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Achieve supply chain visibility from earth’s core to corner store.

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It’s a complicated process getting oil and gas from the earth’s core to the corner store. See how IBM Blockchain can help.

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Achieve supply chain visibility from earth’s core to corner store.

  1. 1. Achieve supply chain visibility from earth’s core to corner store.
  2. 2. It’s a complicated process getting oil and gas from the earth’s core to the corner store You have an extensive supply chain network exchanging assets, goods and services. Your Customers Customer B Customer A Customer C Customer D Your Company Exploration & ProductionProcurement Engineering Regulators Your Supply Chain DistributorsSuppliers Partners Joint Ventures
  3. 3. Each participant in the value chain network records their transactions in their individual ledgers Every transaction must be manually reconciled among other participants in the network. The process becomes even more complex when third-party validation is needed to resolve disputes. The reconciliation process is:  Time-consuming  Susceptible to errors  Prone to manipulation Multiple ledgers Multiple transactions Third party validation
  4. 4. For a network to function properly, transactions must be recorded accurately in a system that is accessible to all participants IBM Blockchain delivers one single, visible, immutable, scalable, real-time truth to all participants. A wants to send money to B The transaction is represented online as a “block” The block is broadcast to every party in the network The money moves from A to B The block then can be added to the chain, which provides an indelible and transparent record of transactions Those in the network approve the transaction is valid
  5. 5. Blockchain technology can transform your value chain “Over the past two decades, the internet has revolutionized many aspects of business and society – making individuals and organizations more productive. Yet the basic mechanics of how people and organizations execute transactions with one another have not been updated for the 21st century. Blockchain could bring to those processes the openness and efficiency we have come to expect in the Internet Era.” Arvind Krishna IBM Research
  6. 6. The tenets of IBM Blockchain technology  Shared ledger Append-only distributed system of record shared across business network  Smart contract Business terms embedded in transaction database and executed with transactions  Privacy Ensuring appropriate visibility; transactions are secure, authenticated and verifiable  Consensus All parties agree to network-verified transaction Indelible ledger Need a permanent, indelible record of transactions. Distributed ledger Need to share data across multiple companies. Smart contracts Business rules and data used in transactions should be visible to multiple members. Distributed No central point of control or ownership (no shared server).
  7. 7. Benefits of IBM Blockchain adoption  Reduce the cash cycle time from months and days to almost instantaneously  Lower overhead and reduce the number of intermediaries  Make tampering, fraud and cyber crime much more difficult  Increase the level of trust “Over the next 10 years…Blockchain technologies will change a great deal about how the oil and gas industry works.” 2 In the next two years, “we think this could reduce costs, certainly on payments, by 30 percent,” within the Oil and Gas industry. 3 2. http://www.mckinsey.com/industries/oil-and-gas/our-insights/five-technologies-for-the-next-ten-years 3. http://www.the-Blockchain.com/2016/10/19/oil-industry-exec-bullish-Blockchain-says-save-30-percent-supply-chain-savings/
  8. 8. IBM Blockchain enables multiple use cases across the value chain Billing & invoicing errors Product exchange accounting reconciliation Hydrocarbon accounting invoice & reconciliation Asset life cycle management Product exchange accounting reconciliation Incident reporting Many other additional use cases to help your business
  9. 9. Why IBM? Clients choose IBM because we are the only company who can bring together deep Chemicals and Petroleum industry and process expertise with our cloud-based tools and secure blockchain services to establish trusted blockchain networks and solutions. We strongly believe in the value generation potential of blockchain and use it in our own IBM Global Financing business. The results speak for themselves; IBM Global Financing freed up 40% more capital and decreased dispute resolution time from 75% with our solution.
  10. 10. Start planning for IBM Blockchain adoption now …so you can become more productive now and realize even greater benefits with increased adoption of Blockchain throughout your supply chain. Learn how you can increase your supply chain visibility from earth’s core to corner store. Visit www.ibm.com/blockchain/geetting-started.html for more information or to speak to a blockchain expert

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