Digital Innovation Trends in Government Blockchain Machine Learning and Internet of Things

CUSTOMER
Heinrich PFRIEMER, SAP SE
Chief Expert Defense and Security
Digital Innovation Trends
in Government

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Innovation - in 1994…

„It is fairly widely accepted that the developed world is changing from an
industrial economy based on automobiles, and roads to a new economy built
on silicon, computers and networks. …The new economy is all about
competing for the future, the capacity to create new products or services,
and the ability to transform business into new entities that yesterday couldn’t
be imagined and that the day after tomorrow may be obsolete.”
(Don Tapscott; The Digital Economy)
A new age of sharing and networking…
Re-Imagine Business Models, Processes and Work

…but it is commonly believed that the origin of the Yenish
can be attributed to members of the marginalized and
poor classes of society of the early modern period and the
19th century. Features of this historic Yenish were their
economic, legal and social exclusion from the majority
population and a consequent permanent migration…
(Wikipedia)

Digital Trends…

Why now?
Feasible, affordable and viable
…compromises according to IDC:
- Conversational AI Platforms
- Program Advisors & Recommendation
- Automated Discovery
- Work Automation
- Labor Augmentation & Enhancement
(Digital Assistance)
(IDC: transforming the ERP market)
Artificial Intelligence

Feasibility - AI is based on huge progress in…
Computer Vision
Natural Language Processing
Predictive analytics
Data stores
Hypotheses generation
Machine learning
Speech Recognition

„FINISHED FILES ARE THE RESULT
OF YEARS OF SCIENTIFIC
STUDIES COMBINED WITH THE
EXPERIENCE OF MANY YEARS“

The new „enterprise user“ - SAP CoPilot combines Conversational AI with Digital Assistance…
Artificial Intelligence in Government – first steps…
Conversational (Multi-Modal) UI
Text, Voice and Gesture
Business Context Awareness
Recognizes Business objects and situation, roles
Quick Actions - insights and suggestions
based on situation – options, auto-creation of business
objects using bots
Learns and Recommends
pre-defined business rules and gradually learning from
behavioral data

Re-Imagine Public Services Business Models, Processes and Work
Citizen Centricity “not a case - a person”, “tell us once”, “benefit determination”
“barrier-free and inclusive interactions”, “taxation prefilled”, “auto tax
advisors”…
Data-driven government productivity/outcomes insights (from policy to contract fulfillment)
Work “analytical not transactional” (MDG, invoice matching, recruiting)
“ad-hoc collaboration and learning”
routine decisions automated, non-routine decisions augmented
Chatbots will be part of workforce?
SAP strengths meshing unprecedented variety of data with ERP data
faster “learning” and implementation
Artificial Intelligence – further steps…

Derive Value from Enterprise Data

ML – Focus on removing highly transactional work

Overall Potential of Blockchain
Multi-Party
Collaboration
Time & Cost
Reduction
Transparency &
Auditability
Risk and Fraud
Minimization

As the name says it is a „distributed“ data base,
where data „blocks“ are chained together…
and every „node“ has a copy and updates based on a distributed consenus, computed based on
hashes…
What is the technology behind Blockchain (aka DLT)

Use Case: Digital Wallet for Citizens
x x x
hash
and
sign
verify
blockchainproviding
organizations
requesting
organisation
citizen‘s
document store
(cloud service)
The user requests each
document from the
providing organizations
each organization
signs the
documents and
proofs integrity
via blockchain
each document
can be verifyed
via blockchain to
ensure that the
citizen had not
modified it
A
B
C
12
3
checklist
Initial steps for each
document
v only required once
v documents that are often
needed do not have to be
requested ever again
• The citizen is in full control of his/her personal
data as it is not shared between organizations
• Only hash values and the signature of the
providing organisations are shared via
blockchain
• Encrypted documents are stored in document
store and are only accessible by the citizen
himself
* Not restricted to documents, also attributes or roles are possible

Transformation to a “Glass Government”
leveraging Blockchain technology
today +1 +3 +5
Permissioned
Internal Systems
Transact and
tax in CC
DocProof
Applications
Unique
identity
Glass
Government
Permissionless
Monitoring and
Analyzing
Beneficiary tracking
(social impact)
Interagency
Collaboration
Certificates,
Contracts etcVerify and
Log
Administer and
Govern
Digital Twin
Run and
Secure
BC Digital Services Apps
Tax CC via smart
contracts
Digital Wallet for Citizen
Open
Open
HW & SW
Config
Audit Logs

Block # 41001 Block # 41002 Block # 41003 Block # 40004 New Block
New Transaction
#0: Send 0 native assets to the individual address
1Cj9GaBsdF…
#1: OP_RETURN 1f9cde1faabc6ed8b7c1e31…
#2: Send 0 native assets back to issuer…
#0: Use 0 native assets from Issuer address 1Aj3Cgd…
Inputs
Outputs
Private key
SHA
256
(1) Generate
document
hash
Transaction hash/ID:
c8518a43308a1d2ae84303c7a2…
SHA
256
sign
Transaction signature
(3) Sign transaction
with private key
(2) Create transaction
hash/ID
(4) Store transaction
in new block
Certificate is issued to a Citizien

Insider Threat Mitigation
Data
Users, GRC
IT Logs
Revision
Internal Audit
IT Security
Department
Quite often an internal attack vector
remains undiscovered and close to
impossible to be proven.
An immutable recording of
- IT and infrastrukture events
- User, R & A Changes
- Compliance Data
- Changes on „protect worthy“ data
Such blockchain applications are
already live at Swedish Banks.

Integrity is key.
Operator Commands are stored in
a Code Repository as well as
transmitted. The received
commands are verified against the
repository.
All communications and collected
sensor data from the field is
registered in a blockchain during
the mission, in real-time
Scalability is given.
Connected Devices – UAV example
Code
Repository

Current Challenge
If i.e.during test firing one muzzle break of a 155mm
howitzer breaks long supply chains and long
delivery routes are degrading task carriers
capabilities.
Neither the neighbouring FOB I nor the Brigade can
supply a new muzzle break. The National Supply
Elements Central Depot can deliver one in 12h…
X
Use Case – Securing Field 3D Printing
Scenario Set Up
An howitzer battery(-) is in a firing position to support
Peace Keeping Forces with “Show of Force” but also
fire power.
X
X
X
X
FOB
I
Field 3D Printing
In each FOB 3D printers are installed and connected
in a private Blockchain. CAD Diagrams are hold at
the Central Depots ERP and only issued if relevant
only to the according FOB.
The private Blockchain Network ensures:
- Data Integrity of CAD, Tech Info
- Records time, agent, etc and sets the basis for
a later correct and undisputable settlement of
costs between OEM and Forces.
- Faster supply demand fulfillment
NSE
?
?
?
12hours
X
X
X
FOB
I
NSE
FOB
II
FOB
III
CAD,
Tech Info

How can Guardtimes Keyless Signature Infrastructure help?
GUARDTIME
KEYLESS SIGNATURE INFRASTRUCTURE
+

Heinrich PFRIEMER
+43 664 8289529
heinrich.pfriemer@sap.com

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