New ag corporate strategy by Hemisphere GPS
On Sept. 5, the board of directors of Hemisphere GPS initiated a restructuring mandate with the directive to implement a new profit-focused corporate strategy under the leadership of incoming CEO Rick Heiniger, formerly vice chairman of the company and founder of the Outback Guidance precision agriculture business.
“The agricultural industry is entering a period of exceptional opportunity. We’re in the early stages of transformational adoption of high definition production practices. We are a data driven society, and agriculture is no different. Agronomic specialized data-management and cloud information services, combined with a new generation of connected devices and machines, will not only enable emerging technologies, but will simplify existing workflows and deliver productivity gains for the industry,” stated Hemisphere GPS’ new CEO, Rick Heiniger. “We believe Hemisphere GPS is perfectly positioned. To that end we have launched a new corporate strategy building on our world-class positioning, guidance and steering solutions to provide seamless integration with cloud computing and information services. This integration will break the barriers which have long challenged the m ainstream adoption of precision agriculture. We will be wholly focused on the essential core technologies while at the same time assisting the industry in its adoption.”
Under Heiniger’s leadership, the company has implemented a new corporate strategy built on three core principles to achieve profitable growth and market leadership:
- Focus exclusively on the Agriculture business.
- Streamline and simplify operations.
- Implement market-driven innovation.
Focus on Precision Agriculture
For over a decade Hemisphere GPS has been a leading solutions provider to the precision agriculture market. In the first nine months of 2012, 81 percent of company revenue was derived from the agriculture business, most of which comes from the North American market. Past diversification into marine, construction and other industries increased costs, absorbed cash and distracted management focus from its core agriculture business. To focus exclusively on agriculture, the company will:
- Exit the non-agriculture-related business. An investment banking firm has been engaged to pursue strategic alternatives for the Precision Products business. Given the agricultural focus of the company, the Board believes that the Precision Products business can grow more quickly with another organization that is more strategically aligned.
- Relocate company headquarters to Hiawatha, Kan., where Hemisphere GPS’s agricultural operations are already strategically located, in the heartland of the North American agricultural industry. An abundant supply of agriculture trained and passionate talent, along with the pro-business climate in the State of Kansas, are two key factors for the site selection.