"Hacking your Tractor with Black Market Code: A Sense & Respond case study" by Jeff Gothelf
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You’re in the software business. You may not realize it yet but it’s the only way you’re scaling in the 21st century. Whether you’re in retail, financial services or health care, no industry is immune. This includes agriculture. In this PRODUCTIZED keynote, Jeff Gothelf shares a rich, detailed case study regarding the story of John Deere. The legendary American farm machine manufacturer, keenly aware and on top of the technological revolution, has built up a surprising Sense & Respond practice to help them innovate their product offerings — especially their tractors and combines. This vivid story will illustrate that even great product and design practices don’t always influence corporate agendas while highlighting ways that leadership must engage to build a truly successful Sense & Respond loop.
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"Hacking your Tractor with Black Market Code: A Sense & Respond case study" by Jeff Gothelf
- 1. EPISODE II: THE FARM AWAKENS SENSE & RESPOND:
- 2. EPISODE II: THE FARM AWAKENS SENSE & RESPOND:
- 3. EPISODE II: THE FARM AWAKENS SENSE & RESPOND: A STORY IN 6 ACTS WITH A HERO AN EMPIRE AN UNLIKELY ALLY
- 4. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 5. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 1: THE USER NEED OR… THE BRUTAL ECONOMICS OF WHEAT
- 10. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO FARMERS DO NOT MARKET WHEAT.
- 11. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE MARKET DOES NOT CONSIDER HOW MUCH IT COSTS TO PRODUCE WHEAT WHEN DETERMINING THE PRICE.
- 12. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ALL THE MARKET CARES ABOUT IS HOW MUCH WHEAT IS NEEDED TO MEET CONSUMER DEMAND, AND HOW MUCH THE CONSUMER WILL PAY.
- 13. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO AT ANY GIVEN MOMENT, A FARMER CAN EASILY HAVE MILLIONS OF DOLLARS IN SEED AND LABOR IN THE GROUND.
- 15. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO LET’S DO SOME MATH (YAY!)
- 16. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BUSHEL = 60 POUNDS (27.2 KILOGRAMS)
- 17. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO A WHEAT FARMER IN GRANT COUNTY, OKLAHOMA, HAS A WHEAT TARGET YIELD OF 50 BUSHELS PER ACRE (0.4 HECTARE).
- 18. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO VARIABLE COSTS: (RENT, LABOR, SEED, INSURANCE, FERTILIZER, HARVESTING) $249/ACRE
- 19. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO FIXED COSTS: (TAXES, INSURANCE, AND DEPRECIATION) $25/ACRE
- 22. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO COST PER ACRE $274 BUSHELS PER ACRE 50
- 23. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO COST PER ACRE $274 BREAKEVEN PRICE: $5.48 BUSHELS PER ACRE 50
- 24. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO COST PER ACRE $274 BREAKEVEN PRICE: $5.48 MARKET PRICE: $5.59 BUSHELS PER ACRE 50
- 25. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO COST PER ACRE $274 BUSHELS PER ACRE 50 BREAKEVEN PRICE: $5.48 MARKET PRICE: $5.59 MARGIN: $0.11
- 26. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO PROFIT PER BUSHEL: $.11 PROFIT PER ACRE: $5.50 AVG FARM SIZE (ACRES): 438 TOTAL PROFIT: $2409
- 28. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO TOTAL PROFIT FROM WHEAT HARVEST: $2409
- 32. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “IT’S PLANTING SEASON. LET’S TALK AFTER.” - STEVE PITSTICK, FARMER
- 37. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO USER NEEDS: LOWER COSTS MORE EFFICIENCY OBEY MOTHER NATURE’S SCHEDULE
- 38. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 39. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 40. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 2: THE BUSINESS OUTCOME OR… MEANWHILE, AT HEADQUARTERS
- 43. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE HARLEY-DAVIDSON OF FARM EQUIPMENT
- 45. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WORD OF CAUTION: DON’T SCROLL ANY FURTHER DOWN THIS SEARCH RESULTS PAGE…
- 50. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO …AND IT’S NOT JUST TRACTORS…
- 52. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO JOHN DEERE IS A HARDWARE COMPANY
- 53. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO JOHN DEERE IS A SOFTWARE COMPANY
- 54. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO JOHN DEERE DOES PRODUCT DISCOVERY
- 57. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WHAT BUSINESS PROBLEM DOES JOHN DEERE FACE?
- 58. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO TO GENERATE MEANINGFUL PROFITS YOU NEED A BIG OPERATION
- 59. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BIG OPERATION = BIG EXPENSE
- 60. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO TECHNOLOGY HELPS FARM LARGER AREAS WITH LESS LABOR
- 61. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO LESS LABOR = FEWER FARMERS
- 62. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO FEWER FARMERS = FEWER TRACTOR SALES
- 64. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO TIME TO RECONSIDER YOUR BUSINESS MODEL…
- 67. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BUSINESS NEEDS: LESS RELIANCE ON EQUIPMENT SALES
- 68. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BUSINESS NEEDS: LESS RELIANCE ON EQUIPMENT SALES PROTECT MARGINS
- 69. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BUSINESS NEEDS: LESS RELIANCE ON EQUIPMENT SALES PROTECT MARGINS CUSTOMER LOYALTY
- 70. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 71. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH THESE FEATURES WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 72. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 3: THE PROMISE, AKA THE OFFER YOU CAN’T REFUSE
- 73. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH THESE FEATURES WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 74. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE SEXY NEW MACHINES…
- 75. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE SEXY NEW MACHINES… SEXY NEW MACHINE VIDEO -THIS INTRODUCES THE INTEGRATED NATURE OF THE SOFTWARE AND THE HARDWARE
- 76. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE SEXY NEW MACHINES… SEXY NEW MACHINE VIDEO -THIS INTRODUCES THE INTEGRATED NATURE OF THE SOFTWARE AND THE HARDWARE
- 77. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “I CAN FARM 2500 ACRES TODAY EASIER THAN 500 ACRES 40 YEARS AGO.” - STEVE PITSTICK, FARMER
- 81. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO BUT THERE’S ONE CATCH: THE LICENSE AGREEMENT
- 82. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “AN IMPLIED LICENSE FOR THE LIFE OF THE VEHICLE TO OPERATE THE VEHICLE.” JOHN DEERE FILING, US COPYRIGHT OFFICE
- 87. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO PRODUCT FEATURES: MORE EFFICIENT MORE CAPABLE INTEGRATED SERVICES (REVENUE)
- 88. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO PRODUCT FEATURES: MORE EFFICIENT MORE CAPABLE INTEGRATED SERVICES (REVENUE) LICENSE AGREEMENT
- 89. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH GREATER EFFICIENCY, INTEGRATED SERVICES CAPABILITY & A LICENSE AGREEMENT WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 90. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 4: IN WHICH OUR HERO ENCOUNTERS A PROBLEM
- 91. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE WHEAT IS RIPE, TIME TO HARVEST
- 92. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO …BUT THERE’S A PROBLEM…
- 93. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO …BUT THERE’S A PROBLEM…
- 94. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “AN IMPLIED LICENSE FOR THE LIFE OF THE VEHICLE TO OPERATE THE VEHICLE.” JOHN DEERE FILING, US COPYRIGHT OFFICE
- 95. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO YOU CAN’T FIX IT YOURSELF
- 98. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “BECAUSE MODIFYING MODERN OBJECTS REQUIRES ACCESS TO INFORMATION: CODE, SERVICE MANUALS, ERROR CODES, AND DIAGNOSTIC TOOLS.” https://www.wired.com/2013/03/you-dont-own-your-cellphones-or-your-cars/
- 99. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO “IF YOU BOUGHT SOMETHING AND FIGURED OUT HOW TO GET EXTRA VALUE OUT OF IT THAT WAS YOURS TO KEEP.” - CORY DOCTOROW
- 103. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO HOW DO WE KNOW WHAT WORKS?
- 104. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO HOW DO WE KNOW WHAT WORKS?
- 105. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO HOW DO WE KNOW WHAT WORKS? OR… THE PROBLEM WITH PEOPLE
- 106. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO HOW DO WE KNOW WHAT WORKS? OR… THE PROBLEM WITH PEOPLE (AND CULTURE)
- 114. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO THERE’S A GOOD CHANCE THAT WE’RE WRONG.
- 117. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO SENSE & RESPOND Ship SenseRespondRespond
- 118. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 119. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH GREATER EFFICIENCY, INTEGRATED SERVICES CAPABILITY & A LICENSE AGREEMENT WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
- 120. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 5: EVIDENCE OR…OUR HERO FINDS AN UNLIKELY ALLY
- 129. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WHEN YOU ENFORCE BAD POLICY, PEOPLE WILL WORK AROUND THAT POLICY.
- 130. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WHEN YOU ENFORCE BAD POLICY, PEOPLE WILL WORK AROUND THAT POLICY.
- 131. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO ACT 6: HOW WILL OUR STORY END?
- 132. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH GREATER EFFICIENCY, INTEGRATED SERVICES CAPABILITY & A LICENSE AGREEMENT WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY WE’LL KNOW WE’RE RIGHT WHEN WE SEE FARMERS DOWNLOADING CRACKED UKRAINIAN SOFTWARE???
- 135. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE LEGAL STRUCTURES IN USE ARE ILL-SUITED TO CURRENT REALITY
- 136. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WILL YOU USE THEM TO SERVE CUSTOMERS? OR TO EXPLOIT THEM?
- 137. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO TECHNOLOGY CAN NOT GET AHEAD OF CULTURE
- 138. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO WHEN YOU ENFORCE BAD POLICY, PEOPLE WILL WORK AROUND THAT POLICY.
- 139. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE RIGHT TO REPAIR MOVEMENT
- 140. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE RIGHT TO REPAIR MOVEMENT
- 141. @JSEIDEN @JBOOGIE SENSEANDRESPOND.CO THE RIGHT TO REPAIR MOVEMENT
- 144. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS
- 145. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS
- 146. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS 3. SOFTWARE ENFORCES POLICY
- 147. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS 3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY
- 148. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS 3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY 5. FEEDBACK LOOPS REVEAL CULTURE
- 149. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS 3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY 5. FEEDBACK LOOPS REVEAL CULTURE 6. FRAME SUCCESS IN USER-CENTRIC TERMS
- 150. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO 1. YOU ARE IN THE SOFTWARE BUSINESS 2. SOFTWARE UNLOCKS NEW BUSINESS MODELS 3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY 5. FEEDBACK LOOPS REVEAL CULTURE 6. FRAME SUCCESS IN USER-CENTRIC TERMS
- 151. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO THANK YOU! JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO SENSEANDRESPOND.CO