A new revenue model for Lely International

As the son of a Frisian farmer, I always enjoy it when an assignment comes along that takes place in the agricultural sector. Recently I did a project for Lely International. Lely makes the daily life of dairy farmers more pleasant by offering smart and innovative solutions. They have become big with milking robots and machines for distributing feed and cleaning barns, among other things.

Challenge

I was impressed by the intelligence built into the machines. For example, based on eating and walking behavior, they recognize at an early stage whether a cow is sick or "in heat. The information is made accessible through a management system. Over the years, the importance of the data software has increased and in order to be able to further expand the services in the future, it is necessary to adjust the revenue model accordingly. The switch to a subscription fee is the obvious solution, i.e. a price per cow per month. The farmer can choose between a good, a better and a best option.

Vision

Solution

Result

But how do you determine what should (good) be in the basics and what features warrant an additional cost?

Blauw has been able to help in this regard. On the basis of an international conjunct measurement study, we mapped out which functionalities are most valuable to cattle farmers. Using the market simulator, various scenarios were calculated and a well-founded choice was made for the design of the price model. With the new model, Lely can move forward again and continue to make life easier for dairy farmers in the future. My father has been retired for some time now, but his colleagues will certainly appreciate this.

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