IBM Watson with blockchain boost adds visibility to supply chain disruptions
IBM Corp. has made big bets on Watson, its artificial intelligence platform, and the revolutionary ledger system blockchain. So, it only makes sense that the company would ultimately combine the two for the next generation of transaction systems.
One key area that could reap the benefits of what AI and a distributed ledger have to offer is the business supply chain, where new technologies aim to bring clarity and accuracy in an increasingly complex transactional world. Supply chains are prone to disruption; a missed delivery here or a misrouted document there can bring a business process to its knees. This is the opportunity IBM is seeking to target.
“My team has been working on creating more analytics in our supply chain solution,” said Inhi Cho Suh (pictured), general manager of Watson customer engagement at IBM. “It’s really about adding visibility to disruptions.”
Suh spoke with John Furrier (@furrier), host of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, at the IBM Think event in Las Vegas, Nevada. They discussed Watson’s impact on supply chains, use cases for the blockchain, an initiative to generate data-driven insights in urban areas, and the benefits of analyzing customer engagement. (* Disclosure below.)
A key component of IBM’s focus involves its Supply Chain Business Network. This separate B2B connectivity offering has 6,000 clients, 400,000 trading partners and 8 million transaction documents per day, according to Suh. With that kind of engagement, it’s no surprise that IBM was interested in providing new technology solutions for its network of business clients.
The company took advantage of its conference in March to promote the benefits of a shared visibility ledger for its clients and partners in the Supply Chain Business Network. “We’re adding blockchain to that as a way to ensure transparency, as well as speed of operation,” Suh explained. “The shared ledger will allow you to see where in the process your transaction document is.”
IBM Watson enables “internet of things” devices to become active participants in transactions. The Watson platform processes and analyzes device-reported data or barcode-scan events. IoT-connected devices can talk with blockchain-based ledgers to validate smart contracts.
An example of this process in action can be found in the shipping industry. A.P. Moller–Maersk Group, one of the largest container ship operators in the world, recently formed a joint venture with IBM to digitize the global shipping ecosystem. Using the blockchain and Watson, the goal is seamless tracking of goods and shipments around the world, with updated paperwork in seconds instead of weeks.
“Small bits of optimization, meaning one percent improvement or resolving invoice and settlements, have such huge ripple effects downstream,” Suh said. “We’re excited because we’re now adding in not just AI capabilities, but also collaboration capabilities, which then allow groups of people to interact in-time and in-moment to address alternative decisions and routes.
