With the deepening development of the information age and the widespread application of computer technology in agriculture, China has made significant progress in agricultural informatization. Successfully established multiple agricultural databases, agricultural information management systems, and expert consultation platforms. These advances have not only improved the utilization efficiency of agricultural information resources, but also promoted innovation in agricultural e-commerce and production management. This fully demonstrates the crucial role played by information technology in improving and upgrading traditional agriculture in China.32. pngIn the field of agricultural informatization in our country, we have achieved significant results in infrastructure and service construction. However, due to the unique industry characteristics of agriculture, there are still some problems in the informatization process, such as excessive reliance on hardware and neglect of software development, excessive emphasis on construction and neglect of later maintenance, the phenomenon of “information silos”, as well as problems such as low information quality, too single service models, and information duplication. These factors have led to agricultural information resources not fully meeting the actual production needs of farmers.In this information age, we are facing the massive growth of information rather than just the accumulation of knowledge. Therefore, how to help users conveniently, quickly, and accurately find the required information in this ocean of information has become a widely concerned challenge.SaaS, on the other hand, is a “booster” for agricultural business entities to achieve digital transformation. Compared to traditional software, its application has the characteristics of simplified management, fast iteration, follow-up service guarantee, high efficiency, low delivery threshold, low configuration requirements, low technical difficulty, low operation difficulty, and low usage cost. With just one browser and one account application, it can be used in one stop.The application of SaaS in agricultureWith the advancement of technology, agriculture has gradually become digitized, and the application of SaaS has provided more convenience and intelligent functions for agriculture. Agricultural SaaS combines traditional industries with SaaS models, helping to promote the development of traditional industries and promoting agricultural informatization construction and digital transformation. The following are the three specific applications of SaaS in agriculture:01. Farmland management and crop productionPrediction Model: Utilizing advanced data analysis techniques to predict planting, growth, and harvest, helping farmers determine the optimal planting and harvesting time to achieve maximum yield and benefits.33. pngAutomated irrigation: Based on real-time soil moisture and weather forecasts, SaaS can automatically control the irrigation system to ensure that crops receive appropriate water, saving resources and increasing yields.02. Agricultural data analysisWeather model: By collecting and analyzing meteorological data, SaaS can predict upcoming weather models, such as drought, rainstorm, etc., so that farmers can get ready in advance.Soil quality: SaaS can analyze various elements and their pH values in the soil, helping farmers determine whether fertilization or adjusting irrigation strategies are necessary.Crop pests and diseases: Through early identification and prediction of pests and diseases, SaaS can provide real-time prevention and control suggestions for farmers, reducing losses.03. Agricultural Product Supply Chain ManagementTracking and predicting product demand: SaaS can help farmers or agricultural enterprises understand product demand in the market, thereby adjusting production strategies or pricing.34. pngOptimizing transportation and distribution: Through real-time logistics data analysis, SaaS can provide optimal path and time recommendations for the transportation and distribution of agricultural products, reduce costs, and improve efficiency.The advantages of SaaS in agricultureSaaS has brought a series of advantages to the agricultural sector, which not only provide effective tools for agricultural operators, but also drive the digitalization process of the entire industry. The core advantages of SaaS in agriculture are mainly reflected in:01. Reduce costsMinimizing hardware and software investment: Traditional IT solutions require farmers to purchase, maintain, upgrade, and replace hardware equipment and software. However, SaaS models are typically based on a subscription system, which means that agricultural operators only need to pay for the actual service fees they use, without the need for a large initial investment.35. pngThe advantages of cloud storage: With SaaS, all data is stored in the cloud without the need for local storage. This not only reduces the risk of data loss, but also reduces the cost of storage and backup.02. Improve efficiencyAutomated processes: SaaS solutions often come with pre configured automation tools that can handle agricultural processes such as irrigation, seeding, and harvesting, thereby reducing manual intervention and errors.Real time updates and optimization: As all content is in the cloud, SaaS providers can provide real-time updates and repairs to their software, ensuring that users always use the latest and most effective tools.03. Data driven decision-makingProvide detailed and real-time data analysis: SaaS solutions can collect, analyze, and present large amounts of agricultural data. These data may involve weather patterns, soil quality, crop growth, etc. With these real-time data, farmers can make wiser and more informed decisions, thereby increasing production and profits.The challenges faced by agricultural SaaSWith the advancement of technology and the deepening of digital transformation, the application of SaaS in the agricultural field is increasingly receiving attention. Despite the many conveniences brought by this model, agricultural SaaS still faces many challenges.36. png01. Uneven development of SaaS in the upstream and downstream of the agricultural industry chainThe development of SaaS between the upstream and downstream of the agricultural industry chain shows a clear imbalance. This is mainly because the upstream of agriculture holds key technologies for planting and breeding, forming high industry barriers; In contrast, downstream agriculture mainly focuses on the processing of raw materials and the manufacturing of finished products. As a service-oriented field, its entry threshold is relatively low, it is easy to get started quickly, and can quickly achieve financial returns. This makes many agricultural SaaS startups tend to first venture into the downstream part of agriculture.The innovation of agricultural SaaS in the downstream of agriculture, especially in the fields of agricultural product branding and e-commerce, is mostly applied through migration and fine-tuning from other industries. However, there are very few SaaS enterprises that truly touch on the core production management of agriculture and have a deep technological background. Therefore, their role in truly promoting the transformation and upgrading of agricultural production management has not yet been fully demonstrated.02. Agricultural Scaling is the Basic Environment for Agricultural SaaSThe promotion of large-scale agriculture cannot be achieved in a short period of time. It is constrained by China’s vast territory and large population distribution, making it particularly difficult to implement collective management.37. pngIn addition, the economic model of the industry also has a direct impact on the popularization of technology. Due to the implementation of the small-scale agricultural economy model of “contracting production to households” in our country, this model is not very suitable for introducing intensive and mechanized agricultural technology. Small farmers often find it difficult to afford the high cost of purchasing and maintaining agricultural machinery due to limited funds.The contradiction between investment and return makes it difficult for agricultural machinery to be widely applied among farmers on a large scale. As a result, market demand is limited, and manufacturers lack the motivation for research and development. In the absence of technological support, it is difficult to improve the efficiency of agriculture, and the process of scaling up is also hindered.The inefficient process of scaling makes agriculture still highly dependent on labor, and farmers, due to their limited economic capacity, find it difficult to make significant capital investments and purchase advanced agricultural machinery. In this way, a vicious cycle is formed: lack of funds ->inability to introduce technology ->low efficiency ->limited income ->another lack of funds.03. The overall level of enterprise informatization needs to be improvedAfter more than 30 years of accumulation, domestic enterprise informatization has made progress, but compared to its potential, it still appears to be stumbling. Overall, enterprises still have a shallow understanding of information services. Strictly speaking, the true penetration rate of enterprise informatization is only 10%. This means that using information technology to optimize business is not the norm for enterprises. As an emerging enterprise information technology solution, the popularity and acceptance of SaaS are constrained by this initial stage. Especially in the context where many enterprises have not yet entered standardized operations, their demand for informatization is naturally scattered and personalized, which makes it difficult for SaaS, characterized by product standardization, to fully meet these needs.38. pngBut every coin has two sides. The basic level of informatization may be an excellent opportunity for SaaS. This means there is an uncultivated piece of land waiting to be sown. With its cutting-edge technology and innovative business model, SaaS is fully capable of breaking away from the traditional framework of enterprise informatization and leading the way into a new era of cloud services.04. Obstacles to industrialization development need to be overcomeFrom the perspective of the development law of information technology cognition, the level of enterprise information technology determines the difficulty of SaaS entering the enterprise service market. Leveraging the development experience of enterprise software and taking the path of industry oriented development is a shortcut for SaaS to quickly enter the enterprise service market.SaaS may seem like it should start from industries or large enterprises with high levels of informatization, but in reality, there are obstacles that need to be overcome on this path. The industries with rapid development of informationization in domestic enterprises are mainly concentrated in some information technology related industries, such as IT, finance, insurance, telecommunications, etc., while the informationization level and penetration rate of small and medium-sized enterprises are very low.And these information-based industries and large enterprises are mainly served by traditional software enterprises. For various reasons, large enterprises tend to prioritize localized and private cloud software deployment models, which creates significant obstacles for SaaS to enter the large enterprise service market, making it limited to targeting small and medium-sized enterprises as the main target group.39.pngIn addition to concepts, cognition, and industry regulations, another important factor that hinders the digitalization and SaaS of large enterprises in the cloud is their existing IT assets. After years of construction and development, large enterprises have formed massive IT assets, including software and hardware equipment. They not only create information value for enterprises, but also become obstacles to their digital transformation. While introducing more cost-effective and efficient services such as SaaS, enterprises have to consider the disposal of existing IT investments and the migration cost of existing information systems. These have all reduced the willingness of large enterprises to cloud and SaaS their business.With the digital transformation of enterprises, pure localized deployment and private cloud models will also develop towards hybrid clouds. Especially the requirements for the value chain, networking, and openness of large enterprises provide opportunities for SaaS to penetrate into them.
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