Reinventing Supply Chain IT with BLOCKCHAIN, AI and IOT · Reinventing Supply Chain IT with BLOCKCHAIN, AI and IOT March 2019 Shari Diaz Program Director, Strategy and Operations

Reinventing Supply Chain IT with BLOCKCHAIN, AI and IOT March 2019 Shari Diaz Program Director, Strategy and Operations IBM Watson Supply Chain @sharildiaz

IBM Watson Customer Engagement / © 2019 IBM Corporation

Please note

IBM’s statements regarding its plans, directions, and intent are subject to change

or withdrawal without notice and at IBM’s sole discretion.

Information regarding potential future products is intended to outline our general

product direction and it should not be relied on in making a purchasing decision.

The information mentioned regarding potential future products is not a commitment, promise,

or legal obligation to deliver any material, code or functionality. Information about potential

future products may not be incorporated into any contract.

The development, release, and timing of any future features or functionality described for our

products remains at our sole discretion.

Performance is based on measurements and projections using standard IBM benchmarks in

a controlled environment. The actual throughput or performance that any user will

experience will vary depending upon many factors, including considerations such as the

amount of multiprogramming in the user’s job stream, the I/O configuration, the storage

configuration, and the workload processed. Therefore, no assurance can be given that an

individual user will achieve results similar to those stated here.

© 2019 IBM Corporation 2

Fundamental Truths in Modern Supply Chain

1. Every decision we make is a

tradeoff

2. We are dependent on our

partners

3. Though we are great planners,

plans inevitably go awry

IBM Watson Supply Chain / © 2019 IBM Corporation

4

4

Making Supply Chains Smarter: Networked, AI-Enabled Solutions for Supply Chain Professionals

Today’s Supply Chains:

Delivering on the Brand Promise

Watson Supply Chain is NOT impacted by recent deal with HCL IBM Watson Supply Chain / © 2019 IBM Corporation

Agenda:

1. Supply Chain IT Evolution

2. Blockchain

3. Artificial Intelligence (AI)

4. Internet of Things (IoT)

5. How to Move Forward

Supply Chain IT Framework of Today


Product Planning

Demand Planning

Source & Procure

Mfg Planning / Execution

Transport Mgmt

Order Fulfilment /

Mgmt Inventory

Mgmt

B2B Connectivity (One to One Business Document Transmission)

SCM Apps (Single Enterprise Execution)

SC Analytics (Dashboards)

IW IW IW IW IW

Analytics Dashboard(s)

and Monitoring

Information

Warehouse(s) sit behind

execution application(s)

Execution applications

built for your enterprise

view

EDI, MQ, ftp, sftp, etc.

Supply Chain IT Framework of Tomorrow


B2B Connectivity (Network of Networks)

Product Planning

Demand Planning

Source & Procure


Transport Mgmt

Order Fulfilment /

Mgmt Inventory

Mgmt

SCM Apps (Multi Enterprise Execution)

Information Hub (structured & unstructured)

Visibility and Analytics Apps (Decisioning Engine)

Partners share the

applications to

COLLABORATE better

End to End visibility and

analytics to SEE the

TRADEOFFS

IWs are COMBINED and

catch data directly from the

networks. Partners

leveraging the SAME data

Networks become

INTEROPERABLE

Supply Chain IT Framework Evolution

Product Planning

Demand Planning

Source & Procure


Transport Mgmt

Order Fulfilment

/ Mgmt Inventory

Mgmt

B2B Connectivity (One to One Business Document Transmission)

SCM Apps (Single Enterprise Execution)

SC Analytics (Decisioning Engine)

Today


B2B Connectivity (Network of Networks)

Product Planning

Demand Planning

Source & Procure


Transport Mgmt

Order Fulfilment

/ Mgmt Inventory

Mgmt

SCM Apps (Multi Enterprise Execution)

Information Hub (structured & unstructured)

Tomorrow

Visibility and Analytics Apps (Decisioning Engine)

IW IW IW IW IW

8

Prominent Supply Chain analysts predict the rise and strength of Multi-enterprise Business Networks (MEBN)

Nucleus Research

THE STATE OF THE SCM MARKET:

2018

(Published: January 2018)

In five years’ time, customer’s will realize

the highest value from vendors that

offer multi-enterprise collaboration and

end-to-end capabilities

LOOKING AHEAD TO 2023

MULTI-ENTERPRISE COLLABORATION

WINS

By 2023, enterprises networked with their

trading partners and suppliers will be

better positioned to realize value from

their supply chain software.

Better able to adapt to changing

circumstances and unforeseen issues,

multi-enterprise collaboration networks

will be a crucial differentiator for those

that subscribe to them.

Gartner

Gartner introduce a new MQ for

MEBN in Nov 2018

(demonstrates value of MBN)

Supply Chain Brief: Getting

Ready for Multi-enterprise

Business Networks

(Published: January 2018)

Multipartner digital ecosystems

are becoming the pre-eminent

form of collaboration to support

new digital business models.

Supply chain leaders must

develop a proactive strategy for

engaging their business

ecosystems and select the right

mix of business processes and

technology.

Forrester

Forrester has had a Vendor Landscape for

Business Networks since 2015

Shows Growth of PO/Invoice + Industry

Networks while a declining EDI based network

IDC

IDC introduced a new MarketScape for Multi-

enterprose Supply Chain Commerce Networks in

Dec 2019

WW Supply Chain 2018 Predictions

(Published: December 2017)

"By 2020, half of the large manufacturers will

have begun shifting their supply chain applications

from enterprise centric to network centric, driving

productivity gains of 2 percentage points."


9

What is Blockchain?

Private and

permissioned

Shared, append-

only ledger

An immutable,

secure, shared version

of the truth ….

….to drive

unprecedented

efficiency.

Smart contract

governance

Trust through

consensus


10

Blockchain at work

TradeLens is digitizing

containerized shipping Link

IBM Food Trust is ensuring

food is safe to eat Link

Shared Ledger is creating one

view of the order to cash cycle Link


https://www.tradelens.com/

https://www.ibm.com/blockchain/solutions/food-trust

https://www.ibm.com/customer-engagement/supply-chain/shared-ledger

Think 2019 / #7383 / February 2019 / © 2019 IBM Corporation

Artificial

Intelligence

Using technology to do

things that have typically

required the human mind

–

learn how to perform tasks,

adapt to changes, find

insights

Natural interaction of man + machine

Turning data into insights


An artificial

intelligence solution

trained for supply

chain

designed to …

What does AI mean to Supply Chain

• Ask – be notified of answers to

questions that you didn’t know to ask

• Automate – offload tasks

• Advise – proactive solution

recommendations

• Answer – interact with all your

data & external data to answer

direct user questions


AI won’t replace

the human, but those

humans who use AI will replace

those who don’t


14

AI at work

IBM & a leading Medical

Equipment manufacturer

improved demo unit utilization


IBM and H&R Block taught

Watson to do taxes

A leading CPG company and

IBM are leveraging event data

to forecast demand

What is IoT? The Internet of

Things is…

The network of physical

objects…

…embedded with

electronics, software,

sensors and network

connectivity…

… which enables these

objects to send and

receive data. 15 IBM Watson Supply Chain / © 2019 IBM Corporation

IoT at work

IBM and Kone are

transforming preventative

maintenance

IBM and Honeywell are

reimagining retail store

operations

IBM and Kouvola Innovation

are optimizing the utilization of

shipping lanes

16 IBM Watson Supply Chain / © 2019 IBM Corporation

Connected, AI-Enabled Supply Chains will WIN

1. Every decision we make is a

UNDERSTOOD tradeoff

2. We are dependent on a vast network

of partners to deliver value to our

clients, and we COLLABORATIVELY

make decisions

3. Though we are great planners, plans

inevitably go awry, and we make

EFFICIENT, DATA-DRIVEN decisions


Co-Creation Practices that Breakdown the Barriers

Design Thinking

Approaches

Business Value

Assessments

Garage Offerings

18


Ongoing Management for Continual Engagement

Quarterly Business

Reviews

Sponsor User

Programs

Client Advisory

Boards

19


Documents

Reinventing Supply Chain IT with BLOCKCHAIN, AI and IOT · Reinventing Supply Chain IT with BLOCKCHAIN, AI and IOT March 2019 Shari Diaz Program Director, Strategy and Operations