Blockchain technology provides benefits for supply chain processes by creating an immutable shared ledger that multiple parties can access in real-time. This removes costs and complexity from transactions. Potential supply chain use cases for blockchain include tracking shipments and inventory, managing supplier relationships, ensuring quality compliance, and providing supply chain visibility and traceability. Challenges include selecting appropriate use cases and investing in more complex processes that require higher performance. Blockchain is best applied to multi-party processes that involve exchanging assets and could benefit from increased trust, transparency and efficiency.

1. Blockchain in the Supply Chain
Quentin B Samelson
Senior Managing Consultant, IBM GBS
Electronics Center of Competence
qbsamels@us.ibm.com

2. 2 #APICS2017
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3. 3 #APICS2017 3
About Quentin Samelson
Specializations
• Supply Chain Automation
• InventoryAnalysis & Reduction
• Supply Chain Process Development
• Demand / Supply Planning
• Tactical & Strategic Purchasing /
Procurement
• Supply Chain Strategy & Solutions
• Blockchain
Profile
Quentin is a senior supply chain consultant in the Electronics Center of Competence of IBM’s Global
Business Services, specializing in Supply Chain Management, Inventory Managementand Procurement
technologies.He has over twenty-five years of domestic and international operations experience.He has
led numerous Supply Chain process and technology improvementinitiatives (including requirements
gathering and analysis, solution development,and implementation of large-scale supply chain automation,
order automation,ERP, SRM and Business Process Managementsolutions) to improve operational
performance and achieve significantcost savings for large multinational organizations.
Industry Experience
• Automotive
• High tech/ Telecommunications
• Electronic Manufacturing Services
• Consumer Electronics
Education
• MBA, University of Chicago
• Student in Elektrotechnik,
Technische Universität München
• BSEE, University of Illinois

4. 4 #APICS2017 4
Executive Summary
Blockchain is a new technology that removes cost and complexity from multi-party
transactions using a shared, secure, synchronized & immutable ledger. It has reached a
maturity level where most companies should be evaluating where it may provide benefit.
Benefits are typically shorter cycle times, reduced costs, and increased confidence.
Costs to get started are reasonable. More complex processes with higher performance
may require higher investment.
Partners (suppliers, logistics partners, etc.) may be full participants in the Blockchain, or
simply interact with the process.
Inappropriate use of Blockchain is those situations where an existing solution works well,
where no asset is being exchanged, or high-volume/ low-value/ real-time transactions.

5. 5 #APICS2017
Foundational
Principles
Applying the
Technology
Getting started
with Blockchain
Blockchain in bite-size chunks. If you’re new to Blockchain,
here are some simple slides to help you understand the key
concept behind the technology, and how it functions.
Additional resources available to learn more.
Additional
Resources
Applying Blockchain: guidelines for choosing use cases, with
multiple examples showing how Blockchain can solve problems.
Business Cases, Hyperledger & how companies can get started
developing their own Blockchain projects.
What’s IBM doing?
Business Cases, Hyperledger & how companies can get started
developing their own Blockchain projects.

6. 6 #APICS2017
A few simple slides, and an example
Foundational Principles:
What Blockchain Is, and Does

7. 7 #APICS2017
Blockchain’s key concept: a shared, secure ledger that creates
a permanent record of transactions
Source: IBM Institute for Business Value analysis
“This is what the blockchain does at its
core. It is a shared ledger technology
that allows participants in a business
network to transact assets where
everyone has control but no one
person is in control”
Leanne Kemp
CEO and Founder, Everledger

8. 8 #APICS2017
A (non-blockchain) ledger most of us
have encountered… a bank account
Involves multiple parties
(me, my bank, stores and
other parties)
Ledger is only updated
when a properly configured
transaction has been
received.
At least 3 parties agree to
most transactions: the bank,
the other party, & myself.
(Could also include a
second bank, and a
payment-processing
company.)
Ledger status may lead to
actions (“suspicious
transaction” notification,
low balance, etc.)

9. 9 #APICS2017
But we can do a lot more with Blockchain…
Post Date
Time (GMT
+ 8) Transaction Description Serial Number SN Payload Details
15-May-17 13:00 New SN Created TFM17515.1367 112 kilos fresh yellowfin tuna Prepared 15 May 2017/ 12:58
15-May-17 13:02 SN Transferred to Shipment TFM17515.1367 112 kilos fresh yellowfin tuna Added to Ship Ticket 8573
15-May-17 13:10 SN accepted on Transport TFM17515.1367 112 kilos fresh yellowfin tuna Refrigerated Truck, TN3 135
15-May-17 13:30 Transport Started TFM17515.1367 112 kilos fresh yellowfin tuna -3∘C
15-May-17 15:23 Destination Reached TFM17515.1367 112 kilos fresh yellowfin tuna Avg temp -2.8∘C / MAX -1.5∘C
15-May-17 15:25 SN accepted at destination TFM17515.1367 112 kilos fresh yellowfin tuna Avg temp -2.8∘C / MAX -1.5∘C
15-May-17 15:26 Funds Transfer Initiated TFM17515.1367 112 kilos fresh yellowfin tuna ¥616,000
• In this scenario, a lot of fresh fish is given a serial number & then
tracked from source, to transport company, to destination.
• IoT devices monitor temperature while in transit & report on average
and maximum temperature reached.
• Once the shipment has been accepted at the destination, a payment is
processed for the fish.

10. 10 #APICS2017
Bank
record
s
Party A’s
records
Party C’s
records
Auditor
records
Party B’s
records
Party D’s
records
Problem…
Two (or more) parties want to exchange
assets, but the process is manual & time-
consuming (possibly due to lack of trust,
different viewpoints / requirements/
standards/ etc.)
and Blockchain Solution:
A shared, secure, synchronized and stable
record of transactions, called a ledger.
This provides: Consensus, assured
provenance, immutability
Blockchain provides a solution for complex, multi-party, “high-
friction” processes.

11. Business networks
reshaped and profit
pools are redefined
Opens New
Business
Models
Reduces
Risk
Due to errors,
misunderstandings and
conflicting standards,
as well as tampering,
fraud & cyber crime
Removes
Cost
Overheads and
cost intermediaries
Saves
Time
Transaction time
from days to near
instantaneous
Blockchain benefits – from reduced time, cost & risk;
and increased confidence.

12. 12 #APICS2017
Blockchain’s key attributes enable building powerful business
applications on a shared ledger
Source: IBM Institute for Business Value analysis
Shared: All parties can access the ledger.
Blockchains aren’t owned by any one organization.
Secure and immutable: Cryptography ensures that
network participants see only the parts of the ledger relevant
to them. Transactions can’t be altered after the fact.
Synchronized and Transparent:
Transactions are updated in real time across the Blockchain.
Consensus-Based and Controlled: Participants can ensure valid
transactions before they are recorded using smart contracts.
Government requirements & audit can be built into the Blockchain
application too.

13. 13 #APICS2017 13
Letter of credit
Buyer’s bank issues LC
and sends to seller’s
bank
Importer
Bank
Exporter
Bank
Seller’s bank authenticates LC
and credits Exporter
Sales contract
Exporter
Seller/beneficiary
Importer
Buyer/
applicant
Buyer applies
for LC

14. 14 #APICS2017
Applying the technology: Blockchain’s strength
in solving real-world business problems.

15. 15 #APICS2017
Applying the technology: Blockchain’s strength
in solving real-world business problems.

16. 16 #APICS2017 16
Use Cases for Blockchain … look for multi-party,
complex and inefficient business processes.
Append-only
distributed system of
record shared across
business network
Business terms
embedded in
transaction database
& executed with
transactions
All parties agree
to network verified
transaction
Ensuring appropriate
visibility; transactions are
secure, authenticated
& verifiable
Privacy
Shared
ledger
… Faster processing, lower cost, increased efficiency
Smart
contract
Consensus
Especially pay attention to situations where people express frustration or mention that
customer service or business performance suffers because of a particular process.

17. 17 #APICS2017
Contraindications*:
When you should think twice about using blockchain…
• An existing automated solution provides acceptable performance
• All that is desired is a transaction processing replacement
• High-performance (millisecond) transactions are expected (e.g. for credit
card processing). Blockchain performance is “near real time” – sub-one
second to minutes, depending on requirements & architecture design.
• There’s only one participant (but there is some consideration of use within
companies with separate, highly independent organizations)
• It would only be used to exchange messages
(it isn’t email… something of value should be exchanged)
• Transactions will be low value, high volume
Note that as blockchain matures, these may change or shift.
*All of these are subject to the specific requirements of the use case.

18. 18 #APICS2017 18
Sample Use Cases Quality + Procurement
• Supplier Certification
• Quality Data Exchange
Ø Dispute Resolution
Finance
Ø Global Finance
• Car Lease
Engineering
• Design Sharing/
Synchronization
Ø Remote Device Control
Operations/ Supply Chain
• Contract Mfg. Mgt.
• Product Visibility
• VMI/SMI
Ø Logistics
Ø Customs Clearance
Provenance
• Conflict Minerals Mgt.
Management
• Counterfeit Prevention
Ø “Cold Chain” for foods

19. 19 #APICS2017
Electronics OEMs can better manage the flow
of critical components to EMS providers
Critical component suppliers want to deal directly with
the OEM, but the components need to be delivered to an
electronics manufacturing services (EMS) provider, via a
third-party logistics (3PL) provider.The OEM is forced to
manually execute transactions based on manual
notifications from the 3PL and EMS.
Use a blockchain shared ledger to manage a separate
financial flow (supplier to OEM to EMS) and physical
flow (supplier to 3PL hub to EMS) with a smart contract
that automatically executes the financial transactions
when physical actions have occurred.
Problem
Financial flow
Physical flow
Blockchain solution
Componen
tsupplier 3PLhub
operator
O
E
M
EMS/as
sembler
Financia ow
Physica ow
OEM purchases parts
at contract price, sells
onward to EMSat
“market” price
Shared
ledger
▶ Use case:
Contract Mfg. Mgt.

20. 20 #APICS2017
Use a blockchain shared ledger to track and trace
product all the way from the EMS’s production line,
through the shipping process,to each possible
destination.
Blockchain solution
shared
ledger
Custom
e
r
Dist. center
O
EM
whse
OEM
EMS Provider
3PL
OEM
OEMs working with EMS providers can spend a large
amount of time tracking and determining exactly how
many products have been completed.
Problem
Tracking
Although some
of this tracking
may be automated,
most of it requires
frequent personal
interactions.
Visibility across the supply chain give
OEMs info on “where are my products?”
▶ Use case:
Product Visibility

21. 21 #APICS2017
Similar to Product Tracking, but with a focus
on supplier-owned inventory that is intended
for use by a particular customer.
SMI/ VMI often involves a
3PL-managed hub where the
supplier-owned goods are
stored. The central problem is
that:
The supplier owns the goods
but doesn’t have physical
control of them.
The 3PL has physical control
of the goods but doesn’t own
them.
The customer neither owns
the goods, nor has physical
control while they are at the
warehouse, but needs real-
time information on them –
and determines when to take
ownership of them.
Blockchain provides an elegant solution.
▶ Use case: Supplier-Managed
Inventory (SMI/VMI)
Component
Supplier 1
Component
Supplier 2
Component
Supplier n
3PL Warehouse Customer Factory
*Payment
Information Flow
*Physical Flow
Ledger has security that permits each supplier to only
view their own data.
Component Suppliers post shipments to the shared
ledger; receive inventory status from the warehouse &
transactions from the customer.
3PL Warehouse reports inventory & transactions.
Customer views inventory & pulls stock from
warehouse.
Component
SupplierComponent
SupplierComponent
Supplier
Shared Ledger
*Physical Flow is an independent process but must update the ledger.
*Payment may be a completely independent process.

22. 22 #APICS2017
Global Trade Digitization
22
An open, extensible platform for sharing shipping events,
messages, and documents across all the actors and systems in
the supply chain ecosystem.
Provider of interface:
value-add partners
Event
publishers &
subscribers
GTD
Platform
Customs
Dashboard
Logistic
actors
internal
systems
Supply
Chain
Visibility
systems
Port community
systems
Transportation
management.
Authorities
Trade Associations
Carriers
Supply Chain
Actors
Terminals
Supply Chain
Management
Workflow Capability
Providing Trusted, Tamper-Proof, Cross-Border Workflows
for Digitized Trade Documents
Visibility Capability
Providing Shared Visibility and Shared State for
Container Shipments
Real Time Access to Container
Events Across Participants
▶ Use case:
Logistics

23. 23 #APICS2017

24. 24 #APICS2017
Use blockchain’s “Provenance” (asset tracking) capabilities
to track and trace minerals from mines to smelters to
componentmanufacturing to the product assembler.
Blockchain solution
shared
ledger
Assemble
r
Component Mfg.
Re
ner
OEM
Mine
Smelter
Consortium
Companies are complying with the requirements of the
Dodd-Frank Act, but audits are only a partial solution.
Problem
Audit
Materials
broker
The mine, smelter,
or refiner may
or may not be
compliant.
Conflict minerals management is difficult,
but Blockchain delivers “proof”
▶ Use case:
Conflict Minerals
Management

25. 25 #APICS2017
The semiconductor manufacturer adds a unique code
to each device, then registers it in a ledger where it is
tracked and traced.
Blockchainsolution
Registerseach device
via unique code
Shared
ledger
OE
M
factory EMS fac
tory
Updates ledger where
each device sold
Link each
device to a
product’s
serial #
High-end semiconductors are sometimes faked and sold
on the grey market.
Problem
Counterfeit
Semiconductorsold
on grey market
Blockchains create immutable audit trails
which improve counterfeit prevention
▶ Use case:
Counterfeit
Prevention

26. 26 #APICS2017
Food traceability through Blockchain Provenance
• secure documentation of key data: raw materials,
machinery, processing, & logistics.
• product packages labeled using RFID or bar/QR
code for regulators and consumers
• aggregate products into packages
• validation of packages to ensure no fraudulent
replacements / introduction of counterfeits
• disaggregation of product packages and
re-packaging for retail stores
• visibility of product across lines of transport
• retrieval of traceability information at checkout
• checkout transactions disabled for expired products (or
alarm raised)
• customer ratings and preferences with regard to the
source of the product
• end-to-end visibility of each product path across the
supply chain
• check compliance with respect to machinery, expiry dates,
product quantities, etc.
• certify the supply-chain; creation of audit records
Manufacturer
Breeder
(Farm)
Distribution
Center
Retail Store Consumer Auditor
UNDERLYING
BLOCKCHAIN
PROVENANCE
CAPABILITIES
association of
labelingwith
data on
Blockchain
product data
aggregation and
disaggregation
end-to-end
permissioned
visibility
basic
analytics
authentic
traceability
through
immutability
information
retrieval
in a simple
manner
audit capabilities:
handle changing
regulations through
smart contracts
Requirements
▶ Use case:
“Cold Chain”

27. 27 #APICS2017
Use a blockchain ledger visible to the supplier,the lab and
OEM(s), with security permissions by supplier.As soon as
the lab completes its tests, results are visible to the
supplier, which can then share with multiple OEMs.
Shared
ledger
Supplier F Supplier E
Blockchain solution
Components
upplier Third-pa
rtytestinglab
OEM1 OEM
2
Cantest
and certify
materials
OEMs make individual demands on suppliers for
detailed tests; for highesttrust level,use third-party labs.
Interaction is point-to-point, manual and time-consuming.
Problem
Written
certification
Test lab sends the
results first to the
supplier, thenreceives
authorizationto share,
thensendsto the OEM.
Results
Authorization
Outside testing organizations validate
suppliers’ parts; Blockchain’s shared ledger
permits immediate access to test results.
▶ Use case:
Supplier
Certification

28. 28 #APICS2017
Suppliers feed quality/ process/ parametric data to a
blockchain-based ledger as they produce components,
for review by the OEM. The OEM can review each
production lot’s data before it is received (or even
shipped),to ensure that inbound materials meets all
requirements.
Routine sharing of key data on component
production lots will improve product quality
and speed up incoming inspection.
▶ Use case:
Supplier
Quality Data
OEM
When quality data is needed,it usually gets transmitted
via email (no security, limited access). Low reliability that
data will be transmitted on a consistent basis, hard to
verify and validate data. Data formatted inconsistently.
Difficult to count on data availability.
OEM
Email Shared
Ledger

29. 29 #APICS2017
Car Lease Title Management
via Blockchain
29
▶ Use case:
Car Lease
FROM:
§ Point-to-point
interactions are
slow.
§ No visibility to
other stages.
TO:
§ Single shared ledger provides easy transfer
between multiple stages of the process.
§ Different participants can initiate or approve
transactions, add data, or view information
depending on their role in the process.
§ Full visibility of inventory at different stages
benefits all participants.

30. 30 #APICS2017
Blockchain would permit design data to be
selectively shared and synchronized with all
partners
Problem Statement: OEMs work with outside design companies as well
as external manufacturing services. In some cases, a reference design
may be provided by a component supplier; in other cases, the OEM’s
own design may need to be shared securely – and kept perpetually
coordinated – with outside assemblers.
External
Design
Company
Factory
#1
OEM Design
Staff
Ledger
Factory
#2
Program Management controls which
factories see which design versions
Program
Management
Design Data
▶ Use case:
Design Data
Sharing

31. 31 #APICS2017
Remote Device Access & Control
Two projects in Europe to utilize solar
batteries or Electric Vehicle batteries to store
or provide energy to the electric grid.
Blockchain connects via client-preferred
cloud & IoT to devices. Same concept could
be used to control, disable/enable, update
other kinds of devices on a network or cloud.
▶ Use case:
Remote Device Control
Power Grid
Operator
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Batt.
1010

32. 32 #APICS2017
So… what is IBM doing
with Blockchain?

33. 33 #APICS2017
Three areas of engagement
• Building Blockchain Proof-of-Concept and Pilot projects for
clients; then fine-tuning and scaling the applications for
formal deployments.
• Building Blockchain applications for internal use:
• Invoice Dispute Resolution/ Prevention
• Global Finance
• Customs Declaration
• Building Blockchain into existing IBM offerings
• IBM Supply Chain Business Network

34. Making blockchain real for business with over
400+ engagements and multiple active networks
Trade Finance Pre and Post Trade Complex RiskCoverage
Identity/ Know your customer (KYC) Unlisted Securities/ Private Equity Funds Loyalty Program
Medicated Health Data Exchange Fraud/ Compliance Registry Distributed Energy/ CarbonCredit
Supply Chain Food Safety Provenance/ Traceability
© 2017 IBM Corporation
34

35. 35 #APICS2017
Customer
Order
Mgmt
Manufacturing
Distribution
Customs
Offices
Customer &
Business
Partner
Logistics
Provider &
Transportation
Order
Management
• The creation of customs declaration documents is complex in a
distributed supply chain.Customs invoices require sales data,
product information, MFG details, as well as logistics
information. The process is highly manual, and requires
constant attention to assure compliance.
• Third-party providers with local knowledge often handle the
customs declaration process with the authorities.
• IBM is building a Blockchain-based process to automatically
collect and manage data at the pointof creation from
ordering,manufacturing and shipping in a replicated,
distributed ledger.
• The customs authority will automatically pull the required
information from the sources with the benefitof transparency,
trust, and immutability.
• Benefits for manufacturers will be reduced work to prepare
the required customs information, cost avoidance of
customs penalties, and reduced lead times.
• The customs agencies will see reduced manual verification
and investigations to identify fraud and better headlights
to plan workload.
Blockchain for Customs Declaration
Shared Ledger
▶ Use case:
Customs

36. 36 #APICS2017
Integrating Blockchain to a Business Network
Existing e-Hubs / business networks are set up primarily to:
• exchange data between partners
• using existing standards (e.g. EDI, RosettaNet, etc.)
The focus is to transfer the data – not to retain it. (Exceptions exist.)
Data exchange is point-to-point (e.g. Supplier-Customer or Supplier-Logistics
Company); data transfers are in one direction at a time.
There can be significant barriers for new partners to participate in existing
networks. (Enabling EDI or RosettaNet is not a trivial exercise.)

37. 37 #APICS2017
IBM Supply Chain Business Network
One connectionto IBM provides
access to all your trading partners
regardless of protocol or format
• Connectivity
• Transformation
• Visibility Tooling
• Reporting
Key Stats
• 6,700 customers
• 2.6B transactions / year
• 435,000 pre-configured trading partners
• 120 interconnects with EDI networks
• Ave turn around time (no trans): < 3 sec
• Average file size: 4.4 kb
• Largest file (May ‘17): 527 MBs
• NA & European Data Centers to meet
privacy & data residency
• 99.98% uptime and 96.4% customer
satisfaction
• File Formats: EDIA, UCS, WINS, X12,
Rosettanet, COMPORD, TRADACOMS,
ODETTE, EDIFACT, VDA, RND,
PEPPOL, Flat File, Proprietary, Binary
(ie PDFs) and XML
• Protocols: AS2, Connect:Direct, FTP,
HTTP, SMTP, X.400, OFTP, MQ, SOAP
SCBN
Essentials Standard PremiumSecondary Offerings
• Document Conversion Services
• Web Forms
• E-Invoicing
• File Transfer
• Real Time APIs
Quantifiable ROI (IDC - 2016)
• 308% average ROI
• 7.8 month payback
• 75% less staff time to support B2B Ops
• 65% less time for call center support
• $3 million average additional revenue
Core Industries: Retail, CPG, Manufacturing,Dist.
• Improve service levels – internal& externalcustomers
• Comply with customer & government mandates
• Free up internal IT staff for other projects
• Improve time to market / project acceleration

38. 38 #APICS2017
Adding Blockchain to the IBM Watson Supply will:
• Bring seamless bi-directional integration between Supply Chain
Business Network (SCBN) with applications on IBM Blockchain
• Allow Supply Chain Business Network clients to leverage the IBM
Blockchain platform for solutions requiring shared visibility across
multiple participants
• Allow IBM Blockchain clients to leverage IBM Supply Chain Insights
for advanced analytics across supply chain processes and cognitive
resolution rooms for disruption management.
IBM Confidential
Leverage current Supply
Chain Business Network
Deliver Enhanced Value
to IBM Clients
Leverage IBM Blockchain
Platform

39. 39 #APICS2017
Consider the interactions between buyers, suppliers and logistics providers
who use EDI messaging for their business communications
NOTE: In this model, the carrier is contracted by the supplier.
Today
Without Shared
Visibility Ledger
Tomorrow
With Shared
Visibility Ledger
• Messages are point to
point, one way
communications
• Each party has unique
and limited visibility
• Each party has their own
version of the truth
• Messages still travel through
the business network, but
selected messages are
written to the shared ledger
and can be shared
• All permissioned parties
have broader visibility
• Shared, singular, immutable
version of events
Shared
Visibility
Ledger

40. 40 #APICS2017
Typical Procure to Pay scenario for buyers, suppliers and logistics providers who
use EDI business communications
PO
ASN
INV
Remit
Adv
RFT
Tender
Ack
Status
Status
Status
Delivery
Notification
NOTE: In this model, the carrier is contracted by the supplier.
PO
Ack

41. 41 #APICS2017
When carriers are contracted by the supplier, buyers lose visibility
I need to optimize
inventory levels
I need to drive efficiency
into my operations
I need a better way to
track supplier
performance
PO
PO
Ack
ASN
RFT
Tender
Ack
Status
Status
Status
Delivery
Notification
Buyer's
blind
spot

42. 42 #APICS2017
The supplier receives the delivery notification from the carrier, but the buyer has
his or her own view of when delivery occurred
I need to know if our
deliveries are on time
I need to improve my on
time delivery
I need to be able to hold
my carrier accountable
PO
PO
Ack
ASN
RFT
Tender
Ack
Status
Status
Status
Goods
receipt
Delivery
Notification
Do they
match?
Receipt

43. 43 #APICS2017
When the carriers have no visibility to the buyers' claims, they lose opportunities
for improvement
I need to know why my
clients think my
deliveries are late
I need to know which
drivers need to be
coached to improve
I need a better way to
track damage claims
PO
PO
Ack
ASN
RFT
Tender
Ack
Status
Status
Status
Damaged
in transit

44. 44 #APICS2017
Establishing a shared ledger of events can address multiple pain points
I need to optimize
inventory levels
I need to drive efficiency
into my operations
I need a better way to
track supplier
performance
I need to know if our
deliveries are on time
I need to improve my on
time delivery
I need to be able to hold
my carrier accountable
I need to know why my
clients think my
deliveries are late
I need to know which
drivers need to be
coached to improve
I need a better way to
track damage claims

45. 45 #APICS2017
The parties agree to take action and decide to implement IBM Blockchain’s
Procure to Pay Application
Shared
Visibility
Ledger

46. 46 #APICS2017
Current SCBN clients can view their network documents in business context
Network Visibility Summary view of all
network documents
Correlated documents
with details for a
specific event

47. 47 #APICS2017
Shared Visibility Ledger (SVL) “Founders” can configure the solution
SVL Configuration
Configure Participants
Configure Documents for
participants
Configure data fields for
participants

48. 48 #APICS2017
Participant receives
Welcome Notice
Accept/Reject/Configure their own
DOCUMENTS and DATA FIELDS
SVL ”Participants” approve / edit the configuration
SVL Configuration
Sign on to SCBN
onboarding framework

49. 49 #APICS2017
SVL Founders and Participantscan manage their channels
SVL Channel Management
See details of the
configuration of a channel
See all active channels
and the status of
participantapprovals

50. 50 #APICS2017
Toggle between views.
1. See just your network documents
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51. 51 #APICS2017
Getting Started with
Blockchain:
Practical Aspects

52. 52 #APICS2017
Making the case for Blockchain
Business cases for Blockchain can be compelling, because it:
Enables compliance with applicable laws and regulations, or with a customer’s
requirements
Eliminates a major problem (such as counterfeit materials in their supply chain, via
Blockchain’s provenance capabilities)
Saves time in a complex business transaction or process
Saves money (by reducing time spent, reducing labor, or eliminating certain process steps
or costs) in a complex business transaction or process
Eliminates a middleman or a non-value-added process step, resulting in time and cost
savings
Enables a new process that would be impossible or impractical without some aspect of
the shared, secure ledger

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Alternatives
Some blockchain applications could be built with other tools (databases, EDI/ RosettaNet, BPM, ERP
modules, etc.). Why would you choose blockchain over those options?
If there is an existing solution that operates at acceptable performance and cost, you may want to consider
using blockchain to solve a different problem. But clients have chosen blockchain as the best solution, due
to a combination of beneficial factors – often including:
Platform that can be extended to many partners
High level of Security, including selective access (each partner can only view the information that they have
‘rights’ to)
“Immutability” – the information recorded in the ledger is permanent and can’t be changed
Smart Contract/ business process management capabilities (the ability to initiate actions based on data in
the blockchain ledger)
The ability to incrementally solve a business problem -- something that a customized SAP-based solution
can't do, for instance.

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Getting started with Blockchain:
IBM 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 pilotor Scale
out to new projects
2. Business Process
Re-engineering
3. Systems Integration
Remote Digital Face to face Face to face
Let’s
Talk
Blockchain
Hands-on
First
Project
Scale

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Designing a Blockchain network
The Blockchain network is designed to meet the business requirements of its
sponsor and the other participants in the process. It’s typically done by a
Blockchain architect.
The requirements to participate in a Blockchain network may range from “just
a browser” to a server. (Depends on type of participation, transaction rate,
and data load – the transaction contents. How IoT devices are integrated into
the Blockchain can also have an effect.)
Not every participant needs to have a copy of the Blockchain on their own
servers.
The sponsor of the network will most likely make the most significant
investment. Most ”operations” networks do not require a big investment for
the partners in the network.

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Partner Engagement
If you want to “sponsor” a Blockchain process, how do you get other
companies to participate?
The answer is similar to any other solution that is led by one party but needs
participation & cooperation from others: find a way to ensure that
Benefit exceeds Investment
In other words, work to minimize investment needed by designing your
network & process efficiently; and maximize real and perceived benefit to
the partners.

57. 57 #APICS2017
IBM Strategy – Our Vision
Enable untrusted parties to work together leveraging permissions and identity, to ensure
data and transactions are protected and consistent
Regulated business environments without anonymous participants
Blockchain ≠
Open
Trusted
For Business
Blockchain needs to be built in a robust technology environment providing security,
confidentiality, auditability, reliability and scalability
The foundation of the industry processes, both the technology and the community, need to
be open: Open source, governance & ecosystem
One of 17 founding members of Hyperledger, a Linux Foundation Project (12/2015)
120+ cross-industry, global companies
Hyperledger Fabric, initially contributed by IBM, is in V1.0 alpha

58. 58 #APICS2017
Hyperledger, a Linux Foundation project
Enable adoption of shared ledger technology at
a pace and depth not achievable by any one company or
industry
– Announced by The Linux Foundation on December 17, 2015
with 17 founders, now over 130 members
– Hyperledger is an open source and openly governed
collaborative effort to advance cross-industry blockchain
technologies for business, hosted by The Linux Foundation.
– Hyperledger Fabric is a blockchain framework implementation
and one of the Hyperledger projects, intended as a foundation
for developing applications/solutions with a modular architecture
www.hyperledger.org
Associate
General
Premier

59. 59 #APICS2017
Hyperledger Fabric: built for Cross-Industry use in
regulated businesses from the ground up
Network tools
IBM provides tools for monitoring, logging,
and for compliance reasons
backup/restore
Permissioned membership
Operate a trusted blockchain network with
known participants and regulatory
oversight
Channels
Enable multi-party transactions with the
privacy and confidentiality needed for
regulated industries
Transaction history
Searchable transaction history for efficient
auditing and dispute resolution
Partitioned execution
Optimize network performance by
separating chaincode execution and
transaction ordering
Modularity
Select preferences for number of peers,
consensus, identity management, and
encryption to dynamically grow a business
network
Confidentiality Production Workloads

60. 60 #APICS2017
Hyperledger Composer: Accelerating Time to Value
Business Application
Hyperledger Composer
Blockchain (Hyperledger Fabric)
– A suite of high level application abstractions for business networks
recently accepted into Hyperledger
– Emphasis on business-centric vocabulary for quick solution creation
– Reduce risk and increase understanding and flexibility
– Features
– Model your business networks, test and expose via APIs
– Applications invoke APIs transactions to interact with business network
– Integrate existing systems of record using loopback/REST
– Open source and freely available at https://github.com/hyperledger/composer

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Additional Resources

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Learn More
Some useful videos:
https://youtu.be/lD9KAnkZUjU (includes diamond
example)
https://youtu.be/IgNfoQQ5Reg (car lease)
https://youtu.be/tdhpYQCWnCw (Maersk)
Smart Parking Meter video:
https://youtu.be/xa5U5dipdMY
Fast Forward” report is at https://www-
935.ibm.com/services/us/gbs/thoughtleadership/blockchain/
Blockchain in Electronics report is at
www.ibm.biz/blockchainelectronics
Additional info at https://www.ibm.com/blockchain/
A useful infographic:
https://public.dhe.ibm.com/common/ssi/ecm/gb/en/gb912362us
en/GB912362USEN.PDF

63. 63 #APICS2017
Contact for further info:
Quentin Samelson
+1 224 407 7812
qbsamels@us.ibm.com