"When you think of John Deere you may think of green tractors... but the company has become one of the most advanced technology companies in farming. Tractors that drive themselves, AI that tells a weed from a crop..." - Nicolai Tangen [00:00:40]
"In the past what we would do is focus on building the best planter, and we wanted to shift to helping our customers plant better than they ever had in the past by leveraging technology." - John May [00:01:34]
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"We created using artificial intelligence the ability to see the difference between a healthy plant and a weed and only spray the weed versus spraying the entire field. That reduced herbicide application by 60%." - John May [00:03:19]
"By coming up with a pay as you go or a SAS model, it allows us to get this tech on more acres and help more customers... If you can demonstrate true value that hits their income statement, their bottom line, they're willing to invest." - John May [00:04:28]
"By using computer vision we can see exactly where that seed is and only dose the seed with nitrogen, and that allows our customers to save 2/3 of the nitrogen cost that they would have spent in the past." - John May [00:05:51]
"I tell our engineers it can't be that hard, let's go fast and get it to the market, but of course they disagree with me... it's very difficult." - John May [00:06:18]
"Hey listen, you cannot hurt my feelings so tell me everything that's on your mind that we can do better to serve you as a customer." - John May [00:34:22]
Speakers & Credentials
Nicolai Tangen (Host): Chief Executive Officer of Norges Bank Investment Management (NBIM), which manages the Norwegian Government Pension Fund Global (the world's largest sovereign wealth fund). Tangen hosts In Good Company, interviewing top global CEOs on capital allocation, corporate strategy, and technology.
John May (Guest): Chairman and CEO of Deere & Company (John Deere). May joined John Deere in 1997, serving in executive leadership roles across global agriculture, turf, and information technology divisions before being named CEO in 2019. He spearheaded John Deere's strategic pivot into computer vision, robotics, autonomous systems, and precision agriculture technology.
1. Executive Summary
John Deere is executing a massive strategic pivot from a traditional heavy machinery manufacturer into a high-margin precision agriculture technology and software enterprise [00:00:51].
Under CEO John May’s "Smart Industrial Strategy" launched in 2019, the corporate objective evolved from selling optimal standalone equipment (e.g., the best planter) to optimizing total customer production systems and operating economics [00:01:27].
The company heavily leveraged computer vision, edge AI, and machine learning models—originally developed in autonomous automotive and robotics sectors—to transform field operations [00:03:19].
Precision technology deployment delivers step-change input cost reductions for farmers: targeted spraying lowers herbicide application by 60% [00:03:38], while computer vision seed-dosing cuts nitrogen fertilizer requirements by two-thirds [00:06:06].
To accelerate technology adoption across varied farm sizes, John Deere introduced SaaS, per-acre, and application-based recurring business models alongside hardware sales, doubling tech adoption take rates year-over-year [00:04:28].
Autonomous equipment progression moved from driverless tractor platforms deployed in 2022 to fully autonomous, battery-electric farming machinery systems [00:07:55].
Corporate culture and operational success center around radical transparency, unvarnished customer feedback loops [00:34:22], strict capital allocation discipline based on concepts from The Outsiders [00:36:02], and developing cross-functional, geographically mobile leadership talent [00:36:41].
2. Chronological Table of Contents
[00:00:00] Introduction & Personal Farming Anecdote
[00:00:34] Nicolai Tangen Welcome & John Deere's Tech Transformation
[00:01:19] The Smart Industrial Strategy & Customer Focus
[00:34:34] Personal Life, Switching Off, and Outdoor Cooking
[00:35:45] Reading Habits, The Outsiders, and Print Newspapers
[00:36:35] Career Advice for Young Professionals & Geographical Mobility
3. Detailed Thematic Summary
Strategic Transition: From Machine Manufacturer to Smart Industrial Platform
John Deere executed a core structural pivot away from operating as a traditional equipment OEM toward an integrated smart industrial platform [00:01:19]. Historical business operations evaluated success on machine-level metrics (e.g., manufacturing the premier seed planter or tractor unit) [00:01:34]. Under the Smart Industrial Strategy instituted by John May upon assuming the CEO role in 2019, the enterprise reorganized around farmer production systems and job execution [00:01:48].
The primary business objective shifted to directly reducing the farmer's largest cost structures—seed, chemical herbicides, and fertilizers—by integrating hardware with computer vision and edge computing [00:02:04]. By analyzing the unit economics of the customer's income statement, John Deere shifted engineering priorities to spatial seed placement, micro-dosing nutrients, and weed discrimination [00:02:21].
Computer Vision, Edge AI, and Targeted Input Reduction
To address critical operational pain points, John Deere acquired and repurposed artificial intelligence, computer vision, and machine learning models initially engineered for autonomous vehicles and robotaxis [00:06:35]. Rather than utilizing spatial awareness solely for vehicle steering, John Deere adapted edge perception systems to execute real-time plant-by-plant classification at field speeds [00:07:00].
Smart Herbicide Spraying: Computer vision distinguishes crops from invasive weeds instantly in standing fields [00:03:19]. Standard blanket spraying is replaced with targeted nozzle discharge, lowering chemical herbicide volume applied by 60% [00:03:38].
Precision Nitrogen Dosing: Sensors locate individual seeds during planting and deliver micro-doses of liquid nitrogen directly to the seed trench [00:05:44]. Eliminating continuous free-flow fertilizer applications cuts total nitrogen input costs by two-thirds (66.7%) while preventing excessive nutrient runoff into local soil and water tables [00:06:06].
Hybrid Business Models and SaaS Monetization Strategy
Transitioning a 190-year-old industrial manufacturing business model requires offering alternative capital expenditure frameworks to growers [00:03:53]. Large enterprise agricultural producers frequently purchase technology suites upfront; however, mid-sized or capital-constrained operations require lower entry barriers [00:04:21]. To increase technology density across total global arable acres, John Deere deployed recurring software-as-a-service (SaaS), pay-per-acre, and pay-per-application models [00:04:11].
Demonstrating quantifiable bottom-line margin expansion on grower balance sheets accelerated technology adoption, driving a 100% year-over-year increase in software take rates [00:05:00]. This hybrid monetization framework lowers upfront machinery hurdles while creating long-term recurring revenue streams [00:03:44].
Autonomous Systems, Corporate Governance, and Executive Philosophy
Following the commercial debut of driverless tractor technology in 2022, John Deere advanced its product roadmap toward fully autonomous, battery-electric machinery platforms [00:07:55]. Achieving execution speed requires maintaining an open feedback environment: May actively solicits unfiltered critique from customers directly in the field, assuring operators that candid feedback is vital for product iteration [00:34:22].
May's capital allocation philosophy is heavily influenced by the book The Outsiders, focusing relentless executive attention on capital deployment efficiency, talent management, and long-term shareholder return generation over short-term public profile [00:36:02]. Furthermore, May advises emerging executives to prioritize cross-functional and international geographic mobility, stressing that immersive exposure to foreign markets, operational cultures, and diverse customer segments builds superior enterprise leadership capacity [00:36:41].
The Reference Vault
4. Data & Figures
Data Point
Value
Context
Timestamp
Herbicide Reduction
60%
Decrease in chemical spraying achieved via AI computer vision weed-versus-crop discrimination
Historically, industrial equipment manufacturers operated on an isolated equipment-centric paradigm, evaluating product performance based on mechanical efficiency and standalone hardware specs [00:01:34]. John Deere replaced this legacy approach with the Smart Industrial Framework, shifting focus from hardware selling to customer task optimization [00:01:27].
Instead of measuring the efficiency of the machine itself, success is calculated against the entire production system's unit economics—analyzing every expenditure item across the crop lifecycle (planting depth, seed spacing, chemical application, and harvest yield) [00:02:04]. By orienting engineering, software, and delivery models around customer input cost reduction, the hardware manufacturer becomes an indispensable software platform partner embedded directly in the customer's operational P&L [00:04:28]. [00:01:19]
Cross-Domain Technology Repurposing
Advanced technology breakthroughs developed in high-capital, hyped sectors (such as autonomous automotive navigation and robotaxis) often face long regulatory paths or unit-economic bottlenecks before reaching profitability [00:06:51]. The Cross-Domain Technology Repurposing model identifies mature adjacent technologies and recontextualizes their core functionality for specific industrial environments [00:06:35].
John Deere acquired computer vision and spatial-mapping capability developed for autonomous road navigation and reapplied it to precision agriculture [00:06:35]. Instead of solving open-road edge cases, the vision models were retrained to solve fine-grained biological classification problems—distinguishing weeds from cash crops and tracking seed positions at high speeds—yielding immediate, quantifiable economic returns [00:07:00]. [00:06:18]
Flexible Capitalization & Hybrid SaaS Deployment
Transitioning traditional capital-intensive industries into recurring software businesses creates friction if customer segments are forced into rigid subscription-only models [00:03:53]. The Flexible Capitalization framework matches software monetization with customer balance sheet realities [00:04:04].
Large agricultural enterprises with high liquidity can purchase technology hardware outright, while mid-sized or capital-constrained growers access identical AI precision tools via pay-per-acre or pay-per-application pricing models [00:04:11]. This tiered deployment framework lowers adoption barriers, democratizes access to yield-enhancing technology across various acreage scales, and expands total addressable SaaS software revenue for the enterprise [00:04:28]. [00:03:44]
The Capital Allocation & Outsider Leadership Framework
Derived from William N. Thorndike Jr.'s corporate research, this governance model posits that long-term shareholder value creation is driven primarily by disciplined capital allocation and talent deployment rather than public visibility or revenue growth for its own sake [00:36:02]. Executive decision-making focuses strictly on hurdle rates, high-return internal R&D investments, targeted acquisitions of strategic technology assets, and ruthlessly eliminating operational friction [00:36:10].
Coupled with a culture of radical transparency—actively encouraging unvarnished customer critique—the executive operates as an objective allocator of human and financial capital [00:34:22]. [00:36:02]
6. Anecdotes
The Personal Hay Baling Experience
At the opening of the podcast, John May shares a personal story about baling hay on his own farm [00:00:00]. He describes operating the mower-conditioner ("moco") and sitting in the tractor cab listening to the machine, noting that under traditional farming methods, the final product quality is entirely capped by the operator's personal experience and intuition [00:00:06]. May uses this personal background to illustrate how legacy farming relies heavily on individual operator skill, whereas integrated precision tech and automation raise the quality baseline for all operations regardless of experience level [00:00:22]. [00:00:00]
The "You Cannot Hurt My Feelings" Customer Field Audits
John May details his ongoing practice of traveling directly to farms to gather unfiltered feedback from active John Deere customers [00:34:16]. To overcome the natural hesitation customers have when speaking to an enterprise CEO, May explicitly tells them: "Hey listen, you cannot hurt my feelings so tell me everything that's on your mind that we can do better to serve you as a customer." [00:34:22]. He highlights this practice to demonstrate how staying grounded in raw customer pain points drives practical product engineering and eliminates corporate echo chambers [00:34:27]. [00:34:16]
Rural Living, Home Cooking, and Outdoor Grilling
Reflecting on his career path, May notes that because he lived in rural America for the vast majority of his John Deere tenure, his family had minimal access to commercial restaurants [00:35:15]. As a result, home cooking became a central family ritual [00:35:20]. He shares that his daughters recently bought him a 700°F outdoor stone pizza oven, which he regularly uses alongside grilling burgers to unwind from his corporate executive duties [00:35:26]. [00:35:08]
7. References & Recommendations
Books
The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike Jr.: Recommended by John May as a foundational business text handed to him on his first day as CEO [00:36:02]. He highlights its lessons on capital allocation, talent deployment, and disciplined execution over public prominence [00:36:10].
Companies & Institutions
John Deere (Deere & Company): Global agricultural machinery, heavy equipment, and precision technology manufacturing corporation [00:00:40].
Norges Bank Investment Management (NBIM): The investment management arm of the Norwegian Central Bank managing the Government Pension Fund Global, host of the In Good Company podcast series [00:00:34].
People
Nicolai Tangen: CEO of Norges Bank Investment Management and host of In Good Company [00:00:34].
John May: Chairman and Chief Executive Officer of Deere & Company [00:00:40].
Media & Print
Physical Print Newspapers: May notes that despite leading an advanced technology enterprise, he maintains a daily personal habit of reading traditional paper print newspapers [00:36:24].
Sep 8, 2026
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Outdoor Pizza Oven Temp
700°F
Temperature reached by the outdoor stone pizza oven gifted to May by his daughters