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1 Applications
Appendix III
Service capabilities
(This appendix does not form an integral part of this Recommendation.)
In this appendix, attention focuses on tasks that must be accomplished during the various implementation
stages associated with Smart Farming. It is recognized that this is not an all-inclusive list of the many tasks
which must be undertaken during the various stages of implementing Smart Farming.
III.1 Service capabilities for the pre-production stage
In the pre-production stage, the following service capabilities are required to facilitate a convergence service
for agriculture:
– Making a business plan: A business plan should consider sales/production planning, generate profit
and loss calculations of the overall business production enterprise, address marketing and
management issues, and understand business interactions with personal communication
communities;
– Operational review: While an operational review is required to ensure stable revenues, it is also
required to provide a global review on licenses, permits, regulations, patents, trademarks, risk
management, environmental issues, production quality, timeline, etc.;
– Role of IT in Smart Farming: The role of IT in Smart Farming should be determined, e.g., how to apply
IT for such items as sensing and monitoring systems, network infrastructure, controlling systems,
information data bases and farming management servers to support Smart Farming;
– Business review: For the stable management of the Smart Farming business, it is appropriate to
consider: the size, type and quality of facilities and facility equipment; real estate; farming
equipment; ownership structure; etc.
– Financial estimate: For maintaining the Smart Farming business and attaining more profits, it is very
important to estimate projected cash flow, income statement and balance sheet. It is also necessary
to estimate a projected statement of expenses and profitability;
– Decision making: This is the process used to make decisions on produce and product selection and
amounts, development of a rationalized price policy and marketing policy at all levels of marketing,
etc.;
– Marketing plan: Before the production phase, it would be appropriate to consider market trends,
customer service, marketing contracts, strategic partners, pricing, promotion, distribution, target
markets, competitive advantage, etc. in a marketing plan to produce a better decision;
– Understanding customers: For better understanding, it is required to identify customer class for
primary products and anticipating customer's changing characteristics.
III.2 Service capabilities for the production stage
Service capabilities for the production stage need to be described for Smart Farming to attain effective crop
production. For this purpose, optimal environmental control methods that take into consideration energy
use and automation efficiency are required for more effective crop production. The optimal growth condition
is different as it depends on crop species, types and varieties of plants that are grown in greenhouses and
plant factories.
The control system at the production stage could define the major components in applying IT technologies
in Smart Farming and specify the requirements and the architecture for technological issues. The system
could collect information for the growth management of crops and control the facilities promoting optimal
growth environments in greenhouses. Such a system covers the growth environment management, the
growth environment controls, etc. This is specified to make an artificial cultural environment for crops with
culture fluid, carbon dioxide concentration, temperature, humidity, wind and light. Smart farming enables
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