Rural areas of Japan, like most developed nations, grapple with significant demographic challenges. An alarming decline in the younger generation’s interest coupled with an increasing average age contributes to the gradual desertion of farms. This trend has sparked concerns in sectors beyond agriculture, prompting the Japanese government to launch a national action plan to rejuvenate these rural spaces.

In the small town of Minano, nestled in the hills of Saitama Prefecture, SAP Japan is pioneering a revolution. Here, the SAP Co-Innovation Lab is working closely with PSI and local authorities to challenge the norm. They aim to leverage cutting-edge digital solutions to address the agricultural sector’s lingering issues, including the difficulty of maintaining scattered small-scale farms.

Understanding the dire need for innovative solutions, Yoshihisa Horiguchi, chairman of MINNANO Future Create, has dedicated his efforts towards tackling population loss. He acknowledges the critical nature of these demographic challenges, pointing out the steep decline in the number of farm workers over the years due to urban migration.

Horiguchi believes that digitization could potentially halt these areas’ depopulation, despite the substantial financial and logistical challenges tied to implementing such solutions in small-scale farms.

The Dawn of IoT-Driven Agriculture

The Minano Digital Eco Farm project, initiated by MINNANO Future Create, further represents a significant leap in this transformative journey. This project was conceived with a vision to establish a digital platform that bridges the gap between farmers and urban dwellers while connecting isolated, small-scale farms to larger supply chains.

Atsushi Minakuchi, a senior solution specialist at the SAP Co-Innovation Lab in Japan, highlights the use of Internet of Things (IoT) sensors managed remotely from headquarters. These sensors, integrated into the SAP Business Technology Platform (SAP BTP), also monitor agricultural activities providing real-time data and insights. In addition, the Digital Material Controller (DMC), an all-in-one compact edge controlling server, ensures seamless and secure data integration and analysis.

Mitsuhiro Yamazaki, a senior advisor at PSI, recognizes the significant cybersecurity capabilities of the DMC, ensuring the secure storage and transmission of collected data. On the other hand, Masaki Fukui, a respected figure in the cybersecurity realm, now serving the Ministry of Internal Affairs and Communication, appreciates the role of SAP Co-Innovation Lab in expanding the application possibilities of the DMC.

SAP Co-Innovation Lab Nurtures Sustainable Communities

Apart from invigorating the agricultural sector, the Minano Digital Eco Farm project has made significant strides in strengthening the appeal of rural tourism. The project allows city dwellers to support rural farms digitally, wherein they can monitor and back agricultural processes in return for a share of the farm produce.

The Japanese government’s unique hometown tax payment program has been instrumental in attracting public support towards such initiatives. Hidenori Kurosawa, the vice governor of Minano, emphasizes the importance of captivating the public’s interest in rural areas. The aim is to offer an enriching experience that allows visitors to interact with locals and appreciate the area’s unique offerings.

Pioneering initiatives like the Minano Digital Eco Farm project further hold immense potential in addressing severe issues faced by rural areas. These initiatives also promote the reclamation of abandoned farmland and self-sufficiency in food production while reducing CO2 emissions and improving farm profitability.

Masaki Fukui from the Ministry of Internal Affairs and Communication elucidates the significance of this initiative, suggesting that it could inspire similar endeavors worldwide. By embracing digital innovations and collaborative practices, the SAP Co-Innovation Lab is playing a pivotal role in shaping the future of rural Japan, making it a promising destination “for everyone.”

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Tokyo-headquartered PSI Co., Ltd., a provider of sales and technical support for cutting-edge information security-related products, and SAP Japan have embarked on a collaborative partnership to help revitalize the country’s local agricultural farming. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.) The two companies have developed a supply chain platform that harnesses the power of SAP Business Technology Platform (SAP BTP), dubbed as the technological foundation for all SAP applications and the Intelligent Enterprise, and PSI’s Digital Material Controller (DMC) solution, a certified IoT Edge Device for SAP BTP.

The strategic partnership between SAP Japan and PSI is focused on advancing the digital transformation of Japan’s agriculture industry with an emphasis on supporting small-scale dispersed farms and orchards in the rural region. The solution that integrates SAP BTP and DMC intends to streamline the supply chain management of Japanese enterprises such as miso and sake breweries in provincial areas.

Advancing Agri Industry’s Digital Supply Chain Strategy 

SAP has been at the forefront of agribusiness innovation creating intelligent solutions to support sustainable food supply chains and increase farming efficiencies. In last year’s virtual event “A Growing ASEAN, A Hungry Population: Building Resilient and Sustainable Food Supply Chains” organized by the German software enterprise SAP, Verena Siow, President and Managing Director of SAP Southeast Asia highlighted how technology can be the aching agent to tackle food security and sustainability as a resource management challenge.

In Japan, the agricultural industry’s development in the rural region is currently facing significant challenges such as the steady decline of population and economy along with no new industries to support or replace agribusiness, which is a key driver of the regional economy. Together, SAP Japan and PSI aim to revive the agricultural industry in the rural region by leveraging smart technologies such as the Internet of Things (IoT), Machine Learning (ML), Artificial Intelligence (AI), data analytics in the cloud, and 4G communication SIM.

The latest digital supply chain strategy for the agricultural industry was kickstarted in partnership with Minano Mirai Souzousha, an abandoned farmland and aging population in Minano-cho, Chichibu-gun, Saitama Prefecture. Spearheaded by SAP Co-Innovation Lab (COIL), SAP Japan’s collaborative research and development center, in collaboration with PSI, the Minano Digital Eco-Farm project was unveiled to utilize the newly developed digital supply chain platform that can visualize farm information and farm work in the increasingly dispersed small-scale agricultural industry. Some of the key objectives of the local project include streamlining the supply chain of distribution companies and connecting remote farms to urban residents and restaurants.

Merging SAP BTP and PSI’s DMC

The new supply chain platform merges PSI’s DMC IoT Start KIT for SAP BTP, an all-in-one compact Edge server that can easily build an IoT environment with extensive security functions, and SAP BTP, a collection of on-premise and cloud products that can be categorized into four pillars: database and data management, application development and integration, analytics, and intelligent technology. The new platform allows DMC to work with SAP BTP in real-time while ensuring data protection from various sensors. On the other hand, SAP BTP leverages AI and location information in analyzing and reporting the data received from DMC.

Part of Minano Digital Eco-Farm project is conducting a demonstration experiment to look into the aging process of the miso storehouse utilizing the SAP and PSI technologies. Critical to the maturation process of the handmade miso, the temperature and humidity of the miso storehouse are measured by a sensor wirelessly connected to the DMC. Then, the measurement results are transmitted from the DMC’s 4G communication SIM to the SAP BTP, which analyzes the data gathered utilizing machine learning.  

This technology integration provides real-time analysis, which empowers key individuals to take action as needed such as the proper management of temperature and humidity in the miso storehouse as well as timely miso container placement and movement. Moreover, regardless of miso-making skills, staff can produce high-quality miso guided by the detailed work instructions for the miso aging process derived from the new supply chain solution.

With the paramount goal of contributing to the sustainability and self-sufficiency of agricultural products in the country, PSI and SAP Japan intend to expand their project across other regions in Japan.

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Tech Mahindra, headquartered in Pune, Maharashtra, India, is a provider of information technology (IT) and business process outsourcing (BPO) services to organisations across a wide range of industries. Starting as a joint venture in 1986, the company has grown through a series of strategic mergers and acquisitions over the years. The Indian tech firm, also known as the Changemakers, offers cutting-edge solutions for a diverse set of sectors, including banking, healthcare and life sciences, manufacturing, media and entertainment, oil and gas, and public sector and government.

In December 2020, Tech Mahindra expanded its partnership with SAP as a global strategic service partner, becoming one of a small number of consultancies that work with the German enterprise software giant. Earlier last year, Tech Mahindra also received the SAP Expertise on Google Cloud, demonstrating its specialisation and expert knowledge in SAP, including but not limited to SAP data migration.

Furthermore, the multinational IT company was also a finalist in the Travel and Transportation category of the SAP Innovation Awards 2021. The annual event is a comprehensive program that honours forward-thinking individuals and organisations driving innovation with SAP technologies in their journey towards becoming intelligent enterprises. 

Recognising the importance of port logistics to global trade, Tech Mahindra created a cloud-based solution, built on SAP Integration Suite, for managing port logistics operations. In collaboration with SAP Co-Innovation Lab UAE, its solution called “Smart Port Logistics” aims to provide a unified and integrated platform for secure and efficient clearance operations in ports.

Leveraging SAP Integration Suite 

SAP Integration Suite is an integration platform as a service (iPaaS) that intends to enable customers in incorporating on-premise and cloud-based processes and applications with prebuilt content and tools provided by the German tech giant. In 2021, the platform earned a Top Rated award from business technology review site TrustRadius based on customer feedback that emphasised its flexibility, prebuilt integration flows, and integration with third-party software solutions

Leveraging SAP’s iPaaS solution, Tech Mahindra was able to develop a system that uses blockchain, machine learning (ML), and robotic process automation (RPA) to provide a collaborative platform for all parties involved in cargo handling, clearance, and port operations. Additionally, the solution aims to minimise paper-based processes, as well as cut transaction time and costs in the port business. 

Moreover, Tech Mahindra has been building the next generation of smart ports in anticipation of an increase in cargo traffic and shipping volume in the future. In partnership with SAP, its innovation project was able to achieve the following benefits and outcomes:

• Created a network of ports for information sharing that allows for quick access for port operations
• Saved time by cross-checking all data for each clearance phase.
• Provided convenience for blue-collar workers during registrations.
• Digitised manual processes and enhanced customer experience.
• Brought internal and external departments to operate in a unified platform.
• Streamlined information flow across all supply chain entities.

“Digital technologies will impact the way we conduct trade and logistics both now and in the future. We gather as much data in 48 hours as humans have gathered over centuries and it comes in many forms — high speed, high volume, high variety. Our opportunity is to use information to produce knowledge to produce action,” stated Chairman and CEO of DP World Group in Tech Mahindra’s Entry Pitch Deck for the SAP Innovation Awards 2021.

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In a bid to help bolster the economy impacted by the COVID-19 pandemic, the South Korean government has been campaigning for the promotion of innovative growth and the development of the software industry. According to Finance Minister Hong Nam-ki, it intends to nurture an additional 89,000 skilled people in the software sector by 2025 in order to assist small businesses that are experiencing difficulties recruiting software developers and web experts in today’s digital economy.

As part of the government’s efforts to cultivate talents in critical technologies, MSIP and IITP introduced the Innovative Growth Youth Talent Concentration Training Program which is focused on eight key aspects such as Big Data, blockchain, financial technology, artificial intelligence (AI), smart factory, augmented and virtual reality, autonomous transportation, and drone technology. Being the only global company selected for the project since it was launched in 2018, SAP remains committed to contributing to the creation of high-quality jobs in the domestic software industry, especially for the youth.

Following the announcement of the 7th edition of the youth talent training initiative, SAP will share knowledge about the cloud industry and provide other learning materials on software development centered on gaining employment in actual project-based companies. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.) Commenting on the program, SAP Korea CEO Lee Seong-yeol said:

“The core goal of the education and mentoring provided by SAP is to nurture talents who can develop and operate software in various cloud environments that can be put into the field immediately after completion.”

MSIP, IITP Strengthen Talent Training Program by Partnering with SAP in Korea

The Innovative Growth Youth Talent Concentration Training Program will be offered to attendees completely free of charge. A total of 48 individuals will be chosen from the Seoul area, with the goal of training job seekers of Korean nationality aged 34 or younger.

Furthermore, SAP aims to design a curriculum catered to corporate demands, including project-based learning rather than theory-based learning. Since 2018, the company has discovered a total of 442 youth professionals with the current benchmark employment rate for students in grades one through five being 94{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}. The tech giant looks to improve job satisfaction and overall employment rate by regularly following up with program participants even after employment.

“In a self-study for students, 94{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of job satisfaction and 94{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of practical fit of the curriculum were excellent. During the 7th semester, we will make full use of the experience and know-how that SAP has accumulated over the years to nurture experts in the domestic software sector,” Lee further explained.

Meanwhile, Rudolf Held, Global Head of SAP Co-Innovation Lab locations, previously stated that they worked closely with the SAP Korea Training and Adoption team and the Ministry of Science and ICT to help run the same program that equips young people and underemployed university graduates with the right skills needed in the local market. He explained:

“SAP Co-innovation Lab is actually all about collaborative innovation with the SAP ecosystem of customers, partners, startups, and academia, providing them with this broader view, a broader skillset.”

Similarly, the Korean subsidiary of the German enterprise software giant collaborated with non-profit educational social venture JUMP in April for a mentoring program called SAP Value Start Mentoring. Employees from SAP Korea, SAP Labs Korea, and the Korea SAP User Group (KSUG) volunteered as mentors for the social project that strives to close the educational gap among young people by promoting a vision of equal opportunities for all.

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