health, while also helping to reduce waste by ensuring precise application rates. As AI continues to evolve, it is expected to transform farming by offering actionable insights from vast datasets, streamlining operations and ultimately enhancing productivity.
Electrification Strategies in Agriculture
The push for electrification in agriculture is growing, driven by the development of electric tractors and an interest in sustainability. Current offerings, such as the electric T4E and 75E Farmall, aim to meet the needs of specific customer segments, including hobby farmers and municipalities seeking green solutions. However, challenges remain regarding battery weight and the need for high horsepower in large-scale applications. Strategies involve focusing on low to mid-range horsepower vehicles for electrification while exploring alternative fuels and hybrid solutions for heavier machinery, allowing for both environmental responsibility and operational efficiency.
Marc Kermisch is the Global Chief Digital and Information Officer at CNH Industrial, a leading global manufacturer of agricultural, construction, and financial services vehicles and equipment. Tune in to hear how he and CNH are thinking about innovation in agriculture.
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This episode is presented by Pinion. Learn more HERE.