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Strengthening regional capacity: Bridging last mile & business models for innovative services GEO Plenary-XII Mexico City Nov 20, 2015 Ruud Grim

2 Netherlands Space Office

What will be the number of earth observation satellites

in orbit in 2025?

3 Netherlands Space Office

A: <100 B: < 1,000 C: >1,000

4 Netherlands Space Office

C: >1,000

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Understanding risk – information needs

• Need for information on, e.g.: - Land use (change) - Agricultural yields - Water availability & usage - Climate change

• Actual & historical data

- Consisistency over time & space - (Long) time series

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Major obstacles for earth observation (in past)

• Availability: only few operational (commercial) satellites

• Accessibility: archives & datasets not user friendly

• Adaptability: no standards, no conversion tools

• Affordability: high cost for procurement & value adding

• Acceptability: not operational, insufficient quality

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New trends in EO: the opportunity

• Availability many more satellites: e.g. EC Copernicus, small sat constellations

• Accessibility ICT, the Cloud

• Adaptability standards, adaptable usage (GIS/mobile)

• Affordability free/low cost data, lower cost value adding

• Acceptability fit-to-purpose, increased quality level

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Climate

Land Monitoring

Atmosphere Monitoring

Emergency Management

Marine Environment

Security

Each type of satellite: 2 in space, 1 spare on ground

2014

2015

2016

2017 2017

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Private sector initiatives (Just arrived / coming soon) PlanetLabs/BlackBridge/RapidEye PlanetLabs-Doves Cosmic-2 Google SkyBox Satellogic-BugSat BlackSky GeoOptics-Cicero Spire-Stratos PlanetiQ QB50 UrtheCast MenaSat-GulfSAR More?

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Land cover maps Soil maps

Index based Micro insurance

Irrigation advice

Crop growth monitoring

Advice, warnings

GPS, meteo

Yield forecasts

Land cover maps Soil maps

www.eTransformAfrica.org

Potential use

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Challenges to overcome

• Last mile: delivery to, communications with the user

• Usability: creating (direct) impact for user

• Information chain: from provider (high tech) – user (bottom of pyramid)

• Organization: public-private partnership, cultural, IPR

• Finance: investments

• Sustainability: business model, license to operate

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Challenges to overcome G4AW (NL funded)

• Last mile: delivery to, communications with the user

• Usability: creating (direct) impact for user

• Information chain: from provider to user

• Organization: PPP, cultural, IPR

• Finance: investments

• Sustainability: bus. Model, LtO Two call for proposals

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G4AW granted projects (14): success factors

• Market: Tackle a well-defined and specific problem • Solution: Part of a portfolio of services, focus remains on a

core offer with added value for client • License to operate: embedding in the local context • Channel: They build on already existing delivery

mechanism(s) • Maturity: a reproduction of an already (elsewhere) validated

service • G4AW specific: Well-elaborated use of satellite information

& other data for food security

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Evaluating a business model

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G4AW business models

• Freemium model: free service provision Other paying clients are financing operations

• Loyalty model: free service provision avoid switching clients to competitor

• Inclusive model: paid service provision bundled into package, e.g. insurance coupled to credit, advisory to input supplies

• Service model: client is paying (subsidized) fee for service provision

• Use of aggregators: telecom, bank, insurance, seed/nutrient supplier, farmer cooperatives

• Embedding : extension officers, NGO’s, farmer cooperatives

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G4AW business models Country Project Grantee Business Model Aggregator Embedding

BANGLADESH GEOBIS La l Teer Seed Inclus ive Seed, agents Seed, agents

BANGLADESH GEOPOTATO WUR Service unknown yet NGO

BANGLADESH IDSS ACI Inclus ive Inputs , agents , Gov. inputs , Gov.

BURKINA FASO MODHEM SNV Service unknown yet Gov. & NGO

ETHIOPA CommonSense WUR ServiceCooperatices , Unions , Bank, Insurance Gov.

ETHIOPA GIACIS ITC Inclus iveBank, Insurance, cooperatives & Gov. Gov.

INDONESIA G4INDO Alterra Service Insurance NGO

KENYA CROPMON Soi lCares ServiceFarmer cooperative; trade association NGO

KENYA / TANZANIA GEODATICS ICS Inclus ive NGO NGO

MAIL / UGANDA SumAfrica EARS Inclus ive Farmer cooperativeFarmer cooperative

MALI STAMP SNV Service Mobi le NGO

SOUTH AFRICA R4A ARC Freemium unknown yet Gov. & NGO

UGANDA MUIIS CTA Freemium & ServiceFarmer federation, unions Agents

VIETNAM AGRI.ONE VinaNed Loyal ty Nutrient, Mobi le, Gov. Gov.

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To think about:

• What are the information needs?

• What are barriers for usage & implementation?

• Role of government?

• Role of private sector?

• Role of international governmental organizations?

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Thank you for your attention

Contact:

r.grim@spaceoffice.nl

g4aw@spaceoffice.nl

G4AW is a programme commissioned by

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About NSO

• Space agency of the Netherlands government (established 2009)

• Reporting to: Ministry of Economic Affairs Ministry of Infrastructure and Environment Ministry of Education, Culture and Science Netherlands Organisation for Scientific Research (NWO)

• Task: to develop and implement Netherlands Space programme

• Outcome: space applications for science, economy and society

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Objectives

• Aim: - Reach > 3 million food producers - With relevant information, advices or (financial) products

based on satellite and other data

• Outcome: - improved sustainable food production, more effective use

of inputs (water, nutrients), and economic development (>10%)

- stimulating private investments - leading to financially sustainable services

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Key elements

Budget 2013-2014: 9 Mio €; 2014-2015: 30.5 Mio € Subsidy (max.) 70% for 23 countries, 60% for 3 countries in transition Grant between 0.5 – 5.0 mio € Project User driven, partnership, business plan, information

service (satellite data are indispensable and are at the start of the information chain)

Project duration 3 years (optional 1 yr extension) Results Beneficial and timely agrometeorological and/or

financial/insurance products Website www.spaceoffice.nl/g4aw

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User demand driven • Definition of user group • Definition of other stakeholders • Definition of user needs (user survey) • Capacity building & training • Cooperation with institutions connecting users • Connecting local initiatives

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Business model • Solid market analysis (users,

market volume, USP) • Solid business strategy • Appropriate choices in partnership • Financially sustainable service

provision is required after project (revenues may come from public and private resources)

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Solid partnership • Closing the information chain,

complementary, experience • Partners bridging the last mile to

users of services • Transparency in partnership • Partnership agreement enclosed

with application, this is the basis for project execution

• Applicant (coordinator) is responsible towards NSO

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Information service • Satellite data are at the start of the

information chain • Based on proven technology and

services • Transmission channel(s) reaching

users • License-to-operate (legal, available

data)

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Information service • Satellite data are at the start of the

information chain • Based on proven technology and

services • Transmission channel(s) reaching

users • License-to-operate (legal, available

data)

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Agricultural Cycle

Land cover maps Soil maps

Index based Micro insurance

Irrigation advice

Crop growth monitoring

Advice, warnings

GPS, meteo

Yield forecasts

Land cover maps Soil maps

www.eTransformAfrica.org

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G4AW partner countries 2nd call Angola Bangladesh Benin Burkina Faso Burundi Cambodia Ethiopia Ghana Indonesia Kenya Laos Malawi

Mali Mozambique Myanmar Niger Rwanda Senegal South Sudan Tanzania Uganda Zambia Zimbabwe

partner countries in transition: Colombia South Africa Vietnam

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Geodata for Agriculture and Water (G4AW) improves food security in developing countries by using satellite data. Netherlands Space Office (NSO) is executing this programme, commissioned by the Dutch Ministry of Foreign Affairs.