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Pablo Junco
Chief Technology Officer (CTO)
Microsoft Latin America
Customer Digital Transformation Journey
SUPPLIERS
PARTNERS
EMPLOYEES
END CUSTOMERS
DIGITAL EXPERIENCE DIGITAL ECOSYSTEM
What is common element in each agreement?
TRUST
Ways to create trust across organizations
Intermediaries1 Manual verification2
• Increases total cost (transaction cost)
• Adds complexity to business process
• Reduces direct contact between
parties
• Increases total cost (human
resources)
• Is more prone to errors
• It usually takes time to ensure that
records are complete and accurate
The ledger can only be updated by
network consensus
Data is distributed and shared to
multiple parties
Data is securely stored in a ledger
—the records are digitally signed
The information is cryptographically
immutable – single source of truth
What if… we count on a secure, shared
distributed ledger
A diverse DLT ecosystem
>70
Consortium
Organization
A
Organization
B
Partner
1
Partner
2
Partner
3
Regulator
N
Organization A
Location
1
Location
2
Location
3
Location
4
Division
A
Division
B
ConsortiumPrivate
Public
blockchain
Org.
A
Org.
B
Person A
B
Person B
Bank
1
Bank
2
Consortiu
m A
Approved participants
Users with known identities
Permission is required to write, read and participate in confirming transactions
Multiple algorithms for consensus
Many, unknown participants
Anonymous or pseudonymous
Open read and write by all participants
Consensus by Proof of Work
Public
Blockchain
Enterprise
Blockchain
Type of Blockchain
Multiple Consensus Algorithm Types
These are just a few examples… the future is pluggable consensus algorithms
Proof of Work
Proof of StakeVoting
Proof of
AuthorityThe Proof-of-Work (PoW)
method asks users to
repeatedly run hashing
algorithms or other client
puzzles, to validate
electronic transactions in
exchange for the
opportunity of a reward.
In Proof of Stake (PoS)
based blockchains the
creator of the next block is
chosen in a deterministic
(pseudo-random) way, and
the chance that an account
is chosen depends on its
wealth (i.e. the stake).
“Voter” nodes can vote on
which block should eb the
canonical head at a
particular height.
The most recent block with
the most votes is
considered the canonical
head of the chain. A block is
only considered valid once
a given threshold of votes
has been received from
valid voters.
Proof-of-Authority (PoA)
uses a hard-configured set
of "authorities" - nodes that
are explicitly allowed to
create new blocks and
secure the blockchain. This
makes it easier to maintain
a private chain and keep
the block issuers
accountable.
Proof of Stake Proof of Authority Voting
Top Observed Business Patterns using Blockchain
Trade
Finance
Supply Chain
Collaboration
Refrigerated
Transportation
Know
Your Customer
Financing
Global
Payments
Food
Provenance
Digital
Asset Transfer
Digital
DNA
Procure
To Pay
“Blockchain, where the combination of Microsoft's deep knowledge of its corporate customers plus its end-to-
end software expertise is a powerful strategic capability” - Forbes
Digital Transformation
with Intelligent Apps
Conversational Apps (Bots)
Employees / Customers
Predictive Maintenance
with IoT & Microservices
Supply Chain with
Blockchain and IoT
Trade Finance with
Blockchain and Bots
Know Your Customers with
Blockchain and Modern Identify
http://aka.ms/apps-videos
Customers Success Stories using Blockchain
Challenge
• One in six people worldwide live without
legal documentation, striping them access
to critical services like voting, healthcare,
housing, banking, and education
• Without means of identification, refugees
and asylum seekers face detention upon
arrival in a country
Strategy
• Microsoft has partnered
with Accenture to develop a
blockchain-based digital
identity system, combined
with biometrics to help
government agencies
• Establish digital identity,
securely registered on a
distributed ledger
Results
• The blockchain solution is used by the United
Nations High Commissioner for Refugees
which has enrolled more than 1.3 million
refugees in 29 countries
• Agencies can verify identity and interoperate
across systems to provide services
• Verifying identity means refugees can become
productive members of society more quickly
“Everyone shall have the right to recognition everywhere as a person before the law.”
— Article 6 of the Universal Declaration of Human Rights
Providing digital identity
ID2020
Refugeegettingaccesstoserviceswithnoidentity
UN/Intra-govt consortium
Blockchain
Refugee X enters camp in country A with no proofs of identity
UN captures. enrolls, stores X’s biometric &
biographic information; performs de-duplication to
make sure X does not already exist under a different
name
Off-chainBiometrics
activities
U.N. completes ID validation
process & issues an identity to X
& adds to blockchain
Refugee X goes through
biometrics enrolment
X goes to hospital. Hospital validates
identity & X’s access to healthcare services
Hospital reads UN blockchain
& confirms identity proof took
place
Country B captures. enrolls, stores X’s
biometric & biographic information; performs de-
duplication to make sure X does not already exist
under a different name in Country B’s systems
X goes to country B; provides
access to digital identity
Country B adds ID proof event to
the consortium blockchain and its
own blockchain, where
applicable
Country B requests UN
to match biometrics
details & confirms
match.
Country B reads UN
blockchain.
X goes to open bank account;
provides access to digital identity
Bank reads UN blockchain;
confirms ID proofs from
Country B & UN
Blockchain
activities
Med or Low trust, Read only rights
High trust Write/add rights,
UN registers X’s identity
information on smart phone
other device
Microsoft confidential. For internal use only.
“We are developing an ecosystem within the gaming industry that connects developers and publishers to game
performance. Providing near real-time access to data greatly improves the process’ effectiveness and insights that
lead to a more enriching experience for the partners.”
— Tim Stuart, Chief Financial Officer of Xbox
Blockchain for royalty payments
Challenge
• Microsoft used a complicated, manual
method to calculate royalties for XBOX
publishers.
• Microsoft’s royalty process took 45 days,
which delayed payments to publishers.
Strategy
• Microsoft developed a
blockchain-based solution
that offers XBOX royalty
information in near real
time.
Results
• Blockchain technology improved trust by
making the royalty payment calculation
process more transparent for publishers.
• Publishers gained actionable business insights,
enabling them to proactively respond to
customer demand.
• Blockchain technology reduced XBOX process
efforts by two thirds and saved publishers
time by eliminating the need for manual
audits.
• Game Purchased
• Publisher ID
• Price
• Customer Age
• Customer Gender
• Location
CONTRACT CREATED
CONTRACT VISIBILITY
• Top Grossing Content
• Publisher Royalty
• Publisher Demand
• Net Revenue
XBOX Platform
SHARED LEDGER DATA
CONTENT PUBLISHER A VISIBILITY
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher C
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher B
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher A
Content Publishers
Gain visibility into sales
data and royalty revenue,
enabling them to make
near real time decisions.
$
$
$
$
$
Licensing
Marketing
Distribution
Content
Provider
Content
Developer
$12.99
$59.99
$3.99
Media
Purchase
Movie
Video game
Song
Quantity
Quantity
XBOX Platform
Consumers purchase digital
content through the XBOX
platform. The data then is written
to the shared ledger. This
automatically makes royalty data
visible to the XBOX publishers.
XBOX PAYS
ROYALTIES
Media Sale: July 13th
Cortana Integration
Solution Add-On
Bots & Conversational AI using Microsoft Teams as Channel
Solution Add-On
Microsoft confidential. For internal use only.
Using blockchain to share coffee’s journey with
customers
“While high-quality, handcrafted beverages are so important, it’s the stories, the people, the connections, the
humanity behind that coffee that inspires everything we do. This kind of transparency offers customers the chance
to see that the coffee they enjoy from us is the result of many people caring deeply”
— Michelle Burns, Starbucks senior vice president of Global Coffee & Tea
“Every coffee has a story to tell, and I
could not be more excited for people to
be more connected to the whole coffee
experience, from bean to cup, and meet
the many people whose hard work,
time and attention makes coffee
possible,”
Michelle Burns
Starbucks’ senior vice president, Global Coffee,
Tea and Cocoa.
https://traceability.starbucks.com/#/
Carrier
Authenticity is verified and beans
are delivered to the factory
Customer
At purchase can view certifications,
origin, and other quality details
with assurances from farm to pour
Manufacturer
Containers are verified and
coffee is processed and
bagged
Small Hold Farmer
Produce coffee beans under specified conditions
to earn organic and Fair Trade certifications.
Receive “proof of end purchase” from Starbucks
they can use to access credit for next years
harvest
Retailer
The bags reach the retailer having been
accounted for at each step of the journey
Farmer
✓ Plot #839049
✓ 25 tons of cocoa
beans
✓ Certifications
Carrier
✓ Shipped 2/5/2018
✓ Organic
✓ Fair Trade
Manufacturer
✓ Delivered 2/12/2018
✓ Organic
✓ Fair Trade
Distributor
✓ Delivered
2/19/2018
✓ Organic
✓ Fair Trade
Retailer
✓ Delivered 2/26/2018
✓ Organic
✓ Fair Trade
Customer
✓ Guaranteed fresh
✓ Certified organic
✓ Certified Fair Trade
At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain
Quality attestationProof of Purchase Consumer visibility
Distributor
The coffee is moved through distributor
network under high-quality assurance
regulations
Procure-To-Pay Process with blockchain
Participants Why blockchain on PTP?
• Implements Authorization
• Improves validations and
authentication
• Accelerates purchase order
management
• Transforms invoice processing
• Reduces money laundering risk
• Increases audit traceability
Suppliers
Central
Procurement
Office
Financial
Services
Institution
ORGANIZATION 1
Central
Government
ORGANIZATION 2
Local
Government(s)
ORGANIZATION N
Related
Institution(s)
FINANCE
LEGAL
SHARED
LEDGER
A scenario based on a real case
SUPPLIER ONBOARDING
Allow suppliers to register
and getting a digital
identity.
PROCUREMENT VENDOR MGMT
Verification or Validation of
suppliers information and
approval as Organization’s
suppliers for specific
categories.
SUPPLIER SELF-MANAGEMENT
Allow authorized suppliers
to add products/services in
the purchasing system.
ORGANIZATION MyORDER
Allow authorized organizations
(central o local) or related
institutions to issue a Purchase
Order (PO) based on
products and services available in
the purchasing system.
PROCUREMENT PURCHASE MGMT.
Fulfill Purchase Order,
Approvals and Order
Tracking
ORGANIZATION MyORDER
Certification of Order
Reception
SUPPLIER INVOICE
Process invoices
ORGANIZATION MyORDER
Approve vendor invoices
and optionally, rate the
vendor.
PROCUREMENT PURCHASE MGMT.
Invoice payment process applying the
negotiated discount based on the existing
contract with the supplier.
FINANCE FINANCIAL ACCOUNTING
AND CONTROLLING (FICO)
Payment validation, payment run and
perform reconciliations.
FINANCE FINANCIAL ACCOUNTING
AND CONTROLLING (FICO)
Issue Payments and remittance to supplier via the trusted
financial services institution.
SHARED LEDGER
Supplier
Identify Token
Supplier
Verified
Supplier
Products/Services
Order Smart
Contract
Order
Approved
Goods
Delivered
Goods
Received
Invoice
Smart Contract
Invoice
Approved
Payment
Processed
Supplier
Paid
Are you sure Blockchain is the right technology?
Do multiple
parties share
data?
Do multiple
parties
manipulate the
same data?
Yes
Use a
Private
Database
(i.e. Azure Sql Server)
Use a
Distributed
Database
(i.e. Azure Cosmos DB)
Yes No Is there a
requirement for
verification?
Yes
Are there
third parties
that
everyone
can agree
to trust?
Do multiple
third parties
need to
update the
shared
data?
YesNoNo
No
Can
intermediaries
be removed
reducing costs
and complexity?
Will parties agree on
who/how/when data
can be updated or
used?
YesNo
Yes
Yes
Use a
Distributed
Ledger
Technology
No
Only 25% of the work is about the ledger
SOURCE DATA
AND SYSTEMS
DATA
INGESTION
PRE-
PROCESSING
BLOCKCHAIN
(THE
“LEDGER’)
POST-
PROCESSING
COMPUTE
POST-
PROCESSING
STORAGE
POST-
PROCESSING
ANALYTICS
INTEGRATION
SERVICES
CONSUMING
APPS AND
SYSTEMS
Re-imagining blockchain architecture
Blockchain + Cryptlets
Trusted Business Logic
powered by Cryptlets
Blockchain
(Data Layer)
Smart Contracts
(Data Handling)
Business
Logic
Traditional 3-Tier Software
Architecture
Presentation Layer
Data Layer
Stored Procedures
(Data Handling)
Early blockchain DApp architecture
Blockchain (Data Layer)
Smart Contracts
(Trusted Business Logic)
Presentation Layer Presentation Layer
Data Layer
Stored
Procedures
(Data Handling)
Presentation Layer
Ledger Core Layer
Platform as a Service (PaaS)
Ledger A Ledger B Ledger C
Infrastructure as a Service (IaaS)
Ledger A Ledger C Ledger D
Blockchain Confidential Computing
Middleware Layer
Identity & Key
Management
Data Platform
(ML & BI)
Enterprise
Smart Contracts
Monitoring &
Security
Third
Parties
Tools
Application Programming Interface ( API )
Hyperledger
Fabric
R3
Corda
Ethereum &
Quorum
Conceptual View
Gestion de Identidad y Claves
API
(Azure App
Service)
Gestor de IoT
(Azure IoT Hub)
Transformador y
Orquestador
(Azure Service Bus)
Atestiguador
Azure Blockchain
Services
Base de Datos Externa
(Azure SQL Database, o Azure
Cosmos DB)
Almacenamiento
Alternativo
(Azure Blob)
Custodia y Administración de Claves
(Azure Key Vault)
Gestion de Identidad)
(Azure Active Directory)
Servicios de
Integración SAP
(Azure logic App)
Servicios de
Integración IoT
(Azure logic App)
Interfaz de Usuario
Azure App Insights Azure Monitor
Monitoreo y Analítica
Azure
Event Grid
Informes y Cuadros de Mando
(Power BI)
Servicios de Carga de
Ficheros Excel y PDF
(Azure logic App)
Servicio Observador del
Libro Contable
(Azure logic App)
Libro Contable
Motor de Reglas
de Negocio
Reference Architecture
Main Organization (O1)
Ledger Core Layer
Organization (OP1) Organization (O2) Organization (O3) Organization (O4)
Using Azure yes Yes No Yes
Node OP1
Middleware Layer
Identity and Key
Mgmt.
Data Platform
Application Programming Interface (API)
Node O2 Node O4
Web
App
Enterprise
Smart Contracts
Node O4
Recommended Journey
Scale Out
Wave 4
Production
Pilot Wave 3
Production Pilot Wave
2
MVP Pilot
Wave 1
• Business Ideation Workshop
• Architecture Design Session
focusing on Blockchain
• Development of a MVP pilot
using Blockchain running on
Azure
• Identify the entire solution’s
requirements, epics, features ,
user stories and roadmap
• Moving from MVP to production
pilot with a minimum set of all
participants involved.
• Add IoT capabilities by ingesting
data and get insights
• Consortium & Governance
Workshop
In scope
1) Business Ideation Workshop
2 Days
Customer Overview
• Business Objectives and Needs
• Regulatory Requirements
Process Discussions driven by
Common Business Scenarios
Technology walkthrough for the
Selected Business Scenario
1-2 Day
2.) MVP Architecture
Design Session
Architecture
Discussion
• Technical
Constraints
• Solution
Architecture
• Scope for 8 weeks
MVP Definition
• Business Objectives
• Success factors
• Requirements
• Expected outcomes
8-10 weeks
3.) Non-Production Pilot
(MVP)
Prototype Design and
Development
4.) MVP completion and
executive briefing
Business Value
Demonstration
Closeout Meeting
2 days
Business Scenario
Prioritization & Selection
MVP Pilot Development
Business Case and
Technology Roadmap
Blockchain Network
Provisioning
Envisioning + Proof of Value
Apps
Sprint 0
4 weeks
Digital Advisory Services
Why
• Identify the solution’s
▪ Requirements
▪ Features
▪ Capabilities
▪ Workflows
• Create/capture solution
backlog
Improve clarity
What (Scope)
• Conduct Envisioning Workshop
to define
▪ Personas
▪ Scenarios
▪ User Journeys
▪ Features
▪ Workflows
• Collaborate to define proposed
solution architecture
How (Approach)
Initiation Development Sprints (Two-week Sprint) Stabilize &
Demonstrate
Value realization
workshop
• Results & Demo
• Backlog
• Proposal of
Roadmap
Solution
Stabilization
Rapid Envisioning
Workshop
Architecture Design
Session
• Edge Assessment
• Data Sources Review
• Reference Architecture
Data
validation
Data Integration
and storage
VisualizationData enrichment
IoT Device
Integration
User Portal
2 weeks 6 weeks 2 weeks
Insight IoT
Consortium & Governance
• Conduct a Consortium Workshop with all the key participants for
the business scenario
• Develop the potential Consortium Governance Model for the
network
• Design the Consortium Value Realization Model
EstimatedActivities
• Identity the common business challenges and pain points between the network’s
participants
• Determinate the value proposition and incentives for all the participants in the
network and potential metrics to help make sure everyone has a positive return
on investment
• Define the Minimum Viable Ecosystem (MVE) including:
• How to collaborate to create value
• Level of per missioning needed for your ecosystem
• Link the value proposition with the solution implementation and the blockchain
characteristics to make the most of
• Funding and economic model to cover the investment requited to evolve the
solution and the network
• Define the governance model
• Solution Governance vs Blockchain Governance New participant enrolment and
onboarding process
• Data ownership
• Mechanism for coordination
• Legal governance
• Strategy to scale
ExpectedOutcomes
Governance Framework
Solution ManagerConsortium Model Operating Model
Onboarding
Rules
Business
Rules
Operating
Rules
Ledger Platform
Consortium
Agreement
Governance
Council
Participation
Agreement
Service Provider
Agreement
Promoter Founding Members Participants Non-Participants
MoU &
Agreement
Microsoft confidential. For internal use only.
Q A
© 2017 Microsoft Corporation. All rights reserved.
Dankie Faleminderit Shukran Chnorakaloutioun
Děkuji Tak Dank u Tänan
Hvala Blagodaria
Kiitos Merci Danke Ευχαριστώ
Mahalo Köszönöm Terima kasih Grazie
감사합니다 Paldies Choukrane Ačiū
Баярлалаа Dziękuję Thank you!
Благодарам
Mulţumesc Спасибо
XвалаĎakujem Tack Nandri Kop khun Teşekkür ederim Дякую Diolch
A dank
Ngiyabonga
ありがとうございました
谢谢
https://www.linkedin.com/in/pablojunco/
https://twitter.com/pjuncob

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Hablando de blockchain en la Uniandes de Colombia

  • 1. Pablo Junco Chief Technology Officer (CTO) Microsoft Latin America
  • 2.
  • 3. Customer Digital Transformation Journey SUPPLIERS PARTNERS EMPLOYEES END CUSTOMERS DIGITAL EXPERIENCE DIGITAL ECOSYSTEM
  • 4. What is common element in each agreement? TRUST
  • 5. Ways to create trust across organizations Intermediaries1 Manual verification2 • Increases total cost (transaction cost) • Adds complexity to business process • Reduces direct contact between parties • Increases total cost (human resources) • Is more prone to errors • It usually takes time to ensure that records are complete and accurate
  • 6. The ledger can only be updated by network consensus Data is distributed and shared to multiple parties Data is securely stored in a ledger —the records are digitally signed The information is cryptographically immutable – single source of truth What if… we count on a secure, shared distributed ledger
  • 7. A diverse DLT ecosystem >70
  • 8. Consortium Organization A Organization B Partner 1 Partner 2 Partner 3 Regulator N Organization A Location 1 Location 2 Location 3 Location 4 Division A Division B ConsortiumPrivate Public blockchain Org. A Org. B Person A B Person B Bank 1 Bank 2 Consortiu m A Approved participants Users with known identities Permission is required to write, read and participate in confirming transactions Multiple algorithms for consensus Many, unknown participants Anonymous or pseudonymous Open read and write by all participants Consensus by Proof of Work Public Blockchain Enterprise Blockchain Type of Blockchain
  • 9. Multiple Consensus Algorithm Types These are just a few examples… the future is pluggable consensus algorithms Proof of Work Proof of StakeVoting Proof of AuthorityThe Proof-of-Work (PoW) method asks users to repeatedly run hashing algorithms or other client puzzles, to validate electronic transactions in exchange for the opportunity of a reward. In Proof of Stake (PoS) based blockchains the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake). “Voter” nodes can vote on which block should eb the canonical head at a particular height. The most recent block with the most votes is considered the canonical head of the chain. A block is only considered valid once a given threshold of votes has been received from valid voters. Proof-of-Authority (PoA) uses a hard-configured set of "authorities" - nodes that are explicitly allowed to create new blocks and secure the blockchain. This makes it easier to maintain a private chain and keep the block issuers accountable. Proof of Stake Proof of Authority Voting
  • 10. Top Observed Business Patterns using Blockchain Trade Finance Supply Chain Collaboration Refrigerated Transportation Know Your Customer Financing Global Payments Food Provenance Digital Asset Transfer Digital DNA Procure To Pay “Blockchain, where the combination of Microsoft's deep knowledge of its corporate customers plus its end-to- end software expertise is a powerful strategic capability” - Forbes
  • 11. Digital Transformation with Intelligent Apps Conversational Apps (Bots) Employees / Customers Predictive Maintenance with IoT & Microservices Supply Chain with Blockchain and IoT Trade Finance with Blockchain and Bots Know Your Customers with Blockchain and Modern Identify http://aka.ms/apps-videos
  • 12. Customers Success Stories using Blockchain
  • 13. Challenge • One in six people worldwide live without legal documentation, striping them access to critical services like voting, healthcare, housing, banking, and education • Without means of identification, refugees and asylum seekers face detention upon arrival in a country Strategy • Microsoft has partnered with Accenture to develop a blockchain-based digital identity system, combined with biometrics to help government agencies • Establish digital identity, securely registered on a distributed ledger Results • The blockchain solution is used by the United Nations High Commissioner for Refugees which has enrolled more than 1.3 million refugees in 29 countries • Agencies can verify identity and interoperate across systems to provide services • Verifying identity means refugees can become productive members of society more quickly “Everyone shall have the right to recognition everywhere as a person before the law.” — Article 6 of the Universal Declaration of Human Rights Providing digital identity
  • 14. ID2020 Refugeegettingaccesstoserviceswithnoidentity UN/Intra-govt consortium Blockchain Refugee X enters camp in country A with no proofs of identity UN captures. enrolls, stores X’s biometric & biographic information; performs de-duplication to make sure X does not already exist under a different name Off-chainBiometrics activities U.N. completes ID validation process & issues an identity to X & adds to blockchain Refugee X goes through biometrics enrolment X goes to hospital. Hospital validates identity & X’s access to healthcare services Hospital reads UN blockchain & confirms identity proof took place Country B captures. enrolls, stores X’s biometric & biographic information; performs de- duplication to make sure X does not already exist under a different name in Country B’s systems X goes to country B; provides access to digital identity Country B adds ID proof event to the consortium blockchain and its own blockchain, where applicable Country B requests UN to match biometrics details & confirms match. Country B reads UN blockchain. X goes to open bank account; provides access to digital identity Bank reads UN blockchain; confirms ID proofs from Country B & UN Blockchain activities Med or Low trust, Read only rights High trust Write/add rights, UN registers X’s identity information on smart phone other device
  • 15. Microsoft confidential. For internal use only. “We are developing an ecosystem within the gaming industry that connects developers and publishers to game performance. Providing near real-time access to data greatly improves the process’ effectiveness and insights that lead to a more enriching experience for the partners.” — Tim Stuart, Chief Financial Officer of Xbox Blockchain for royalty payments Challenge • Microsoft used a complicated, manual method to calculate royalties for XBOX publishers. • Microsoft’s royalty process took 45 days, which delayed payments to publishers. Strategy • Microsoft developed a blockchain-based solution that offers XBOX royalty information in near real time. Results • Blockchain technology improved trust by making the royalty payment calculation process more transparent for publishers. • Publishers gained actionable business insights, enabling them to proactively respond to customer demand. • Blockchain technology reduced XBOX process efforts by two thirds and saved publishers time by eliminating the need for manual audits.
  • 16. • Game Purchased • Publisher ID • Price • Customer Age • Customer Gender • Location CONTRACT CREATED CONTRACT VISIBILITY • Top Grossing Content • Publisher Royalty • Publisher Demand • Net Revenue XBOX Platform SHARED LEDGER DATA CONTENT PUBLISHER A VISIBILITY • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher C • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher B • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher A Content Publishers Gain visibility into sales data and royalty revenue, enabling them to make near real time decisions. $ $ $ $ $ Licensing Marketing Distribution Content Provider Content Developer $12.99 $59.99 $3.99 Media Purchase Movie Video game Song Quantity Quantity XBOX Platform Consumers purchase digital content through the XBOX platform. The data then is written to the shared ledger. This automatically makes royalty data visible to the XBOX publishers. XBOX PAYS ROYALTIES Media Sale: July 13th
  • 18. Bots & Conversational AI using Microsoft Teams as Channel Solution Add-On
  • 19. Microsoft confidential. For internal use only. Using blockchain to share coffee’s journey with customers “While high-quality, handcrafted beverages are so important, it’s the stories, the people, the connections, the humanity behind that coffee that inspires everything we do. This kind of transparency offers customers the chance to see that the coffee they enjoy from us is the result of many people caring deeply” — Michelle Burns, Starbucks senior vice president of Global Coffee & Tea
  • 20. “Every coffee has a story to tell, and I could not be more excited for people to be more connected to the whole coffee experience, from bean to cup, and meet the many people whose hard work, time and attention makes coffee possible,” Michelle Burns Starbucks’ senior vice president, Global Coffee, Tea and Cocoa. https://traceability.starbucks.com/#/
  • 21. Carrier Authenticity is verified and beans are delivered to the factory Customer At purchase can view certifications, origin, and other quality details with assurances from farm to pour Manufacturer Containers are verified and coffee is processed and bagged Small Hold Farmer Produce coffee beans under specified conditions to earn organic and Fair Trade certifications. Receive “proof of end purchase” from Starbucks they can use to access credit for next years harvest Retailer The bags reach the retailer having been accounted for at each step of the journey Farmer ✓ Plot #839049 ✓ 25 tons of cocoa beans ✓ Certifications Carrier ✓ Shipped 2/5/2018 ✓ Organic ✓ Fair Trade Manufacturer ✓ Delivered 2/12/2018 ✓ Organic ✓ Fair Trade Distributor ✓ Delivered 2/19/2018 ✓ Organic ✓ Fair Trade Retailer ✓ Delivered 2/26/2018 ✓ Organic ✓ Fair Trade Customer ✓ Guaranteed fresh ✓ Certified organic ✓ Certified Fair Trade At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain Quality attestationProof of Purchase Consumer visibility Distributor The coffee is moved through distributor network under high-quality assurance regulations
  • 22. Procure-To-Pay Process with blockchain Participants Why blockchain on PTP? • Implements Authorization • Improves validations and authentication • Accelerates purchase order management • Transforms invoice processing • Reduces money laundering risk • Increases audit traceability Suppliers Central Procurement Office Financial Services Institution ORGANIZATION 1 Central Government ORGANIZATION 2 Local Government(s) ORGANIZATION N Related Institution(s) FINANCE LEGAL SHARED LEDGER
  • 23. A scenario based on a real case SUPPLIER ONBOARDING Allow suppliers to register and getting a digital identity. PROCUREMENT VENDOR MGMT Verification or Validation of suppliers information and approval as Organization’s suppliers for specific categories. SUPPLIER SELF-MANAGEMENT Allow authorized suppliers to add products/services in the purchasing system. ORGANIZATION MyORDER Allow authorized organizations (central o local) or related institutions to issue a Purchase Order (PO) based on products and services available in the purchasing system. PROCUREMENT PURCHASE MGMT. Fulfill Purchase Order, Approvals and Order Tracking ORGANIZATION MyORDER Certification of Order Reception SUPPLIER INVOICE Process invoices ORGANIZATION MyORDER Approve vendor invoices and optionally, rate the vendor. PROCUREMENT PURCHASE MGMT. Invoice payment process applying the negotiated discount based on the existing contract with the supplier. FINANCE FINANCIAL ACCOUNTING AND CONTROLLING (FICO) Payment validation, payment run and perform reconciliations. FINANCE FINANCIAL ACCOUNTING AND CONTROLLING (FICO) Issue Payments and remittance to supplier via the trusted financial services institution. SHARED LEDGER Supplier Identify Token Supplier Verified Supplier Products/Services Order Smart Contract Order Approved Goods Delivered Goods Received Invoice Smart Contract Invoice Approved Payment Processed Supplier Paid
  • 24.
  • 25. Are you sure Blockchain is the right technology? Do multiple parties share data? Do multiple parties manipulate the same data? Yes Use a Private Database (i.e. Azure Sql Server) Use a Distributed Database (i.e. Azure Cosmos DB) Yes No Is there a requirement for verification? Yes Are there third parties that everyone can agree to trust? Do multiple third parties need to update the shared data? YesNoNo No Can intermediaries be removed reducing costs and complexity? Will parties agree on who/how/when data can be updated or used? YesNo Yes Yes Use a Distributed Ledger Technology No
  • 26. Only 25% of the work is about the ledger SOURCE DATA AND SYSTEMS DATA INGESTION PRE- PROCESSING BLOCKCHAIN (THE “LEDGER’) POST- PROCESSING COMPUTE POST- PROCESSING STORAGE POST- PROCESSING ANALYTICS INTEGRATION SERVICES CONSUMING APPS AND SYSTEMS
  • 27. Re-imagining blockchain architecture Blockchain + Cryptlets Trusted Business Logic powered by Cryptlets Blockchain (Data Layer) Smart Contracts (Data Handling) Business Logic Traditional 3-Tier Software Architecture Presentation Layer Data Layer Stored Procedures (Data Handling) Early blockchain DApp architecture Blockchain (Data Layer) Smart Contracts (Trusted Business Logic) Presentation Layer Presentation Layer Data Layer Stored Procedures (Data Handling)
  • 28. Presentation Layer Ledger Core Layer Platform as a Service (PaaS) Ledger A Ledger B Ledger C Infrastructure as a Service (IaaS) Ledger A Ledger C Ledger D Blockchain Confidential Computing Middleware Layer Identity & Key Management Data Platform (ML & BI) Enterprise Smart Contracts Monitoring & Security Third Parties Tools Application Programming Interface ( API ) Hyperledger Fabric R3 Corda Ethereum & Quorum Conceptual View
  • 29. Gestion de Identidad y Claves API (Azure App Service) Gestor de IoT (Azure IoT Hub) Transformador y Orquestador (Azure Service Bus) Atestiguador Azure Blockchain Services Base de Datos Externa (Azure SQL Database, o Azure Cosmos DB) Almacenamiento Alternativo (Azure Blob) Custodia y Administración de Claves (Azure Key Vault) Gestion de Identidad) (Azure Active Directory) Servicios de Integración SAP (Azure logic App) Servicios de Integración IoT (Azure logic App) Interfaz de Usuario Azure App Insights Azure Monitor Monitoreo y Analítica Azure Event Grid Informes y Cuadros de Mando (Power BI) Servicios de Carga de Ficheros Excel y PDF (Azure logic App) Servicio Observador del Libro Contable (Azure logic App) Libro Contable Motor de Reglas de Negocio Reference Architecture
  • 30. Main Organization (O1) Ledger Core Layer Organization (OP1) Organization (O2) Organization (O3) Organization (O4) Using Azure yes Yes No Yes Node OP1 Middleware Layer Identity and Key Mgmt. Data Platform Application Programming Interface (API) Node O2 Node O4 Web App Enterprise Smart Contracts Node O4
  • 31. Recommended Journey Scale Out Wave 4 Production Pilot Wave 3 Production Pilot Wave 2 MVP Pilot Wave 1 • Business Ideation Workshop • Architecture Design Session focusing on Blockchain • Development of a MVP pilot using Blockchain running on Azure • Identify the entire solution’s requirements, epics, features , user stories and roadmap • Moving from MVP to production pilot with a minimum set of all participants involved. • Add IoT capabilities by ingesting data and get insights • Consortium & Governance Workshop In scope
  • 32. 1) Business Ideation Workshop 2 Days Customer Overview • Business Objectives and Needs • Regulatory Requirements Process Discussions driven by Common Business Scenarios Technology walkthrough for the Selected Business Scenario 1-2 Day 2.) MVP Architecture Design Session Architecture Discussion • Technical Constraints • Solution Architecture • Scope for 8 weeks MVP Definition • Business Objectives • Success factors • Requirements • Expected outcomes 8-10 weeks 3.) Non-Production Pilot (MVP) Prototype Design and Development 4.) MVP completion and executive briefing Business Value Demonstration Closeout Meeting 2 days Business Scenario Prioritization & Selection MVP Pilot Development Business Case and Technology Roadmap Blockchain Network Provisioning Envisioning + Proof of Value Apps Sprint 0 4 weeks Digital Advisory Services
  • 33. Why • Identify the solution’s ▪ Requirements ▪ Features ▪ Capabilities ▪ Workflows • Create/capture solution backlog Improve clarity What (Scope) • Conduct Envisioning Workshop to define ▪ Personas ▪ Scenarios ▪ User Journeys ▪ Features ▪ Workflows • Collaborate to define proposed solution architecture How (Approach)
  • 34. Initiation Development Sprints (Two-week Sprint) Stabilize & Demonstrate Value realization workshop • Results & Demo • Backlog • Proposal of Roadmap Solution Stabilization Rapid Envisioning Workshop Architecture Design Session • Edge Assessment • Data Sources Review • Reference Architecture Data validation Data Integration and storage VisualizationData enrichment IoT Device Integration User Portal 2 weeks 6 weeks 2 weeks Insight IoT Consortium & Governance
  • 35. • Conduct a Consortium Workshop with all the key participants for the business scenario • Develop the potential Consortium Governance Model for the network • Design the Consortium Value Realization Model EstimatedActivities • Identity the common business challenges and pain points between the network’s participants • Determinate the value proposition and incentives for all the participants in the network and potential metrics to help make sure everyone has a positive return on investment • Define the Minimum Viable Ecosystem (MVE) including: • How to collaborate to create value • Level of per missioning needed for your ecosystem • Link the value proposition with the solution implementation and the blockchain characteristics to make the most of • Funding and economic model to cover the investment requited to evolve the solution and the network • Define the governance model • Solution Governance vs Blockchain Governance New participant enrolment and onboarding process • Data ownership • Mechanism for coordination • Legal governance • Strategy to scale ExpectedOutcomes
  • 36. Governance Framework Solution ManagerConsortium Model Operating Model Onboarding Rules Business Rules Operating Rules Ledger Platform Consortium Agreement Governance Council Participation Agreement Service Provider Agreement Promoter Founding Members Participants Non-Participants MoU & Agreement
  • 37. Microsoft confidential. For internal use only. Q A
  • 38. © 2017 Microsoft Corporation. All rights reserved. Dankie Faleminderit Shukran Chnorakaloutioun Děkuji Tak Dank u Tänan Hvala Blagodaria Kiitos Merci Danke Ευχαριστώ Mahalo Köszönöm Terima kasih Grazie 감사합니다 Paldies Choukrane Ačiū Баярлалаа Dziękuję Thank you! Благодарам Mulţumesc Спасибо XвалаĎakujem Tack Nandri Kop khun Teşekkür ederim Дякую Diolch A dank Ngiyabonga ありがとうございました 谢谢 https://www.linkedin.com/in/pablojunco/ https://twitter.com/pjuncob