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John Deere Adopts "Smart Tech" Biz Model

June 23, 2020
The agriculture and construction machinery — and metalcasting — group intends to speed up new-technology offerings in products and customer services, and to adopt a more disciplined capital allocation.

Deere & Company introduced a new corporate operating model it claimed will "accelerate … integration of smart technology innovation with Deere's legacy of manufacturing excellence."  The plan is to realign corporate resources to emphasize "customer experience" and to respond more quickly to changing market conditions.

Along with designing and manufacturing machinery and vehicles for agriculture and construction, Deere operates a metalcasting complex in Waterloo, IA.

The Deere Smart Industrial strategy is further intended to help the group to speed its introduction of new smart technologies for agriculture and construction industries.

The new model addresses three areas of organizational focus: Production Systems, Technology Stack (meaning, offering "smart" products that optimize hardware, embedded software, connectivity, data platforms, and applications), and Lifecycle Solutions.

Finally, the group promised to adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities.

"As Deere businesses and those of its customers become more competitive and dynamic, Deere's track record of technological innovation puts it in a position to anticipate, respond, and outpace those dynamics by offering cutting-edge solutions to enhance customers' productivity, profitability, and sustainability," stated chairman and CEO John May. "The new operating model represents a leap forward in performance for the company from an already strong starting point."