Blockchain IoT Workshop for the Aviation Planning Conference

AVIATION PLANNING SUMMIT BLOCKCHAIN AND IOT WORKSHOP
8/3/18

Group50 Consulting All Rights Reserved 2018 Confidential Slide # 2
Why Are You Here at This Workshop?
Because someone old you that the company should focus
on Blockchain this year because:
1. It is what everybody is talking about
2. Blockchain will change everything
3. You don’t want to be left behind
4. Potential applications are endless
Then, when you ask them what Blockchain is, they can’t
answer you….

Why Are You Here
I hope I can answer that last
question with information on
why there is so much fuss about
Blockchain and IoT, the Internet
of Things .
• What it is
• What it is not
• The implications

Block Chain History

Block Chain Timeline

Blockchain Technology is where the Internet was in the mid 1990’s

What is Blockchain?
• The underlying technology for Bitcoin, adapted
for business
• For our purposes, Blockchain is an aggregating
chain of custody, provenance and transaction
technology: i.e. Trust, Transparency and
Traceability
• Blockchain is distributed (no central authority)
• Once written, blocks are immutable
• Blocks are stored in a public or permission based
digital ledger where everyone owns a copy
• Relies on established cryptographic techniques to
allow each participant in a network to securely
interact (e.g. store, exchange, and view
information)
 Interactions with the Blockchain become known to all participants and require
verification by everyone in the network before information is added, enabling
trustless collaboration between network participants while recording an immutable
audit trail of all interactions

Double Click on Picture to Launch Video
Group50 Blockchain Video: Scioebc™

Blockchain Demonstration

Blockchain and IoT
When coupled with IoT, Blockchain technology provides
the supply chain with all of the information required for
immutable proof of the full chain of custody and
provenance of a product during its entire lifecycle.
We can now track in an immutable
ledger:
• Location of equipment such as tow bars,
tow trucks, baggage trailers, service
vehicles, etc.
• The full chain of custody and provenance
of food – Farm to Table
• The life cycle of flight safety parts: Serial
Numbers, Ownership, Remanufacturing
specifications, tolerances, Quality
standards, maintenance records, etc.

Suggested Aviation Blockchain Projects
• Parts tracking
• Customer loyalty programs
• Engine and parts leasing through smart contracts
• Interlining and revenue recognition
• Airport slot management
• Ticketing
• Security and Identity
• Exchanging real-time flight information to avoid
conflicts among airports and partner airlines
• Baggage tracking for connecting flights and
airports

Pilot Log System
Launches a Pilot log system that is
recorded on the Blockchain
• Complete history of the pilot’s log
no matter who they work for
• One immutable record
• Easily audited for compliance and
regulatory requirements
• Can easily be tied to other pilot
information in a HRMS

Blockchain Challenge
Lufthansa has partnered with software giant SAP to launch a Blockchain
competition aimed to boost Blockchain adoption in the airline industry. The
Aviation Blockchain Challenge seeks "groundbreaking ideas" for Blockchain
applications that can advance the airline industry and lead to pilot programs
assisted by Lufthansa and SAP.
"While many industries have found their first use cases, the impact on the
aviation sector is not noticeable yet. We want to change that together with SAP
and see substantial potential in our industry to utilize Blockchain and other
plays of decentralized networks," Lufthansa said.

Loyalty Programs
Singapore Airlines launched a “groundbreaking” Blockchain-based app for frequent
flyers. Customers who sign up with the program will be able to download an app to
a mobile phone. These customers will then be able to convert their miles into
KrisPay units and pay with them by scanning a QR code at partner merchants.
“This groundbreaking development in which we will be using Blockchain technology
to ‘digitalise’ KrisFlyer miles is a demonstration of the investment we are making to
significantly enhance the digital side of our business for the benefit of our
customer,” CEO Goh Choon Phong commented.

Tracking Unmanned Vehicles
Aviation giant Boeing announced a partnership with artificial intelligence
(AI) company SparkCognition on July 17, 2018 to develop solutions for
tracking unmanned aircraft.
According to the release, the two entities will utilize AI and Blockchain
technology to track "autonomous air vehicles" while in flight, as well as
assign safe and secure flight paths for the transportation of both
products and people.

Aviation Blockchain Projects
Other Platforms and noteworthy projects:
• SITA – Air Transport Technology Provider – Announced on 7/27/18 a
research project to explore the potential of Blockchain.
• Lufthansa announced a partnership to explore Blockchain-based
distribution.
• Air New Zealand revealed that it is exploring Blockchain for baggage, retail,
distribution and loyalty use cases.
• British Airways, Heathrow Airport, Geneva Airport, Miami International
Airport and SITA Lab teamed up to look into how Blockchain technology can
help to create a “single source of truth” for flight data.
• Avinoc – Aviation Network Operation Chain – Replacing ticketing networks
• Moog – VeriPart – System to track 3D printed parts across their entire
lifecycle
• GSC Aviation’s Blockchain technology is used to store and secure the entire
life cycle of an aeronautical part.

1. Do you care how well an airplane is maintained when
you book a flight?
2. What if you could check the aircraft maintenance
score while booking a ticket?
3. Would that give your airline a competitive advantage?
Aviation Blockchain Future Case Study

Issues with current maintenance systems:
• 50% more aircraft are expected to be operational by 2026.
• The maintenance process is very complicated.
 John Maggiore, Director of Maintenance for Boeing says “90% of the
aircraft maintenance records (AMR) are paper-based“.
• According to Andreas Stenger, project manager for digital business innovation
at Lufthansa Technik, maintaining manual records might lead to the repeated
repairs, delays, the possibility of accidents and unplanned expense.
• The electronic-AMRs(EAMR) records are stored in multiple databases causing
inefficiencies, time-consuming retrieval process and lack of transparency.
• Airlines store EAMRs data in centralized databases which could be easily
manipulated, ransomed or compromised.
• Since every stakeholder maintains their own database; it becomes time-
consuming to extract the aircraft information, in case of an audit, or accident.
• It is difficult for other parties like manufacturers or airline companies to
access or exchange the information quickly.

The Blockchain solution:
• Maintenance logs, manufacturing details, component details, and other
sensitive MRO information about aircraft can be stored in a private or public
Blockchain.
• Smart contracts govern maintenance processes and reporting for each aircraft
and critical components
 The age of the aircraft
 Flight inspection date
 Last aircraft service and repair
 Changed components
 Manufacturer of the aircraft parts
 Component repair history
 Recommendation by the aircraft engineer
 Accident records
 Maintenance service level score
• All stakeholders can seamlessly access the aircraft maintenance records using
permission based protocols
 The complete history of an aircraft’s maintenance can be stored in it’s block
and made available to any interested party for analysis and compliance

So What Does This Mean To The Aviation Industry?
“Blockchain, like the Internet is the framework that changes with each new
technology not just the picture within the frame”
Marshall McLuhan: professor, philosopher and predictor of the world wide web
Blockchain is disruptive disintermediation technology:
• It has the potential to significantly reduce or eliminate:
 Auditing
 Validation
 Inspections
 3rd party providers
• Allows you to know that a product is delivered as expected and can
automate transactions eliminating accounting functions, banks, etc.
• Monetize idle assets throughout the entire supply chain
• It enables sophisticated retrospective and prospective analytics that
companies have only dreamed about
• Data requests are reduced to minutes rather than days or weeks
• It eliminates the resources required to maintain databases which is
estimated to consume as much as 50% of IT budgets
• Automates regulatory and compliance reporting
 What is the value of these types of process improvements to your business
and your supply chain? The most critical question.

7 Step Blockchain Implementation Process
Education Strategy Business Case Roadmap Pilot Implementation
Integrating
Customers and
Suppliers
1. Get everyone to the same level of understanding and knowledge
2. Integrate Blockchain strategies into your business strategy
3. Don’t move forward with out understanding the business case for
Blockchain Transformation
4. The strategic and tactical roadmaps will provide insight to the
timing and requirements of each step
5. Pilot a process in your business that is important and will be
capable of delivering results and learnings
6. Like the Internet, Blockchain implementation is a multi-year
transformational process. Take what you have learned and
leverage it with your customers and suppliers for exponential
value improvement
“Don’t bet the business until you fully understand what Blockchain can do for you”

Scioebc™ and Group50®
There are three critical pieces to planning for a Blockchain implementation
1. Working with subject matter experts who understand the processes that will be
impacted by Blockchain
2. Working with a company who can provide a functional Blockchain product
3. Creating a well thought through implementation process and working with you
through implementation
Scioebc™ is
• Supported by supply chain subject matter experts from Group50
• It is the first Blockchain built upon the THINaër IoT platform
• Coupled with the transactional and liquidity protocols being developed by Sweetbridge.
Group50 provides four workshops to guide the implementation process:
1. Blockchain Immersion
2. Integrating Blockchain Into the Business Strategy
3. Creating the Business Case for Blockchain
4. Developing an Implementation Roadmap

Blockchain is a disruptive technology and in order
to realize its potential we need to:
1. Beware of the hype
2. Understand the technology and its power
3. Take the time to see where it ties into your strategic
objectives
4. Prove to yourself the value add envisioned in the
business case
5. Envision the potential with customers and suppliers
In Closing

Please stop by our table in the foyer
outside, pick up a card, workshop
information and let’s get acquainted
Thank You
You can find out more about Group50's Blockchain and IoT
solution, Scioebc, by calling Jim Gitney@ (909) 949-9083, or
by mailing an inquiry to blockchain@group50.com

Blockchain IoT Workshop for the Aviation Planning Conference

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