Bayer Crop Science embraces digital technology with new outcome-based pricing model

October 14, 2019 | Case Study

Bayer, as well as its major competitors, continues to invest in and acquire digital technologies, but to date, the applications and business models applied have not diverged from conventional applications (crop monitoring, variable-rate application maps, pest warnings, etc.). However, as the cost of precision agriculture and monitoring technologies decreases, data resolution increases, and the demand to do more with less increases, we enter the digital transformation era for agritech – that is, the need for strategic integration of comprehensive digital platforms with innovative business models. For an overview of the industry activity toward this end, see the report "Business Model Innovation Underlies the Digital Transformation of the Agrichemical Industry."