1. Introduction
Digital transformation is the application of digital innovations to enable a company to make large advancements and to influence all aspects of clients’ and customers’ lives [
1,
2]. The ability of businesses to participate in the so-called industrial revolution 4.0, defined by the convergence of digital, physical, and biological technology, may determine their chances of surviving and competing in the global market in the medium term [
3]. At the organizational level, digital transformation focuses on innovative tactics that leverage digital technology to improve and boost corporate operations [
4].
Using digital tools for business and process management, the manufacturing industry has experienced a digital revolution in the last few decades [
5,
6,
7]. The Internet of the future will be based on heterogeneous devices that will further expand the boundaries of the world’s physical and virtual entities [
8]. As a result, human intervention is not required to transmit these data via computers through a network. They can form an interface with other operators or machines to make the operation more efficient and easier. Technology has evolved as the backbone of the industrial sector in today’s technologically advanced and diverse globe. The IoT or Internet of Things is widely recognized as a new information technology revolution, producing a paradigm shift in various industries, including the entire production of supply chain management [
9,
10]. The IoT refers to networked computing devices, both digital and mechanical, that use sensors linked to people and machines to generate unprecedented volumes of valuable and precise data about processes in order to improve them [
11].
According to previous research, today’s global food supply chains are highly dispersed and complex, spanning a large geographical range, involving complex operational processes and involving many stakeholders [
12,
13]. Researchers claim that this complexity leads to numerous issues with operational efficiency, quality management, and public food safety. In the food supply chain, the IoT, which collects data through sensors, has significantly affected the normal operations of supply chains [
12,
14].
Utilizing IoT in the food industry’s supply chain has enabled the measurement and monitoring of numerous sustainability indicators such as water efficiency, crop productivity, and the amount of fertilizer used [
15,
16]. The IoT has been utilized extensively to facilitate the interconnection of objects regardless of their location to share data throughout the supply chain [
17,
18]. Perishable food items can be tracked using radio frequency identification or RFID in the food supply chain, including temperature monitoring during storage and shipping and the determination of shelf life. Livestock, quality control, cold-chain monitoring management, supply chain management, and food traceability are other RFID applications.
Adopting and effectively utilizing IT is likely to increase a company’s efficiency. Workers must change their abilities to more analytical and computational abilities in an organization. Artificial Intelligence (AI), machine learning, and the IoT all work together to support a company’s overall growth strategy. Market organization has benefited from technological advancements because they have made it more convenient.
As a result, rather than changing a single component, the entire process must be updated to achieve the result desired from the technology. The organization must concentrate on a competitive strategy to avoid disruptions to the current business model. As a result of technical improvements, business organizations have grown tremendously, and these improvements help to improve existing company processes and work practices. Technological innovation has led to the discovery of a new and more efficient manner of conducting business, enabling companies to function more efficiently, rapidly, and easily. According to Ford, humans must also learn about the talents of automation in order to benefit from its cheaper costs and faster performance.
Because of the wide variety of sensors that are currently accessible, as well as the even greater availability of tools based on AI solutions to analyze the large number of data collected, the possibilities for IoT applications in the olive oil industry are almost limitless. It is possible to improve supply chain processes and control at all levels, from raw materials within a plant to the distribution of products to businesses, by using IoT technologies in agri-food industries [
15,
16], such as the olive oil industry. It also streamlines the data-collecting process, assisting the olive oil sector in maintaining greater levels of safety and traceability throughout the whole supply chain, as well as reducing costs, waste, and even risks.
It is widely accepted that the IoT can significantly affect industry performance from different perspectives, such as supply chain performance, financial performance, and environmental performance [
19]. However, although previous studies have investigated the impact of the IoT on the performance of industries [
20,
21], this issue has yet to be explored in the olive oil industry. In addition, most previous studies have used old-style mythologies to assess the IoT’s contributions to industries’ performance. Machine learning techniques have rarely been explored and implemented to find the relationship between supply chain improvement and olive oil companies’ performance. This problem was investigated in relation to olive oil companies in this study. To understand the role of the IoT in olive oil company performance, in this study, we aimed to develop a new model to investigate the factors influencing supply chain improvement in olive oil companies. In addition, through the use of a model, we aimed to evaluate the relationship between supply chain improvement and olive oil companies’ performance. Demand planning, manufacturing, transportation, customer service, warehousing, and inventory management were the main factors incorporated into the proposed model. Accordingly, a new method of data analysis using machine-learning techniques was developed. Clustering and decision trees were employed in the development of the method. The proposed model used several factors discovered through a literature review. The data for this study were collected from respondents with knowledge of the integration of new technologies into the industry. Self-organizing map (SOM) clustering and decision trees were employed in the development of the method. SOM has been an effective technique for data clustering. In addition, the decision tree technique is robust for output prediction from a set of input variables. The hybrid combination of these techniques was believed to accurately predict the relationship between supply chain improvement and olive oil companies’ performance. We present the abbreviations used in this study in
Table 1.
The remainder of this paper is organized as follows. In
Section 2, the role of the IoT in agriculture is presented. In
Section 3, we summarize the related studies to the olive oil production. In
Section 4, the proposed model is presented. In
Section 5, we present the method of data analysis. In
Section 6, data collection and analysis are presented. The discussion is presented in
Section 7. Finally, the conclusions are presented in
Section 8.
2. IoT Application in Agriculture and the Olive Oil Industry
The Internet of Things (IoT) in agriculture, or IoT-based smart agriculture, refers to a network in which the physical components of the system (plants and animals, production tools, environmental elements, and various virtual objects) are connected to the Internet through the use of equipment for agricultural information management under certain protocols to exchange information within different components [
22,
23]. Sensors made using new technologies based on the IoT are constantly being developed in the agricultural sector for different purposes, driven by the development of the Internet, digital technology, and sensing technology [
24]. These sensors are moving in the direction of being embedded, integrated, intelligent, and miniaturized. The United States, Japan, and Germany currently hold leading positions in relation to sensor technology and manufacturing methods. The roles of agricultural sensors are becoming increasingly diverse and now include weather, water, soil, and plant sensors. These sensors, which can be used to identify a wide range of items, provide invaluable assistance in collecting agricultural production data [
25]. Industrialized countries’ agricultural IoT applications are becoming more efficient as information technology progresses. Monitoring and intelligent management can be used with artificial intelligence technologies to maximize sensor data utilization. When utilized in conjunction with expert systems, the Internet of Things in agriculture helps planters improve their planting experience while conducting accurate crop management. The IoT has been widely applied to many elements of agricultural production, including environmental monitoring in agricultural product production, farmland irrigation, and product safety traceability. It has also been utilized in veterinary medicine, aquaculture, and agricultural planting.
The applications of the IoT in agri-food can be divided into three categories depending on their functions: tracing, tracking, and monitoring for precision agriculture, agricultural machinery, and greenhouse applications [
25,
26]. Growing plants in a controlled environment is known as greenhouse growing or greenhouse gardening. Wireless sensor networks (WSNs) are used to monitor the conditions that allow for increased efficiency, energy savings, and the need for minimal human interaction [
27]. Precision agriculture involves the control of farm variables such as uniform equipment and labor availability, cost, crop maturity, weather, and air and soil quality. Precision agriculture refers to the control of agricultural variables. Precision agriculture is made possible using Internet of Things sensor nodes in conjunction with BDA [
28,
29]. Machines connected to the Internet of Things can be operated on autopilot, decreasing losses and increasing production. Tracking agri-food goods allows the client to understand the product’s history better. RFID provides a data capture process that is visible to all parties involved in the process. Internet-of-Things-based solutions can be implemented to properly monitor animal farming, crop farming, forestry, and aquaponics operations [
30,
31].
The IoT makes it feasible to monitor and measure several sustainability indicators in the agri-food supply chain, such as fertilizer use, crop yield, and water efficiency. IoT-based devices enable items to be interconnected regardless of their location, allowing for information sharing throughout the supply chain [
26]. Both RFID and WSN enable the collection of data, as well as the dissemination of data and information. RFID is frequently used in the food industry’s supply chain to monitor temperature during storage and transit and to estimate and calculate shelf life [
32]. Other RFID uses include quality control, supply chain management, cold-chain monitoring, livestock management, and food product traceability. For example, devices measuring pressure, acceleration, humidity, temperature, and light are frequently used in monitoring, transportation, and food storage applications. It is vital to detect and measure sustainability indicators to develop a sustainable agriculture and food supply chain [
33]. The fact that agricultural sustainability indicators are always changing makes measuring and monitoring them difficult. In order to evaluate and monitor overall sustainability in agriculture, high levels of skills are required, in addition to the ability to adapt to change. IoT technology is justified in its application to the construction of a sustainable agriculture and food supply chain when combined with the ability to gather and send data, scalability, and flexibility. One of the most important components is the data collected by smart agriculture sensors. This information can be used to monitor the state of the company, as well as the performance of the workforce and the efficiency of the equipment. When it comes to planning for better product distribution, having the ability to predict the output of production is essential.
The owners of farms can collect data regarding their livestock’s location, well-being, and health by utilizing wireless applications for the IoT. This information not only helps to stop the spread of disease but also reduces the amount of money spent on labor. A climate-controlled smart greenhouse built with the assistance of the Internet of Things eliminates the need for human involvement by intelligently monitoring and controlling the environment. Predicting crops is extremely important since it enables farmers to better plan for the future in terms of the production of the crop, as well as its storage, various marketing strategies, and risk management. The artificial network uses the information gathered by sensors on the farm to make production rate predictions for the crop. The characteristics of soil, temperature, pressure, rainfall, and humidity are all included in this report. The dashboard or mobile application that the farmers have specifically designed can provide them with reliable data related to the soil.
6. Results
In this study, we collected the data using a questionnaire survey. The questionnaire survey included questions based on a five-point Likert scale for all constructs in the model. The data for this study were collected from respondents with knowledge regarding the integration of new technologies into the industry. The demographic information of the respondents is presented in
Table 2,
Table 3,
Table 4 and
Table 5.
In total, 552 respondents completed the questionnaire and provided feedback on the questions. Most respondents were male (78.3%: 432; see
Table 2). The majority of the respondents also had Ph.D. degrees (48.4%: 267; see
Table 3). The category related to respondents’ employment in the industry showed that most of them had full-time employment (see
Table 4). The demographic information demonstrated that the respondents were greatly familiar with the use of IoT devices in the industry (see
Table 5).
To implement the method, we used a personal laptop with an Intel(R) Core(TM) i7-6700HQ CPU @ 2.60GHz, 2592 MHz, four Core(s) and eight Logical Processor(s) with 8 GB of memory running the Windows 10 Pro 64-bit operating system. All experiments were performed using a 10-fold cross-validation. We used SOM for data clustering.
was considered in the SOM. The SOM was performed to detect similar preferences in different groups. We used different map structure for SOM as: SOM
, SOM
, SOM
, SOM
, SOM
, SOM
, SOM
, SOM
, SOM
, SOM
, SOM
. Accordingly, a different number of clusters was generated by SOM, as shown in
Table 6. In this study, we used the silhouette coefficient [
81] to identify the optimal number of clusters. The results are presented in
Table 6. We found that the optimal number of clusters was 5 (i.e., SOM
).
The results of data clustering are presented in
Table 7,
Table 8,
Table 9 and
Table A1. In
Table 7, we present the centroids of the discovered clusters. This table shows that there was a significant relationship between demand planning, manufacturing, transportation, customer service, warehousing and inventory management, and supply chain performance. In addition, the results show a direct relationship between supply chain performance and the performance of olive oil companies. Specifically, it can be observed that when the supply chain performance was at a low level, the company’s performance was also at a low level. Furthermore, with a high level of supply chain performance, a high level of company performance was obtained.
In
Table 8, the frequencies of the responses in each cluster are presented. Clusters 2 and 3 included the majority of respondents. In
Table 9, we present the frequency of gender, education level, employment in the industry, experience with ICT in the industry, and familiarity with IoT devices observed in each cluster of the SOM. The results presented in
Table 8 show that only some respondents were unfamiliar with the IoT in all clusters. Specifically, a relatively high number of respondents were familiar with IoT technologies. In
Figure 3, we present a visualization of the SOM clusters generated through PCA.
The data, in five clusters, were used in decision trees to construct the prediction models to find the relationships between the inputs and outputs. The decision trees were constructed through 10-fold cross-validation [
82,
83]. In the first stage, the models learned to find the relationships between demand planning, manufacturing, transportation, customer service, warehousing and inventory management, and supply chain performance. The relationship between supply chain performance and company performance was evaluated in the second stage. As we had five clusters of data, five models based on decision trees were constructed in each stage. Accordingly, ten models were constructed to evaluate their relationships. The results of this analysis are shown in
Figure 4. The results demonstrated a direct relationship between the supply chain improvement caused by implementing IoT and company performance in the olive oil industry. In addition, the plots in
Figure 4 show that when there was an increase in demand planning, manufacturing, transportation, customer service, warehousing, and inventory management, supply chain performance improved accordingly. Overall, this indicates that the IoT was important in improving supply chain performance through improvements in demand planning, manufacturing, transportation, customer service, warehousing, and inventory management in the olive oil industry.
Evaluation Metrics
In this study, we used three statistical performance metrics to determine the efficiency and accuracy of the prediction models using decision trees. These were the root mean square error (RMSE) [
84], mean absolute error (MAE) [
85] and the coefficient of determination (R
2) [
86].
where
indicates the actual outputs,
indicates the outputs predicted by decision trees,
indicates the mean of the outputs, and
is the number of samples.
In
Table 10, we provide the results of the evaluation and comparisons of methods. In these comparisons, the proposed method, SOM + decision trees, was compared with decision trees, an artificial neural network (ANN), and an adaptive neuro-fuzzy inference system (ANFIS). The ANN and ANFIS models were constructed for 200 epochs. In addition, in ANFIS, a hybrid learning approach and triangular membership functions were used. In decision trees, the tree growth was restricted with the stopping rules: maximum tree depth = 10, minimum size for split = 5, and maximum number of leaves = 100.
Furthermore, ANFIS was implemented with a hybrid learning approach. We found that the decision tree approach predicted the outputs accurately, with lower MSE and RMSE values compared with the other machine learning techniques. Specifically, the SOM + decision trees method outperformed other machine learning techniques in terms of RMSE, MAE, and the coefficient of determination.
7. Discussion
The tremendous increase in the population has increased the demand for additional food. Agricultural advancements are critical to the development of our sedentary human civilization. Consequently, the agri-food sector is still regarded as one of the most important sectors in the world today. Most agricultural businesses continue to rely on traditional farming practices despite their decreasing use. To meet this requirement, agricultural firms are changing their approaches to IoT applications to gain greater capabilities. Based on IoT technologies, smart farming enables farmers and growers to enhance productivity and reduce waste. This can be measured in various ways, from fertilizer use to the number of journeys made by farm vehicles. Smart farming also enables the efficient utilization of resources such as water, electricity, and other things. An IoT smart farming solution is a system built to monitor crop fields with the help of sensors (crop health, temperature, humidity, light, soil moisture, etc.) and an automated irrigation system. These sensors monitor light, humidity, temperature, and crop health. Farmers can monitor the fields’ conditions from any location. They can also choose between manual and automated processes to carry out the necessary actions in response to the data. Compared to traditional farming methods, precision agriculture is significantly more productive.
The IoT has played a critical role in increasing production and expanding agricultural product markets. Investigating the IoT’s impact on companies’ performance is a critical task. Because of the wide variety of sensors that are currently available, the possibilities for IoT applications in the olive oil industry are almost limitless. The IoT has played a critical role in increasing production and expanding agricultural product markets. In the olive oil industry, it is possible to improve the supply chain process from raw materials within a plant to product distribution to customers and businesses using IoT technologies. Previous studies have investigated the impact of the IoT on the performance of industries, but this issue has not been explored in the olive oil industry until now.
In this study, we proposed a model based on seven hypotheses. The results of the data analysis, conducted using the supervised learning technique, confirmed all of the hypotheses. A direct relationship between the input variables and the output variables was discovered. The results demonstrated a direct relationship between the supply chain improvement caused by the implementation of the IoT and company performance in the olive oil industry. Furthermore, increasing demand planning, manufacturing, transportation, customer service, warehousing, and inventory management improved supply chain performance. Thus, IoT implementation is critical for improving supply chain performance in the olive oil industry through improvements in demand planning, manufacturing, transportation, customer service, warehousing, and inventory management.
Moreover, in the olive oil industry, various processes can be employed by IoT technologies in the transformation of raw products into food products. The best results are obtained by taking into account both efficiency and the desired quality of the final food product. The production of high-quality extra virgin olive oil, for example, necessitates the optimization of various production steps such as olive handling and harvesting, milling, and the use of modern IoT technologies to control process conditions. To avoid process failures and maintain the highest possible quality in the final olive oil products, a high level of control by IoT technologies over standard operating conditions can be significant. In addition, the duration of malaxation and temperature can have an impact on olive oil quality [
87]. Thus, IoT-based technologies can be used to enhance extra virgin olive oil production without having an adverse effect on the quality indicators.
8. Conclusions
In this study, we examined the enhancement of the olive oil industry. We developed a new method to investigate the IoT’s role in improving olive oil companies’ performance. The method was developed using clustering and decision trees. The data for this study were collected from respondents with knowledge regarding the integration of new technologies into the industry. The data were clustered, and decision trees were implemented to predict the olive oil companies’ performance according to the factors influencing the supply chain. The model was implemented in two stages. In the first stage, the models learned how to find the relationships between demand planning, manufacturing, transportation, customer service, warehousing and inventory management, and supply chain performance. The relationship between supply chain performance and company performance was evaluated in the second stage. The method was evaluated in these two stages and compared using decision trees, an ANN, and an ANFIS. The methods were compared using RMSE, MAE, and the coefficient of determination. The results showed that the SOM + decision trees method outperformed the other machine learning techniques in terms of the RMSE, MAE, and coefficient of determination.
Limitation and Future Work
This study has some limitations. First, the method was developed using SOM clustering and decision trees without an optimization technique. The SOM method can be developed with optimization techniques such as particle swarm optimization (PSO) [
88] to discover the clusters in the data more effectively. In addition, ensemble-learning approaches can improve the efficiency of decision trees [
89]. Second, in this study, we investigated the relationships between supply chains and olive oil companies’ performance. The model could be further improved by including other factors, such as competitive advantages and financial aspects of performance. Furthermore, the results could be further developed to account for the barriers to implementing IoT in olive oil companies, specifically, the barriers in the context of privacy and security related to the implementation of the IoT by olive oil companies.