Blockchain Unleashed: Petrochemical Industry Impact

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Stuart Poole
6 years ago
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1 Blockchain Unleashed: Petrochemical Industry Impact 1

2 Business networks, wealth and markets Business Networks benefit from connectivity Participants are customers, suppliers, partners Cross geography & regulatory boundary Wealth is generated by the flow of goods and services across business network in transactions and contracts Markets are central to this process: Public (fruit market, car auction, land registries, citizen services) Private (supply chain financing, bonds) 2

3 Transferring assets, building value Anything that is capable of being owned or controlled to produce value is an asset Two fundamental types of asset Tangible, e.g. a house Intangible, e.g. a mortgage Intangible assets subdivide Financial, e.g. bond Intellectual, e.g. patents Digital, e.g. music Cash is also an asset Has property of anonymity 3

4 Ledgers are key Ledger is THE system of record for a business. Business will have multiple ledgers for multiple business networks in which they participate. Transaction an asset transfer onto or off the ledger John gives a car to Anthony (simple) Contract conditions for transaction to occur If Anthony pays John money, then car passes from John to Anthony (simple) If car won't start, funds do not pass to John as decided by third party arbitrator (more complex) 4

5 Introducing Blockchain A shared ledger technology allowing any participant in the business network to see THE system of record (ledger) 2016 IBM Corporation 5

6 Blockchain for business Append-only distributed system of record shared across business network Shared ledger Smart contract Business terms embedded in transaction database & executed with transactions Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Consensus All parties agree to network verified transaction Broader participation, lower cost, increased efficiency 6

7 The Participants in a Blockchain Network R Regulator Blockchain User U D Blockchain Developer performs oversight creates applications BLOCKCHAIN NETWORK accesses security certificates Certificate Authority O Vendors Partners operates access to logic access to data Traditional Data Sources Traditional Processing Platforms 7

8 IBM has built Blockchain for the enterprise Performance and Scalability Support Billions of transactions Ledger lives and grows forever Immutability Committed transactions cannot be changed even by malicious parties Enterprise-grade Security User privacy Contract confidentiality Auditability Easy On-ramp for Developers DevOps in the cloud Smart Contract Language Simplified abstraction for developing Blockchain apps Enhanced security by generating safe code Seamless Enterprise Integration System z and WebSphere connectors IBM technology makes Blockchain real for business 8

9 Disputes are a pain point for IGF and our customers Our Commercial Financing business provides working capital to IT suppliers, distributors and partners through financing of inventory and accounts receivables Suppliers When products are shipped, I just assume the task is over and want to be paid. There seem to be too many product delivery disputes and resolving them costs time and resources. However, if I do not resolve them timely it could cost me interest as well. Partners Products not delivered on time, incorrectly, or not delivered at all is a burden to me. I often file disputes to put payment on hold so I can spend time investigating the missing products. IGF I need to monitor dispute interactions between partners and suppliers. In the end, IGF needs to recover money financed to partners and at the same time I need to keep customer satisfaction high. 9

10 IGF s Blockchain solution addresses disputes management Blockchain utilized to significantly improve resolution time for common disputes Utilized data available from suppliers to deliver enhanced information to both Suppliers and Business Partners Accomplished with no code changes to our core Commercial Financing system using shadow ledger approach Integrated blockchain into existing user interface Enhanced data includes key information regarding shipment status which minimizes proof of delivery disputes Established a platform for competitive advantage Continuing to work with our Suppliers and Business Partners to further expand blockchain capabilities 10

11 Blockchain provides all stakeholders visibility and trust An immutable, non-repudiable record of events, shared between Partners, Suppliers and IGF enabling a comprehensive view across the entire transaction lifecycle. with enhanced visibility to prevent or speed the resolution of disputes... Demo Video: 11

12 Blockchain provides benefits and allows new possibilities Achieve reduction in dispute resolution from days to under ten 40+ Achieve40% capital efficiency in disputes All stakeholders to realizematerial administrative expense savings IGF s blockchain solution is a strategy platform which will provide competitive advantage to IGF and the clients we serve For Service Consumers New applications Consolidated scheduled product delivery visibility Upfront tax rate validation Advanced analytics for optimized disputes management Contracted pricing validation -- partner PO to supplier invoice Partner wire transfer remittance confirmation Partner extended payment terms authorization 12

13 But Blockchain, in and of itself, is half the story.. by combining Blockchain with cognitive computing we can surface actionable insights. Actionable Insights created from the application of Cognitive Analytics to the shared data on the Blockchain and legacy applications Cognitive & Analytics Blockchain Security Internet of Things Cloud 13

14 4th Industrial Revolution Emerging Business Model-Driven Innovation Composite Force Driving Force Changing Consumer/Social Behaviors & Demands Shifting Economic/Competitive Landscape Social Media Real-time Digital Generation Streaming video Regulation Digital-Only Competitors Sharing Economy Maker Movement The Crowd Gamification Technology Advances Forces Shaping Digitization Shifting Job Landscape Circular Economy Emerging Business Model Innovations Mobile Cloud Computing Automation/Robotics Big Data IoT AR/VR Artificial Intelligence Blockchain Digital Payments 5G Networks Geolocation Apps Wearables Drones Quantum Computing Mesh Network 3D Printing Cyber-Security Fog Computing Natural Interfaces 5G Networking Make & Distribute Multilevel marketing Group Buying Crowdfunded Make Sell Direct Open source Reverse Auction Regular Replacement License to make Spectrum Retail Branded Consortia Freemium Pay Within Demand then made Niche Retail Network Builders Dynamic Pricing Knowledge & Time Curated retail Membership Club Transaction Facilitators Cert. & Endorse Auction Retail Subscription Payment Non-Profit Business Buyer/Seller Marketplace Franchised Retail Shared Rental Customer Data Advertising Sponsorship Reminder Retail Pay As You Go Reputation Builders Listed or Promoted Collaborative Consumption Micro Payments Tradable Currency 14

15 Current Industry Use Cases Downstream / Chemicals Hydrocarbon Market Exchange Loyalty Programs Order to Cash Capital Projects / Procurement Billing and Invoicing Materials Management Smart Contracts Upstream Joint Ventures and JOA Land Management Royalty Settlements Internet of Things Device management Smart agents Shipping and Logistics Hazardous Tracking Customs tracking Logistics management Finance & Accounting Treasury Statements and Reconciliation Page 15 15

16 Strategic Client Journey A multi-stage engagement, delivering incremental and new business value at each milestone ILLUSTRATIVE RUN CHANGE TRANSFORM Intra Ecosystem Focus Digitize / BPO leveraging BVA/CBM Operational Efficiency GRC Inter New Eco-Systems Outlook Select Existing SCM Partners Digitize / BPO leveraging BVA/CBM Operational Efficiency GRC New Business Model Innovation New / Adjacent SCM Partners Curated Propositions New Revenue Streams (Target Acquisitions) Executive Engagement Strategy Advisory Path To Production Within 1-2 years Within 2-3 years TIME Option 1 Deploy Shadow Blockchain Option 2 Deploy Production Blockchain Option 1 Deploy Shadow Blockchain Option 2 Deploy Production Blockchain 16

17 How can IBM Blockchain help you? Let s Talk Blockchain Hands-on First Project Scale 17

18 Thank You 18

Securing Blockchains with z Systems

Securing Blockchains with z Systems Marcel Mitran DE, CTO IBM LinuxONE V2.06 4 Jan 16 https://ibm.box.com/blockexp IBM : Systems Group :: 2016 IBM Corporation 1 Business Networks, Markets & Wealth Business