1. AI, Analytics, & Blockchain
Supply Chain Trends
AI, Analytics, & Blockchain

2. Predictions

3. Predictions
By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities (AI, Machine Learning & Blockchain), thus increasing cost efficiency by 10% By 2019, 80% of supply chain interactions will happen across cloud-based commerce networks

4. Predictions
By 2021, one-third of manufacturers and retailers will be tracking goods using blockchain in anticipation of regulatory changes, resulting in an improvement in delivered product quality of up to 20% By 2019, robots will be in use in 50% of fulfillment centers, resulting in productivity gains of up 30%

5. Predictions
By the end of 2019, cybersecurity will have surpassed physical security as a top concern for one-half of all manufacturers Smart postponement (personalization) techniques and additive (3D) manufacturing will have been deployed by one-third of manufacturers by 2020, thus reducing delivery latency by up to 50%.

6. Trends: Scarcity to abundance
Coal versus Solar / Wind / N. Gas Autonomous autos / trucks Human capital / Robots Data Analytics Be aware of the difference between possibility and probability and pervasive.

7. Market Forces

8. Market Forces Solar

9. Market Forces Natural Gas

10. Market Forces
At the center of Autonomous Vehicles in USA 8.7M people with trucking in their job title; As soon as 2030, some expect that 90 percent of new vehicles will be autonomous.

11. Blockchain

12. Blockchain
 A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘mined’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. (merkel tree)

13. Blockchain Distributed relational database
Transaction ledger of record
Time stamped, permanent, public (but can limit)
Smart Contracts
Transaction instructions
Vending machine can pay a drone if delivery by a dictated time.
Distributed ledger
Broadcasted between nodes (blocks)
Everyone has access to Hyperledger fabric
Hyperledger is an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration, hosted by The Linux Foundation, including leaders in finance, banking, Internet of Things, supply chains, manufacturing, and Technology.

14. Blockchain
Digital Wallets are secure systems that store payment information and passwords of users for a range of payment methods and websites and are designed to hold and use your cryptocurrency.
Hardware & software wallets
HW typically “cold storage”
SW typically “Hot storage”
Internet based peer-to-peer, software to link databases:
Ethereum IBM Blockchain
Hyperledger SAP Leonardo

15. Blockchain acceptance
2016: $280M invested in Blockchain tech by capital markets. $1.4B invested by start-ups. 50% of banks are working with Blockchain tech
87% of blockchain deployments are experimental; only 3% are scalable
Reasons to use Blockchain: N=447 Blockchain survey
Cost Savings (89%)
Traceability (81%)
Transparency (79%)
Increase in Revenue (57%)
Decrease in Risk (50%)

16. Blockchain acceptance
Of 77% of 600 execs surveyed by PwC:
15% have a blockchain project live
10% have an implementation project in process
32% have a project in development
20% are in research mode on Blockchain
Of the 600 execs, 45% said trust is a barrier and 48% were concerned with regulatory uncertainty
Fraud of cryptocurrency and any new technology as well as the huge fluctuating values of the currency are concerns.

18. Blockchain 1, 2, & 3
Blockchain 1.0 – Cryptocurrency solved collective dilusion
IoM – Internet of money
Currency exchange
Digital wallets
Blockchain Contracts and markets
DAPPs Decentralized Apps
DAOs Decentralized Autonomous Orgs
DACs Decentralized Autonomous Corps
Blockchain Scale

19. Blockchain Uses Managing supplier contracts
Foxconn spent $6.5M in Blockchain transactions
“Chained Finance for SME suppliers”
Bosch Automotive
Manufacturing has 3X the shared data compared to retail or consumer due to decentralization
Digital Thread – “Single source of truth” on shared capital assets
Consumer products – detect product origin; provenance of food (where does it come from?)
A beer brewery in Belmont, CA, is using blockchain to ensure that using locally grown ingredients and vendors. Users will even be able to scan a code on each container and see a lot of information about the beer they are drinking
Retailers – Reverse logistics; single wallet for reward programs

20. Blockchain Uses - Oracle
Intelligent Track and Trace: The app creates a digital trail of each step in the business network, during procurement, manufacturing, and transportation, to allow organizations to do root cause analysis when problems arise and resolve supply chain disputes.
Lot Lineage and Provenance: This app addresses the need for regulatory compliance, targeted recalls, and counterfeit components prevention.
Warranty and Usage Tracking: The app creates an auditable and verifiable log for warranty, liability claims, and insurance to expedite claims and settlements.
Intelligent Cold Chain: Helps monitor and track the temperature-controlled supply chain.

21. Blockchain
Companies don’t realize how many transactions involve multiple parties: - inefficiencies in payments - lack of transparency between parties - lost goods & human error Blockchain enables multiple parties to record their inputs, increasing accountability, real time accuracy, security and transparency, while streamlining business processes.

22. Blockchain: transaction mapping
key area of interest for anti-counterfeiting of materials. Elimination of counterfeit costs and risks of false liability for material manufacturers Assurance of quality, and the ability to get material information digitally, a huge benefit to design through manufacturing. Appearing first in pharmacy supply chains, where there is a huge problem with fake drugs coming from suspicious sources

23. Analytics & AI?

24. Big Data: How Much Google processes 20K TB a day
Facebook has 2.5 PB of user data + 15 TB/day
eBay has 6.5 PB of user data + 50 TB/day
NSA touches 29K TB a day
1000 gigabytes = 1 Terabyte
1000 Terabytes = 1 Petabyte

25. Digital engagement is the future
of small businesses now get at least one quarter of new customers via social media.
If Facebook were a country, it would be the world’s 2nd largest B
Percent of year olds who check Facebook when they wake up - 48 %
Social Media has overtaken adult content as the #1 activity on the web
1 out of 8 couples married in the US last year met via social media
78%
of young people refer to social media to decide where to go when they go out.
61%
27%
of Americans check their social networks several times a day.
of Americans check brand pages regularly as part of their social media activity.
35%
27%
of time spent online is for social media.
Digital Convergence

26. Big Data - Amazon
Amazon has filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it — and shipping products in their general direction, or even right to their door, before the sales click.

27. What does Analytics effect?
Marketing
Predictive CRM
Forecast accuracy
Accounting & Finance
Forecasting Profitability (EBITA)
Combating Tax Fraud (IRS real data)
Health Care
Promoting wellness (thru text)
Elderly Medication tracking
Supply Chain
Channel management
Capacity Planning
Commercial Real estate
Locations and valuation
Public Safety
Detecting gun usage

28. Prescriptive Analytics

29. Eyesee: The eye recognition cameras
Calo (2009): People can be so fake: Truth in privacy overcomes truth in observed situations

30. 7x24 shelf analysis with multiple and simultaneous people tracking: Traffic Flow analysis based on zones/time Heat Maps of conversion rates for each SKU. Hot activity zones in shelf More Shopper insights: Multiple events on the shelf. Entrance / bounce paths Average times in zones Product traction analysis Real comparative shelf layout performance

31. Omni channel is here to stay…but
Omni-channel retailing is already evolving into a model in which the customer is considered the only channel. Empowered customers will drive the evolution of shopping

32. Big Data: Supply Chain Customer Analytics: Dash
Amazon launched a in home button to replenish product at the point of use.
Based on Wi-fi capability in the home.
You can set the buttons via Amazon's mobile shopping app and assign the specific products and amounts you want from each click.
That click also sends a message to your phone, giving you a 30-minute window to cancel.
There are Dash buttons for coffee, detergent, razors, toilet paper, diapers, wipes, juice, dog food, trash bags, macaroni and cheese and napkins, among other items.

33. Beyond Omni-channel – The customer is the channel!
• How do you plan to create more engaging and personalized experiences for your customers?
• How do you assess the extent to which you use your structured and unstructured data effectively across all business lines and functions?
Cognitive computing systems use artificial intelligence (AI) and the combination of enterprise (on-premises) data as well as data in the cloud to build knowledge
Customers say that a digital device will influence 50 percent of their in-store purchases.
Seventy-four percent of U.S. smartphone owners say they would be more likely to
shop at a store offering key functions and services via an app

34. The customer is the channel! Nordstrom Melrose Place
Customers can meet with a personal stylist, have clothing tailored, get a manicure and sip a beverage laced with caffeine or alcohol. All to collect persona data.

35. Cognitive data in retail
91 percent of retail executives familiar with cognitive computing believe it will play a disruptive role in their organization? Even more significant: 94 percent intend to invest in it. The power of combining customer data with weather data, enterprise-based data on product buying trends, purchase rates and shopper history to do a better job of managing and monitoring supply chains. Customers say that a digital device will influence 50 percent of their in-store purchases, Seventy-four percent of U.S. smartphone owners say they would be more likely to shop at a store offering key functions and services via an app.

36. Cognitive data in retail
Consistency: Deliver a seamless shopping experience across all channels.
Content: Provide customers and associates easy methods to gain accurate and comprehensive information.
Convenience: Enable customers to interact with you as they choose.
Contextual: Tailor each engagement based on individual needs and wants.

37. IoT

38. IoT

39. AI
Artificial Intelligence can indicate to a brand, by tracking huge volumes of online activity, what percentage of your audience is anxious, ambitious, altruistic, angry or happy. The power of AI lies in interpreting what’s been said to understand what the need is thru twitter. In stores and online, AI bots can analyze vast amounts of information from multiple sources; not just text but also images and video, and data on stock levels

40. AI
A screen-based gift-finding tool allowing shoppers to find the perfect gift to match the recipient’s personality.

41. Amazon Lockers in 7/11 Japan & India
With almost 500 million Indians using the Internet in 2018, India, Asia's No. 3 economy, is a huge e-commerce battleground. Amazon invested $5B in consumables in India

42. Reverse Logistics: Hi Tech Trash
Two Million tons of e-waste goes to landfills each year 163K PCs & TVs become obsolete every year "While some brands salvage components such as chips that can be used to repair faulty phones, Apple has a full-destruction policy," a Bloomberg reported in February. Apple shreds its devices to prevent fake Apple products from making their way to the secondary market, Apple's head of environmental affairs Lisa Jackson

43. Sorting Purification Compounding

44. Big Data: Is Our Security Keeping Pace?
Bug Bounty Program:
Since it launched five years ago, Facebook has had more than 2,400 valid submissions and awarded upwards of $4.3 million to over 800 researchers.
Facebook paid Brazilian computer engineer Reginaldo Silva $33,500 for reporting a major bug to Facebook.
Uber will pay hackers up to $10,000 to find bugs in its system.
In 2015, Facebook received 13,233 submissions from 5,543 hackers from around the world, often from small towns in developing countries.

45. AI
Machine learning: AI image recognition The error rate for recognizing images from a large database called ImageNet, of common, obscure, with several million photographs or downright weird images, fell from higher than 30% in 2010 to about 4% in 2016 for the best systemsThe speed of improvement has accelerated

46. AI – Supply Chain
AI-powered machines will be responsible for simple processes like x-ray or optical inspection Thru machine learning environments like full 3D inspection that produce a lot of data will be 100% accurate AI is an operator that will never tire of repetitive work, isn’t prone to human error, and analyzes massive amounts of data in mere seconds.

47. Robots
Consistency and cost savings Human employees: ● Cost about $12 per hour ● Take vacations, have sick days and require breaks ● Potential for operator error ● Require extensive training Robots: ● Cost about $0.75 per hour ● Work 24 hours a day, 7 days a week, 52 weeks a year ● Follow all safety protocols ● Travel optimized routes at consistent speeds

48. Industry 4.0

49. Robots
Industry percent of organizations across several industries say that a single hour of downtime costs over $100,000. But: Reliability and stability needed for critical machine-to-machine communication (M2M), including very short and stable latency times Need to maintain the integrity of production processes Need to avoid any IT snags, as those would cause expensive production outages Need to protect industrial know how Lack of adequate skill-sets to expedite the march towards fourth industrial revolution

50. Analytics: A feel good case study

51. Jill Dyché, vice president of best practices at software vendor SAS Institute Inc., says that “if we mapped the adopters journey like we map the customer journey it reveals inefficiencies that [shelters] can fix through data analytics.”

53. The Doggie Dashboard is a powerful tool and an example of a modern application that exemplifies the digital experience. Better information is its currency. Businesses in both the public and private sectors can exploit these technologies for better adoption – in both senses of the word! This is how it should be. No taking a ticket. No waiting in long lines for simple information.

54. Big Data & Supply Chain is easy! Questions?