Embedding smart technologies in developing countries: digital agrotechnology in the sugarcane ethanol and bioenergy production system

Abstract

Abstract As one of the most competitive industries in developing countries, agribusiness is seeking efforts to improve information systems and adopt digital technologies. In Brazil, the sugar energy industry is the country's oldest and most competitive business. The current technological transition is challenging to absorb the 4.0 paradigm in its production system, interconnecting the value chain through IoT, big data, artificial intelligence, and machine learning. Although there are opportunities with digitization, there are also many constraints in the industrial change process. This paper aims to explore the main changes in new technologies and processes towards industry 4.0 in the Brazilian sugarcane production system, identifying challenges and context restrictions. Using qualitative data from interviews with specialists – practitioners, and researchers - our findings show that this industry has many technological opportunities to digitize its production process. The industry’s main challenge is the low qualification for the workforce and difficulty in integrating new solutions into analogical production systems. Big companies invest in technology hubs while, at the same time, the internet is still scarce in rural areas, and small companies compete in less technological and sustainable supply chains. The findings support the decisions of the sugarcane industry in assessing the relevance of investing in Industry 4.0 projects. It demonstrates how digital transformation impacts process improvements, facilitating decision-making by using information networks interconnected to machine learning and automation.