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Objectledger.com

Blockchain ERP for Manufacturers

David Medinis, Founder

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Data Source: Fortune 500 and Global 500 - 2016 reports

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ObjectLedger represents a fundamental shift in accounting for manufacturers that buy, build and ship their products to customers. Today an army of office clerks, managers, auditors, accountants and so on, spend all their time attempting to reconcile their manufacturing company’s physical transactions into an accounting ledger. After the factory has bought raw material, added value and shipped it to their customers, the main purpose of these people is to make sure they pay the right amount to the suppliers and collect the correct amount from the customers along with reconciling errors.

The problem is that the present model of accounting systems do not match the physical reality of the manufacturing process.

After a half century and billions of dollars spent on reinventing the accounting wheel, the sad truth of the matter is that they still suck.

They suck because people keep re-inventing the same thing repeatedly with only tiny incremental changes. Why? Because the IT industry is adept at massive platform change every decade.

In the beginning, there was time share mainframes (IBM) You logged in using a phone line and a dumb terminal.

Then came on premise mini computers. (DEC, Wang, Prime) The processing was on your site.

The personal computer brought forth networking, Windows/Apple, Client server and the

Internet.

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Now we’re back to where we started, “The Cloud” which is a fancy name for time share.

The industry is so lucrative that it spawns a massive number of people spinning off incremental ideas and dressing up the same pig with different lipstick. Accounting and (MRP, ERP, etc.) software has been reinvented thousands of times to no avail. Millions upon millions of man- hours writing software with minor changes have been expended. Now multiply all that time by the thousands to add up the countless millions of hours spent on implementation.

The impact of this tremendous waste comes with an extraordinary cost to society. Yes, productivity has increased per economists and companies that do implement good systems do lower their costs. This perceived benefit comes with a double-edged sword. The fact is our manufacturing base has declined at an alarming rate. The common belief is that it was caused by foreign competition, regulations, high labor costs and on and on. This is not a fact. The biggest source of manufacturing re-location is accounting and all the dirty little secrets and consequences that it brings.

Cartel Number One

In the corporate management structure, modern cost accounting analysis methodology produces the data that compels the decision makers to drive manufacturing to cheap labor locations. Accounting itself is responsible for the largest portion of non-value added costs in the operational ledger (income statement) that causes the manufacturing relocation decisions. Our U.S. manufacturing base has been decimated for decades because of poor decisions from cost accountants. Have you noticed that the migration of overseas manufacturing didn’t start until the widespread arrival of accounting software systems?

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What happens in the typical U.S. factory is the scenario we call the game of “The Stars vs The Dogs”, and it is a dance between managers and accountants that goes like this:

Mr. Manager is looking at his income statement for way to generate more profits. Of course, he is always pondering the biggest item, “Cost of Goods Sold” and summons Mr. or Ms. Cost Accountant to Analyze Product Cost to find low or unprofitable items referred to as “Dogs”.

Mr. Manager scans the report, and smiles at his top performing Stars, then takes action to get rid of the lower margin Dogs. This cycle keeps repeating until sales fall below the breakeven point and the factory is closed and the business siphoned off to elsewhere.

Each time the cycle repeats, the Stars must absorb the overhead left from the ejected Dogs. Eventually, after so many cycles, the business becomes a Dog. Because of high management and accounting personnel turnover rates, it is difficult for anybody to see this.

The sad result of this stupid practice is that well-intentioned and hardworking professionals inadvertently run the business off the rail and into the ditch because they relied on the All Holy and Revered “Accounting System” to make their decisions.

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Cartel Number Two

That is a sad tale indeed and if you think it can’t get any worse, well, the worst is yet to come. Accounting is also responsible for all the fear, uncertainty and doubt in the stock market. Why do we have quarterly reporting when companies today can close the books on a monthly basis? Because accounting is on the “accrual” system. Per the GAAP standards, accountants are allowed to fudge the books with assumptions and estimates because their accounting systems cannot keep up with what really happened. Quarterly reporting is left over from the days when it took weeks after the month to “close the books”. Four times a year was determined so that accountants would have enough time-45 days after the period to make their “adjustments” and “close the books”.

The stock market is volatile because of the 90-day gap for investors to ponder the results of the next report, giving rise to fear, uncertainty and doubt. Wall Street makes its billions off this process. Where does this money come from? Companies and investors. The Wall Street cartel is a parasitic drain feeding off our first nemesis, the Accounting cartel.

Cartel Number Three.

The third cartel is the government. It’s not realistic in the near future to imagine that this cost can be eliminated. However, ObjectLedger will make it possible to drastically lower the cost of compliance with government regulation.

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These are the entities that drain manufacturing and promote waste. Looking under the covers reveals the surprising truth of an archaic and corrupt system.

ObjectLedger aims to change this.

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How it Works

ObjectLedger’s technology is the combination of a real-time object based transaction software that records the physical transactions of the manufacturing process by the workers and machinery that add the value to the product. These physical transactions are combined and synchronized with a cryptocurrency transaction to create an irrefutable record in the blockchain of the cryptocurrency.

The nature of the physical goods as they flow into, through and out of the factory is a large array of objects that are divided, blended and reconfigured in the same way that that digital currency can be combined and divided in countless fashion.

ObjectLedger duplicates the actual manufacturing process by creating virtual objects that represent the physical objects flowing through the plant. The objects are physically identified with a tag embedded with the unique serial number of the Object Token cryptocurrency transaction. This is the link that identifies the physical object with the transaction in the blockchain. These tags allow people to identify the physical good and verify them using the blockchain. Since the history of the physical object is linked to the Object Token, it is now easy to produce apps and reports to verify the origins and journey of inventory objects.

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ObjectLedger's simple User Interface and use of Machine Vision and Deep Learning will forever change how people “keep the books". Instead of the front office running around like chickens with their heads cut off, the Machine Vision A.I. will assist the people and machines that make the products to keep an immutable ledger.

Operational data is gathered from cameras, sensors and data ID dispensers set up in all the manufacturing cells where the products are processed.

As time and processing progresses, the ObjectLedger’s deep learning algorithms take over the once tedious data entry required by traditional systems.

The ObjectLedger’s default blockchain is Ethereum. However the software engine is designed to be blockchain agnostic so it can switch to different crypto chains to accommodate customer and supplier preference, such as IOTA Tangle, Factom and etc.

It is envisioned that this portion can connect to one of the currently proposed decentralized

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autonomous exchanges to maximize crypto currency exchange efficiencies for maximum profit. By recording the value-added transactions to the blockchain as products are made, we eliminate the need for after the fact accounting. The accounting and payments happen in real time so the need for reconciliation is eliminated. The accounting now models the physical reality, producing an accurate and correct ledger of events that cannot be tampered with. When we can gather the required data from the operators and machines, the need for front office personnel diminishes and those non-value-added costs can be eliminated.

ObjectLedger has partnered with IBM and is developing an API to allow users to utilize the computational power and Big Data capabilities of IBM Watson for additional data analysis. Achieve Simplicity The irrefutable data provides the new foundation for accurate and stable reporting without the interference of opinion and corruption. Timely and accurate data will remove the fear, uncertainty and doubt (FUD - see below) from delayed reporting of corrupt data. FUD Waiting 90 days for a report put together by an army of personnel with political ambition, opinions, ulterior motives and so on, combined with inaccurate data is what causes the volatility in the stock market. It's kind of ridiculous today that a company needs 3 months to close the books and report their results. Scalability? Bitcoin, Ethereum and the many organizations using these tools have the potential to disrupt and recreate many industries. It is exciting technology that has captured the attention of forward-thinking developers and companies but the ugly truth is that in their current state, they may not scale to meet industrial requirements. The transactional volume in just a handful of automotive assembly plant supply chains can choke the existing networks in no time. The team at Objectledger has decades of experience building massive fail-safe data systems and is now creating the next generation blockchain transaction engine that will scale to the level of throughput needed by the world’s large scale industries. ObjectLedger's vision and solution is a combination of innovative hardware and clever software that removes the data speed bottlenecks while offering uncompromising security.

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The Prize

Objectledgers proposition is to reduce these costs and keep a bit for themselves.

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Getting the Prize The ObjectLedger Software Product to be released first will incorporate the basic functionality of creating objects (inventory) and transferring to a paying customer (entity). This will be as easy as entering your email, creating a profile and inviting customers with their email address. Business transactions can begin as soon as the customer responds and adds their profile information.

ObjectLedger’s software foundation is based on the Monitor Factory Management Software from the automotive industry. Over seven million dollars and 10 years went into the development of this object-oriented real-time system for high volume auto assembly plants. The number of transactions in a day could reach into the millions.

Many original team members are on the Objectledger team. Their vast knowledge and experience of large fail-safe data systems will make it possible to scale Objectledger to the

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task at hand. Part of the success of Monitor is its object-oriented nature on how it handles physical objects, machine monitoring, bar coding, radio frequency ID, sensors and the extensive time stamped audit trails that allows manufacturers to trace the genealogy of their products. It is able to track inventory objects from the ore mines to the customers and beyond and extends out into the life of the product for warranty issues. The application of this philosophy and methodology almost duplicates the function of today’s blockchains.

Product Development

ObjectLedger's revolutionary User Interface and use of Machine Vision Artificial Intelligence and Deep Learning will forever change the UI for enterprise software. In addition, the Machine Vision A.I. and Deep Learning engine will provide instant assistance to the people and machines that make the products. This first phase will allow two parties to exchange product for money and account for it or in the conventional term of build and identify a product, price it, transfer it to a customer, invoice it and get paid. The system will also allow for the full or partial reversal of the transaction as well.

ObjectLedger UI Style

ObjectLedger advanced features will be rolled out with an incremental ongoing improvement that will strive to stay ahead of customer demand. It is estimated that it will take approximately two years to complete all the envisioned functionality. In the meantime, a large customer base can be built with the initial product. New functionality can be added incrementally and suggested to the customer as it come on line. The functionality is hidden until it is desired. From an end user standpoint, it starts off as this little free innocuous piece of convenience that will eventually morph to a fully federated enterprise grade system. Easing the pain of a few individuals in large organizations will allow us to spread without fighting the normal barriers to system acquisition and implementation.

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This method will allow large and small enterprise to dip their toe into the cryptocurrency world without upsetting the “corporate apple cart”. The plan is to have people try it on a small scale without corporate oversight and before you know it, we will have internal advocates advancing our cause. ObjectLedger will be one of the easiest systems anybody has ever used.

With proper execution, it is conceivable within the decade that the traditional leaders of SAP, Oracle, Infor and the rest could be toppled. ObjectLedger can easily save customers 70% - 90% or more on their present system costs. In addition, eliminate the costs of the cartels and you have a compelling business case that is difficult to argue against. The rise to customer acceptance and acquisition will be a slow war of attrition. We will achieve success by not only eliminating the pain but by producing a product that is a joy to use.

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Development Roadmap

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Our Mission Save most of that 2.8 Trillion Dollars for our customers and keep a little bit for us.

Crowdsale We are launching an ICO (Initial Coin Offering) to raise funds with a newly minted ERC20 Token called Object Symbol:OBJ Participants will receive 1 OBJ Token for 1 USD dollar. Participants using Ether will receive a 20% bonus, Bitcoin will receive 15% and other accepted Tokens will receive a 10% bonus.

Use of Crowdsale Funds

Token Distribution

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Team

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Partners

Founder

Dave Medinis, CEO Spent seventeen years developing software and systems in the challenging automotive industry’s brutally efficient supply chain. He developed large scale software and systems using methodology derived from the best practices of the world’s leading auto manufacturers, the principles of Dr. William E. Deming, Taiichi Ohno and his own innovations. Mr. Medinis invented software that synchronizes the automotive assembly lines to their supply chain and led a team of developers that created the software product (Monitor Factory Management Software) that consistently beat SAP and Oracle 80% in head to head sales competition with companies like Ford, Toyota, Magna, Borg Warner, Guardian Industries and the like, proving that a simpler, easy to use system can beat or replace much larger competitor companies. After hundreds of successful implementations around the world and winning a Ford Preferred Supplier Award, the company was acquired.

Mr. Medinis has been involved in various technology endeavors leading to an interest in cryptocurrency. After extensive research, the vision for this new endeavor has caused countless sleepless nights and an overwhelming desire to fulfil the vision.

www.objectledger.com

Contact Dave Medinis 239-841-3283 dmedinis@gmail.com

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References

https://en.wikipedia.org/wiki/Initial_coin_offering

https://www.ethnews.com/erc20-the-ethereum-token-standard

https://en.wikipedia.org/wiki/W._Edwards_Deming

https://en.wikipedia.org/wiki/Taiichi_Ohno

https://en.wikipedia.org/wiki/Watson_(computer)

https://en.wikipedia.org/wiki/Machine_vision

https://en.wikipedia.org/wiki/Deep_learning

http://fortune.com/global500/list/

http://fortune.com/fortune500/list/

https://iota.org/

https://en.wikipedia.org/wiki/Ethereum

https://en.bitcoin.it/wiki/Scalability

https://www.factom.com/

https://en.wikipedia.org/wiki/GAAP

https://en.wikipedia.org/wiki/Accounting_scandals