Growing with the grower

Abstract

Within horticulture, Priva is serving the top of the market with high quality, reliable, but also expensive solutions for process automation. Below this top of the pyramid, there is a big market that has a lot of potential. It is called the mid segment and requires cheaper and more basic solutions for automation. It has a lot of opportunities but also challenges for Priva. The purpose of this project was to explore this market, and develop a concept for a suitable product-service combination. First, a theoretical framework was made based on a literature review. After an internal analysis of Priva and an external analysis of the market context, a new solution for the mid segment was developed in the synthesis phase. The solution that was developed is called Grow, which is based on the concept of growing with the grower. This product-service combination provides sustainable competitive advantage for Priva. It takes care of the entire customer experience, and creates a new meaning of the product. The system uses wireless technology to connect the modules in the field. The Grow station is ‘plug-and-play’, making it easy to install and maintain. Using the product, growers can save valuable resources which become increasingly scarce. They can optimize the quality and quantity of their yields, and generate income to invest into Grow again. The modular system allows a flexible solution for a nonhomogeneous market, at a competing price. The mid segment requires a radically different approach than the high segment. The old ways of working cannot simply be copied, because the market is really different. Furthermore Priva’s current business model of software distribution will expire in the coming years. Grow takes a first step in creating a new business model, where hardware and software sales are separated. Software modules can be downloaded like apps, and the interoperable hardware modules can be installed by dealers and installers with basic technical knowledge. For them Grow allows easy, remote, service and offers opportunities to grow their business. Because of the online service, there is more direct contact between Priva and the end user, creating customer loyalty. Revenue will be created by a higher volume of smaller transactions. When developing an innovative product-service combination like this, there is a lot to explore. Stakeholders should be involved early in the development process. Development partners should be attracted to co-create with. There is further research needed into the market and the technology. This concept is a first, but absolutely necessary step towards horticultural automation of the future, with cloud technology and wireless networks. Priva has to invest now in creating this for the mid segment, to build competencies that help to create sustainable strategic advantages in the high segment of the future.