Samuel R Allen – Chairman and CEO, John Deere | Summary and Q&A

TL;DR

John Deere, a company founded in 1837, has diversified its business over the years and is now embracing digital technology to transform the agriculture industry.

Key Insights

• 🤕 John Deere has diversified its business, from being known for ag implements to being a major player in various equipment sectors.
• 👨‍💼 Digital technology, including telematics and precision agriculture, has become increasingly important for John Deere's business.
• ❓ The company is embracing autonomous systems and acquiring companies like Blue River to stay at the forefront of innovation.
• 💁 John Deere aims to shift its business model towards selling solutions and information that provide insights to customers.
• 💦 Dealers play a crucial role in supporting John Deere's digital initiatives, and the company has been working with them to ensure they are prepared for the shift.
• 👋 John Deere recognizes the need to balance domain expertise and new capabilities, blending the best of both worlds for continued success.
• 👶 The agriculture industry's conservative nature poses a challenge for the adoption of new technologies, but John Deere is confident in its ability to drive change and provide value to its customers.

Transcript

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Questions & Answers

Q: How has John Deere diversified its business in recent years?

John Deere has expanded beyond ag implements and is now a global leader in large ag equipment, construction equipment, forestry equipment, and turf equipment. They also have a captive credit company.

Q: How has digital technology impacted John Deere's business?

Digital technology, including telematics solutions and precision agriculture, has allowed John Deere to improve communication, gather real-time data, and provide insights to farmers. They have also acquired Blue River, a company specializing in autonomous systems.

Q: How does John Deere blend domain expertise with new competencies?

John Deere has experience in managing different engineering centers globally, allowing them to understand the cultural differences and requirements for different types of expertise. The company aims to maintain a startup culture while instilling Deere values over time.

Q: How will John Deere's business model change in the next decade?

John Deere plans to shift from selling individual equipment to offering bundled services and solutions. The focus will be on providing optimized solutions and insights to improve customer outcomes, such as increased productivity and lower costs.

Summary & Key Takeaways

• John Deere, a company with a long history in ag implements, has diversified its business and is now the global leader in large ag equipment, construction equipment, forestry equipment, and turf equipment.

• The company experienced a revenue reduction for three consecutive years but emerged stronger and acquired other companies, such as Verkin.

• John Deere is embracing digital technology, including autonomous systems and precision agriculture, to enhance productivity and efficiency in the industry.