new models transporting the shrinking parcel …...postal 2020 - washington dc march 22nd, 2017 gil...
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Postal 2020 - Washington DC
March 22nd, 2017
Gil Perez
SVP IoT & Digital Supply Chain
SAP SE
New Models
Transporting the Shrinking Parcel Journey3D Printing & Blockchain
Enablers of the Digital Parcel Journey
SAP Confidential
The Market
The Macro Market Figures
59
16
26
0
10
20
30
2015 2017 2019 2021
3D Printing Industry Growth ($ Billions)
0
5
10
Category 1
Est. Value of Global Inventory($ Trillions) Global inventory over $10T
Reducing global inventory by just 5% would free up to $500B in capital
Less waste, increased efficiency
20 years to reach $1B 5 years to reach the next $1B 2014 and 2015 each saw $1B in growth Expected growth ~ 400% through 2021
$256B Global economy is ~$80T Manufacturing is ~16% or $12.8T If 3D Printing captures just 2% of
manufacturing, it creates a $640B+ market opportunity
Industrial 3D Printing is Ready to BreakoutFirst Mover Winners Established in the Next 12-24 Months
Our customers have validated the opportunity
Big investments are being made
Enterprise 3D Printing
2016 Market Developments
GE and 3D Printing
Product Lifecycle – Current State
Prototypes3D Printing
Standard Manufacturing Approach
Standard Manufacturing Approach
Product Lifecycle with 3D Printing
Prototypes3D Printing
Prototypes3D Printing
Cost Drivers
Production BOM
Manufacturing Costs
Storage & Warehouse
TaxesImport, export, etc..
Transportation&
Shipping
Standard Manufacturing
Additive Manufacturing3D Printing
+
+ + +-
- - -
American Messenger CompanyJames Casey - 1907
$ 6 1 B R e v e n u e1 0 8 , 0 0 0 Ve h i c l e s
~ 2 1 0 0 D a i l y F l i g h t s1 9 . 1 M D a i l y D e l i v e r i e s
4 3 4 , 0 0 0 e m p l o y e e s s e r v e o v e r 2 2 0 c o u n t r i e s / t e r r i t o r i e s a n d e v e r y a d d r e s s i n t h e U . S . a n d
E u r o p e
T h e P a c e a n d S c o p e o f D i g i t a l Tr a n s f o r m a t i o n i s I n c r e a s i n g & G r o w i n g
C u s t o m e r s t o d a y d e m a n d m o r e
P O W E R S H I F T P R O L I F E R AT I O N G L O B A L I Z AT I O N
We’re accelerating into a future shaped less by countries than by connectivity. Mankind has a new maxim – Connectivity is destiny – and the most connected
powers, and people, will win. – Parag Khanna
The way the buyers & sellers connect and interact continues to evolve and change over time
The Vision…Global On-Demand Manufacturing CapabilitiesManufacturing optimized for time, cost and carbon
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
WORKING WITH 3D PRINTING, NOT AGAINST
UPS + Fast Radius + SAP/Ariba complementsnetwork of over 60 UPS Stores with 3D printing capability
W o r l d E c o n o m i c F o r u m ( W E F ) & E a r l y A c c e s s P r o g r a m
From 12 to 45 companies
SAP Distributed ManufacturingThe Modules: Assessment & Digitization, Collaboration & Approval, Production
Assessment & Digitization
Primary Use Cases
1. The ‘long tail’ & spare parts
2. Lot size of 1 & mass customizations
3. Temporary replacement part • Product recall and/or SLA commitment
• Net new ‘Native 3D’ printing parts and adoption by engineering, quality and procurement teams
Getting Started with Digital Manufacturing – ‘Pre Production’ Phases
Part Approval &
Collaboration
On-DemandManufacturing
(In-house or 3rd party)
SAP Distributed Manufacturing + Ariba Network
Manufacturer‘Design Authority’ of
selected parts
[2] New Part Approval & Collaboration[1] Part Assessment & Digitization
1. Run report on Material Worklist – SAP ERP
2. Visualize a long tail problem
3. Analyze the long tail problem (Funnel)
4. Select parts to be tackled
SAP Leonardo
The End-to-End ‘Production’ solution
SAP Distributed
Manufacturing
On-DemandManufacturing
(In-house or 3rd party)
Logistics Providers
CustomerSAP Distributed Manufacturing + Ariba Network
DemandOmni-Channel
& directly from OEM
SAP Leonardo
How it begun
Satoshi Nakamoto posted a white paper to a cryptography mailing list describing a "peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.“*Satoshi Nakamoto identity is still unknown
1.11.2008
Today
Blockchain, the technology behind the Bitcoin is viewed as one of the most important and promising technologies in the market today, that can address internet security and privacy problems.
Top 10 Emerging Technologies of 2016
“Perhaps the most encouraging benefit of blockchain technology is the incentive it creates for participants to work honestly where rules apply equally to all.”
A new digital medium to securely store and reliably exchange goods without a ‘middle man’/clearing house
Trust is not established through a third party but with code and mass consensus using a peer to peer network.
The Blockchain Novelty
What is Blockchain?
Distributed database/ledger, using a state of the art cryptography that runs on millions of computers.
Public Blockchain is an open source, editable by anyone, transparent to everyone, enables true peer to peer transactions, can record any structured information.
What is blockchain (cont.)?
A blockchain is a shared ledger to process and store transactions across Peer-2-Peer (P2P) decentralized networks. Data is replicated across all users, and security and authentication are enforced automatically through cryptography.
Blockchain ensures the ledger is permanent and secure, and radically reduces the need for trusted 3rd party or central authority.
Traditional Network Blockchain Network
P2P Network
Replicated Ledger
Digital Assets
Consensus Protocol
Cryptography
Smart Contracts
Connected users able to access and add new transactions to a replicated dataset
Complete ledger copies stored independently by each user
Virtual tokens generated on the network and transacted between users
Process for submitting edits and collaboratively updating the database
Rule set enabling users to computationally verify network activity
Code initiating transactions based on activity on the blockchain (not in all blockchains)
Key blockchain components are:
Central Ledger
Node #1
P2P
Network
Node #2 Node #3Ledger replicated across
all nodes
vs.
Blockchain Technology Growth & Potential
During 2015/16, bitcoin & blockchain
firms raised over $1 & $2 billion in
funding respectively
In comparison, in 2014 bitcoin &
blockchain startups raised around
$314.7 million.
Blockchain Applications / Use Cases
Sweden is conducting tests to put the country's land registry system on blockchain
The blockchain technology works by creating permanent, public "ledgers" of all transactions that could potentially replace complicated systems such as clearing and settlement with one simple database.
http://chromaway.com/
Land & Property
Online Voting
“By casting votes as transactions, we can create a blockchain which keeps track of the tallies of the votes. This way, everyone can agree on the final count because they can count the votes themselves, and because of the blockchain audit trail, they can verify that no votes were changed or removed, and no illegitimate votes were added.”
https://followmyvote.com/online-voting-technology/blockchain-technology/
Track & Trace - Diamonds
Using Blockchain technology, the unique attributes of each diamond is recorded to creates a sort of DNA. The global ledger of the diamond provides transparency to the origin and authenticity of each gem.
This process can help insure that blood diamonds don’t make their way into consumers hands.
http://www.everledger.io/
Anti Counterfeit
“If the concept takes off in other markets, title registration and authenticity
verification may be one of blockchain’s killer apps as any valuable property,
from bikes to cars to even gadgets, such as phones or laptops, can
be secured by a global and decentralized tamper proof blockchain.”
http://coinjournal.net/ethereums-blockchain-secure-sneakers-honor-kanye-west
Item has Smart Tag PKI Chip (public key infrastructure)
Stores an encrypted digital certificate issued from
the PKI provider along with other relevant information
on the Ethereum’s block Chain.
Buyers can verify authentication by
Scanning the tag with their phone.
Supply Chain - Skuhain
Skuchain brackets are smart contract that governs all phases of a typical trade agreement from order, shipment and invoice to final payment.
http://skuchain.wpengine.com/how-it-works/
Examples of blockchain activity
Launched “Next47” incubator (Jan ’16) with $1B funding to support startups developing IoT “Autonomous machines” and “decentralized electrification” with blockchain (Smart-grids).
Pursuing anti-counterfeiting use-cases. Partnered with Chronicled to install sneaker “smart tags” that encode authenticity and link to unique “digital presence” on Ethereum network. Available for purchase as of Jul ’16.
Announced prototype blockchain product for secure sharing of academic records/test scores (Feb ‘16). Planning 2017 pilot as part of SONY’s annual Global Math Challenge, a competition with ~150K participants.
Joined R3 (Jun ‘16) as one of few non-banking members. Immediate interest is financial use cases (e.g. auto loans, insurance) but sees long-term potential in manufacturing and connected cars.
Released a report (May ‘16) outlining many use cases, including parcel tracking, cross-border remittance, and ID validation. Suggested creating a USPS private blockchain and “Postcoin” cryptocurrency.
Partnered with IBM (Jan ’15) for ADEPT project (Ethereum-based IoT for connected appliances), now folded into broader “Artik” IoT solution. Also invested in Blocko (Jul ‘16) to continue IoT use-case development.
Partners with Tierion (Blockchain record-keeping startup) and launched blockchain R&D lab (March’16). Partners with Gem to build private blockchain for medical records.
Invested in Filament (connected devices startup) in Sept ’15. sees potential for blockchain to re-purpose existing mobile network for IoT. Also considering smart contracts for multi-carrier roaming agreements.
Partnered with Slock.it (Feb ‘16) to build electric car charging stations capable of autonomous micro-payments to/from smart cars. Also Incubating startups targeting other use cases through innovation hub.
Major R&D at Bangalore lab (750 HC). PoCs in car leasing (with DocuSign), remittance (with Epiphyte). Backing Chain.com, which just released first protocol for Visa-level transaction volumes (>20K/sec).
