Making Blockchain Real for Business
- 1. 1Page© 2018 IBM Corporation Making Blockchain Real for Business IBM Blockchain February 8, 2018 Christian Lassen Nordic Leader, IBM Blockchain chlassen@dk.ibm.com +45 41 20 10 93
- 2. 2Page Blockchain benefits Saves time Removes cost Reduces risk Increases trust Transaction time from days to near instantaneous Overheads and cost intermediaries Tampering, fraud & cyber crime Through shared processes and recordkeeping
- 3. Trade Finance – Digital Trade Chain This new product will simplify trade finance processes for companies by addressing the challenge of managing, tracking and securing domestic and international trade transactions. Companies can easily and efficiently trade with more trust. The commercialisation of the platform is expected in Q2 2018. From February 2018 test clients of the founding banks will be able to use the platform. NORDEA JOINS FIRST BLOCKCHAIN-BASED TRADE FINANCE PLATFORM AS FOUNDING PARTNER CONSORTIUM IS, IN CONJUNCTION WITH IBM, DEVELOPING A PLATFORM BASED ON DISTRIBUTED LEDGER TECHNOLOGY (DLT) THAT AIMS AT MAKING DOMESTIC AND CROSS-BORDER COMMERCE EASIER, SAFER AND MORE EFFICIENT FOR COMPANIES
- 4. Global Financing: Dispute Resolution What? • IBM Global Finance provides a $41bn channel financing per year. There are a number of disputes that take time to resolve and can lock up transactions costing time and money How? • Blockchain provides visibility and provenance end-to-end across supply chain Benefits 1. Reduced dispute resolution time by 75% 2. Released working capital from $100m 3. Combine IGF and Supplier info to further expand benefits further 4. In production since Sept 2016
- 6. 6Page© 2016 IBM Corporation What? • Infrastructure supporting private equity has seen little innovation in recent years at a time when investors are seeking greater transparency, security and efficiency. How? • Creation of an innovative private equity ecosystem designed to deliver increased efficiency, security and transparency. Benefits 1. Provides real-time insight and transparency to all parties, including the fund managers and investors. 2. Designed to allow regulatory access as required. 3. Support compliance of local regulations. 4. In production. Private Equity Administration
- 7. 7Page© 2016 IBM Corporation Food Traceability in China What? • Traceability of food from “farm to fork” How? • Blockchain holds history of food items processed through entire supply chain Benefits 1. Increased trust – multiplied by each participant in food supply chain 2. Pinpoint source of compromised food, reducing the unnecessarily broad recall 3. Improved co-ordination in food supply chain
- 8. 8Page© 2016 IBM Corporation Legitimize Diamonds and Reduce Fraud What? • Track diamonds across supply chain from mine to retail How? • Shared ledger for storing digital certification with supporting material Benefits 1. Protect against the occurrence of fraud, theft, trafficking and black markets 2. Assist in the identification and reduction of synthetic stones being labelled as authentic 3. Increase speed of transparency for cross border transactions for insurance companies, banks and claimants
- 9. 9Page© 2016 IBM Corporation Legitimize Diamonds and Reduce Fraud What? • Track diamonds across supply chain from mine to retail How? • Shared ledger for storing digital certification with supporting material Benefits 1. Protect against the occurrence of fraud, theft, trafficking and black markets 2. Assist in the identification and reduction of synthetic stones being labelled as authentic 3. Increase speed of transparency for cross border transactions for insurance companies, banks and claimants
- 10. 10Page© 2016 IBM Corporation What? • View of customer identity to enable compliance with Know Your Customer (KYC) How? • A complete view of customers' documents across a distributed network Benefits 1. Creation of a single but cross-businesses KYC platform to inform all of the banks processes. 2. Crédit Mutuel Arkéa could enable its customers to deliver proof of their identity to third-parties such as local utilities, retailers or regulated service providers. Common KYC Data
- 11. 11 RDW selects IBM Blockchain for PoC to combat electric bicycle theft Manufa cturer Bike Positio n Owner Manufacturer Insurer Bike Lock OwnerDealer PoliceOwner Insurer Lost/ stolen Insuranc e Claim How • Blockchain records make, serial, insurance, and owner in an append-only ledger • IoT sensors supplying geo-location and lock status data • Tamperproof qualities create high confidence record and audit trail for bike owner and location Benefit • Two-Click theft reporting – removes all bureaucracy • Owner, police, insurer can quickly see state of lock and last known location, verify ownership, bike make and model. • Provides very quick response times and a high value source of information for police, insurer and citizens.
- 12. © 2017 IBM Corporation 12 IBM is making blockchain real for business with over 400 engagements and multiple active networks Trade Finance Pre and Post Trade Complex Risk Coverage Identity/ Know your customer (KYC) Unlisted Securities/ Private Equity Funds Loyalty Program Medicated Health Data Exchange Fraud/ Compliance Registry Distributed Energy/ Carbon Credit Supply Chain Food Safety Provenance/ Traceability
- 13. 13Page Hyperledger Project Members QUICK FACTS Chairman Blythe Masters/DAH Executive Director Brian Behlendorf Technical Chair Chris Ferris/IBM Contribution 44,000 lines of code in February 2016 Sprint to one codebase with unified thinking Staged releases Associate Premier General
- 14. 14Page© 2016 IBM Corporation – Identifying a good blockchain use-case is not always easy! – However there should always be: What makes a good blockchain use case? 1. A business problem to be solved • That cannot be solved with more mature technologies 2. An identifiable business network • With Participants, Assets and Transactions 3. A need for trust • Consensus, Immutability, Finality or Provenance
- 15. 15Page© 2016 IBM Corporation What makes a good first blockchain use case? 1. A limited scope, but still solves a real business problem • Minimum Viable Product in a few weeks of effort 1. A smaller business network • Usually without requiring regulators and consortia 2. Allows for scaling with more participants and scenarios • Consider shadow chains to mitigate risks Start small, succeed and grow fast!
- 16. 16Page Engagement model overview 1. Discuss Blockchain technology 2. Explore customer business model 3. Show Blockchain Application demo 1. Understand Blockchain concepts & elements 2. Hands on with Blockchain on Bluemix 3. Standard demo customization 1. Design Thinking workshop to define business challenge 2. Agile iterations incrementally build project functionality 3. Enterprise integration 1. Scale up pilot or Scale out to new projects 2. Business Process Re-engineering 3. Systems Integration Remote or face to face Remote or face to face Face to face Face to face Let’s Talk Blockchain Hands-on First Project Scale
- 17. Thank you! Christian Lassen Nordic Leader, IBM Blockchain chlassen@dk.ibm.com +45 41 20 10 93