Blockchain and Cryptocurrency

for Trade Promotion?

Rob HandTrade Promotion Domain Lead

Digital Supply Chain

“03/Jan/2009 Chancellor on brink of second bailout for banks.”

Satoshi NakamotoInventor of Bitcoin and BlockchainStatement on the genesis block

“Blockchain today is where the internet was in 1994”

Amara’s Law: We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.

We are here

Blockchain – No Longer Hype…just Reality

What are we seeing with customers

Large-scale blockchain adoption isn’t imminent …

… but we’re

seeing some

projects

transition beyond

PoC

Data Structure

Public Key Cryptography

Distributed Ledgers

Consensus Mechanisms

The Technology of Blockchain

Blockchain Formats

BLOCK 3

PREV HASH

MERKLE ROOT

NONCE

TIME-STAMP

BLOCK 1

PREV HASH

MERKLE ROOT

NONCE

TIME-STAMP

HASH 01

BLOCK 2

PREV HASH NONCE

TIME-STAMP

MERKLE ROOT

HASH 23

HASH 3

HASH 2

TXN

Bitcoin Blockchain

Directed Acylic Graph (DAG) Block Structure

Blockchain Readiness

• Technology improvement Scalability Security Speed

• Non-Currency ApplicabilityData IoTComplex Transactions

• Support and Infrastructure Expanding Talent Pool Technology Adoption Thought Leadership

Creating Use Cases

Business RulesIdentityProof and

Permissions

Distributed Transaction Ledger(s)Customer

privacy

BlockchainTransparent /

immutable

Compliance

services

Common, resilient, accessible

and secure platform

Financial

Institutions

Digital Apps

Value and service exchange

Access and Rights Management

Value Exchange

Bus iness Rules

Orchestration

Consumer

/ Supplier

Consumer

/ Supplier

Sales and

POS systems

Digital channel

systems

Multiple Offerings Regulatory Access

and Oversight

Digital WalletAuthorization

RulesSchema

Management

Manufacturing and

Logistics

Asset Tracking

API/Automated

Manual logistics

Agent Task

Worker

Treasury

or financial agent

Agent Agent

A model for creating use cases can get very complex when looking at the value chain

Cryptocurrency Use Cases

In-store Purchases

Promotion Settlement

Direct-to-Consumer Payments

In-store Purchases

POS DATA

Distributes Daily ePOS Purchase DataProvides real-time Market Basket ContentsSupports automatic inventory managementInitiates re-orderingProvides shopper profile updatesTracks and distributes coupon/eComm redemptionTransacts redemption settlementDelivers real-time rebate redemption/settlementInitiates trade promotion settlementUpdates demand signal response, calculates ratesTracks and updates multi-tier reseller-to-distributor dataCalculates and distributes loyalty intelligence

Promotion Settlement and Direct-to-Consumer Payments

• Settlement Type (Deduction, Claim)Promotion plan = Smart ContractVolume/sales Requirement = Shipment ledgers, LogisticsTactical Activities = Individual transactions (verified by retailer)

produces each “block” Action = Transaction (Credit, billback, Pay, Pend, Hold, Deny,

etc.) with automatic validation via blockchain

• Rebate/CouponRules/Offer = Smart ContractTrigger = POS TransactionCompliance Audit = Validation through blockchain

Trade Promotion Planning

Non-Currency Use Cases

Retail In-store Promotion Mgmt.

Business Intelligence/Analytics

Retail Execution/DSD

Consumer Shopping Engagement

Key Considerations

• Smart Contracts for Promotion Plans and In-store Activities

• Rapid tracking and compliance

• Immediate settlement

• Real-time intelligence

Trade Promotion Planning

Retail Execution Retail In-Store Promo Mgmt.

• Unproven technology and applications

• Requires external “Oracle” for decision and approval

• “Timestamp” issues and potential for malicious nodes

• Smart Contracts are not stable on DAG/Tangle

Key Considerations

• Data could be shared (requires segmentation)

• Consumer profile data on Blockchain works to align all

• Validation for projections and predictions benefit all

• Speed of insights and accessibility lifts “all boats” in the market

Consumer Shopping Engagement/Experience

Business Analytics

• Sensitive nature of some data will be a risk

• Retail involvement may be limited, and a barrier

• “Oracle” or “Coordinator” could be a difficult issue

• Some countries have extreme regulatory environments

Key Take-Aways

Blockchain and Cryptocurrency Technology is Real and ComingBlockchain 2.0 – Not a solution for TPx

Blockchain 3.0+ - Will be an operational standard

Rapidly growing corporate initiatives and support community

Use Cases are ExpandingPromotion Settlement

Promotion Planning and Execution through Smart Contracts

Data management and Intelligence

Consumer Shopping Experience and Engagement Management

IoT

Action YOU Need to Take1. Consider blockchain and cryptocurrency in your future roadmaps

2. Structure your programs to accommodate the smart contract

3. Make sure you have an IT organization that is planning for B&C

4. Consider B&C technology when planning new or upgrading functionality

What Dreams May Come…

Immediate Validated Settlement

Real-time Shopper Purchase Decisions

In-Pantry Inventory Status

Plan-less Promotion

Shelf Sensor-based Auto Inventory

Real-time In-store Clientelling

Asset Tokens on Settlement!

Contact:

Thank You

Rob HandSenior Manager – Trade PromotionDigital Operations – Digital Supply Chainrob.hand@capgemini.com+1-512-534-9942www.twitter.com/capgemini Capgeminiwww.Facebook.com/capgemini www.Capgemini.com

Rob Hand

Senior Manager – Trade Promotion

Digital Operations – Digital Supply Chain

rob.hand@capgemini.com

+1-512-534-9942

www.twitter.com/capgemini Capgemini

www.Facebook.com/capgemini www.Capgemini.com

Rob Hand

Senior Manager – Trade Promotion

Digital Operations – Digital Supply Chain

rob.hand@capgemini.com

+1-512-534-9942

www.twitter.com/capgemini Capgemini

www.Facebook.com/capgemini www.Capgemini.com

Rob Hand

Senior Manager – Trade Promotion

Digital Operations – Digital Supply Chain

rob.hand@capgemini.com

+1-512-534-9942

www.twitter.com/capgemini

Capgemini

www.Facebook.com/capgemini

www.Capgemini.com