EFT Conference, Amsterdam 2014

'Using technology to create

differentiation'
Mark Bedeman
Global Freight Logistics & Cargo SME
Transport & Travel Centre of Competence

2014 IBM Corporation

EFT Conference 2014

'Using technology to create differentiation'

Objective
To demonstrate that it is the perfect alignment
of IT to the business and customer needs,
that creates the differentiation, ie how you use
technology, not the technology itself..

2014 IBM Corporation

EFT Conference 2014

IBMs T&T Centre of Competence (CoC) orchestrates knowledge and

provides deep industry insights to account teams and clients

Other CoCs
Global Business
Services

Solution Centres

Global Delivery

Institute of
Business Value

IBM Research
and Labs

IBM Software
IBM Markets
& Countries

Software Providers

2014 IBM Corporation

EFT Conference 2014

Agenda

Starting with the Customer

Analytics and Big Data

Mobility in Logistics

Some Current Initiatives

2014 IBM Corporation

EFT Conference 2014

Customer experience design

Envisioning Perfect Order Execution

Its all about client interaction

IBM Interactive helps organisations imagine and create
exceptional customer experiences. We use a fusion of art,
science and technology to do it
IBM Interactive is powered by IBM which means whatever
we imagine, we have the capability, scale and experience to
make a reality

Why?
Improves operational
performance
Improves customer
satisfaction

Gives transparency of
processes
Provides services
consistency

Increases
productivity
Reduces support
costs

2014 IBM Corporation

EFT Conference 2014

Customer experience design

Envisioning Perfect Order Execution

We visualize the best customer experience to engage all stakeholders and define
requirements through a customer journey
Examples shown for illustrative purposes only

Personal
Make it personal to an
operations scenario with
a customer persona

Outside in and inside

out view
Show the ideal customer
interaction and supporting
processes

Disruptive plays
New ideas that will change
the way Order execution is
performed in the industry

Capabilities

Explanation of capability
required that enables the
perfect order execution

Technology supported
solutions
Illustrate key new technology
required against new capabilities

Key Outcomes
Success factors and Key
performance indicators
2014 IBM Corporation

EFT Conference 2014

2014 IBM Corporation

EFT Conference 2014

2014 IBM Corporation

EFT Conference 2014

Agenda

Starting with the Customer

Analytics and Big Data

Mobility in Logistics

Some Current Initiatives

2014 IBM Corporation

EFT Conference 2014

Big data makes it possible to analyze and extract insight and

value from ALL available data
Cost effectively manage and analyze all available data,
in its native form unstructured/structured, streaming/warehoused

One key differentiator

with Big Data is also the
ability to explore the data
before implementing a
use case or a solution

Social Media

Website

Billing
ERP
10

CRM

RFID

Network Switches
2014 IBM Corporation

EFT Conference 2014

What Is Watson
A software tool that allows you to derive new business insight rapidly
by accessing, interpreting and analyzing unstructured content

Natural Language
Processing and
human style
communication

Hypothesis Generation
and Evaluation by
applying advanced
analytics

Dynamic Learning from iteration and

interaction

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2014 IBM Corporation

EFT Conference 2014

Business Value
Enabling better decision making
Allowing business to gain control
of unstructured information / data
Allowing the company to capture, manage, and share content
throughout its lifecycle
Allowing users to collaborate and influence business decisions in new
ways, making content a first-class source of insight
Helping to ensure compliance, reduce costs and maximize productivity

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2014 IBM Corporation

EFT Conference 2014

How to harness the power of cognitive systems in Freight

Logistics

Where could your data work harder for you?

How can we improve bookings and order
management?

How to improve customer interactions?

How can we improve operations?
How can you use big data and analytics
TODAY to lay the groundwork?

2014 International Business Machines Corporation

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2014 IBM Corporation

EFT Conference 2014

We have be moving in this direction for some time the new

frontier is Intelligence, deriving insights from data.
The Smarter Logistics Provider
Incorporating intelligent
sensors in your assets to
help drive operating
decisions

Getting real-time line

of sight across the
transportation supply
chain

Leveraging the
information you already
have in new ways to
drive better decision
making

Instrumented:

Interconnected:

Intelligent:

Putting sensors not just in

things, but across entire
supply chain ecosystems.
Track your freight. Track your
vehicles. Know the condition
of both. Predict and prevent
service failures.

Enable an entire shipment to be

completed electronically
initiated, managed, executed
and delivered - across multiple
carriers without repeated
manual intervention.

Sense-analyze-act. Have the

ability to see and model the
future, for better decisionmaking. Develop optimal
resource allocation and asset
utilization across your entire
ecosystem.

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2014 IBM Corporation

EFT Conference 2014

This will demand a Shift in Operational Management Focus

Transaction
Driven

Insight
Driven

The future development of the Transport Logistics Systems will be

based on designing from the outset a move away from a transaction
centric behavior to an information and insight driven approach.
Provide operators with real time insights and "what if" scenarios to support
decision making

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2014 IBM Corporation

EFT Conference 2014

Insight Driven Operational Management

Closed-Loop
Optimization

What-if Scenario

Measurement

Dynamic Re-planning

Real-Time Alert

Real-Time Forecasting

Real-Time KPI

Exception Data

Cost Per Operation

Customer Behavior

Visibility

Smarter Decision

Insight Driven Decision Support maximizes the chance of Making the Right

Decision the First Time

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2014 IBM Corporation

EFT Conference 2014

Agenda

17

Starting with the Customer

Analytics and Big Data

Mobility in Logistics

Some Current Initiatives

2014 IBM Corporation

EFT Conference 2014

IBM Global Travel & Transportation Industry

September 4, 2014

"It's basically taking a company that has nothing but credibility in the enterprise space...and
combines it with a company that dominates the consumer-facing mobile device market," Van Baker,
VP and research director for Gartner's Mobile and Client Computing Services
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2014 IBM Corporation

EFT Conference 2014

Application Suite

Freight Event Management:

LOG
IN

Driver: CW McCall
Aug: 87 Hours
LOG
OUT

Connection Maintained Throughout

Todays Schedule Information
Delivered
Schedule Determined by Average
Pick-Up, Drop Off, Travel
Distances, + Prior
Deliveries/Delays
GPS Directions Available to Each
Pick-Up
All GPS Routes provided are
approved for 18-wheelers
Route Choices are Enabled
(distance, time, traffic)

PICK UP

DELIVERY RTE

DROP OFF

IF DAMAGED

Minimalist Design
Screen Protectors, Device Cases,
Backup Battery
Easily Dash-Mountable /
Dismountable
Log-In Starts Communication

06:00 PORT ELIZABETH

NYKU 2938412

GPS

SCHEDULE

12:30 PORT OF LEITH

MBFU 5554126 GPS
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15:45 AARHUS Seaport

HLCU 2578417

GPS

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2014 IBM Corporation

EFT Conference 2014

At Pick Up:

Freight Event Management:

LOG
IN

Digitizes and automatically

verifies correct container
Logs pick-up information for
visibility to end client

PICK UP

Driver: CW McCall
Aug: 87 Hours

DELIVERY RTE

LOG
OUT

Pick-Up function utilizes

photographic ability

AIM CAMERA @ SCAC

DROP OFF

IF DAMAGED

SCHEDULE

PRESS BUTTON TO
PHOTOGRAPH & VERIFY
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2014 IBM Corporation

EFT Conference 2014

Re-Route:

Freight Event Management:

LOG
IN

Driver: CW McCall
Aug: 87 Hours
LOG
OUT

PICK UP

DELIVERY RTE

DROP OFF

IF DAMAGED

TRAFFIC STOPPED
AHEAD!
ALTERNATE DELIVERY
LOCATION AUTHORIZED
BY RECEIVER.
SAY OK to RE-ROUTE

Pick-Up function utilizes

photographic ability

Digitizes and automatically

verifies correct container
Logs pick-up information for
visibility to end client
When Verified Automatically
Shifts to Delivery Route
Presents driver with delivery
location(s) information
Route information can
automatically divert based on
traffic / weather / construction
When issues such as blockages arise
en-route
System recognizes, tells driver &
contacts end client
Client can accept later delivery,
or change destination
Later Delivery acknowledgement
goes to driver or
New destination given to driver.
Voice OK re-routes

SCHEDULE
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2014 IBM Corporation

EFT Conference 2014

Drop Off:

Freight Event Management:

LOG
IN

Driver: CW McCall
Aug: 87 Hours
LOG
OUT

PICK UP

DELIVERY RTE

DROP OFF

IF DAMAGED

SCHEDULE

ARRIVED AT DROP
OFF
HAVE RECEIVER
SIGN BELOW

Pick-Up function utilizes

photographic ability

Digitizes and automatically

verifies correct container
Logs pick-up information for
visibility to end client
When Verified Automatically Shifts
to Delivery Route
Presents driver with delivery
location(s) information
Route information can
automatically divert based on
traffic / weather / construction
When issues such as blockages arise
en-route
System recognizes, tells driver &
contacts end client
Client can accept later delivery,
or change destination
Later Delivery acknowledgement
goes to driver or
New destination given to driver.
Voice OK re-routes

Upon arrival at drop-off location,

system automatically switches to
Drop Off function
Receiver signs in signature
window and OKs
OK generates invoice and moves
back to SCHEDULE
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2014 IBM Corporation

EFT Conference 2014

Agenda
1

Starting with the Customer

Analytics and Big Data

Mobility in Logistics

Some Current Initiatives

SAP TM & IBM

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2014 IBM Corporation

Partnership
EFT Conference 2014

Partnership in Transportation & Logistics

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May 2014

2014 IBM Corporation

EFT Conference 2014

Logistics Services Horizontals and Verticals

Rail Carrier

Container Line

Air Forwarder

Ocean Forwarder

Truck Carriers

Industry Reference Files

Mass RFQs
Booking, Shipping
Instructions and Bill of
Lading

Export and Import

Handling

Road Constraints

Rule 11

Master Flight Plan and

4-Weeks Flight Plan
IATA Rates

Multimodal Routing

Speed of Handling

Secure Capacity

Air cargo Security

Trade Compliance

Container and Pallet

Types

Consolidation

Rail Pricing
Equipment Availability
Train Blocks
Rail EDI
Reciprocal Switching
Assessorial Charges

Equipment Availability
Vessel Sharing
Route Management
Port Omission and
Recovery
Security Handling
Reefer and OOG

Order Transportation

Local Optimization
Truck Maintenance
Fleet Management
Fuel Management

Capacity Management

ULD Building
Secure Capacity
Consolidation
Charters

Select Execution Party

Invoice Customer

Calculate Cost
Define and Utilize Capacity
Calculate Revenue Plan Shipment Calculate Profit
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Driver Planning

Invoice Internal
Settle Costs
2014 IBM Corporation

EFT Conference 2014

IBM SAP Alliance Case

Deep multi-sector
industry knowledge

Preconfigured SAP TM
template (demo, project
accelerator)
SAP TM Projects in
various industries
Deep functional and
technical SAP TM knowhow with large SW
development
capabilities
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Biggest SAP TM
implementation
so far

SAP TM
with IBM

Global proven project

methodologies

Strong change
management knowhow

Global presence
around the world /
around the clock

Strong program and

project management

Innovative
approach & global
insights

Client first
2014 IBM Corporation

EFT Conference 2014

Agenda
1

Starting with the Customer

Analytics and Big Data

Mobility in Logistics

Some Current Initiatives

3D Printing

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2014 IBM Corporation

EFT Conference 2014

Examples of Inhibitors of Innovation...

Television will never be a serious competitor to radio
because people must sit and keep their eyes on the
screen: The average American family hasnt time for it There is no reason why anyone would want a
computer in their home
New York Times, 1939 Worl Fair
Ken Olsen, CEO of Digital, 1977
The automobile is at the end of its development: this
is clear from the fact that no single fundamental
Everything that can be invented has been invented
improvement has been invented during the last
Charles Duell, US Paten Office, 1899
year

because there is a limit to the number of chauffeurs

available

Scientific America, 1909

The telephone has too many shortcomings to
be seriously considered as a means of
communication: no value to us

Gottlieb Daimler

Western Union Telegraph, internal memo, 1876

There will never be a mass market for motor cars

Airplanes are intersting toys, but have no military use at

all

I think there is a world market for maybe five

computers
Thomas Watson Senior, IBM, 1943

Marshall Foch, 1911

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Do not limit yourself try to think about the impossible!

2014 IBM Corporation

Executive
summary
EFT Conference
2014

IBM employed the scenario envisioning methodology to understand the

implications of 3D printing to the global transportation services sector
2006

2008
DIY Kits for
3D printers
enter the
marketplace

Consumers
unaware of
3D printing

2010

First 3D
printed car
est. cost:
10K to 50K

The first 3D blood

vessel is printed

29

2014

3D printed robotic
aircraft takes flight

Person walks on a
printed prosthetics leg

A selfreplicating
printer hits
the
marketplace

2012

2016

2018
Willingness of Endconsumers to Embrace
3D Printing

47,000 3D
printers in
the United
States

Gold and
Silver
introduced
as
materials

Future 3D printing
scenarios are defined
by the intersection of
these two important
dimensions of change

Rate at Which 3D
Printing Technologies
Improve

2014 IBM Corporation

Potential
impacts
EFT Conference
2014

Several impacts will be very specific but common to all scenarios, and many
current developments already support this direction

The Print Shop Renaissance

The Reinvention of
Consumption

High cost & complex items will become more readily available
Express Shipping companies could be one of the first beneficiaries
Customers will find value in customization opportunities

Medicine and governments will be one of the largest initial investors

The spare parts market will be one of the first to revolutionize

The Quiet Evolution

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The Manufacturing
Revolution

2014 IBM Corporation

Planning
ahead2014
EFT Conference

To respond to the possible developments in the 3D printing domain,

transport services companies should consider the following responses

Extend raw material

warehousing solutions
including special
packaging needs

Identify clients that will

embrace 3D printing and
work to satisfy their
evolving transport needs

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Prepare for an increase

in raw material and 3D
printing cartridge
delivery

Establish a
strategic position
in the 3D printing
value chain

Develop 3D printing
and sub-assembly
solutions to meet the
needs of specific clients
and regions

2014 IBM Corporation

EFT Conference 2014

'Using technology to create differentiation'

Objective
To demonstrate that it is the perfect alignment
of IT to the business and customer needs,
that creates the differentiation, ie how you use
technology, not the technology itself..

32

2014 IBM Corporation

EFT Conference 2014

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2014 IBM Corporation