Helping incumbents innovate with Blockchain. Alain Neyroud Principal Architect, IBM Blockchain Garage

Transcription

1 Helping incumbents innovate with Blockchain Alain Neyroud Principal Architect, IBM Blockchain Garage

2 Agenda IBM Global C-Suite Study Teaser IBM Cloud Garage Introducing Blockchain for Business IBM Cloud Garage Method & Blockchain: Lesson Learned Q&A 2

3 Dancing with disruption Incumbent hit their stride Trust in the journey The path to personalization Orchestrating the future The pull of platform business models Innovation in motion Agility for the enterprise 3

4 IBM Cloud Garage We empower companies small and large to disrupt and transform by delivering cloudbased solutions in the minimum possible time using the IBM Cloud and the IBM Cloud Garage Method. IBM s consultancy with a startup DNA Nice, F

5 Is your business idea as good as you think it is? 5 5

6 Is your business idea as good as you think it is? 6 6

7 Cloud Garage Formula for Innovation People Places Platform Practice

8 People Collaborate across disciplines with clients to move faster and work smarter and produce engaging experiences. Business Stakeholders Subject Matter Experts Designers Developers Architects Diversity is critical We help you to move faster and work smarter 8

9 Places Change up your work environment and experience a fundamental culture shift to reach success. Reimagine collaboration and innovation with other innovators by your side. IBM Cloud Garages are embedded within tech incubators in some of the world s largest startup communities. Or a Garage works with you to setup a collaborative space in your city or location. Collaborative spaces spur innovation

10 Innovate easily, measure success rapidly Platform = Cloud Use a combination of the most prominent open-source computing technologies to power your apps. Then, let the IBM Cloud handle the rest. Built-in DevOps to build and deploy fast IBM Cloud is built with leading cloud computing technologies: Cloud Foundry, Kubernetes, and OpenWhisk Leverage key services such as Blockchain, IoT and Watson

11 Practice Get hands-on, prescriptive guidance through the entire innovation cycle from the initial idea through the first pilot project and to scaling the project to meet enterprise requirements. Hands-on practice from ideation to production 11

12 IBM Cloud Garage Method Innovate like a startup. Scale for the Enterprise. Architectures, best practices, and toolchains to jump-start your cloud and DevOps transformation. ibm.com/cloud/garage Brings together: Enterprise Design Thinking Lean startup / Minimal Viable Product Agile values, principles, practices devops & continuous delivery

13 Design Thinking Leverage IBM Design Thinking to understand the use case, the target users, and to rapidly explore potential outcomes. Converge to define business hypotheses, the Minimum Viable Product (MVP) and scope. Drive alignment across participants (Business and IT) Create a conceptual design for the application from which we derive a technical architecture and a prioritized backlog of user stories Design with Innovation target AND focus on end users

14 Minimum Viable Product Goal Minimum but not a product Minimum Viable Product

15 The 4Ps work together to delivery Design Thinking MVP Goals & non-goals Wireframes Inception Goal Roles Scope Define Stories Initial plan Identify integrations User or Sponsor Validation pivot or preserve & Learn Stand up Story Stand up Development (weekly) Iteration planning meeting Retrospective Story Stand up Story Stand up Stand up Story Story Ranked Backlog Test Driven Development Pair programming Continuous Integration KISS Refactoring Build to Manage

16 Start with a disruptive idea Ideate & design the solution Define the Minimum Viable Product (MVP) Build on IBM Cloud & Integrate with existing systems Scale, Harden, Enable Transform Discovery Workshop ½ day Garage Design Thinking Workshop 2-5 days Garage MVP Build-up 6-10 weeks Cloud Service Mgmt & Operations Garage Architecture Consultancy Education Garage Transformation

17 Introducing Blockchain for Business Shared, replicated, permissioned ledger Blockchain for Business 17

18 Problem Participant A s records Participant B s records Bank records Insurer records Regulator records inefficient, expensive, vulnerable Auditor records 18

19 Blockchain : A shared, replicated, permissioned ledger Participant A s records Participant B s records Bank records Blockchain Insurer records Regulator records Auditor records with consensus, provenance, immutability and finality 19

20 Separating Blockchain from Cryptocurrencies Cryptocurrencies are one specific usage of Blockchain technology Blockchain can be used to solve many more real-life business challenges Cryptocurrency Blockchain Exchange of digital currencies using cryptography First crypto currency = Bitcoin Fully decentralized Pseudo-nymous participation, Transparent activity Key Attributes Distributed and Sustainable (Finality) Secure and Un-editable (Immutability) Transparent and Auditable (Provenance) Consensus-Based and Transactional (Consensus) Flexible and Orchestrated (Smart Contract) However, we need few key attributes for Blockchain to be business ready 20

21 Blockchain for business requires trust Append-only distributed system of record shared across business network Shared ledger Smart contract Business terms executed with transactions Transactions are secure with appropriate visibility Privacy Proof Transactions are provably endorsed by relevant participants 21

22 Right characteristics for applying this technology Characteristic Description Example Siloed Repositories Entities independently maintain similar datasets, maintaining their own version of the truth. Ledger to track ownership of financial assets Multiple Writers / Network Effect Minimal Trust Intermediaries Process Dependencies More than one entity generates transactions that impact data which is maintained by multiple institutions. Parties involved in the processes within a given business process do not trust each other. Current state processes are heavily dependent on intermediaries for execution. Fulfilling a given process requires input/action by multiple parties, or there are multiple transaction dependencies to execute a process. A customer of multiple banks exchanges assets between them. Multiple parties within a trade finance agreement that don t trust each other impose layers of verification and impose collateral requirements Transforming the role of a central intermediary to drive trust within a given business network. Loan securitization requires several upstream processes, including loan issuance, servicing, etc. 22

23 Making blockchain real for business with over 400+ engagements and multiple active networks 23

24 Blockchain Initiatives: From MVP to Production 24

25 Applying the garage method for Blockchain initiatives - 5 Lessons Learned 1. 1 Dream big and act incrementally 2. 2 Identify business challenges and opportunities 3. 3 Collaborate to create business value from the beginning 4. Govern for the future Blockchain is a team sport make connections! 25

26 1 Dream big and act incrementally Know your North Star but start a pilot project with your minimal viable ecosystem (MVE). Consider funding and economic model of the distributed network Define your hypotheses and plan to refine based on feedback. Group. M Governance 26

27 2 Identify business challenges and opportunities If a business problem is yours and yours alone blockchain may not be the remedy you re looking for. Start with deep industry/subject matter expertise Explore the problem space and ask yourself Who, What, Why Leverage scenario mapping for all the roles and participants in the network Evaluate blockchain characteristics to determine fit 27

28 3 Collaborate to create value Make sure each participant has a positive return on investment System Operator (Regulator) Link the investment case and business model Remember the intangibles Financial Network Provider Energy Utility / Aggregator 28

29 4 Govern for the future Don t delay decisions on data ownership, IP and legal governance Solution governance versus blockchain governance Governance, like value evolves as the network scales. Be prepared to adapt. 29

30 5 Blockchain is a team sport make connections! Global trade Trade finance Consumer industry trade 30

31 The Founder s Handbook Your guide to getting started With blockchain

32 What will we solve together? Alain Neyroud Questions? Tweet us or go to IBM Blockchain IBM Blockchain

33 Copyright IBM Corporation All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. Any statement of direction represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.