Learn how to transform business operations with blockchain.

1. Transforming Business Operations with Blockchain
May 8th, 2018

2. 2
• Welcome / Perficient & IBM (5 min)
• Supply Chain Future (5 min)
• Blockchain 101 (10 min)
• Use Cases (30 min)
• Case Study: Food safety (10 min)
• Open Discussion
Agenda

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Walmart Consumer Packaged Foods: Chain of Custody

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Today’s Speakers
Brian Smith – Perficient, Management Consulting General Manager
Bob Vanek – Perficient, Supply Chain Chief Strategist
Naveen Sachdeva – Perficient, Solutions Director – Blockchain Practice
Russell Hargraves – IBM, Global Industry Blockchain Leader for Healthcare / Life Sciences
Adam Mastrelli – IBM, Blockchain Strategy & Ecosystem Leader

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Perficient Profile
• Founded in 1997
• Public, NASDAQ: PRFT
• 2017 revenue $485.3 million
• Major market locations:
Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, Chicago,
Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax,
Houston, Indianapolis, Milwaukee, Minneapolis, New York
City, Northern & Southern California, Oxford (UK), St. Louis,
Toronto
• Global delivery centers in China and India
• 3,000+ colleagues
• Dedicated solution practices
• ~95% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology
and growth awards

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Our teams work across industries at all levels of the organization to design and implement highly cross-
functional and complex projects and programs focused on driving a value-based outcomes
Supply Chain Management
• Process Maturity Modeling and
Evaluation
• Strategic Roadmap Development and
Implementation
• Strategic Sourcing and Spend Control
• Cycle-Time Reduction
• Inventory and Materials Management
• Field Asset Tracking and Optimization
• Sales and Operations Planning
(S&OP)
Process Optimization
• Customer and Market Segmentation
• Process Design Improvement
• Performance Management
• Financial Reporting and Dashboards
• Efficiency Modeling
• Procure-to-Pay
Transformation Management
• M&A Integration
• Organizational Change Management
• Business Transformation
• Strategic Planning
• Re-organization
• PMO Maturity
• End-To-End Training and Development
Perficient Management Consulting focuses on the vision and strategy of each client to identify
discrete value creation opportunities when there is a burning platform for change

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Partnership & Experience
• Platinum Business Partner, solution provider and reseller
• 18+ year relationship
• Software Value Plus authorized reseller across the entire IBM
software portfolio
• Healthcare and Retail industry authorized
• Multiple Gold-level Accreditations: Business Analytics, BPM,
Commerce
• IBM Software Lab Services partnership, providing internal IBM
access, beta program participation, IBM solution assurance
• National technical delivery team with hundreds of certifications
• Delivering strategy, roadmap, upgrades/migrations, full
lifecycle implementation, health checks, technical enablement
• Authorized IBM Education Training Partner
Enterprise Partner - IBM
Solutions Expertise
• Asset Management & IoT: Bluemix, Maximo, PMQ, Watson IoT. CLICK HERE
• Blockchain: What is Blockchain? CLICK HERE; Blockchain and IoT CLICK HERE
• Cloud: Softlayer, Bluemix, PureApp
• Digital Experience: WebSphere Portal, Web Content Management, Forms
• Business Process Management: Smarter Process, Operational Decision Manager,
BPM, Blueworks Live, Business Monitor
• Connectivity, Integration & APIs: IBM Integration Bus, API Management, WebSphere
Message Broker, Cast Iron, DataPower, WebSphere MQ
• Data & Analytics: Cognos, SPSS, InfoSphere, PureData, FileNet, CM8, Datacap,
StoredIQ, Atlas
• Watson: Watson Explorer, Watson Developer Cloud, Watson Knowledge Studio,
Watson Analytics
• Mobile: Worklight, MobileFirst
• Commerce: Watson Commerce, Sterling OMS, WebSphere Commerce, Tealeaf
• DevOps: UrbanCode, Jenkins, Chef, Puppet

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Supply Chain has evolved with technology over the years
1980’s
Mid
1990’s 2010 Today +
Early
1990’s
EDI
Computer-to-computer exchange of
business documents e.g., 850 PO,
856 ASN, 810 Invoice

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ERP
Companies transition from
mainframe environments to single
suite of solutions encompassing all
business processes, e.g.,
PeopleSoft, SAP
1980’s
Mid
1990’s Today +2010
Early
1990’s
Supply Chain has evolved with technology over the years

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1980’s
Early
1990’s
Mid
1990’s
SUPPLY CHAIN
SOFTWARE
Integration between function specific
specialties e.g., WMS, Demand
Planning, and TMS with your ERP
Today +2010
Supply Chain has evolved with technology over the years

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1980’s
Early
1990’s 2010 Today +
RFID
The cost of RFID tags makes
implementation economically
feasible for a wide variety of
products e.g., Walmart
Mid
1990’s
Supply Chain has evolved with technology over the years

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1980’s
Early
1990’s 2010 Today +
Blockchain and IoT
Do Blockchain and IoT become the
next foundational element of Supply
Chain data communication?
Mid
1990’s
Supply Chain has evolved with technology over the years

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What is Blockchain? - Blockchain solves fragmentation by providing a shared, replicated
ledger with consensus, provenance, immutability and finality
Auditors/
Regulators
No
Blockchain
With
Blockchain
Blockchain
Patients/Members
?
Businesses
?
Payers
?
Health Providers
?
Banking
?
?
Auditors/
RegulatorsPatients/Members
BusinessesPayers
Health Providers
Banking

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The five key forces of Blockchain for Supply Chain
Peer-to peer
network
Append
only
Security & PrivacyProgrammability
Distributed
Ledger Blockchain
Technology
All parties agree & verify transactions
Previous records can not be altered
Built into the transactions recordsCapability to program an activity
based on event
Provides a historical shared ledger
of data and events for every
transaction

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Once verified, this transaction
is represented as a new block
2 31
6 5 4
Someone requests
a transaction
• The requested transaction
is broadcast to a P2P
network consisting of
computers, known as nodes
The network of nodes validate the
transaction using cryptography
The transaction
is complete
The new block is then added
to the existing Blockchain
Blockchain Technology enables us to capture transaction data throughout the lifecycle
of a process or product

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“Unilever believes that complete
transparency is needed for radical
transformation. We want this step to
be the start of a new industry-wide
movement”
Marc Engel, Unilever’s Chief Supply Chain Officer
Customers are demanding supply chain transparency

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Businesses are partnering to digitize Supply Chains on Blockchain
“This new company marks a
milestone in our strategic efforts to
drive the digitization of global trade.
The potential from offering a
neutral, open digital platform for
safe and easy ways of exchanging
information is huge, and all players
across the supply chain benefit”
Vincent Clerc, Chief Commercial Officer

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Reduce or eliminate fraud and errors1
Improve inventory management2
Minimize courier costs3
Benefits of Supply Chain with Blockchain
Reduce delays from paperwork4
Identify issues faster5
Increase consumer and partner trust6

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Use Cases
• Use Case One: Addressing product integrity
issues quickly while avoiding significant
operational and financial disruptions
• Use Case Two: Tracking asset lifecycle
performance and maintenance to establish
value and ensure optimal performance

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Use Case One: Hospital XYZ, implanted X number of knees over the last five years
and has been notified of a failure.
In current state there is no easy way to identify the root cause without conducting a full
scale investigation at each leg in the supply chain
Raw Materials
• Suppliers
• Distributors
Patient
Problem Statement
• Data does not allow for easy identification of root cause
• Lost revenue from scheduled implants suspended
• Each potential failure represents a massive liability
Hospitals
• Porter
• Sky Ridge
• UC Health
• Denver Health
• Anschutz
• Etc.
OEM
• Stryker
• Synthes
• Cardinal Health
• Sonoma
• Etc.
Root Cause Analysis
Distributors
• Warehouse
• Transportation
*Estimated cost of a major recall could be as high as $600 Million per occurrence - McKinsey
Manufacturer
Responsible

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Use Case One: Hospital XYZ, implanted X number of knees over the last five years
and has been notified of a failure.
With Blockchain, there is an easy way to identify all impacted parties once you know
the exact parts that have failed
Identify
Failure
Remove
from Supply
Parts
Identification
Query
Blockchain
Resume
Operations
- Patient reports
failure of knee
implant
- Triage begins
- Emergency surgery
is performed
- Components
inspected
- Part failure
identified
- Log part numbers /
identification codes
- Query part
numbers /
identification
- Source and chain
of custody
identified
- Log failure notice
- System notifies all
parties of failure
- Recall procedures
- Manufacturer,
Distributors, and
Hospitals
immediately
remove from supply
and return to
supplier
- Contact patients
who need
corrective surgery
and triage analysis
- Immediately
resume operations
with new parts and
components or
other alternative
suppliers
- Perform corrective
action surgeries
Blockchain Benefits
• We have immediate access to all data transactions across the supply chain
• Immediate response to patients affected by the recall
• Drastically reduce liability impact per occurrence

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Use Case Two: A home is built, we need to track utility usage once the meter is
installed to determine and create a billing cycle.
Under current state, there is not an automated way to capture these events
Problem Statement
Highly manual, time consuming and is a paper intensive process, which
is not desirable by either provider or customer

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Use Case Two: A home is built, we need to track utility usage once the meter is
installed to determine and create a billing cycle.
With Blockchain and IoT, a more efficient process, a reliable billing cycle can be
established
Blockchain Benefits
• Utilizing smart contracts through Blockchain enables trust and transparency
• Efficiency in bill generation, deployment of field resources, and manual error free
• Tamper resistant records of data

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Case Study: Food Safety
• Tracking From Farm to Table

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Wheat Beer Process Flow

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Farm
Carrier 1 Flour Mill
Carrier 2
Restaurant
Source it from the Farm

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Wheat Farm – Start of Chain
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Using Blockchain, you can determine what data
you wish to track
Farm: Growing Wheat
Process Step Data
Source Location
Farm Name Farm A
Farm Location Address A
Date Planted April 1st 2018
Water Source Water Source A
Fertilizer Ammonium Nitrate
Harvest Date July 15th 2017
Wheat Grade 1 SW
Wheat Moisture 8.9%
Wet Gluten 21.7%
Amount 1 Bushel (60 lbs)

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Farm
Carrier 1 Flour Mill
Carrier 2
Restaurant
Track the Carrier

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Transport to Mill
Carrier 1: Transport to Mill
Process Step Data
Process Input Wheat
Carrier Name Saia
Pickup Location Address A
Pickup Date July 17th 2017
Max Temperature 80 F
Min Temperature 49 F
Storage Humidity 50%
Water Activity 0.55
Drop-off Location Mill A
Process Output Wheat
Amount 1 Bushel (60 lbs)

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Farm
Carrier 1
Flour Mill
Carrier 2
Restaurant
Identify the Mill

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Processing Grain
Flour Mill: Processing Grain
Process Step Data
Process Input Wheat
Mill Name Mill A
Arrival Date July 19th 2017
% Flour Extract 75.5%
Test Weight 60.9 lb/bu
Dockage (%) 0.50%
Protein Content 9.6%
Max Temp 78 F
Min Temp 43 F
Water Activity 0.35
Process Output Barley Wheat
Amount 60 lbs

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Farm
Carrier 1
Flour Mill
Carrier 2
Restaurant
Track the Carrier

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Transport to Brewery
Carrier 2: Transport to Brewery
Process Step Data
Product Input Barley Wheat
Carrier Name C.H. Robinson
Pickup Location Mill A
Pickup Date July 25th 2017
Drop-off Date July 28th 2017

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Farm
Carrier 1
Flour Mill
Carrier 2
Restaurant
Produce at the Brewery

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Brewing
Brewery: Brewing Process
Process Step Data
Process Input Barley Wheat
Arrival Date July 25th 2017
Malting – Steep
Time
24 Hours
Malt Germination
Time
96 Hours
Germination Temp 60 F
Malt Drying Time 7 Hours
Malt Kilning Time 4 Hours
Kilning Temp 180 F
Hops Imported
Water S Platte River
Boiling Time 1 Hour
Bottling 90 Days
Amount 1 Keg (15.5 Gallons)

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Farm
Carrier 1
Flour Mill
Carrier 2
Restaurant
Drink in hand at your table

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Serving Beer – End of Chain
Restaurant: Serving Beer
Process Step Data
Process Input Keg of Beer
Date Keg Tapped August 1st 2017
Storage Temperature 38 F
Keg Expiration Date December 1st 2017
Process Output 16 oz Beer
Amount 124 16oz servings

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Farm
Carrier 1
Flour Mill
Carrier 2
Restaurant
Produce at the Brewery