„Blockchain: Opportunities and Risks”

Web 3.0: Internet of Value

Dr. Ulrich Franke – CEO, Institute for Supply Chain Security GmbH Institute for Supply Chain Security GmbH 2

Profile of Dr. Ulrich Franke

Since June 2019 Management Consultant at Cassini Consulting AG Since January 2013 Head of the Institute for Supply Chain Security GmbH, Bochum October 2004 – December 2012 Professor for Logistics und Supply Chain Management Hochschule für Logistik und Wirtschaft, Hamm December 2008 – December 2011 Vice-chancellor and CEO Hochschule für Logistik und Wirtschaft, Hamm November 2001 – September 2004 Senior Consultant for Procurement, Logistics and SCM Pleyma GmbH, Hamburg October 1997 – August 2001 Doctor of Philosophy (Ph.D.) Cranfield Centre for Logistics and Transportation, Cranfield University, England September 1996 – September 1997 Master of Business Administration (MBA) Oxford Brookes University, England Institute for Supply Chain Security GmbH 3

Industry 4.0: fast, agile and reliable!

• Integration and synchronisation of production an logistics processes • All processes from the source of raw material up to the final consumption are integrated and permanently monitored

1st 2nd 3rd 4th

Mechanisation, Mass production, Computer and Cyber Physical water power, assembly line, automatisation Systems steam power electricity Institute for Supply Chain Security GmbH 4

Maturity Modell of Industry 4.0

Computerisation Connectivity Visibility Transparency Forecast Adaptability Institute for Supply Chain Security GmbH 5

Supply Chain Risk and Security Management

Allianz Risk Barometer 2019

Source: Allianz Global Corporate & Specialty. Institute for Supply Chain Security GmbH 6

Cyber Attacks on Supply Chains

Quelle: http://www3.weforum.org/docs/WEF_Impact_of_the_Fourth_Industrial_Revolution_on_Supply_Chains_.pdf?utm_conten t=bufferbecfe&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer Institute for Supply Chain Security GmbH 7

Industry 4.0: Digitisation Technologies

Quelle: SAP

What is the Blockchain?

Definition:

A Blockchain is a software architecture that supports collaborative processes around trusted data that is shared and distributed across organisational and national boundaries. Institute for Supply Chain Security GmbH 9

Blockchain Principles – how does it work?

Blockchain: • Continuously updated, chronologically ordered and publicly (privatly) available register with information on ownership and transactions. • Cryptographic principles grant a retroactive immutability of the entries.

Distributed Consensus Adding Referencing Permanent Ledger mechanism new blocks previous blocks time stamp Institute for Supply Chain Security GmbH 10

Five Steps of Blockchain Innovations

Blockchain technology has been about information synchronisation and immediate transactions. It moves to the direction of platforms and ecosystems.

DAOs*

Smart Contracts

Identity Management

Transfer of Assests

Secure Data Management

*Dezentrale Autonomous Organisationen Institute for Supply Chain Security GmbH 11

What are Blockchain Use Cases?

Blockchain solutions can solve existing problems or create new revenue streams

More efficient and Cost savings, New business effective processes cost avoidance models and revenue streams

Solving an existing problem Institute for Supply Chain Security GmbH 12

Application Fields of Blockchain-Technology

Functional @ Economic Autonomous Mobility / Vehicles, Shipping & Drones Logistics

Smart Home Provenance, P2P Energy Smart City Industry 4.0 IP & Assets, Sharing Economy Security, Characteristics: Supply Chains Decentralised, Compliant, Frictionless, Automated, Secure, Segregated, Finserv, Identity, Enbedded Predictive Tax, Insurance, eGovt Lawtech Services Public Services, Security, Citizenship

Wellness, Disease Mapping, Health Personalised Drugs Institute for Supply Chain Security GmbH 13

Industry 4.0: Horizontal and Vertical Integration

Blockchain: Reliable data in real time!

Supplier Supplier Manufacturer Retailer Customer

Quelle: Horizontale und vertikale Integration (FIR e.V. an der RWTH Aachen) Institute for Supply Chain Security GmbH 14

Use Case: Track & Trace – Smart Monitoring

- Tracking of transport conditions - Tracking of manufacturing processes - Tracking of quality control figures

Supply Chain

GPS GPS Temperature Temperature Shock Transport Monitoring Content Humidity Humidity Picking & Repack Big Data Analysis

Block Chain Institute for Supply Chain Security GmbH 15

Use Case: Secure Document Management - Document ledger for enterprises to store data - Secure collaboration between all supply chain participants - Documents - Single Source of Truth

Supply Chain

Block Chain Institute for Supply Chain Security GmbH 16

Use Case: Smart Contracts in Supply Chains Smart contracts are simply computer programs that act as agreements where the terms of the agreement can be preprogrammed with the ability to self- execute and self-enforce itself. Example: SLA

Production Delivery Payment Product process is documented, i.e. Finished products call for Hand over of goods manufacturer, machines, suppliers, delivery truck automatically. triggers payment. workers, quality tests, spare parts, ...

Block Chain Institute for Supply Chain Security GmbH 17

Use Case: Check of Authenticity of Products

- Tracking of ownership - Tracking of physical marks - Tracking of geographical position

Supply Chain

Block Chain Institute for Supply Chain Security GmbH 18

Use Case: Transport Insurance

Terms of Transfer of Ownership and Liability Delivery

Supply Chain GPS Temperature Humidity Block Chain

Smart Contracts provide all predetermined data to relevant parties in real time

Insurance Broker Insurance Company Consignor Consignee Forwarder Institute for Supply Chain Security GmbH 19

What are the Benefits of Blockchain?

• Saves Time – Transaction time from days to instantaneous

• Removes Cost – Overhead and cost intermediaries

• Increases Efficiency – Self-executing smart contracts

• Reduce Risk – Tampering, fraud and cyber crime

• Increases Trust – Shared processes and record keeping Contact

Institute for Supply Chain Security GmbH Dr. Ulrich Franke

Goerdtstr. 43 44803 Bochum

Mobile: +49 157 36752704

Email: [email protected] Internet: www.supply-chain-security.org XING: https://www.xing.com/profiles/Ulrich_Franke13