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Transforming Business Operations with Blockchain


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Learn how to transform business operations with blockchain.

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Transforming Business Operations with Blockchain

  1. 1. Transforming Business Operations with Blockchain May 8th, 2018
  2. 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
  3. 3. 3 Walmart Consumer Packaged Foods: Chain of Custody
  4. 4. 4 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
  5. 5. 5 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
  6. 6. 6 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
  7. 7. 7 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
  8. 8. 8 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
  9. 9. 9 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
  10. 10. 10 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
  11. 11. 11 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
  12. 12. 12 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
  13. 13. 13 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
  14. 14. 14 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
  15. 15. 15 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
  16. 16. 16 “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
  17. 17. 17 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
  18. 18. 18 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
  19. 19. 19 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
  20. 20. 20 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
  21. 21. 21 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
  22. 22. 22 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
  23. 23. 23 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
  24. 24. 24 Case Study: Food Safety • Tracking From Farm to Table
  25. 25. 25 Wheat Beer Process Flow
  26. 26. 26 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Source it from the Farm
  27. 27. 27 Wheat Farm – Start of Chain 27 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)
  28. 28. 28 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Track the Carrier
  29. 29. 29 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)
  30. 30. 30 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Identify the Mill
  31. 31. 31 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
  32. 32. 32 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Track the Carrier
  33. 33. 33 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
  34. 34. 34 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Produce at the Brewery
  35. 35. 35 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)
  36. 36. 36 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Drink in hand at your table
  37. 37. 37 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
  38. 38. 38 Farm Carrier 1 Flour Mill Carrier 2 Restaurant Produce at the Brewery