Blockchain, IoT, and AI are foundational technologies for the fourth industrial revolution. The document discusses each technology and argues they should be factored into business planning. Blockchain allows trust between parties without intermediaries. IoT connects devices that generate large amounts of data. AI is now practical due to advances in machine learning. Real-world examples show the technologies' benefits in industries like shipping, food supply chains, and manufacturing. Adoption is increasing as businesses recognize the opportunities these technologies provide.

1. Blockchain, IoT and AI are foundational to 4IR
– why should you care?
@DT & @BloorResearch on Twitter | 12 September 2019
David Terrar | Research Director, Digital and Strategic Advisor - Bloor

2. Why is everyone talking
Digital Transformation?

5. Michael O'Hara
Group Managing
Director
DataSolutions
https://www.datasolutions.co.uk/
news-articles/five-ways-to-grow-
a-world-class-it-reseller-business

6. Blockchain, IoT and AI are foundational to 4IR
– why should you care?
• Blockchain:
– What Blockchain is and isn’t
– Why it is so transformational and is it relevant for any Business Model?
– Show me the money - real world case studies not just proof of concepts
– What implementations and frameworks exist and should be considered?
– What does the future look like?
– Why this means business systems are evolving
• IoT:
– What is IoT (M2M), Industry 4.0 and why are they important
– What are the underlyng factors and what is the opportunity?
• AI:
– What is it and why now?
– Where are we and why should I care?
• Should you factor blockchain, IoT and AI into your plans?

7. Let’s talk Blockchain
(and cut through the hype)

8. Satoshi Nakamoto?
• 2008 white paper
• Peer-to-peer electronic
transactions & interactions
• Without financial institutions​
• Cryptographic proof instead of
central trust​
• Put trust in the network instead of
in a central institution

9. What happened next?
• Bitcoin price: $3,850
• Bitcoin market cap of $67 billion
• 12 digital currencies over $1 billion market
cap
• Hundreds of thousands of businesses accept
• Over 30 industry consortia for blockchain
• Things like Long Island Ice Tea changes name
to Long Blockchain Corp
• “Demand is off the charts for blockchain
talent, and the capital is waiting to back it
up.”

10. The technology of bitcoin is blockchain
Law
Firm A
Client
B
Client
D
Shipping
Firm C
Future: Peer-to-peer trust
Today: Trusted intermediaries

11. What Blockchain is and isn’t
“The blockchain is an incorruptible
digital ledger of economic
transactions that can be
programmed to record not just
financial transactions but virtually
everything of value.”
Don & Alex Tapscott,
authors
Blockchain Revolution (2016)
• Traditional Database technology always
has an owner, usually centralised
• Traditional Database is based on CRUD
• Blockchain is always distributed, peer to
peer, across a number of nodes/servers
• Blockchain can only Create & Read
• BC can be open, or permission less
• Enterprise BC is usually a closed
permissioned group, created as an
ecosystem
• BC and cryptography does 2 things -
validates existing transactions, and the
addition of new ones
• All nodes/servers duplicate all blocks

12. Is it relevant for any Business Model?
“less than 1/10 of 1% of corporate processes”.

14. Is it relevant for any Business Model?
“less than 1/10 of 1% of corporate processes”.

15. Is it relevant for any Business Model?
• How trustworthy is the person we are trading with?
• Any certification or proof that they are who they are
supposed to be?
• Are the goods or services genuine (and
not defective)?
• Are the age and condition really as represented?
• May be genuine, but what if they are stolen?
• Any guarantees or warranties?
• Can we buy insurance?
• Does the marketplace itself offer us any
protection?
• Were the terms of our agreement fair?
• Was the currency exchange rate valid?
• Is the currency real or counterfeit?
• How is the exchange between buyer and seller
actually executed? Balancing Trust and Risk

16. Is it relevant for any Business Model?
• The problem we are solving with Blockchain/DLT is trust.
• Blockchain’s key advantage is that the parties or competitors
can trust the digital ledger without the need for any
intermediary like a bank or broker or lawyer or government
being involved. How disruptive is that!

17. Show me the money
• Maersk and IBM joint venture
• International shipping industry is
responsible for carrying around
90% of world trade
• 12 month trial, now live
• Around 100 ecosystem partners
• Reduce transit time by 40%
• Over 10 million shipping events
every week

18. Show me the money
• Growers, processors,
distributors, and retailers
• Visibility and accountability in
the food supply chain
• 18 months testing, now live
• Carrefour, Smithfield, Nestle,
Kroger, Tyson Foods, Unilever,…
• Trace outbreak of E coli from 2
weeks to few seconds

19. Show me the money
• Xbox video game content from
publishers around the world
• Blockchain solution that offers
royalty information in near real
time
• Old process took 45 days
• More transparent, greater trust,
provides publishers with actionable
business insights, and reduces
process efforts by two-thirds.

20. Show me the money
• Everledger – high value asset tracking – 2.2 million diamonds
• Wirecard AG – German fintech card payments - now has higher
company valuation than Deutsche Bank
• lifesdna - Blockchain, AI powered search engine, operating system and
marketplace for healthcare, wellbeing and lifestyle information
• Santander and Broadridge, with J.P. Morgan and Northern Trust –
shareholder voting at Santander AGM
• 90% of European and North American banks are exploring Blockchain

21. 200+ organizations – one of the largest blockchain consortia in the world
© 2019 Integra, Inc. - Confidential 21

22. What implementations, consortia and frameworks
exist and should be considered?
•Hyperledger (Fabric)
•Ethereum
•Corda
•Digital Asset
•Multichain
•HydraChain
•BigChainDB
•OpenChain
•ChainCore
•Quorum (Ethereum)
•IOTA
What implementations, consortia and frameworks
exist and should be considered?
•Hyperledger (Fabric)
•Ethereum
•Corda
•Digital Asset
•Multichain
•HydraChain
•BigChainDB
•OpenChain
•ChainCore
•Quorum (Ethereum)
•IOTA

23. Juniper Research - September 2018
• 65% of responding enterprises with over 10,000 employees are
considering or actively engaged in blockchain deployment (up
from 54%)
• Significant interest in opportunities across diverse fields
including logistics, authentication and smart contracts
• IBM’s position cemented as the go-to company for
deployment, with the tech giant ranked first by 65% of
respondents, nearly 10 times that of second-placed Microsoft
at 7%

24. What does the future look like?
• Less talk of blockchain, more talk of DLT
• More decent case studies as projects come out of POC
• Some still in the Trough of Disillusionment
• Blockchain today is like the Internet of the early 90s:
– Current offerings are like Mosaic or Netscape browsers
– Google was years away
– Back then we couldn’t even conceive of Facebook, Spotify, Netflix

25. “ We believe
blockchain will be one of the things that can actually transform
how work is done everywhere. ”
Ginni Rometty, Chairman, President & CEO of IBM

26. Evolution of Business Systems
Before Now Next
On-Premise Software,
Hardware, Networks
Software as a Service,
Cloud infrastructure
Marketplaces
Ecosystems
Public Data
Services

27. Let’s talk IoT
(and Industry 4.0)

28. • The Internet of Things (IoT) is made up of
devices that talk to each other
– From simple sensors to smartphones and
wearables…from sensing to sensing and actuating
• Combining these connected devices with
automated systems
– To gather information, analyse it and create an action
– Help someone with a particular task
– Learn from and improve processes
• IoT is about networks, devices and data.
What is the Internet of Things?

29. The idea is not new, but…
• Not new – M2M
• Liberated by the Internet and the
Cloud
• Generating data flood
• Creating challenges for networks
and transaction processing
• And therefore the supporting
infrastructure

30. 2.5 times as many IoT devices as people by
2020

31. What is Industry 4.0
• German government initiative
• the strong customisation of products under conditions of highly
flexible (mass-) production.
• The automation technology needed is improved by the
introduction of methods of
– self-optimisation
– self-configuration
– self-diagnosis
– cognition and
– intelligent support of workers in complex work.
“We must deal quickly with
the fusion of the online
world and the world of
industrial production. In
Germany, we call it
Industrie 4.0.” — Angela
Merkel, Chancellor of
Germany

32. Why is it important?
• Vertical industry use cases
– Automotive
– Manufacturing
– Logistics/supply chain
– Medical
– Consumer/Home
– Wearables
• $3.8 trillion of additional value by 2028
• If we can solve the networking (and possibly the power) challenge

33. • The Internet of Things (IoT)
• 5th Generation mobile networks (5G)
• Machine Learning
• Artificial/Augmented Intelligence
• Big Data Analytics
• Big Software
• Cloud-based Edge Computing
The key underpinning enablers of Industry 4.0

34. Where are we at with I4.0?
• 99% of mid-market manufacturing executives are familiar with
Industry 4.0, yet only 5% are currently implementing
• Top 3 priorities:
– Investing in upgrading existing machinery
– Replacing fully depreciated machines with next-generation
– Adopting real-time monitoring including Manufacturing Execution Systems
• Most value out of orchestrating technologies for product quality,
productivity, delivery dates, and control costs.
• Real-time monitoring is gaining momentum
https://www.bdo.com/insights/industries/industry-4-0/industry-4-0-
redefining-how-mid%E2%80%91market-manufactur

35. Where do I process transactions
and store data?
• Some transactions require very low latency
• Much IoT Data has a short shelf-life
• Some data is only required locally
• IoT will be a significant driver of edge data centre growth

36. Edge data centre requirements
• Due to the high cost of building out the 5G
infrastructure, edge data centres will need to be
– Highly automated
– Modular/containerised
– Software defined
– With equipment potentially
based on OCP designs

37. Let’s talk AI
(hey Alexa, Google, Siri)

38. “AI is the science of
making machines
smart, using
algorithms to allow
computers to solve
problems which used
to be solved only by
humans”

39. Why now?
https://www.nttdata.com/mm/en/digital/ai/2018/september/what-is-ai
1950

40. Why now?
• 2017 Accenture Research and Frontier - by 2035 AI could
improve productivity by 40%
• 2018 PwC and CB Insight - VC investment in AI start-ups soared
by over 72% to a record-breaking $9.3 billion
• PwC study of 1000 businesses - 20% said their organizations
plan to implement AI enterprise-wide in 2019

41. What’s what?
• AI is the overall technology which understands natural language and mimics
human actions and cognitive functions such as learning and problem solving
• RPA is an automation technology, which is used to automate rules-based,
repetitive tasks.
• Machine Learning is the study of algorithms and statistical
models that computer systems use to perform a specific task without using
explicit instructions, relying on patterns and inference instead
• Deep Learning is machine learning based on artificial neural networks to help
refine computer vision, speech recognition, natural language processing,
audio recognition, social network filtering, machine translation,
bioinformatics, drug design

42. What’s what?
AI cannot understand all things
especially human cognitive abilities,
common sense, or emotions
Don’t get hung up on the terminology
Go google IBM’s Project Debater

43. https://www.bloorresearch.com/
research/blockchain-hotreport/ http://Bloor.tv

44. Should you fit Blockchain, IoT, and AI
into your planning?
• Ignore the hype, but in spite of the noise, we believe blockchain
will change or disrupt all sectors of business over the next 20 years
• IoT presents a big opportunity in more devices, more networking,
more compute and storage, and edge computing
• AI in all of its forms applies to your customers and to you
• You need to skill up and start planning them in to your strategy
now
• Get ahead of the curve and be the expert for your customers

45. References
Not for presenting – just for reference
https://www.datasolutions.co.uk/news-articles/five-ways-to-grow-a-world-class-it-reseller-business H
ttps://www.amazon.co.uk/dp/B00NE6MG0Y/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
https://www.ibm.com/events/think/watch/playlist/468124/replay/120138988/
https://bitcoin.org/en/bitcoin-paper
https://www.enterpriseirregulars.com
https://hackernoon.com/asia-is-going-to-take-over-the-world-economy-with-blockchain-heres-why-you-should-care-e5a58ab051e4
http://www.theagileelephant.com/is-blockchain-relevant-for-any-business-model/
https://pixels.com/featured/medici-bank-15th-century-granger.html
https://en.wikipedia.org/wiki/Medici_Bank
https://en.wikipedia.org/wiki/Luca_Pacioli
https://www.tradelens.com
https://www.ibm.com/uk-en/blockchain/solutions/food-trust
https://customers.microsoft.com/en-us/story/insurwave-insurance-azure
https://customers.microsoft.com/en-gb/story/microsoft-financial-operations-professional-services-azure
https://www.everledger.io
https://www.bloomberg.com/news/articles/2018-08-14/meet-the-german-fintech-that-s-now-worth-more-than-deutsche-bank
https://www.lifesdna.com
https://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Corporate/Press-room/Santander-News/2018/05/17/Santander-and-Broadridge-Complete-a-Fir
st-Practical-Use-of-Blockchain.html
https://legalconsortium.org
https://integraledger.com/integration/
https://www.juniperresearch.com/press/press-releases/nearly-two-thirds-of-large-enterprises-currently
https://www.ibm.com/blockchain/platform#1635596
https://www.bdo.com/insights/industries/industry-4-0/industry-4-0-redefining-how-mid%E2%80%91market-manufactur
https://www.nttdata.com/mm/en/digital/ai/2018/september/what-is-ai
https://www.bloorresearch.com/research/blockchain-hotreport/
http://bloor.tv

46. David Terrar
Bloor Research | Agile Elephant
p: +44 (0)1727 866309
m: +44 (0)7715 159423
e: dt@d2c.org.uk & dterrar@Bloor.eu
w: http://theagileelephant.com
w: www.Bloor.eu | www.BloorResearch.com
skype: david_terrar
twitter: http://twittter.com/DT @DT
linkedin: http://www.linkedin.com/in/davidterrar
blog: http://theagileelephant.com/blog
& http://medium.com/@DT