Advanced Technologies for adopting a Risk management strategy
Frank Callewaert - Global Technology Strategist Digital Transformation in Customs and Trade Business Drivers
Increasing Expectation New for Frictionless business models customs operations (eCommerce, 3D Print, Digital platforms e.g.) Demand for more Global shifts in accountability growth and trade and & transparency across focus on supply chain Customs Ecosystem security
Disruptive Paperless Need to improve innovation and Predictable customs Customs compliance technology (IoT, operations and fraud detection Blockchain, AI etc.) Digital Customs Roadmap a phased approach
Where we come from Where we want to be
Intelligent globally connected eCustoms & eTrade
• Phase 1: Capture Information Electronically & Process • Phase 2: Analyze, Declare & Collaborate Information with Customs • Phase 3: Connect All Stakeholders Capture Information Electronically & Process Capture Information Electronically & Process
PowerApps Capture Information Electronically & Process
Documents Cognitive skills Fully text-searchable rich index
Key Phrase extraction Location entity extraction Sentiment analysis
Organization entity extraction Persons entity extraction Language detection
Face detection Celebrity recognition Tag extraction
Custom skills Landmark detection Printed text recognition https://jfk-demo.azurewebsites.net/#/ Internet of Things is everywhere A Simple View of an IoT Solution
Things Data & Insights Actions Intelligent Cloud
Intelligent Edge
Cargo tracking Livestock & Pets Pets Livestock Freight Airplanes Buses Fleet monitoring Origin Tracking Predictive maintenance Health & Vaccines Arrival predictions Tracking of Trucks Trains Transport conditions Vaccinations Shipping timber/lumber Location Intelligence for Transportation Smart seals Location Traffic Systems Engines Digital Twins
Public Safety Surveillance Security Augmented reality
Communications Drones Equipment Warehouse Worker Safety Wearables
Identify and monitor threats Internet of Things for eCustoms Site Security and Surveillance Car plate – Container identification Traceability from producer to Buyer People traceability– Site access control Food Safety Movement Pattern detection Multilayer Origin Tracking - Quality attestation MFA and Smart Badging Smart Seals Factories QR – RFID Counterfeit & Fraud detection 100% Scanning Multilayer QR & RFID Warehouse Stocking conditions Smart seals Agriculture Port Cranes Buyer Augmented Reality Digital Twins DATA & AI driven Digital Customs Microsoft’s approach to AI adoption Risk Management Framework (RMF) & DATA
PPT 12 REM PPT DATA & AI driven Digital Customs
IoT & Big Data
Cloud
Machine Learning
Risk management Reactive: Example Historical reputation
Store on Data Lake or Query using Cosmos DB Spark
Requirement: Long term data storage and flexible retrieval The Data Lake Approach
Ingest all data Store all data Do analysis regardless of in native format Using analytic requirements without schema engines like Hadoop definition and ADLA
Devices Batch queries Interactive queries Real-time analytics Machine Learning Data warehouse Azure Data Lake Storage
Hadoop compatible file system interface for Azure Blob Storage Fine grained file and folder permissions (ACLs) Atomic file system operations Full support for all Blob features (AAD Integration, Zone Redundant and RA-Geo Redundant Storage)
Strong Partner Support Learn more. Azure Cosmos DB Microsoft’s globally-distributed database service Introducing Azure Cosmos DB A globally distributed, massively scalable, multi-model database service
TableTable APIAPI
Column-family Document
Key-value Graph
Guaranteed low latency at the 99th percentile Elastic scale out of storage & throughput Five well-defined consistency models
Turnkey global distribution Comprehensive SLAs Machine Learning finds patterns in data then uses those patterns to predict the future Risk management: Activity Based Monitoring
Movements Suspicious in area Meeting behaviors Use of Machine learning to discover anomalous behaviors in real world transactions or processes Risk management: predictive model
Machine Learning: Applied artificial intelligence on realtime data stream
Predict Detect Predict Positions Anomalies Global Risk Predict positions within 30 min predictive realtime What is HP-IMS
IMS = Integrated Maritime Services, EMSA’s core platform for the EU’s ‘Integrated Maritime Picture’ of ship positions, tracks and behaviours Scope of the HP-IMS Phase 2
➔ Four focus area’s
Performance, R/T R/T & Long Term Capacity, Maritime Historic Storage & Agility & Picture ABMs Queries Security Bing image search Speech API Entity linking Customer feedback analysis Bing Speech news search
Text to speech Custom recognition Machine Forecasting Language Recommendation (CRIS) API Learning
Text analytics
Thumbnail Academic Spell generation Cognitive Services knowledge check
Web language model
Bing Computer Knowledge autosuggest vision Vision
Emotion
Anomaly Sentiment Search detection scoring OCR, tagging, captioning Bing web search Technology can perceive the world
Perception Comprehension
35 Cognitive Services Machine Vision Learning
Visual Recognition Intelligent Service makes it easy to build a custom image classifier. For example: • Identify whether a photo includes a picture of your product • Differentiate between genuine versus counterfeit https://visionaidevkit.com/
Border Protection with automated Video Surveillance
Microsoft Kinect – the visual recognition system Vision API – Recognize People and Objects Video indexer: CCTV detection of people and suspicious behavior Custom Vision: customize your own state-of-the-art computer vision models for your unique use case Discover Explosives & Radiation detections INTRODUCING CORSYS: THE FUTURE OF SECURITY OPERATIONS
THE OVERALL PLATFORM – DIGITALLY ACCELERATING YOUR OPERATIONS
CASE OPERATIONS 01 MANAGMENT 02 PROFILER 03 DECISION CENTRE 04 OPTIMISER
SPLIT INTO 5 RISK CATEGORIES, CUSTOMISABLE TO SPECIFIC PORT PROCESSES
NON-PHYSICAL ANALYSIS & INSPECTION AUTOMATED RISK TOOLS CASE PATHWAY CREATION ASSIGNMENT COMMON 05 OPERATIONAL VIEW MACHINE ASSISTED MANUAL 06 INTELLIGENCE CASE CREATION CONFIRM/ OVERRIDE RISK PATHWAYS 3RD PARTY INGESTION
Cases ingested from AI and ML algorithms suggest Customs officers either confirm or override the All data feeds into a single view for supervisors to various sources, along a risk level for each case. The suggested risk levels from the profiler engine, these risk understand and control current operations, and an with additional data system learns from itself using levels correlate to various action pathways depending on optimiser to make the best use of available resources. from other sources verdicts from processed cases what inspection processes your port has available Case verdicts feed back to the ML algorithm
smithsdetection.com 43 INTRODUCING CORSYS: THE FUTURE OF SECURITY OPERATIONS
WHICH CAN ADAPT TO DELIVER NEW AVIATION / AIR CARGO CONOPS
CASE Profiler produces risk assessment score for each parcel based on the information captured 01 MANAGMENT 03 PROFILER 06
Building a trusted AI assisted Machine Learning Algorithm that could support future business model change – Scan all Scan some? MACHINE ASSISTED INTELLIGENCE AIRWAY BILL OPERATIONS DECISION CENTRE COMMON + 02 OPTIMISER 04 05 OPERATIONAL VIEW 3RD PARTY DATA Each parcel is routed to Airway bill and other 3rd different party data sent in advance process of shipment. according to decision centre outputs All captured data processed through operations optimiser TRUSTED SHIPPER
DOCUMENTATION ANOMALIES
RECHECK SCAN/TRACE INSPECT DASHBOARD
PHYSICAL INSPECTION
Dashboard provides real-time BI Decision centre gives officers full control and information via stream analytics, with PARCEL IS NOW READY TO LOAD visibility over decision making based on WEIGHTS & all results fed back into Profilers’ PARCEL ARRIVES X-RAY profiler scores ONTO AIRCRAFT FOR SHIPMENT DIMENSIONS machine learning
smithsdetection.com 44 INTRODUCING CORSYS: THE FUTURE OF SECURITY OPERATIONS
POWERED BY INDUSTRY-LEADING STANDARDS & TECHNOLOGIES
TECHNOLOGIES &
BLOCKCHAIN OPEN INTEROPERABILITY MACHINE AS-A-SERVICE PLATFORM WITH ANY BRAND OF NII DEVICE LEARNING ENGINE
CORSYS is a global arbitrator of trust for Global open platform linking your own CORSYS is able to support all of your Our global data sets have an industry shipping security; managed by in-house development platforms and scanners regardless of manufacturer leading perspective on ports and boarders Blockchain distributed ledger competitors apps by our powerful API providing interoperability across all risks and focus areas; enabling a more your devices effective use of your operations teams
DASHBOARDS IOT DEVICE AUGMENTED CLOUD FIRST FOR ALL DEVICES CONNECTIVITY INTELLIGENCE DESIGN
Improve processes and get better use Connect to any device and data feed to Leverages the power of a strong mixed The CORSYS service is built using from your human capital by providing aggregate information into one platform reality approach, with a mission focus industry leading security controls; with the most effective single pain of glass on the convergence of multiple data centrally managed policies and controls; to manage operations from the sets fused together, combined with the partnering with leading vendors such as operations centre to the front line results of physical inspection approach. Microsoft
smithsdetection.com 45 "LEGO blocks (#0048)" (CC BY 2.0) by regan76 @ flickr Supply Chain & eCustoms Scenarios
Farm to Buyer Trade (Import/Export) Retail to Consumer
Provenance – Certificate of Origin
Environment Monitoring w/ IoT (Temperature and Humidity)
Dispute Resolution Retailer receives PR value from Blockchain Based – Certificate of Origin engagement, with the ability to highlight what they’re doing for Retailer gets attestable end to end farmers, local economies, and to supply chain insight that can help drive sustainability. them optimize their supply chain and reduce costs. Transparency of farming transactions with supply chain helps farmers get credit.
Blockchain can make economics work for partners, such as insurance companies, Customers can get insight into origins of their product, down to Source Farm to offer services to suppliers knowing which farm(s) participated, sustainable methods used, etc.
Customs has insight into the entire process Customs Blockchain in action | Real-time grain tracking
Harvest Carrier 1 Granary The grains are harvested and 25% of grains are The product is securely shipped with The grains are stored per assessed for contaminants. found to have toxins QR codes that verify that shipping manufacturer’s regulations The remaining grains are then and are rejected. and handling happen per and compliance standards packaged with multilayer QR manufacturer’s regulations and codes compliance standards
Miller Food processors The grains are milled and must be Transform the grains handled per manufacturer’s regulations into packaged goods for and compliance standards A consumption per manufacturer’s Retail store regulations and Rejects the pasta products sent by food compliance standards processor A due to poor handling procedures B
Food processor A has breached the contract and C is liable for penalty
SHARED LEDGER Smart contract Harvest Granary Miller Food processors Retail store Carriers • 25% of grains • Grains • Grains A: Pasta products A: Rejected – non- created • Grains have toxins stored milled B: Bread products compliant handling Grain needs to be delivered • 75% of grains • Compliant • Compliant C: Rice products B: Accepted harvested and • Compliant are shipped handling handling C: Accepted shipped. handling Interswitch | Seamless supply chain financing
Corp. Sales Officer Verifies the customer with the bank
Bank Admin Bank Manager Creates sales Issues the bank contract guarantee
Entrepreneur Supplier Supplier Entrepreneur Submits a Requires a bank Bank Admin Corp. Sales Director Receives the Receives purchase order guarantee for the Releases ATC to Approves bank guarantee and supplies to the supplier purchase customer guarantee terms fulfills the order
Bank Manager Option to contend the guarantee terms
SHARED LEDGER
Smart contract created Contract updated Contract updated Contract updated Contract updated • Entrepreneur submits a • Supplier requests • Bank and the • The supplier receives • Entrepreneur purchase order to a a bank guarantee supplier agree on the guarantee and receives the supplier guarantee terms fulfills the purchase supplies 3D printed assets tracking
OEM Schematic Precision parts manufacturer Digital equipment design published to the designs proprietary equipment blockchain and tied to the physical part
Physical part Each part is equipped with a Schematic update Notification unique QR code enabling customer Manufacturer updates design Digital twin informs customer that physical access to the digital schematic to improve performance 010011 part is nearing its operational limit
Digital twin In the cloud, the digital twin runs real-time analytics to monitor the physical part’s status Customer query Installation Customer queries the most updated Customer uses the schematics to confidently 3D schematics in the secure, blockchain print the perfect part form anywhere in the world ledger using the QR code
SHARED LEDGER Digital schematic Unique QR code Manufacturer updates Critical replacement • Part #1560-01-505-8009 • Part #1560-01-505-8009 • Part #1560-01-505-8010 • Part #1560-01-505-8010 • Material: Titanium • Product ID #12.645.23 010011 • Material: Titanium • Product ID #12.645.24 • 3.12mm x 4.33mm • Digital Twin ID #12.645.23 • 3.13mm x 4.34mm • Material: Titanium • Unique QR code link • 3.13mm x 4.34mm Connecting all Stakeholders Data Sharing DATA SHARING IS CHALLENGING A LACK OF TRUST BETWEEN DATA PROVIDERS AND DATA CONSUMERS DATA SHARING IS CHALLENGING Full mesh 1:1 trust
Ports
Importers Banks
Customs
Brokers Treasury
Gov . Agencies Single Window Definitions
lodge information with a single body to fulfil all import or export-related regulatory requirements
lodge standardized information and documents with a single entry point
police, border guards, veterinary and environmental authorities give the information only once DATA SHARING IS CHALLENGING WHAT IF WE COULD CREATE A NEW ZONE OF TRUST?
Trust zone
Data Trustee Choose Your Application Strategy …
Microsoft Azure
Microsoft Azure Stack
Microsoft Azure Data Box Edge Azure Stack updates Consistency across the cloud and the edge
a b c d Microsoft Azure
Azure Industrial Azure Data Azure Stack Sphere Drone Assets Box Edge Conclusions Technology empowers Customs to drive more complex initiatives
Digitize labor intensive, paper-based processes Enable cross-agency collaboration Address expanding volume and cost of data Cloud based Analytics - Big Data applications Machine Learning Optimize budget Blockchain Upgrade aging, costly and inflexible legacy technology Achieve security, privacy and regulatory Internet of Augmented compliance Things Virtual Reality Recruit and retain next generation of government workers