Promising potential of disruptive technologies for Supply Chain Dr.ir. Maka De Lameillieure AMS Antwerp Management School 16 december 2019
Steps towards Voice based Industry 4.0 and virtual assistants the factory of the become future ubiquitous Huge growth in Mobile-first to the as-a-service AI-first model Personal data value platforms Sustainability Personalisation becomes a major & feature in Customisation innovation Meatless meats Blockchain IoT AI Icons made by Darius Dan from www.flaticon.com
88% of T&L professionals believe BC will distrupt the industry 74% say they are exploring opportunities only superficially or haven’t thought about BC at all BCG, 2019 https://www.bcg.com/en-gb/publications/2019/resolving-blockchain-paradox- transportation-logistics.aspx
What problem are we trying to solve that disruptive technology might or might not offer the solution for?
01. The nuts and bolts of blockchain
Tamper-proof transaction records Origin of (raw) materials, processing, transport, .. 1 2 1 1 4 5 1 3 e 3 9 5 e a 3 7 3 3 1 1 b b 2 a 8 9 7 3 4 2 0 1 8 7 a a 3 2 2 4 5 a 8 8 1 c 0 2 1 b 1 3 4 5 6 e 6 9 1 b 3 e e 6 5 a 5 a a e 3 3 b 1 1 e a 4 3 3 a 5 1 a 2 3 3 b 0 2 9 9 b b 3 a 2 1 2 3 1 a 8 1 4 e 3 3 c c 1 1 2 2 7 3 e 3 1 b e 4 5 1 3 e e 0 5 c b 1 1 0 2 1 3 e 4 9 b b 8 a 3 1 5 7 3 4 4 3 a b 0 e 1 3 4 c c 4 1 1 3 nnn Immutable record and timestamping
Information sharing & synchronization Distributed ledger & Consensus Model
Secure Container Release A Narcotics Transferring the right to pickup a container a pickup right is owned by only one party at a - time In 2018, over 50 tons the right is transferred to the next party in the - of narcotics was found chain in the Port of Antwerp Secure & trusted transactions only entitled parties can initiate transactions - only authorised parties can create, share or - PIN codes approve documents/certificates To secure the container Transparency & Traceability pickup, PIN codes are generated. the authenticity of the right can be verified at - all times Today, PIN codes can all transactions are logged in an immutable - be “ double-spend ” by audit trail organised crime, loopholing the process This process has proven B to be inefficient and unsecure 11
Trust and Risc Contract negotiation, execution,verifingthe contract fulfilment state Smart contracts are computer programs that au automa mati tically cally execute te in instructions ructions triggered by external events (for example, the receipt of goods leads to payment being processed). Smart contracts are not smart and cannot be considered as legal contracts Smart Contract
Application areas of blockchain in supply chain management Supply chain indicators Blockchain key concepts Tamper-proof Information sharing & Smart contract execution transaction records synchronization Improve overall quality x x x Reduce cost x x x Shorten delivery time x Reduce risk x x Increase trust x x Source: Helo P., Hao Y., 2019, Blockchains in operations and supply chains: A model and reference implementation
02.
Immutable record – the right to erasure (‘right to be forgotten’ in new General Data Protection Regulation (GDPR) of the European Union, mainly article 17 ) Any person can correct or even delete his/her personal data and information that affects him/her (person) and stop being treated if this personal data is no longer necessary for the purposes for which they were collected.
No middleman – whom to ask if something goes wrong?
92 92% % of the blockchain projects launched in last three years are now dead. Land Registry via Blockchain Growth in turnover x 22 x 22! in 10 years With only 1/ 1/3 employees High employee satisfaction Source rce: Evolutio ution n of blockcha kchain in techno hnolog ogy, y, Delo loitt itte, e, 2017
03. Results from research
1 2 3 Not only one technology, but combination of different technologies 19 |
OpenSC venture, which will track Patagonian toothfish, developed by WWF and BCG Digital Ventures
Monitoring data, machine learning software, the Internet of Things (IoT) and blockchain technology.
Expose Capture Store Verify
1 2 3 Combine Not only one physical, technology, financial and digital flows but combination of different technologies 25 |
vvvvv 2. Multiple Sources Services, loalty programs 3. Payments Smart contracts vvvvv
1 2 3 Asymmetric Combine Not only one physical, combination, big technology, financial and and small but combination digital flow companies, of different academia, technologies governments, …
04. Think twice before you start
• Is there a predictable, repeatable process that lends itself well to automation? • Is there an ongoing or long-running transaction or process, rather than a process that only occurs once? • Are there multiple stakeholders in this process or value chain? • Is there an element of value transfer? Remember, value is not only monetary. • Is there value in an immutable record? Or is an immutable record a requirement? • Is it possible to use public blockchains, or is there a defined need for a private implementation? • Are there any behavioral or organizational changes necessary to implement this use case? • …
Smart Adoption model Experiment &Learn Adopt &Transform FOCUS: FOCUS: Future value Execution effect Observe &Follow Align &Embed FOCUS: FOCUS: Potential evolution Operational efficiency The smart adoption model guides managers in identifying the relevant technologies that might impact the organizations activity system and helps prioritizing resource allocation Scheipers et al. (2016) 31
Thank you! Maka De Lameillieure maka.delameillieure@ams.ac..be +32 498 91 94 99 Connect with me on LinkedIn Antwerp Management School Opening minds to impact the world
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