Regulatory Reality Check: Improve trust, compliance and visibility with IoT and blockchain

IBM Watson IoT / © 2018 IBM Corporation
Regulatory Reality Check:
Improve trust, compliance and
visibility with IoT and
Blockchain
—
Michael Rowe
Watson IoT

Compliance is critical to market stability
Oil and Gas
–
Oil and Gas regulatory non-
compliance drives $Billions in
environmental issues including
spills, pollution, erosion –
National Geo
Pharmaceutical
–
Compliance issues cost the
global Pharmaceutical Industry
$Billions annually in litigation
and lost sales - FDA
Energy and Utility
–
Energy and Utility
noncompliance to vegetation
management regulations costs
the Industry $Billions annually
in failure and fires - Bloomberg
Infrastructure
–
Infrastructure maintenance
gaps will cost the U.S.
economy $7 trillion by 2025-
American Society of Civil
Engineers

So why is trust, compliance and visibility so
hard to achieve?
Drift
–
Cause and effect of failures
is often separated by long
periods of time, and
situations change
imperceptibly. Without good
data its hard to notice
change.
Diversity
–
Processes are only as good
as adherence. People, skills
and approaches change
results from day-to-day
depending on business
model.
Decentralization
–
Accountability degrades the
further down the value chain.
Often, responsible parties
lack the time and resources
to satisfy SLA’s.

What is blockchain?
Blockchain is an immutable ledger for recording
transactions maintained between a distributed
network of mutually untrusting peers
Hyperledger Fabric
is a modular system for deploying and operating
permissioned blockchains

Blockchain explained
Yesterday’s network…inefficient, expensive,
vulnerable, lack of transparency
Today and tomorrow’s network…consensus,
provenance, immutability, trust in a single source
of truth

Why Maximo and Blockchain?
Maximo is already where compliance is critical
7 out of the 13
largest pharmaceutical
companies
9 out of the 18
largest diversified utility
companies
10 out of the 20
largest oil & gas
companies
7 out of the 10
major aerospace and
defense companies
9 out of the 18
busiest airports
5 out of the 15
busiest shipping ports
16 out of the 24
largest automotive
companies

Multiple parties are
often involved in the
maintenance and
repair process
Secure and share
evidence associated
with condition
Improve support warranty and insurance process
Ensure disposal in compliance with insurer,
manufacturer, and regulatory requirements
Applicable to both asset and infrastructure supply
chains
Use Case: Secure
maintenance, repair and
disposal

Establishing the provenance of key asset
components can be challenging
Tracking location, interactions and current
possession across a lifetime is complex
Use Maximo with blockchain to validate asset
history and certification of components and services
Ensure that third party contractors have the required
qualifications to work on assets
Opportunities to improve the commissioning
process for new assets
Use case: Asset and
contractor provenance

Outsourced maintenance work provides many
communication and coordination challenges
Issues of trust between stakeholders and liability
associated with incorrect or incomplete services
Using Maximo and blockchain in combination can
enhance data visibility, support more efficient work
processes and improve safety
Use Case: Shared
maintenance of common
infrastructure
Service Providers share common infrastructure
components supporting transportation, aerospace,
communications

Many opportunities for new business processes in
remote monitoring of assets
Communications Service Providers are key part of
the network for device connectivity
Reduce asset maintenance costs and risk while
managing asset health - using IoT Connection
Services and Asset Health Insights
Corrective actions can be addressed using the
Maximo Network for Blockchain and Secure
maintenance, repair and disposal
Use case: Remote Monitoring

Infrastructure Risk
Identified
Asset
Condition
Analyzed
Work Order
Creation
Network Partners
Engaged
(Inspector,
Remediation,
Regulator)
Work Order
Creation
Preventative
Maintenance
Assessment
IoT sensor
triggered event
analysis
Work order
creation
Maximo Asset
Health Insights
Example: AT&T IBM Maximo Infrastructure Operations
Initiate Blockchain
Field service
Service
order case
Asset
assessment
Maximo Network
for Blockchain
Maximo Asset
Health Insights

Maximo Network on
Blockchain–Demo

Maximo Network on
Blockchain–Demo
Full demo available:
mediacenter.ibm.com/media/t/1_dgvl6hpq

Questions?
Michael Rowe
Strategy and Portfolio Planning,
IBM Internet of Things
—
michael.rowe@us.ibm.com | @michaelrowe01

Maximo Blockchain network
capabilities
Administrative Configuration
– Defines the Smart Contract Data Model
– Defines the Participants for the Smart Contract
– Defines the State Change rules for the Smart
Contract
– Deploys the Smart Contract to the Blockchain
– Designs and configures the Participant
Blockchain application
Functional Capabilities
– Maximo generation of initial SC transaction to
the Blockchain
– Blockchain Notification to participants of pending
transaction
– Participant transactions posted to the Blockchain
– Maximo application querying Blockchain
transactions
– Participant application querying Blockchain
transactions
– Blockchain Notification drives state change to
Maximo
IBM Watson / © 2018 IBM Corporation

What scenarios would a Maximo
customer benefit from blockchain?
Your Maximo system
Applicability of
blockchain
All your asset transactions managed in Maximo Unlikely
All your asset transactions managed in Maximo but concerns around trust with some transactions Possible
Some asset transactions managed in Maximo others managed by third parties and interfaced to Maximo Possible
Some asset transactions managed in Maximo others managed by third parties and contractors who use
their own systems with no interface
Opportunity
Assets that move location and ownership throughout their lifecycle outside of a single Maximo system Opportunity
Assets where regulatory oversight is required from third parties Opportunity
Asset transactions across a business network of partners where there is a history of mistrust or a blame
culture
Opportunity

IoT blockchain enabled Supply Chain
Objective: Provide an IoT framework that enables IoT providers
to easily integrate business data with IoT events for complete
business transactions.
Device Data Enriched Data
Device Id Customer Id
Temperature Ship #
Humidity Bill of lading #
Location Manifest #
Watson IoT
Platform
IoT data
IoT Blockchain
Service
MQTT
IBM Blockchain +
Hyperledger Composer +
iot-enrichment-epcis
gRPCs
IoT Device Data
(node red simulator)
IoT
data
Maximo or other
supply chain
Complete
Blockchain Event
Shipment Data
Customer Id, Shipper,
Container ID, BOL,
Manifest #
Device Data
Device Id, Location,
Temperature. …
Event Enrichment (node red)
IoT Connection Service
2.
Ship Data
for device(s)
1.
Shipment info
lookup
4.
Cloudant
3.
IoT data +
shipment
info
5.
REST callback – enriched IoT event
6.
Client Listener
(node red)

Maximo Blockchain Network Process
Overview—Inspections (work outsourced)
Maximo
2. The Maximo Extended Asset Registry
participant application is the interface to the
smart contract, for those (Inspector,
Engineer, Regulator) working outside of the
Maximo ecosystem
Maintenance Supervisor
Request
inspection
1.
2.
3.
…
1. The Maximo Extended Asset
Registry defines the smart contract
on the BlockChain network and
drives the initial Inspection
transaction
Inspector
Carry out
inspection
1.
2.
3.
…
3. Work done by the participants are stored
within the Blockchain
Engineer
Review
results
1.
2.
3.
…
5. Select results
from the inspection
work are brought
back into Maximo
Inspector
Inspection
Results
1. ✓
2. ✓
3. ✓
…
4. At any time,
authorized
participants can
view the activities
related to the
inspection
Regulator
Inspection
Results
1. ✓
2. ✓
3. ✓
…

Maximo incident management
process overview
Maximo
Safer
Workplace
Maximo UI
Generate
Alert
Get/Filter
Alerts
Create
Incident
Operations Manager
Display Safety Events
by Employee/ by Location
Identify
Person and
Location
Record on
Safety Event
Object
Check Safety
Events
Manually Start
Incident Process
Blockchain Record
incident
transaction
Record
incident
transaction
Notification
about Incident
Worker
falls
Alert is
personal and
high priority?

Managing Partner
relationships
Maximo
Contractor
Supplier
Contractor
Partner
Regulator
Challenges:
– Maximo Customer becomes the
bottleneck for all info sharing and
communications
– Very difficult to manage the complex
relationships between multiple
vendors who supply
or maintain
– Customers don’t want to open
Maximo to external participants

Maximo network on Blockchain
How does it work?
Inspector
Regulator
IBM Blockchain
Create service request (SR) or work
order (WO) in Maximo.
1.
Set rules:
– Pending > Inspector
– Review > Regulator
– RevComp > Maximo
2.
Inspect Fire Pump
– Status Pending
– Assigned to
Inspector
Maximo
Inspect Fire Pump
– Status Complete
– Assigned to None
Inspect Fire Pump
– Status Review
– Assigned to
Regulator
Inspector assesses the SR/WO,
performs inspection, changes status
to Review
4.Assigned to Inspector
3.
Assigned to Maximo
7.
Maximo marks the
SR/WO as complete
8.
Inspect Fire Pump
– Status RevComp
– Assigned to
Customer
Regulator performs review,
changes status to RevComp
6.

Customer inputs
Status summary
Customer Description Status Pain point
US Dept of Veteran Affairs Asset assignment process POC approved and implementation
discussion underway
The business processes related to asset
assignment and repair involve a lot of paperwork,
and include many participants who don't interact
regularly with Maximo. There is a lack of trust in the
satisfactory completion of processes, which
contributes to delays and errors.
AT&T Infrastructure monitoring Joint Demo underway AT&T does not have a mechanism to extend their
IOT infrastructure services to multiple parties when
corrective action is required based on asset health.
Powergen Trinidad
+ Melbourne Water
+ Transpower
Outsourced repair work Requirements input, possible POC
(Powergen)
There is a lack of visibility and control over the
asset repair process for high value assets such as
turbine components. This causes delays and
increased cost.
Seadrill Marine certification Requirements input There is a lack of trust in the satisfactory
completion of processes and certification, which
contributes to delays and errors.

Maximo—Blockchain
patterns
Maximo will leverage common functional patterns that
exist across many applications and use those
patterns to support transactions on the Blockchain.
– Beta: the State Change pattern
– GA: other patterns being considered
– GL Transactions
– IoT Asset/Device Data
– Inventory Transactions
– Asset Moves
– Supply Chain

Blockchain
IBM and Maersk have
built a new global trade
digitization solution using
blockchain. The solution is
designed to help reduce
fraud and errors, reduce
the time products spend in
the transit and shipping
process, improve inventory
management and
ultimately reduce waste
and cost.
IBM and Maersk worked with
a number of trading partners,
logistics companies and
government authorities to
manage and track the paper
trail of tens of millions of
shipping containers across
the world by digitizing the
supply chain process. When
adopted at scale, the solution
has the potential to save the
industry billions of dollars.

Contacts and resources For Pricing and further details, contact Offering Manager–
Rupam Chakraborti rchakrab@us.ibm.com
Architect—Tom Sarasin tsarasin@us.ibm.com
Architect—Russell Bee russell.bee@uk.ibm.com
Program Director—Andrew Lee lee1a@us.ibm.com
Marketing—Bruce Baron bruceba@us.ibm.com
Learn More
Overview and Demo Video:
https://ibm.biz/BdY32r

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