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Chapter 5. The Development of e-Agricult... > e-VALUE CREATION IN e-AGRICULTURE DE...

e-VALUE CREATION IN e-AGRICULTURE DEVELOPMENT

Meaning of e-Value Creation in Agriculture

This is the value-addition brought about by the use of ICT in agriculture. The use of ICT does not necessarily guarantee value to the user as functional literacy and user-friendliness affects e-value derived. E-value is perceived as "additional gain" or benefit derived from using the ICT and it can be expressed as marginal utility or satisfaction obtained by the end user. Such utility is obtained at various stages across the agricultural value chain where ICT is deployed. The four sources of e-value creation are (i) farmers (ii) agribusiness industry (and ICT service providers), (iii) government extension workers and policy makers and (v) non-governmental organizations (i.e., private researchers, consultants, foundations, non-profit organizations etc). Each of these stakeholders play a pivotal role in promoting value creation in e-agriculture.

There are a number of ways in which e-value creation arises in e-agriculture. First, e-value actually occurs when new agricultural uses are identified for existing technology. Second, e-value creation is generated when new ICT are rolled out and new users or new markets developed. According to Bryceson, (2006), the need for value creation in an electronically enabled e-world is equally important as it is in none electronically enabled world. The author indicates that e-value arises from reduction in information asymmetries between buyers and sellers arising from ICT usage, online product bundling, and the use of lock-in strategies to encourage repeat transactions through e-loyalty programs. Other possibilities for increasing e-value are reduction in information search costs, e-trust, e-content development, speed, accuracy, and timeliness of information flow up and down the supply chain, and simplicity of transactions (Bryceson, 2006; Maumbe et al, 2006). The possibilities for e-value creation are immense, and increased competition across the value chain will also drive new innovations in e-agriculture.


  

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