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EXTERNAL Torsten Zube VP, Head of Blockchain The Value of Blockchain for Enterprises Digital Trust, Real Business Value

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EXTERNAL

Torsten ZubeVP, Head of Blockchain

The Value of Blockchain for Enterprises Digital Trust, Real Business Value

2EXTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Trust

3EXTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

New Blockchain-driven, Network-based Business Models

Machine Learning

Analytics

Data Intelligence

Big Data

InternetOf Things

Blockchain

New Network-

BasedBusiness Models

Technology Business Processes

Network & SpendManagement

People Engagement

Digital CoreManufacturing & Supply Chain

Customer Experience

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A concrete Use Case

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Legal requirement Business ChallengePurpose

SAP Advanced Track & Trace for Pharmaceuticals

Manufacturers WholesalerSAP Cloud Platform Scanning App

Drug Supply Chain Security Act demands companies to both identify and verify sellable returns

2-3% of total sales are sellable returns (58.7 million units a year)

Help secure the health of patients by fighting fraudulent activities

Verification of Sellable Returns

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▪ Global Trade Item Number (GTIN)

▪ Expiration date

▪ Batch or lot number

▪ Serial number

Identification of Sellable Returns

41a6f1374c49ca4ea69aebc778b2a32c7f7808db3bd0a58aa8ede1fd4192d3bd

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SAP ATTP using SAP Cloud Platform Blockchain Services1 SAP ATTP = SAP Advanced Track & Trace for Pharmaceuticals

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Verification of Sellable Returns

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Scanning Application using SAP Cloud Platform Blockchain Services

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SAP Blockchain Community

Join our Community

blockchain @ sap.com

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Asset Intensive Industries

Transportation & Logistics

Discrete Mfg. Industries

Life Sciences & Pharmaceuticals

Retail, Consumer Products,

Agribusiness

High Tech & Telco

SAP Industry Blockchain Consortiums

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SAP Blockchain Co-Innovation Program

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Product Authenticity Validation

Farm-to-ConsumerNetwork

PaymentFraudPrevention

InternationalTrade

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Global IMEI Storage and Services

Green EnergyTracking &Distribution

ColdChainMonitoring

ContractRequirementsTracking

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Use Case - Quality Collaboration (Assays)

Quality assays in mining are taken by theproducer, by the customer, also by 3rd parties &external labs. However, modern software makes ita rather simple procedure to falsify the assayer'sreport.

• Assayer's can store reports on a single secure, reliable and trustworthy decentral ledger, making it easy to share and independently verify the identity of the assayer and the integrity of the report

• A decentralized network that provides instantaneous verification of assayer's report

• Trusted assays leveraging blockchain

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Smart phone and electric vehicle OEMs are facinggrowing pressure from customers and shareholders toshow that the cobalt they use has come from mineswith ethical work conditions. However, tracking cobaltcomes with challenges as a high number of unofficialmines and the need for standardized data that wouldneed to be shared cross a complex supply chain.

• Neutral, vendor-agnostic blockchain network encourages relevant business partners to contribute traceability data

• Seamless tracking of all sourced cobalt in a secure environment

• Enhanced trust among mines and their customers without the need for centralized control

Use Case – Provenance (e.g. Cobalt)

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SAP and a group of customers including gas utilitiesand part-producers are starting to explore blockchaintechnology to track and trace parts for gas-pipelines.

• Increases supply chain transparency

• Streamlines the recall management process

• Immutable, single source of truth provided to allsupply chain network participants, including part-producers, construction companies, regulatoryauthorities, 3rd party service providers and utilities

• Safeguards the brand reputation of metal-processing companies like part-producers andpipeline-operators

Use Case – Parts traceability

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Machine Learning

Big Data

Internetof

Things

AnalyticsData

Intelligence

Blockchain

Design Thinking Services

SAP Leonardo Technologies

SAP Leonardo Blockchain

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SAP Cloud Platform BlockchainEnabling customers and partners to leverage Blockchain capabilities

Foundational Services

MultiChain, Hyperledger Fabric, Quorum

Blockchain Services

Event recording, verification, audit trail, genealogy, traceability, analytics, identity, HANA integration

Application Integration Services

Cloud to on-premise integration

Applications & Business Processes

EcosystemCross-company

collaboration

SAP Cloud Platform

Open Collaboration

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SAP Cloud Platform BlockchainNetwork extensibility fosters open business collaboration

Partner Cloud

BlockchainServices

Foundational Services

Application IntegrationServices

Technical Node

External Node Multi-CloudBring your

own Network

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New Blockchain-driven, Network-based Business Models

Machine Learning

Analytics

Data Intelligence

Big Data

InternetOf Things

Blockchain

New Network-

BasedBusiness Models

Technology Business Processes

Network & SpendManagement

People Engagement

Digital CoreManufacturing & Supply Chain

Customer Experience

22EXTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Characteristics of High-Potential Blockchain Use Cases

Multi-Party Scenario3 or more participants, preferably across companies/industries, e.g. consortia

Participants on Eye Levelotherwise the dominant party might insist on a central server

Shared Repositorywith joint data model/formats/semantics, standardization/harmonization are key

Multiple Writersotherwise a master/slave replication could suffice

Certain Need for Mutual Controlfor the blockchain network generates trust

Intermediaries to be made Obsoletebe careful not to get rid of middlemen that add huge value

Need for Transparencyto reduce risks, avoid fraud, be compliant to legal regulations, etc.

Transfer of Digitals Assetsotherwise you need a unique link from real world objects to their digital representations

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www.sap.com/blockchain

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Thank You!

Torsten Zube, VP, Head of Blockchain

@tzube

linkedin.com/in/torsten-zube