IoT & Blockchain by Samsung SDS

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1 IoT & Blockchain by Samsung SDS Overview & PoC Result Seungkee BAEK, Ph.D

2 I. Overview of Samsung SDS II. Introduction to IoT & Blockchain III. Blockchain Consortium IV. Result of PoC V. Discussion Agenda

3 I. Overview of Samsung SDS

4 Corporate Overview I. Overview of Samsung SDS 7.0 $B 57 Global Offices in 32countries 21,900 Overseas 25% Korea 75% Note : All figures as of December 31, st in domestic IT services 24 st in global IT services 3 rd in manufacturing IT services 9 Subsidiaries 11 Data Centers 38 Logistics Offices SDS America New Jersey, USA SDS Europe Weybridge, UK SDS Latin America Sao Paulo, Brazil SDS Middle East Dubai, UAE SDS India New Delhi, India SDS China Beijing, China SDS Asia Pacific Singapore Global HQ Seoul, Korea * Source : Gartner, 2016 Market Position Global Footprint 4

5 Business Domain I. Overview of Samsung SDS Samsung SDS has gone on to broaden its portfolio in IT Outsourcing, Business Solutions and Logistics. 1 IT Services 2 Business Solutions 3 Logistics BPO Leverage a broad range of domain expertise to deliver IT system operation services and provides secure Infrastructure Services Enable customers' successful business with differentiated IT solutions by capturing complex behaviors, and redefining experiences Provides services encompassing whole areas from SCM planning to logistics execution with the foundation of global logistics operation know-how Consulting / SI 1 Application Outsourcing Infrastructure Outsourcing Enterprise Applications Enterprise Mobility Enterprise Analytics Logistics BPO 2 Supply Chain & Logistics 1 SI : Systems Integration 2 BPO : Business Process Outsourcing 5

6 II. Introduction to IoT & Blockchain

7 It s Internet of Things! II. Introduction to IoT & Blockchain Today, about 15 billion IoT devices are connected to internet 1.5 trillion things are supposed to be valuable to connect internet 50 billion IoT devices are estimated to be connected to internet by 2020 Computers(17%) PC, Tablet, Smartphone IoT(83%) Source : "IoT in Logistics" by Cisco 7

8 Components of IoT II. Introduction to IoT & Blockchain IoT device is composed of several sensor module and it can provide uncovered new value by connecting with internet Sensor/ Module Device Network Service 8

9 IoT at Global Trade II. Introduction to IoT & Blockchain Not only built-in type IoT device for reefer container, but also detachable IoT device for dry container has installed. We also communicate with AIS(automatic identification system) signal Smart Container AIS(Automatic Identification System) Upon Marine VSAT supports AIS :Required over 300 GT cargo ship by IMO Transmit signal by 2~10 sec(voyage), 3 min(anchor) 9

10 Blockchain, the Distributed Ledgers II. Introduction to IoT & Blockchain Blockchain is a distributed ledger so it is less venerable than centralized ledger Centralized Ledger Distributed Ledger All transactions are recorded into centralized server belonged to specific entity Single point of weakness Each node has an identical ledger that contains transaction after consensus Network effect holds transaction immutability 10

11 Structure of Blockchain II. Introduction to IoT & Blockchain Transaction Block Chain Network Block 1 Block 2 Block 1 Block 2 Block f New Block Node 1 Block 1 Transaction 1 Transaction 2 Transaction 3 Transaction n New Block Validation Consensus Proof of Work Block f Block 2 Block f New Block Node 2. Block 1 Block 2 Block f New Block Node m 11

12 Today s global trade transaction by EDI II. Introduction to IoT & Blockchain EDI only exchanges information, and does not allow to sharing information Shipper 3PL Ocean Carrier Customs Port Agency Schedule Inquiry Schedule Inquiry B/R B/C S/R S/C Container Pickup Container Pickup Container Pickup Container Pickup DG DG Manifest Manifest Customs Clearance Customs Clearance Departure Decl. Departure Decl. 12

13 Changes by Blockchain II. Introduction to IoT & Blockchain Blockchain not only exchanges information but also share information with trust Customs Office Shipper Customs Clearance Manifest Ocean Carrier Schedule Inquiry B/R S/R Container Pickup Customs Clearance Blockchain Schedule Inquiry B/R S/R Container Pickup Manifest Departure Decl. 3PL Container Pickup Departure Decl. Port Agency 13

14 III. Ocean Shipping Blockchain Consortium

15 Overview III. Blockchain Consortium Under participation of major parties of ocean shipping industry, the consortium will review and measure the potential influence of blockchain technology The consortium will suggest the most efficient and effective direction for future ocean shipping information network. Port Authority Ocean Carrier Customs Office End-to-End Visibility Transparency Inland Carrier Freight Forwarder Ledger of Things Logistics Doc. Insurance Company Trade Doc. Bank Shipper/ Consignee Process Automation Security/Scalability 15

16 Consortium Participants III. Blockchain Consortium 15 participants announced foundation of consortium, now 35 members are enrolled 16

17 Consortium Schedule III. Blockchain Consortium May Jun Jul Aug Sep Oct Nov [5/31] Announce Ocean Shipping Blockchain Consortium [6/12~8/18] AS-IS Process Analysis TO-BE Process Design 1st PoC(Logistics) Preparation [8/21~9/6] Run 1st PoC and result analysis [9/7] Presentation of 1 st PoC [8/21~10/31] Financial Process Design 2 nd PoC(Finance) Preparation [10/1~12/14] Run 2nd PoC and result analysis Dec [12/15] Final Presentation 17

18 IV. Result of PoC

19 Methodology of Process Analysis & Design IV. Result of PoC Ocean Carrier, Shipper, Port Authority and Gov t Office discuss and deseign blockchain based To-BE ocean shipping process Financial process will be included in the 2 nd PoC Shipper Ocean Carrier Port Authority Gov t Office 19

20 Scope of PoC IV. Result of PoC 1 st PoC focused on ocean shipping logistics process, and at the 2 nd PoC financial process of banking and insurance will be covered Scope of 1 st PoC 3PL, Terminals Ocean Carrier Customs, Port Authority [Scope of 1 st PoC] Booking Request Booking Confirmation Inland Transportation Shipping Instruction Bill of Lading Customs Clearance Exporter Importer Container Terminal Gate In/Out Container Tracking using IoT Devices Exporter s Bank Insurance Importer s Bank [Scope of 2 nd PoC] Letter of Credit NEGO Scope of 2 nd PoC Settlement Insurance Policy 20

21 PoC Destination Ports IV. Result of PoC The 1 st PoC has been done by Korea/China route. The analysis of the 1 st PoC will contribute to improve SDS s blockchain platform, and it will be applied to the 2 nd PoC that covers Thailand, Vietnam, India, Dubai and European routes [1 st PoC] 1 st PoC Departure: Busan/Inchon, Korea Arrival: Dalian/Qingdao, China [2 nd PoC] 2 nd PoC Vietnam Cat Lai Thailand Laem Chabang India Pipavav, Nhava Sheva Dubai Rotterdam 21

22 PoC Review: Commercial Invoice IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 22

23 PoC Review: Insurance Policy IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 23

24 PoC Review: Booking Request IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 24

25 PoC Review: Bill of Lading IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 25

26 PoC Review: Tracking IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 26

27 PoC Review: Negotiation IV. Result of PoC Yard(IM) 3PL(IM) Insurance Exporter Ocean Carrier 3PL(EX) Yard(EX) Bank(IM) Customs(IM) Terminal(IM) Port(IM) Importer Port(EX) Terminal(EX) Customs(EX) Bank(EX) 27

28 V. Discussion

29 Findings of 1 st PoC VI. Discussion Several core concepts of blockchain have examined, and our findings can be summarized as follows Digitized Shipping All PoC process have initiate and completed by digitized way. The process status has shared within related party in real time Automated Confirmation Without interruption of specified confirmation process such as booking confirm, all process have immediately finalized by predetermined rules Simplified Process Smart contract leads whole shipping process SMART and efficient. The more detailed and well-defined rule, the better productivity 29

30 Thank You very much Copyright 2015 Samsung SDS All rights reserved 30

31 Copyright 2017 Samsung SDS Co., Ltd. All rights reserved