MIT GLOBAL ENTREPRENEURSHIP BOOTCAMP MARCH 26-31, 2017 BRISBANE, AUSTRALIA

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2 OCTOBER 27, 2017 CAMBRIDGE, MA Discussion on how Blockchain and Conversational Commerce can strengthen your Supply Chain

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4 Some problems with cash Convenience Fraud Government and central banks tinkering Custody and transfer costs Bank default Human-only

5 Other problems 5 Finance (cash-only bank, new currency, etc.) IoT payments Supply Chain Land registry Healthcare Music Guaranteed digital identities

6 Areas where Blockchain (and cc) can help the SC 1. Shrinkage 2. Diversion 3. Counterfeit detection 4. Charge-backs 5. Better replenishment/ensuring service levels in VMI 6. Promotions management and market intelligence 7. Improved direct-store-delivery 8. Track and trace for foods, pharmaceuticals 9. Operational efficiencies BP Where RFID Can Help in Retail Findings from an EPC Global, MIT Auto Id Lab, Stanford U. study (2000s) 10. Out-of-stocks, defensive merchandising costs and increased availability 11. Improved demand and production planning 12. Reduced transportation costs and less back-orders 13. Unsellables and reverse logistics 14 November 2017 Confidential

7 7 All of the above can be solved with blockchain thanks to Satoshi Nakamoto

8 8 The value of using a central bank blockchainbased fiat currency is 3% of GDP

9 Pre 2017, there was an estimated 1.11$ billion venture capital blockchain investments, mostly in the financial, retail and medical sectors Typical blockchain uses cases (in chronological order of appearance) Cryptocurrencies Global Payments Trade Finance Records all transactions in the market Adds transparency to transactions New needs of global commerce need to be addressed Provide speed and transparency Used between buyers and sellers to assist with trades Secures ownership and transfer Capital Markets Supply Chain (Retail) Medical Records Deals with the settlement and custody of trades Reduces infrastructure costs Streamlines financial record keeping Supply chain transparency solution Creates a record of the journey behind physical products Doctors can securely access all their patients medical records and family medical history for more accurate diagnostics

10 Bitcoin is an anonymous public ledger of digital programmable assets (e.g. coins) whose integrity is maintained by spontaneous miners Note: 1 Peer-to-peer. 2 A term coined to describe the bitcoin financial network

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12 Total Bitcoins over Time $/bitcoin rate

13 13 Problems with Bitcoin Focus on cash Relies on unknown miners (the community ) 10m clock Limited availability No $/gold standard Miner s retribution

14 14 Three +1 Magic Cryptography Facts

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17 Amazon is continually expanding their product line $230 $200 $130 $130 $100 $50 On October 9, 2017 XMOS launched a kit designed for developers who are looking to integrate Alexa into smart panels, kitchen appliances, and other commercial and industrial electronics

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19 Google is poised to compete, especially with retailers participation $129 $49

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21 Find the difference? s Peapod 1980s Peapod 2017

22 The State of Commerce Today:

23 The projected growth of conversational commerce will only add to the decline of bricks and mortar sales % Share Increase in Sales 100% 90% 80% 70% 60% NON E-COMMERCE 50% 40% 30% 20% 10% 0% E-COMMERCE DESKTOP MOBILE *Monthly Retail Trade Survey and administrative records

24 Send flowers to my aunt. OK, she likes yellow tulips, should I send those? Yes - Thanks You're welcome. They will be delivered this afternoon. Since 1910

25 What is the impact of Conversational Commerce Block Chain? The death or retail as we know it or retail s saviour? The ultimate disintermediation of brands or a brand s greatest opportunity?

26 Strategic Conversational Commerce Future States High Level of demand-side disruption low Additional Services New consumer behaviour Elite-player lock-in with new, in-life personal dialog-based commercial services Elite-player-controlled provision of incremental voiceactivated commercial services Open market of new, in-life personal-dialog commercial services Open market of incremental voiceactivated commercial services Boundary-less Shopping low Few dominant players (Amazon, Google) Competitive Level-playing-field Level of supply-side democratisation High

27 On the internet nobody EVERYBODY knows you 27 are a dog! 2007

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