1 Presented by: CPA Stephen Omondi Okoth Agribusiness and Financial Management Consultant Elison Decision Support Services (Institute of Logistics and Supply Chain Management) Victor House 7th Floor, Kimathi Street, P.O. Box 53353, Nairobi -00200 Phone: +254786707360 Harnessing the power of convergence of ICTs, Data Science and Management Science in Agriculture. Providing you with evidence based, technology driven and solutions oriented insights for sound management of agricultural projects and enterprises. 2 Farm Data and DSS for enhanced agricultural productivity Outline: • Enhanced Agricultural Production • Agricultural Production Decisions • Information and Data • Decision Support Systems • DSS architecture • DSS rationale, use and users • DSS Components and Structure • DSS process • Distributed DSS • Status and trends • Prospects • A case for the dairy goat industry 3 Enhanced Agricultural Production Efficient Production through increased output from units of resources applied in production • Enhanced production efficiency as measured by metrics like crop yield per acre, yield per shilling, milk yield per lactation day, livestock weight gain par day, fecundity, survival/mortality, herd size growth per season, egg production per day • Adoption of efficiency measures for example precision farming with low or zero tolerance to resource wastage • Optimal combination of farm resources • Optimal combination of enterprises 4 Enhanced Agricultural Production: Effective Production: • Meeting agricultural production goals e.g. food and nutritional security, improved household incomes, employment • Contribution towards growth of returns to firms in the agricultural sector thereby enhanced national income Results from better choices on what to produce, how to produce and how much to produce, store, distribute and where to sell. 5 Agricultural Production Decisions Choosing from amongst alternatives: which agricultural enterprise(s) to engage in, how to produce and how much to produce, store, distribute and whom to produce for. • Different approaches to decision making with the same basic objective of effective decisions • Quantitative approach is concerned with identifying relevant data, measuring the data values, uncertainties, other factors relevant in a given decision and the resulting optimal decision. Statistical tools and methods are available to organize evidence, evaluate risks, and aid in decision making. 6 Agricultural Production Decisions Most of decision theory is normative or prescriptive, i.e. it is concerned with identifying the best decision to take, assuming an ideal decision maker who is fully informed, able to compute with perfect accuracy, and fully rational. Choosing from amongst alternatives in order to make the best possible decisions, involve the following analytic approaches: • What-If Analysis • Sensitivity Analysis • Goal Seeking Analysis • Optimization Analysis 7 Data and Information Making right production decisions is usually based on the: • quality of data; • ability to sift through and analyze the data to find informative trends; upon which • solutions and strategies for growth can be formulated. Decision Support Systems provide efficient and effective platform and tools for converting raw data into information for decision making 8 Decision Support Systems(DSS) • DSS is a class of computer-based information systems including knowledge-based systems that support decision-making activities. • A DSS provides a platform and tools to analyze and model data into information useful in making quality decisions based upon the data. • Decision support systems do not make decisions. The objective is to allow the manager to consider a number of alternatives and evaluate them under a variety of potential conditions. 9 DSS Archtecture FARM DATA USER INTERFACE DSS DATA BASE EXTERNAL DATA DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATA MINING TOOLS USERS 10 Types of DSS • A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data intensive. • A communication-driven DSS supports more than one person working on a shared task; examples include integrated tools like Microsoft's NetMeeting or Groove • A data-driven DSS or data-oriented DSS emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data. • A document-driven DSS manages, retrieves and manipulates unstructured information in a variety of electronic formats. • A knowledge-driven DSS provides specialized problem solving expertise stored as facts, rules, procedures, or in similar structures. [Our aim is to develop a data-driven DSS for agriculture industry. 11 Rationale, use and users DSS is extensively used in business and management to provide performance analytics and executive dashboards for improved decisions about better allocation of business resources. • Improves efficiency and effectiveness in decision making • Facilitates communication with evidence based insights • Promotes learning from farm data • Increases organizational control • Creates a competitive advantage over competition • Encourages exploration and discovery on the part of the decision makers • Reveals new approaches to thinking about the problem space Useful for decisions at primary production, secondary production, service provision, and policy levels in the agricultural sector. Applicable to the decision making roles by farmers, farm managers, farmers cooperatives, extension services, investors, policy makers an regulators, development partners, service providers e.g. banks, insurers 12 Components • Database and database management System • Library of Decision models that can be used to predict and forecast possible outcomes of alternative decisions • Report Engine/Generator and interface to allow users interact with the system and assist in analysis of outcomes • Users Typically, four major options are used in decision support namely: analytic models; specialized databases like data warehouse; decision-makers own insights and judgments; an interactive computer-based modeling process to support the making of semi-structured and unstructured decisions. 13 Process From Data inputs through analysis, modeling and information outputs into decisions • Inputs: factors, numbers, and characteristics to analyze, • User Knowledge and Expertise: Inputs requiring manual analysis by the user assumptions, scenarios • Outputs: Transformed data from which DSS "decisions" are generated • Decisions: Results generated by the DSS based on user criteria 14 Distributed DSS • Internet and mobile telephony with related software applications has enabled distribution of DSS • User can input decision scenarios through own desktop or smartphone and gets report back on the front-end user managed device • The database, analytical models, rules housed in the backend are communicated with through OLAP tools to generate predictions and forecasts 15 Status and trends • DSSAT4 package, developed through financial support of USAID during the 80's and 90's, has allowed rapid assessment of several agricultural production systems around the world to facilitate decision making at the farm and policy levels. • A number of Agricultural DSSs in use in Australia, US, Israel and Europe. • In Eastern Africa, the use is still at infancy and majorly supply driven • The limited use is a pointer to constraints to the successful adoption on DSS in agriculture. 16 Prospects The demand will be driven by farming increasingly being engaged in as a business and attracting investments and attention from sectors like insurance and banking On the other hand, supply will be generated by: • ICT as an enabler of business and decisions through cellular network and mobile telephony is reaching everywhere • The ICT savvy youth is increasingly getting attracted into the agricultural industry • Infrastructure projects for energy, water, roads, optic fiber lines are increasingly covering rural areas • A large pool of graduates with competence in data science and ICTs 17 Case:Risk & Investment Analysis Business needs(Problem): Evidence based risk analysis and investment appraisal for dairy goat enterprises User needs: Projection for herd growth and ascertainment of ROI, NPV thereby outlining investment criteria; mortality risk forecasts for insurance Data needs: breed, birthdate, sex, daily data on temperature, humidity, rainfall, milk production, livestock sales, feed type and quantities, mortality, fecundity, labor hours, veterinary interventions, costs, economic indicators Gaps: Projections only based on deterministic theoretical models ignoring risks and uncertainties 18 Case continued • Solution: Data Driven Model oriented DSS • Database built from a longitudinal study for the first 8 years since import of a breed, 8 years being the useful life. • Database improved by data from subsequent cohorts • Probability models built based on age specific survival and fecundity rates. Stochastic NPV model built based on • User inputs size of herd purchased, date of purchase, cost, and age and sex composition and gets a projection of herd size at any given future time and related NPV. 19 Case continued Issues: • Poor record keeping hence poor availability of bio-economic data • Elaborate data collection components not inbuilt on project components • Poor or erratic electricity collection interrupts usage of computers and phones in remote farms • Unavailability of tested homegrown bio-economic models • Who pays for the DSS? Is it a public good through government, NGO? 20 Opportunities: “Providing solutions to problems and resolutions of issues are the parents for opportunities.” Thank you! 21
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