John Deere to begin new operating model and restructuring
|By edited by Kyle Brown|
The company is debuting its ‘Deere Smart Industrial’ strategy.
John Deere, Moline, Illinois, is restructuring and implementing a new operating model to accelerate its integration of smart technology. The Deere Smart Industrial strategy will be concentrated on three focus areas: production systems, technology stack and lifecycle solutions.
The company is developing an alignment of products and solutions around production systems roadmaps to capitalize on Deere's knowledge of its customers and how they work. The new production systems structure enables the company to drive an integrated product roadmap and related investments that span all aspects of a customer's jobs and to more fully meet customer needs.
John Deere is making investments in technology as well as research and development that deliver intelligent solutions to Deere customers through an intuitive technology stack made up of hardware, embedded software, connectivity, data platforms, and applications. The Deere family of "smart" machines, systems, and solutions unlocks customer economic value through enhanced precision, automation, speed, and efficiency not possible previously.
Lifecycle solutions focuses on the enterprise integration of Deere's aftermarket and support capabilities to more effectively manage customer equipment, service, and technology needs across the full lifetime of a John Deere product.
"As Deere businesses and those of its customers become more competitive and dynamic, Deere's track record of technological innovation puts it in a position to anticipate, respond, and outpace those dynamics by offering cutting-edge solutions to enhance customers' productivity, profitability, and sustainability," said John May, chairman and CEO. "The new operating model represents a leap forward in performance for the company from an already strong starting point."
The following individuals will lead redesigned or newly created business units under the Smart Industrial Operating Model:
Cory Reed has been appointed to the new role of president, worldwide agriculture & turf division for production and precision agriculture equipment and for the sales and marketing regions of the Americas and Australia. In this new role, Reed will be responsible for leading a team to define, develop, and deliver equipment solutions to unlock customer value for production-scale growers in large grains, small grains, and cotton/sugar.
Markwart von Pentz has been appointed to the new role of president, worldwide agriculture and turf division for small ag and turf and for the sales and marketing regions of Europe, CIS, Asia and Africa. Von Pentz and his team will be responsible for defining, developing, and delivering fit-for-purpose products and solutions to support mid-size and small growers globally, as well as for turf customers. The unit is principally organized around production systems for dairy and livestock as well as high-value crops.
Recently appointed as senior vice president, intelligent solutions group, Jahmy Hindman has been named to a new position as the chief technology officer, reporting to the CEO. Hindman will oversee the intelligent solutions group, responsible for Deere's end-to-end technology stack, shared enterprise engineering, and John Deere Electronic Solutions product delivery.
Marc Howze, currently serving as chief administrative officer, will continue in that role while also assuming enhanced responsibilities in a new role as group president, lifecycle solutions. He will be responsible for leading a team focused on the enterprise-level integration of aftermarket and support capabilities, and a focus on the full ownership experience over the lifetime of Deere's products.
As previously announced, John Stone will assume his new role as president, worldwide construction & forestry and power systems on July 1. Deere's construction and forestry division, which was recently organized along production systems for earthmoving, roadbuilding and forestry, will now more fully leverage the technology stack and lifecycle solutions in the future.
In order to realize the Smart Industrial vision, Deere will adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities. Deere plans to dramatically accelerate the speed with which the company brings priority technology to market to drive value creation and capture it more quickly.
"The new operating model will help us respond to changing market conditions with greater speed and efficiency," May said.