helping incumbents innovate with blockchain€¦ · blockchain. key attributes • distributed and...

Helping incumbents innovate with Blockchain

Alain NeyroudPrincipal Architect,IBM Blockchain Garage

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Agenda

• IBM Global C-Suite Study Teaser• IBM Cloud Garage• Introducing Blockchain for Business• IBM Cloud Garage Method & Blockchain: Lesson Learned• Q&A

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Dancing with disruptionIncumbent hit their stride

Trust in the journeyThe path to personalization

Orchestrating the futureThe pull of platform business models

Innovation in motionAgility for the enterprise

We empower companies small and large to disrupt and transform by delivering cloud-based solutions in the minimum possible time using the IBM Cloud and the IBM Cloud Garage Method.

IBM’s consultancywith a startup DNA

IBM Cloud Garage

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Is your business idea as good as you think it is?

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Is your business idea as good as you think it is?

6© 2018 IBM Corporation

© 2018 IBM Corporation

Cloud GarageFormula for Innovation

People | Places | Platform | Practice

Collaborate across disciplines with clients to move faster and work smarter and produce engaging experiences.

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Business StakeholdersSubject Matter ExpertsDesignersDevelopersArchitects

People

We help you to move faster and work smarterDiversity is critical

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Collaborative spaces spurinnovation

Change up your work environment and experience a fundamental culture shift to reach success. Reimagine collaboration and innovation with other innovators by your side. IBM Cloud Garages are embedded within tech incubators in some of the world’s largest startup communities.

Or a Garage works with you to setup a collaborative space in your city or location.

Places

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Use a combination of the most prominent open-sourcecomputing technologies to power your apps. Then, let the IBM Cloud handle the rest.

• Built-in DevOps to build and deploy fast

• IBM Cloud is built with leading cloud computing technologies: Cloud Foundry, Kubernetes, and OpenWhisk

• Leverage key services such as Blockchain, IoT and Watson

Platform = CloudInnovate easily, measuresuccess rapidly

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Practice

Get hands-on, prescriptive guidance through the entire innovation cycle — from the initial idea through the first pilot project and to scaling the project to meet enterprise requirements.

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Hands-on practice fromideation to production

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Innovate like a startup. Scale for the Enterprise. Architectures, best practices, and toolchains to jump-start your cloud and DevOps transformation.

ibm.com/cloud/garage

Brings together:• Enterprise Design Thinking• Lean startup / Minimal Viable

Product• Agile values, principles, practices• devOps & continuous delivery

IBM Cloud Garage Method

© 2018 IBM Corporation

© 2018 IBM Corporation

Design Thinking

Design with Innovation target AND focus on end users

Leverage IBM Design Thinkingto understand the use case, the target users, and to rapidly explore potential outcomes. Converge to define business hypotheses, the Minimum Viable Product (MVP) and scope.

• Drive alignment across participants (Business and IT)

• Create a conceptual design for the application from which we derive a technical architectureand a prioritized backlog of user stories

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Minimum Viable Product

Goal Minimum but not a product

Minimum Viable Product

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Design Thinking

MVPGoals & non-goals

Wireframes

Inception

GoalRolesScope

Define StoriesInitial plan

Identify integrations

Iteration planning meeting

Retrospective

Development(weekly)

Story

Stand up

Story

Stand up

Story

Stand up

Story

Stand up

Story

Stand upUser or Sponsor Validation

pivot or preserve

& Learn

The 4Ps work together to delivery

• Ranked Backlog• Test Driven –

Development• Pair programming• Continuous

Integration• KISS• Refactoring• Build to Manage

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Discovery Workshop

½ day

Garage Design Thinking

Workshop2-5 days

Garage MVP Build-up

6-10 weeksGarage

Architecture Consultancy

Start with a disruptive

idea

Ideate& design

the solution

Define theMinimum ViableProduct (MVP)

Build on IBM Cloud& Integrate with existing systems

Scale, Harden, Enable

Transform

Education

Garage Transformation

Cloud Service Mgmt &

Operations

© 2018 IBM Corporation

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Introducing Blockchain for Business

Blockchain for

Business

Shared, replicated,

permissioned ledger

© 2018 IBM Corporation 18

Problem …

… inefficient, expensive, vulnerable

Insurer records

Auditor records

Regulator records

Participant A’s records

Bank records

Participant B’s records

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… with consensus, provenance, immutability and finality

Auditor records

Regulator records

Bank records

Participant B’s records

Blockchain

Insurer records

Participant A’s records

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Blockchain : A shared, replicated, permissioned ledger …

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Separating Blockchain from Cryptocurrencies• Cryptocurrencies are one specific usage of Blockchain technology• Blockchain can be used to solve many more real-life business challenges

• Exchange of digital currencies using cryptography

• First crypto currency = Bitcoin• Fully decentralized • Pseudo-nymous participation, Transparent

activityCryptocurrency

Blockchain

Key Attributes • Distributed and Sustainable (Finality)• Secure and Un-editable (Immutability)• Transparent and Auditable

(Provenance)• Consensus-Based and Transactional

(Consensus)• Flexible and Orchestrated

(Smart Contract)

However, we need few key attributes for Blockchain to be business ready

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Blockchain for business requires trust

Append-only distributed system of record shared across

business network

Business terms executed with transactions

Transactions are provably endorsed by relevant participants

Transactions are secure with

appropriate visibility Privacy

Shared ledger

Smart contract

Proof

© 2018 IBM Corporation

Characteristic Description Example

Siloed RepositoriesEntities independently maintain similar datasets, maintaining their own version of the truth.

Ledger to track ownership of financial assets

Multiple Writers / Network Effect

More than one entity generates transactions that impact data which is maintained by multiple institutions.

A customer of multiple banks exchanges assets between them.

Minimal TrustParties involved in the processes within a given business process do not trust each other.

Multiple parties within a trade finance agreement that don’t trust each other impose layers of verification and impose collateral requirements

Intermediaries Current state processes are heavily dependent on intermediaries for execution.

Transforming the role of a central intermediary to drive “trust” within a given business network.

Process DependenciesFulfilling a given process requires input/action by multiple parties, or there are multiple transaction dependencies to execute a process.

Loan securitization requires several upstream processes, including loan issuance, servicing, etc.

Right characteristics for applying this technology

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Making blockchain real for business with over 400+ engagements and multiple active networks

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Blockchain Initiatives: From MVP to Production

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Applying the garage method for Blockchain initiatives -5 Lessons Learned

1. Dream big – and act incrementally

2. Identify business challenges and opportunities

3. Collaborate to create business value from the beginning

4. Govern for the future

5. Blockchain is a team sport – make connections!

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Dream big – and act incrementally

Governance

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• Know your “North Star” but start a pilot project with your minimal viable ecosystem (MVE)

• Consider funding and economic model of the distributed network

• Define your hypotheses and plan to refine based on feedback

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.. Group M

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Identify business challenges and opportunities 2

• Start with deep industry/subject matter expertise

• Explore the problem space and ask yourself “Who”, “What”, “Why”

• Leverage scenario mapping for all the roles and participants in the network

• Evaluate blockchain characteristics to determine fit

If a business problem is yours — and yours alone — blockchain may not be the remedy you’re looking for.

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Collaborate to create value 3

• Make sure each participant has a positive return on investment

• Link the investment case and business model

• Remember the intangibles

Financial Network Provider

EnergyUtility /

Aggregator

System Operator

(Regulator)

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Govern for the future4

• Don’t delay decisions on data ownership, IP and legal governance

• Solution governance versus blockchain governance

• Governance, like value evolves as the network scales. Be prepared to adapt.

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Blockchain is a team sport – make connections!5

Global trade

Consumer industry trade

Trade finance

TheFounder’s HandbookYour guide to getting started With blockchain

Questions? Tweet us or go to ibm.com/blockchain

@IBMBlockchain

IBM BlockchainIBM Blockchain

What will we solve together?

Alain Neyroudneyroud@us.ibm.com

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