The new model is designed to unlock new value for customers and respond more quickly to changing market conditions.
Deere & Company (DE) announced a new vision and operating model to accelerate its success in the integration of smart technology innovation with its manufacturing excellence. The Deere Smart Industrial strategy is designed to unlock new value for customers and to help them become more profitable and sustainable, while simultaneously revolutionizing the agriculture and construction industries through the rapid introduction of new technologies.
To ensure success, actions will be concentrated on the following three focus areas:
- Production Systems: A strategic alignment of products and solutions around Production Systems roadmaps – which capitalizes on Deere's knowledge of its customers and how they work. The new production systems structure enables the company to drive an integrated product roadmap and related investments that span all aspects of a customer's jobs and to meet customer needs more fully.
- Technology Stack: Investments in technology as well as research and development that deliver intelligent solutions to Deere customers through an intuitive technology stack made up of hardware, embedded software, connectivity, data platforms, and applications. The Deere family of "smart" machines, systems, and solutions unlocks customer economic value through enhanced precision, automation, speed, and efficiency not possible previously.
- Lifecycle Solutions: The enterprise integration of Deere's aftermarket and support capabilities to manage customer equipment, service, and technology needs more effectively across the full lifetime of a John Deere product, and with a specific lifecycle solution focus on the ownership experience.
As previously announced, John H. Stone will assume his new role as President, Worldwide Construction & Forestry and Power Systems on July 1. Deere's Construction and Forestry division, which was recently organized along production systems for earthmoving, roadbuilding and forestry, will now more fully leverage the technology stack and lifecycle solutions in the future.
In order to realize the Smart Industrial vision, Deere will adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities. Deere plans to dramatically accelerate the speed with which the company brings priority technology to market to drive value creation and capture it more quickly. The new operating model will assist Deere to respond to changing market conditions with greater speed and efficiency. Source