From a lecture at CBS. The CC-project is presented as a case on open innovation. CC delivers an open RFID solution to the European hortucultural industry and by providing the basic infrastructure, a significant number of innovations have been seen across the sector. The solution covers 80.000 users in 22 countries.

1. 1 © 2011 IBM Corporation

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4. © 2011 IBM Corporation

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6. Billion
6 Source: Cisco IoT 2011 infographic

7. IBM Global Business Services
340.282.366.920.938.463.463.374.607.431.768.211.456
7 © 2011 IBM

8. We are moving into a new scenario where the needs to
connect the physical and digital worlds are exponentially
increasing
“
”
INSTRUMENTED INTERCONNECTED INTELLIGENT
Objects gets sensoring abiliy, technology Objects are interconnected by networks building Ccompetitive power comes from the ability to
controls awareness of objects Internet of Things analyse and understand network of things

9. We are ushering in a new wave of innovation
Age 6th Wave
Age of IT &
of Oil, Cars Telecom
Age
and Mass
of Steel,
Production 5th Wave
Electricity
and Heavy
Engineering 4th Wave
Smarter
Innovation
Age
3rd Wave
of Steam
and Railways
Products
The
Industrial
Revolution 2nd Wave
 Instrumented, interc
1st Wave onnected,
and intelligent
 Building blocks
for a smarter planet
 Sustainability
1770 1830 1875 1920 1970 2010
*Source: “Next Generation Green: Tomorrow’s Innovation Green Business Leaders”, Business Week, Feb 4, 2008

10. The ”Internet of things” is one of the most significant opportunities
for business transformation ever, and is relevant for all indstries
SOLUTION EXAMPLES
Pharmaceuticals Retail Transportation Food Manufacturing Healthcare Construction
• Prevent product • Optimise storage • Process • Provide visibility • Manufactoring • Control and • Improve logistics
counterfeiting and inventory improvements due on food history control processes visibility of processes
processes to increased logistics
• Ensure full • Controlled • Quality control • Improve in-
visibility processes
traceability in • Improve store transports process quality
• Optimise use of
product process • Route optimisation • Locate eqipment control
• Quality control raw materials
deliverables in hospitals
• Build additional • Temperature • Construction site
• Process • Provide customer
• Partner integration customer services controlled • Clinical sensoring security and
optimisation services via item
based on item transports solutions access control
• Regulatory control level identification
level identification • Control of farming
• Equipment • Distance medicine • Tool-tagging to
• Manifacturing process • Real-time location
• Product anti- tracking and optimise use and
optimisation services to • Patient control and
counterfeit control • Regulatory control prevent theft
improve visibility services
• Item level insight initiatives
• RFID baggage • Illness • Integrate physical
• Improve work • Integrate analysis
• Supply chain tracking identification site with 3D
environment and and lab equipment
optimisation construction
• Geo-location of • Consumer security
• Sueveillance model
transport items information
services • Improve
• Security
construction
process
10

11. IBM Sensor Solutions
Tag
Antenna Reader
© 2009 IBM Corporation

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13. GROWER: GREENHOUSE GROWER: PLANT OUT ROBOT AUCTION: TRADING FLOOR
AUCTION: STORAGE AREA AUCTION: INTERNAL LOGISTICS AUCTION: TRANSPORT ROBOT
© 2011 IBM Corporation
EXPORTER: REPACKAGING CC DEPOT: INBOUND/OUTBOUND CC DEPOT: SHELF STORAGE

14. The Flower Container is the de facto standard for transports of
flowers and potplants across Europe
 Started in 1976, the Container Centralen
system was created due to demand for a
returnable transport item solution
 Based on and exchange and balancing system
leading to increased efficiency and lower
number of items needed
 3,5 million containers in use, 22M shelves
 100.000 users across 22 countries in Europe
and nearby, e.g. growers, auctions,
transporters, wholesalers, retailers
14 © 2011 IBM Corporation

15. CC provides an european pool system optimising resources across
the green sector supply chain
 The CC Pool System is in principle
based on one-for-one exchange
 Empty units are exchanged for full
units and vice versa
One full unit = one empty unit
 Reduced number of transportation
units in the entire supply chain
 Higher efficiency – lower costs
© 2011 IBM Corporation

16. CC is operating in Europe and US
10 offices and 60 depots in Europe
© 2011 IBM Corporation

17. Container Centralen provides several products using same business
model
© 2011 IBM Corporation

18. From 2004 and onwards, an industry group have been focusing on
introduction of RFID in the Green Sector
• Closing of the pool – a fair system with no free-riders
• Protection of the common industry’ investment (+250 MEUR)
• Improved quality of the pool
• Cost reduction on Pool Fee
• Less sorting of low-quality containers
• CC is offering the RFID and Collection Service to retailers
• Common European solution for the industry
• With a closed pool we can start product development, e.g. shelves, wheels etc.
• Opportunity for Track/Trace as next step
18 © 2011 IBM Corporation

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20. The problem: Containers are being counterfeited leading to severe
problems for all involved supply chain partners – from grower to
retailer
• Containers are counterfeited • Low quality clones causes • Container Centralen
by 3rd party severe problems in supply responsible for repair &
• Assumed 10%, i.e. 350.000 chain maintenance, but counterfeits
units • Primary: Large robots in does not have associated
auction houses, transport contracts
• Counterfeit operation very
fast, competent and until now chain, loss of products
un-stoppable
20 © 2011 IBM Corporation

21. However, hardware hackers being one problem, Container
Centralen was faced by a bunch of other issues in regards to
implementation
 To ensure full trust in the supply chain, it is needed to equip
25.000 customers with advanced RFID-equipment
 To build a business case for the full industry
 The solution needed to be rather open, while maintaining a high
level of security
 The solution should enforce a high level of security in all levels of
the supply chain – in an industry not having a tradition for IT-
systems
 A very sad history of previous anti-counterfeiting organisations
 …how to change behaviours at 100.000 users across 22
countries and very diverse cultures
21 © 2011 IBM Corporation

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23. TECHNICAL CHALLENGE:
APPROACH:
Make impossible to clone, copy,
break and use as widespread • Tag all containers with secure
logistics solution at the same tag to count and authenticate
time. Also support use in very • Implement CC RFID inhouse
demanding industrial heavy solution
metal extreeme and high- • Extend to supply chain
humidity environments. partners, e.g. Growers, auction
houses, transporters, exporters,
retail
• Prepare for future track & trace
solution across the Green
Sector
© 2011 IBM Corporation

24. The overall purpose of the RFID solution is to addres a set of
business problems – but also to initiate a larger vision of improved
efficiency and collaboration in the Green Sector
THE CHALLENGE
Containers are being counterfeited Increased cost to handle repair Lower quality containers leading to
and injected into supply chain and maintenance handling problems in Green Sector
THE PROCESS
Deliver framework to allow
Engage stakeholders in Green Spread solution to partners to
partners to build own applications
Sector to participate enable authentication
using CC authentication
THE LONG-TERM VISION
Extend solution to handle track & Enable infrastructure to allow for
trace cross-partner integration
24 © 2011 IBM Corporation

25. The core of the solution provides a mechanism to ensure full trust
among partners in the Green Sector supply chain
 Authenticate equipment to build trust and ensure genuine equipment in all handover-
situations in the supply chain
 Deliver solutions and software components to allow for Green Sector partners getting easy
access to use of RTI authentication
 It is assumed that 25.000 users will require RFID-equipment for authentication
Checkpoint Checkpoint Checkpoint Checkpoint Checkpoint Checkpoint
Growers Transport Auctions Transport Cross docking Transport Retail/DC
Whole-salers
Depot/Wash
Checkpoint
25 © 2011 IBM Corporation

26. Various types of RFID-equipment are used
Tags RFID Readers
 Previous versions have only been housing with
barcode (not used)
 New version contains RFID tag and barcode
 Encoded with industry standard product codes able
to be read by all stakeholders
 Additional user memory used by security solution
 Custom housing, only used by CC – ”Secret design”
© 2011 IBM Corporation

27. Internally in the CC depots the solution streamlines and control
processes around handling containers
27 © 2011 IBM Corporation

28. How to spread the solution: The tag can be accessed in several
ways, resulting in several possible usage scenarios
 The tag acts in general as a normal standard STANDARD RFID DOMAIN
RFID-tag and identification can be read by
any standard equipment RFID READ
 Only in the case that secure authentication is •Read unique tag-identifier
needed, the security functionalty is used (EPC-code) from tag
 Possible applications using the tag are •Standard Gen2 RFID-reader
can be used
therefore not limited to authentication, but the
tag can be used in any identification situation •No authentication
happening
BARCODE READ
CC SOLUTION DOMAIN
•Read barcode on tag
RFID AUTHENTICATION (containing EPC-code)
•Read unique tag-identifier •Standard barcode readers
and barcode-aware RFID-
•Perform authentication readers can be used
•Requires certified reader or
application with
Authentication Component
Note: Illustration does not show final tag design
28 © 2010 IBM Corporation

29. For the supply chain partners the CC RFID Solution provides
several mechanisms to perform authentication and other functions
either out of the box or as custom developed solutions
Handheld devices Fixed gate ”Blackbox”
• Selected standard handheld • A standard fixed gate-setup • A software component to
devices with basic application containing all components to provide authentication and
functionality to perform provide authentication and security update functionality to
authentication of RTI’s counting when RTI’s are existing partner applications
• Currently two models available passing dock-door or other • Integrate into inhouse or
– for small-scale and larger entry standard applications
scale use
All devices, solutions, components delivered via an eco-system of hardware-, software-partners and system integrators
29 © 2010 IBM Corporation

30. Example: The consequence is that variations of track & trace can be
implemented using the basic CC RFID solution as the foundation
Checkpoint Checkpoint Checkpoint
RFID read points to support
Auctions internal processes or partner
Growers Transport integration – no authentication
needed
• Trading partners will be able to use means Whole-salers
of track & trace
• Equipment can be tracked and under • Provide improved internal visibility
some restrictions freight also • Understand use and location of assets
• Platform for data capture and integration • Optimise internal processes
across partners is required
• Standard RFID-equipment can be used
However, it is important to note that the CC RFID solution does not provide track & trace in itself
today. It is the task of the partner to build applications, integration and infrastructure as needed.
30 © 2010 IBM Corporation

31. The solution will lead to a variety of benefits across the Green
Sector
GROWER AUCTION TRANSPORT/EXPORT RETAIL
COLLABORATION
Improvements in process efficiency by gaining full supply chain visibility
Ability to connect to
Clear responsibilities, increased trust between collaboration partners existing tracking
initiatives at low cost
Increased visibility on Optimise supply chain Clear responsibilities
delivery and partner relations in handling equipment
EFFICIENCY
Optimise processes
Improvement potential by using solution in
by internal supply own context, e.g. Improvement potential
chain visibility logistics systems in handling
Avoid handling
problems by only
using high quality Avoid production Avoid production Avoid handling
equipment delays and problems delays and problems problems by only
using high quality
COST
equipment
Stable methods, processes and technologies to clean the pool
© 2010 IBM Corporation

32. Worlds largest RFID implementation
Launched: 10th January 2011
• 3.5 million RFID tags in a unique
housing/padlock
• 25.000 customers have marked their CC Containers
• 100.000 users in Europe have been informed
• Scanners for 60 CC depots and repair shops in whole Europe
• IT infrastructure to handle data and flows
• Scanner solutions for all users in Europe
• Development of an RFID track and trace solution
© 2011 IBM Corporation

33. The suppliers are ready to handle the demand for products
Panmobil
Nordic ID
Alexander & Mielo
33 © 2011 IBM Corporation

34. The solution was rolled out in January 2011 and was recently
named one of RWW’s ”Top 10 Internet of Things Products of 2009”
34 © 2011 IBM Corporation

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36. Remember – this solution was primarily for fighting counterfeiting,
but the vision and the underlying infrastructure are generating a
plentitude of new innovation opportunities
Ad van de Wijdeven,
BAAS Plantenservice Managing Director:
"We immediately saw the opportunities of the RFID tags on the CC
Containers for further speeding up and improving our logistics. Especially in the peak
periods, when we process about 12,000 to 14,000 CCs a day, things can
easily go wrong, and that requires a lot of communication between
suppliers, transporters and our logistical and financial departments. All of this is no
longer necessary because we can see at glance exactly what the status of each
delivery is. Our suppliers and transporters have the
same information. And it all happens automatically!”
In conclusion, Baas Plantenservice is proud of these innovative work methods and invites
other parties in the distribution chain to join in this initiative. "It is in all of
our interests that together we ensure that we maintain the leading position in the horticultural
sector," says Ad van de Wijdeven.
36 © 2011 IBM Corporation

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38. http://www.rfidjournal.com/article/view/8885
38

39. Closing remarks
 The project have been significant success – for CC and the green sector
 The basic assumption to fight a specific problem (counterfeiting) but to build a vision towards
something bigger (track&trace) did succeed and had a positive influence
 The project has a very different benefit profile across Container Centralen and the rest of the
green sector, but have achived full adoption by the industry
 While deploying new technologies, test and verification have been a significant focus area to
ensure the best possible customer experience
 Openness in architecture and solutions have initiated industry innovation
 Marketing and communications have been significant focus areas
39 © 2011 IBM Corporation

40. IBM Global Business Services
Thank you
Kim Escherich
IBM Global Business Services
escherich@dk.ibm.com
+45 2880 4733
internetofthings.dk
escherich.biz
@kescherich
/in/escherich
/escherich
kescherich@gmail.com
© 2011 IBM