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#433284 Tech Can Sustainably Feed Developing ...
In the next 30 years, virtually all net population growth will occur in urban regions of developing countries. At the same time, worldwide food production will become increasingly limited by the availability of land, water, and energy. These constraints will be further worsened by climate change and the expected addition of two billion people to today’s four billion now living in urban regions. Meanwhile, current urban food ecosystems in the developing world are inefficient and critically inadequate to meet the challenges of the future.
Combined, these trends could have catastrophic economic and political consequences. A new path forward for urban food ecosystems needs to be found. But what is that path?
New technologies, coupled with new business models and supportive government policies, can create more resilient urban food ecosystems in the coming decades. These tech-enabled systems can sustainably link rural, peri-urban (areas just outside cities), and urban producers and consumers, increase overall food production, and generate opportunities for new businesses and jobs (Figure 1).
Figure 1: The urban food value chain nodes from rural, peri-urban and urban producers
to servicing end customers in urban and peri-urban markets.
Here’s a glimpse of the changes technology may bring to the systems feeding cities in the future.
A technology-linked urban food ecosystem would create unprecedented opportunities for small farms to reach wider markets and progress from subsistence farming to commercially producing niche cash crops and animal protein, such as poultry, fish, pork, and insects.
Meanwhile, new opportunities within cities will appear with the creation of vertical farms and other controlled-environment agricultural systems as well as production of plant-based and 3D printed foods and cultured meat. Uberized facilitation of production and distribution of food will reduce bottlenecks and provide new business opportunities and jobs. Off-the-shelf precision agriculture technology will increasingly be the new norm, from smallholders to larger producers.
As part of Agricultural Revolution 4.0, all this will be integrated into the larger collaborative economy—connected by digital platforms, the cloud, and the Internet of Things and powered by artificial intelligence. It will more efficiently and effectively use resources and people to connect the nexus of food, water, energy, nutrition, and human health. It will also aid in the development of a circular economy that is designed to be restorative and regenerative, minimizing waste and maximizing recycling and reuse to build economic, natural, and social capital.
In short, technology will enable transformation of urban food ecosystems, from expanded production in cities to more efficient and inclusive distribution and closer connections with rural farmers. Here’s a closer look at seven tech-driven trends that will help feed tomorrow’s cities.
1. Worldwide Connectivity: Information, Learning, and Markets
Connectivity from simple cell phone SMS communication to internet-enabled smartphones and cloud services are providing platforms for the increasingly powerful technologies enabling development of a new agricultural revolution. Internet connections currently reach more than 4 billion people, about 55% of the global population. That number will grow fast in coming years.
These information and communications technologies connect food producers to consumers with just-in-time data, enhanced good agricultural practices, mobile money and credit, telecommunications, market information and merchandising, and greater transparency and traceability of goods and services throughout the value chain. Text messages on mobile devices have become the one-stop-shop for small farmers to place orders, gain technology information for best management practices, and access market information to increase profitability.
Hershey’s CocoaLink in Ghana, for example, uses text and voice messages with cocoa industry experts and small farm producers. Digital Green is a technology-enabled communication system in Asia and Africa to bring needed agricultural and management practices to small farmers in their own language by filming and recording successful farmers in their own communities. MFarm is a mobile app that connects Kenyan farmers with urban markets via text messaging.
2. Blockchain Technology: Greater Access to Basic Financial Services and Enhanced Food Safety
Gaining access to credit and executing financial transactions have been persistent constraints for small farm producers. Blockchain promises to help the unbanked access basic financial services.
The Gates Foundation has released an open source platform, Mojaloop, to allow software developers and banks and financial service providers to build secure digital payment platforms at scale. Mojaloop software uses more secure blockchain technology to enable urban food system players in the developing world to conduct business and trade. The free software reduces complexity and cost in building payment platforms to connect small farmers with customers, merchants, banks, and mobile money providers. Such digital financial services will allow small farm producers in the developing world to conduct business without a brick-and-mortar bank.
Blockchain is also important for traceability and transparency requirements to meet food regulatory and consumer requirement during the production, post-harvest, shipping, processing and distribution to consumers. Combining blockchain with RFID technologies also will enhance food safety.
3. Uberized Services: On-Demand Equipment, Storage, and More
Uberized services can advance development of the urban food ecosystem across the spectrum, from rural to peri-urban to urban food production and distribution. Whereas Uber and Airbnb enable sharing of rides and homes, the model can be extended in the developing world to include on-demand use of expensive equipment, such as farm machinery, or storage space.
This includes uberization of planting and harvesting equipment (Hello Tractor), transportation vehicles, refrigeration facilities for temporary storage of perishable product, and “cloud kitchens” (EasyAppetite in Nigeria, FoodCourt in Rwanda, and Swiggy and Zomto in India) that produce fresh meals to be delivered to urban customers, enabling young people with motorbikes and cell phones to become entrepreneurs or contractors delivering meals to urban customers.
Another uberized service is marketing and distributing “ugly food” or imperfect produce to reduce food waste. About a third of the world’s food goes to waste, often because of appearance; this is enough to feed two billion people. Such services supply consumers with cheaper, nutritious, tasty, healthy fruits and vegetables that would normally be discarded as culls due to imperfections in shape or size.
4. Technology for Producing Plant-Based Foods in Cities
We need to change diet choices through education and marketing and by developing tasty plant-based substitutes. This is not only critical for environmental sustainability, but also offers opportunities for new businesses and services. It turns out that current agricultural production systems for “red meat” have a far greater detrimental impact on the environment than automobiles.
There have been great advances in plant-based foods, like the Impossible Burger and Beyond Meat, that can satisfy the consumer’s experience and perception of meat. Rather than giving up the experience of eating red meat, technology is enabling marketable, attractive plant-based products that can potentially drastically reduce world per capita consumption of red meat.
5. Cellular Agriculture, Lab-Grown Meat, and 3D Printed Food
Lab-grown meat, literally meat grown from cultured cells, may radically change where and how protein and food is produced, including the cities where it is consumed. There is a wide range of innovative alternatives to traditional meats that can supplement the need for livestock, farms, and butchers. The history of innovation is about getting rid of the bottleneck in the system, and with meat, the bottleneck is the animal. Finless Foods is a new company trying to replicate fish fillets, for example, while Memphis meats is working on beef and poultry.
3D printing or additive manufacturing is a “general purpose technology” used for making, plastic toys, human tissues, aircraft parts, and buildings. 3D printing can also be used to convert alternative ingredients such as proteins from algae, beet leaves, or insects into tasty and healthy products that can be produced by small, inexpensive printers in home kitchens. The food can be customized for individual health needs as well as preferences. 3D printing can also contribute to the food ecosystem by making possible on-demand replacement parts—which are badly needed in the developing world for tractors, pumps, and other equipment. Catapult Design 3D prints tractor replacement parts as well as corn shellers, cart designs, prosthetic limbs, and rolling water barrels for the Indian market.
6. Alt Farming: Vertical Farms to Produce Food in Urban Centers
Urban food ecosystem production systems will rely not only on field-grown crops, but also on production of food within cities. There are a host of new, alternative production systems using “controlled environmental agriculture.” These include low-cost, protected poly hoop houses, greenhouses, roof-top and sack/container gardens, and vertical farming in buildings using artificial lighting. Vertical farms enable year-round production of selected crops, regardless of weather—which will be increasingly important in response to climate change—and without concern for deteriorating soil conditions that affect crop quality and productivity. AeroFarms claims 390 times more productivity per square foot than normal field production.
7. Biotechnology and Nanotechnology for Sustainable Intensification of Agriculture
CRISPR is a promising gene editing technology that can be used to enhance crop productivity while avoiding societal concerns about GMOs. CRISPR can accelerate traditional breeding and selection programs for developing new climate and disease-resistant, higher-yielding, nutritious crops and animals.
Plant-derived coating materials, developed with nanotechnology, can decrease waste, extend shelf-life and transportability of fruits and vegetables, and significantly reduce post-harvest crop loss in developing countries that lack adequate refrigeration. Nanotechnology is also used in polymers to coat seeds to increase their shelf-life and increase their germination success and production for niche, high-value crops.
Putting It All Together
The next generation “urban food industry” will be part of the larger collaborative economy that is connected by digital platforms, the cloud, and the Internet of Things. A tech-enabled urban food ecosystem integrated with new business models and smart agricultural policies offers the opportunity for sustainable intensification (doing more with less) of agriculture to feed a rapidly growing global urban population—while also creating viable economic opportunities for rural and peri-urban as well as urban producers and value-chain players.
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#432271 Your Shopping Experience Is on the Verge ...
Exponential technologies (AI, VR, 3D printing, and networks) are radically reshaping traditional retail.
E-commerce giants (Amazon, Walmart, Alibaba) are digitizing the retail industry, riding the exponential growth of computation.
Many brick-and-mortar stores have already gone bankrupt, or migrated their operations online.
Massive change is occurring in this arena.
For those “real-life stores” that survive, an evolution is taking place from a product-centric mentality to an experience-based business model by leveraging AI, VR/AR, and 3D printing.
Let’s dive in.
E-Commerce Trends
Last year, 3.8 billion people were connected online. By 2024, thanks to 5G, stratospheric and space-based satellites, we will grow to 8 billion people online, each with megabit to gigabit connection speeds.
These 4.2 billion new digital consumers will begin buying things online, a potential bonanza for the e-commerce world.
At the same time, entrepreneurs seeking to service these four-billion-plus new consumers can now skip the costly steps of procuring retail space and hiring sales clerks.
Today, thanks to global connectivity, contract production, and turnkey pack-and-ship logistics, an entrepreneur can go from an idea to building and scaling a multimillion-dollar business from anywhere in the world in record time.
And while e-commerce sales have been exploding (growing from $34 billion in Q1 2009 to $115 billion in Q3 2017), e-commerce only accounted for about 10 percent of total retail sales in 2017.
In 2016, global online sales totaled $1.8 trillion. Remarkably, this $1.8 trillion was spent by only 1.5 billion people — a mere 20 percent of Earth’s global population that year.
There’s plenty more room for digital disruption.
AI and the Retail Experience
For the business owner, AI will demonetize e-commerce operations with automated customer service, ultra-accurate supply chain modeling, marketing content generation, and advertising.
In the case of customer service, imagine an AI that is trained by every customer interaction, learns how to answer any consumer question perfectly, and offers feedback to product designers and company owners as a result.
Facebook’s handover protocol allows live customer service representatives and language-learning bots to work within the same Facebook Messenger conversation.
Taking it one step further, imagine an AI that is empathic to a consumer’s frustration, that can take any amount of abuse and come back with a smile every time. As one example, meet Ava. “Ava is a virtual customer service agent, to bring a whole new level of personalization and brand experience to that customer experience on a day-to-day basis,” says Greg Cross, CEO of Ava’s creator, an Austrian company called Soul Machines.
Predictive modeling and machine learning are also optimizing product ordering and the supply chain process. For example, Skubana, a platform for online sellers, leverages data analytics to provide entrepreneurs constant product performance feedback and maintain optimal warehouse stock levels.
Blockchain is set to follow suit in the retail space. ShipChain and Ambrosus plan to introduce transparency and trust into shipping and production, further reducing costs for entrepreneurs and consumers.
Meanwhile, for consumers, personal shopping assistants are shifting the psychology of the standard shopping experience.
Amazon’s Alexa marks an important user interface moment in this regard.
Alexa is in her infancy with voice search and vocal controls for smart homes. Already, Amazon’s Alexa users, on average, spent more on Amazon.com when purchasing than standard Amazon Prime customers — $1,700 versus $1,400.
As I’ve discussed in previous posts, the future combination of virtual reality shopping, coupled with a personalized, AI-enabled fashion advisor will make finding, selecting, and ordering products fast and painless for consumers.
But let’s take it one step further.
Imagine a future in which your personal AI shopper knows your desires better than you do. Possible? I think so. After all, our future AIs will follow us, watch us, and observe our interactions — including how long we glance at objects, our facial expressions, and much more.
In this future, shopping might be as easy as saying, “Buy me a new outfit for Saturday night’s dinner party,” followed by a surprise-and-delight moment in which the outfit that arrives is perfect.
In this future world of AI-enabled shopping, one of the most disruptive implications is that advertising is now dead.
In a world where an AI is buying my stuff, and I’m no longer in the decision loop, why would a big brand ever waste money on a Super Bowl advertisement?
The dematerialization, demonetization, and democratization of personalized shopping has only just begun.
The In-Store Experience: Experiential Retailing
In 2017, over 6,700 brick-and-mortar retail stores closed their doors, surpassing the former record year for store closures set in 2008 during the financial crisis. Regardless, business is still booming.
As shoppers seek the convenience of online shopping, brick-and-mortar stores are tapping into the power of the experience economy.
Rather than focusing on the practicality of the products they buy, consumers are instead seeking out the experience of going shopping.
The Internet of Things, artificial intelligence, and computation are exponentially improving the in-person consumer experience.
As AI dominates curated online shopping, AI and data analytics tools are also empowering real-life store owners to optimize staffing, marketing strategies, customer relationship management, and inventory logistics.
In the short term,retail store locations will serve as the next big user interface for production 3D printing (custom 3D printed clothes at the Ministry of Supply), virtual and augmented reality (DIY skills clinics), and the Internet of Things (checkout-less shopping).
In the long term,we’ll see how our desire for enhanced productivity and seamless consumption balances with our preference for enjoyable real-life consumer experiences — all of which will be driven by exponential technologies.
One thing is certain: the nominal shopping experience is on the verge of a major transformation.
Implications
The convergence of exponential technologies has already revamped how and where we shop, how we use our time, and how much we pay.
Twenty years ago, Amazon showed us how the web could offer each of us the long tail of available reading material, and since then, the world of e-commerce has exploded.
And yet we still haven’t experienced the cost savings coming our way from drone delivery, the Internet of Things, tokenized ecosystems, the impact of truly powerful AI, or even the other major applications for 3D printing and AR/VR.
Perhaps nothing will be more transformed than today’s $20 trillion retail sector.
Hold on, stay tuned, and get your AI-enabled cryptocurrency ready.
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#432031 Why the Rise of Self-Driving Vehicles ...
It’s been a long time coming. For years Waymo (formerly known as Google Chauffeur) has been diligently developing, driving, testing and refining its fleets of various models of self-driving cars. Now Waymo is going big. The company recently placed an order for several thousand new Chrysler Pacifica minivans and next year plans to launch driverless taxis in a number of US cities.
This deal raises one of the biggest unanswered questions about autonomous vehicles: if fleets of driverless taxis make it cheap and easy for regular people to get around, what’s going to happen to car ownership?
One popular line of thought goes as follows: as autonomous ride-hailing services become ubiquitous, people will no longer need to buy their own cars. This notion has a certain logical appeal. It makes sense to assume that as driverless taxis become widely available, most of us will eagerly sell the family car and use on-demand taxis to get to work, run errands, or pick up the kids. After all, vehicle ownership is pricey and most cars spend the vast majority of their lives parked.
Even experts believe commercial availability of autonomous vehicles will cause car sales to drop.
Market research firm KPMG estimates that by 2030, midsize car sales in the US will decline from today’s 5.4 million units sold each year to nearly half that number, a measly 2.1 million units. Another market research firm, ReThinkX, offers an even more pessimistic estimate (or optimistic, depending on your opinion of cars), predicting that autonomous vehicles will reduce consumer demand for new vehicles by a whopping 70 percent.
The reality is that the impending death of private vehicle sales is greatly exaggerated. Despite the fact that autonomous taxis will be a beneficial and widely-embraced form of urban transportation, we will witness the opposite. Most people will still prefer to own their own autonomous vehicle. In fact, the total number of units of autonomous vehicles sold each year is going to increase rather than decrease.
When people predict the demise of car ownership, they are overlooking the reality that the new autonomous automotive industry is not going to be just a re-hash of today’s car industry with driverless vehicles. Instead, the automotive industry of the future will be selling what could be considered an entirely new product: a wide variety of intelligent, self-guiding transportation robots. When cars become a widely used type of transportation robot, they will be cheap, ubiquitous, and versatile.
Several unique characteristics of autonomous vehicles will ensure that people will continue to buy their own cars.
1. Cost: Thanks to simpler electric engines and lighter auto bodies, autonomous vehicles will be cheaper to buy and maintain than today’s human-driven vehicles. Some estimates bring the price to $10K per vehicle, a stark contrast with today’s average of $30K per vehicle.
2. Personal belongings: Consumers will be able to do much more in their driverless vehicles, including work, play, and rest. This means they will want to keep more personal items in their cars.
3. Frequent upgrades: The average (human-driven) car today is owned for 10 years. As driverless cars become software-driven devices, their price/performance ratio will track to Moore’s law. Their rapid improvement will increase the appeal and frequency of new vehicle purchases.
4. Instant accessibility: In a dense urban setting, a driverless taxi is able to show up within minutes of being summoned. But not so in rural areas, where people live miles apart. For many, delay and “loss of control” over their own mobility will increase the appeal of owning their own vehicle.
5. Diversity of form and function: Autonomous vehicles will be available in a wide variety of sizes and shapes. Consumers will drive demand for custom-made, purpose-built autonomous vehicles whose form is adapted for a particular function.
Let’s explore each of these characteristics in more detail.
Autonomous vehicles will cost less for several reasons. For one, they will be powered by electric engines, which are cheaper to construct and maintain than gasoline-powered engines. Removing human drivers will also save consumers money. Autonomous vehicles will be much less likely to have accidents, hence they can be built out of lightweight, lower-cost materials and will be cheaper to insure. With the human interface no longer needed, autonomous vehicles won’t be burdened by the manufacturing costs of a complex dashboard, steering wheel, and foot pedals.
While hop-on, hop-off autonomous taxi-based mobility services may be ideal for some of the urban population, several sizeable customer segments will still want to own their own cars.
These include people who live in sparsely-populated rural areas who can’t afford to wait extended periods of time for a taxi to appear. Families with children will prefer to own their own driverless cars to house their childrens’ car seats and favorite toys and sippy cups. Another loyal car-buying segment will be die-hard gadget-hounds who will eagerly buy a sexy upgraded model every year or so, unable to resist the siren song of AI that is three times as safe, or a ride that is twice as smooth.
Finally, consider the allure of robotic diversity.
Commuters will invest in a home office on wheels, a sleek, traveling workspace resembling the first-class suite on an airplane. On the high end of the market, city-dwellers and country-dwellers alike will special-order custom-made autonomous vehicles whose shape and on-board gadgetry is adapted for a particular function or hobby. Privately-owned small businesses will buy their own autonomous delivery robot that could range in size from a knee-high, last-mile delivery pod, to a giant, long-haul shipping device.
As autonomous vehicles near commercial viability, Waymo’s procurement deal with Fiat Chrysler is just the beginning.
The exact value of this future automotive industry has yet to be defined, but research from Intel’s internal autonomous vehicle division estimates this new so-called “passenger economy” could be worth nearly $7 trillion a year. To position themselves to capture a chunk of this potential revenue, companies whose businesses used to lie in previously disparate fields such as robotics, software, ships, and entertainment (to name but a few) have begun to form a bewildering web of what they hope will be symbiotic partnerships. Car hailing and chip companies are collaborating with car rental companies, who in turn are befriending giant software firms, who are launching joint projects with all sizes of hardware companies, and so on.
Last year, car companies sold an estimated 80 million new cars worldwide. Over the course of nearly a century, car companies and their partners, global chains of suppliers and service providers, have become masters at mass-producing and maintaining sturdy and cost-effective human-driven vehicles. As autonomous vehicle technology becomes ready for mainstream use, traditional automotive companies are being forced to grapple with the painful realization that they must compete in a new playing field.
The challenge for traditional car-makers won’t be that people no longer want to own cars. Instead, the challenge will be learning to compete in a new and larger transportation industry where consumers will choose their product according to the appeal of its customized body and the quality of its intelligent software.
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Melba Kurman and Hod Lipson are the authors of Driverless: Intelligent Cars and the Road Ahead and Fabricated: the New World of 3D Printing.
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