Monsanto Growing its Big Data Business

One of the most successful and vilified businesses on the planet just fully embraced big data. On the heels of a falling valuation due to a missed chance to buy Syngenta AG, Monsanto is promising investors A New Hope on the horizon. No, they are not searching for farm boys on distant planets, they are putting their eggs in the Big Data basket.

Believe it or not, one of the biggest agricultural businesses in the world is going to make a huge move into the data science sphere. Sure, it will continue to dominate the seed, chemical and genetic business, but top company insiders say this new direction is, in fact, a transformation.

CTO Robert Fraley told Reuters: “We transformed from industrial chemical company to a biotech company, then to a seeds company. Now, we’re transforming again.” Specific plans are already in the works, and the leadership plans to unveil these ideas in November … after testing the waters with some major shareholders. How will Monsanto jump into the Big Data market? Apparently, with both feet. According to Fraley, the company has already met with 200 tech startups in recent months. They have selected five for potential acquisition. That means some Big Data entrepreneurs are about to be very rich people. Monsanto is still testing products and determining scalable viability, but they are ultimately committed to move in this direction.

While neither Monsanto nor the companies they spoke with are talking, the media is reporting how the company plans to move into the Big Data marketplace. Monsanto wishes to provide software and hardware tools to help farmers boost crop yields. These tools are expected to help farmers understand exactly what is happening in their fields so they can make better planting and harvesting decisions.

Consider all the variables – season, soil chemistry, rainfall expectations, weather events predicted, pests – so many different variables that can all change season to season. Big Data can step in and turn all of these spinning “what ifs” into solid predictions.

This is, technically, not the company’s first foray into Big Data. Monsanto already owns Climate Corp, which forecasts weather, and Precision Planting. This company makes hardware and software tools that help farmers choose the seeds that will be most productive for them. Both of these ventures rely heavily on data science to yield results. Some have argued that farmers will be reluctant to pay for big data, but this naysaying rings hollow. It’s the same sort of cawing we always hear when some new company or enterprise takes the Big Data step. “Oh, what will they use that for, etc., etc.” They will use it to make more money at less cost. They will use it to improve their personal balance sheet. Yes, there will be an initial investment, but everything costs money, and if you can make more money by spending more money, the smart businessman spends the money to make the money.

Will there be some who are afraid or distrustful of this new technology. Of course, there are in every industry. And farmers are known for sticking to traditions and “how I do this.” That said, they are also in business to make a profit, and if Monsanto shows them data science is profitable – because it is – many will embrace the new opportunity.

Roman Temkin is a real estate developer who embraces the latest tech trends.