Microsoft Blockchain Case Studies.pptx

Classified as Microsoft Confidential

Challenge
• 3M sought a solution to reduce tampering
and prevent the introduction of counterfeit
drugs into the pharmaceutical supply chain
– which is a $200 billion criminal industry
• Counterfeit drugs negatively impact brand
reputation and overall revenue but,
ultimately, they hurt unsuspecting
customers
Strategy
• 3M and Microsoft leveraged
Azure Blockchain to build an
innovative service to track
specially labeled packages
through any supply chain
• Multilayer QR code labels
were used to expose
tampering and facilitate easy
tracking
Results
• Blockchain technology improved visibility and
security at each transfer to ensure products are
authentic and free of tampering
• Real-time registry, validation, and custodial
recordings combated counterfeits and
eliminated the risk of fraudulent double selling
through secure, attestable data
3M | Validate your product’s authenticity
“We combined 3M DoubleTrust tamper-evident labels with Azure Blockchain to create a label-as-a-service supply
chain solution that can help identify counterfeits, protect business performance, and save lives.”
— Oscar Naim, PhD, Lead Software Architecture Specialist, 3M

At various points in the journey, the IoT device scans the QR codes and records the unique serial numbers which are updated on the blockchain
The integrity of the product have been violated.
Carrier 2 is liable for penalty as the amount of Drug A when it reached
the retail store was less than the Smart Contract was tracking
SHARED LEDGER
Prescription processor
The drugs packaged according to the
appropriate dosage and sealed with 3M
DoubelTrust, multilayer QR code labels
Carrier 1
The product is securely
shipped with QR codes
verifying transfers at each step
Carrier 2
Carrier 2 scan confirms receipt of
1000 authentic bottles with
verified QR codes
Warehouse
The product is again verified and stored in
the appropriate, secure environment
Retail store
100 bottles are rejected before shelving
due to incorrect QR codes
Manufacturer
The drugs originate from the
pharmaceutical manufacturer
Blockchain in Action | Pharmaceutical authenticity
Smart Contract created
1000 units of Drug A
Carrier 1
1000 units of
Drug A
Carrier 2
1000 units of
Drug A
Retail store
900 units
of Drug A
Warehouse
1000 units of
Drug A

Challenge
• Nestlé wanted to reduce supply chain
management costs associated with one of
their flagship confectionary products while
also making it easier for customers to see
the journey of the product from farm to
fork
Strategy
• Nestlé and Microsoft
designed a blockchain
solution to give them real-
time visibility into their
supply chain
Results
• Blockchain technology engaged the tactical and
strategic angles of the supply chain to reduce
costs, ensure quality, and increase revenue
• Nestlé enjoyed enhanced visibility into their
confectionary export process and improved their
ability to address inefficiencies and resolve
disputes involving both suppliers and consumers
Nestlé | Optimize your supply chain

Blockchain in Action | Provenance tracking
At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain
 Plot #839049
 25 tons of cocoa
beans
 Certifications
Farmer
 Shipped 2/5/2018
 Organic
 Fair Trade
Carrier
 Delivered 2/12/2018
 Organic
 Fair Trade
Manufacturer
 Organic
 Fair Trade
 Organic
 Fair Trade
 Guaranteed fresh
 Certified organic
 Certified Fair Trade
Distributor Retailer Customer
Manufacturer
Containers are verified and
cocoa is processed into
chocolate
Retailer
The bars reach the retailer having been
accounted for at each step of the journey
Distributor
The bars are moved through a distributor under
high-quality assurance regulations
Customer
The customer purchases organic and Fair
Trade certified chocolate with quality
assurance from farm to fork
Carrier
Authenticity is verified and beans
are delivered to the factory
Farmer
Farmer produces cocoa beans under
specified conditions to earn organic and
Fair Trade certifications
Consumer visibility

Challenge
• Maersk wanted to eliminate duplication,
inefficiency, lack of transparency, data
fraud, and errors across the plethora of
parties interacting in marine insurance
• Additionally, they sough to mange
compliance across multiple regulatory
bodies and jurisdictions while balancing
insurance rates and costs
Strategy
• Maersk, EY, Guardtime, and
Microsoft developed a real-
time blockchain enabled
platform for marine
insurance
• The solution streamlined
claims and settlement
processes, while reducing
errors
Results
• Real-time visibility into the location, condition,
and safety of high-value assets moving around
the world
• Accurate, dynamic, and fair underwriting and
pricing based on that visibility
• Streamlined regulatory reporting and
compliance
• Accurate and transparent data sharing among
all relevant stakeholders with audit trail
• Capital freed from poor credit system
Maersk | Secure marine insurance
“It is a priority for us to leverage technology to streamline and automate our interaction with the insurance market.
Insurance transactions are currently far too tedious and frictional. The distance between risk and capital is simply
too far”
— Lars Henneberg, VP, Head of Risk and Insurance of A.P. Moller-Maersk

SAFE ZONE
Realignment
Ship returns to the
recommended course
DANGER ZONE
Unexpected detour
Ship deviates from predicted path into
contested waters. GPS sensors send location
data to insurance company
SHARED LEDGER
Contract created
• Path: A  B
• Risk: Low
• Insurance premium: $$$
Contract updated
• Path A  C  B
• Risk: High
Contract updated
• Path: A  B
• Risk: Low
Blockchain in Action | Real-time maritime risk assessment
HIGHWAY
HIGHWAY
HIGHWAY
Ideal path
Ship would remain in the safe zone
throughout the predicted voyage path

Challenge
• Bank of America Merrill Lynch needed to
reduce the time to issue a Standby Letter of
Credit (SBLC) for Microsoft Treasury as
Microsoft’s partner channels grew in the
cloud age
• The traditional process required costly and
time-consuming manual steps involving
multiple parties and took between 3-5
weeks
Strategy
• Bank of America Merrill
Lynch and Blockchain
Engineering established the
first blockchain-powered
transaction engine between a
major corporate treasury and
a financial institution
Results
• Issuance time for an SBLC was reduced to 3 days
• Blockchain created trust and decreased
counterparty risk by automating authentication
of partner financial details
• The solution further provided regulators with a
real-time view of essential documents to assist
in enforcement and AML activities
Bank of America Merrill Lynch | Simplify commercial trade finance
“By working with Bank of America Merrill Lynch on cloud-based blockchain technology, we aim to increase
efficiency and reduce risk in our own treasury operations”
— Amy Hood, Chief Financial Officer at Microsoft

Blockchain in Action | Standby letter of credit issuance
Initial agreement
Applicant agrees to transact
with beneficiary via SBLC
Contract
created
Applicant
Applicant submits SBLC
request to ledger
Contract
updated
Bank
The applicant’s bank
issues a SBLC
Contract
updated
Advisor
The beneficiary’s bank
reviews and advises the SBLC
Contract
updated
Beneficiary
The SBLC is activated and
the transaction is completed
Contract
updated
The shared ledger is updated remotely which cuts issuance time from weeks to days and increases transparency and confidence across all parties
SHARED LEDGER
• Requested limit: $20 million
• Projected income: $25 million
• Credit limit: $20 million • Credit limit: $20 million
• Advisor approval note
• Partner ID: #93042
• Unit quantity: 100,000
• Unit price: $200 each
• Units delivered: 100,000
• Unit price: $200 each
• Price paid: $20 million

Schematic update
Manufacturer updates design
to improve performance
OEM
Precision parts manufacturer
designs proprietary equipment
Blockchain in Action | Access with confidence
Installation
Customer uses the schematics to confidently 3D
print the perfect part form anywhere in the world
Physical part
Each part is equipped with a
unique QR code enabling customer
access to the digital schematic
Digital twin
In the cloud, the digital twin runs real-time
analytics to monitor the physical part’s status
Notification
Digital twin informs customer that physical
part is nearing its operational limit
Schematic
Digital equipment design published to the
blockchain and tied to the physical part
010011
SHARED LEDGER
Customer query
Customer queries the most updated
schematics in the secure, blockchain
ledger using the QR code
Digital schematic
• Part #1560-01-505-8009
• Material: Titanium
• 3.12mm x 4.33mm
Unique QR code
• Part #1560-01-505-8009
• Product ID #12.645.23
• Digital Twin ID #12.645.23
• Unique QR code link
Manufacturer updates
• Part #1560-01-505-8010
• 3.13mm x 4.34mm
010011
Critical replacement
• Part #1560-01-505-8010
• Product ID #12.645.24
• 3.13mm x 4.34mm

Challenge
• Moog needed a secure system to transfer
component plans to customers for 3D
printing in the field
• Customers must be able to confirm the
provenance and telemetry of mission-
critical parts
• Each piece is precision crafted under
extremely small tolerances, so quality and
integrity are of the utmost importance
Strategy
• Moog and Microsoft
designed a blockchain-
enabled platform to tokenize
physical assets for a digital
supply chain
• The technology enabled
parts and their associated
design plans to be
tamperproof and resistant to
hacking
Results
• Blockchain technology enabled tracking of
digital and physical assets along the supply
chain to provide provenance and authenticity on
a per part basis
• The solution promoted trust in product quality
and performance while preventing tampering,
reducing waste, and saving time
Moog | Improve provenance tracking for critical items
“Blockchain is an enabler for us”
— James Regenor, Transformative Technologies Director of Moog

Challenge
• Singapore Airlines wanted to build up their
customer participation and loyalty by
making it easier for customers to redeem
their frequent-flyer rewards points with a
first-of-its-kind blockchain initiative
• They also needed a way to manage their
ever-expanding network of partners
Strategy
• Singapore Airlines partnered
with KPMG Digital Village
and Microsoft to create a
rewards program that linked
customers’ digital wallets to
their KrisFlyer reward miles
using blockchain
Results
• Customers can use their digital KrisFlyer miles
for point-of-sale transactions throughout an
expanded retail partner network
• Increased mileage program participation and
loyalty to the Singapore Airlines brand
Singapore Airlines | Expand customer loyalty
“This groundbreaking development in which we will be using blockchain technology to ‘digitalise’ KrisFlyer miles
is a demonstration of the investment we are making to significantly enhance the digital side of our business for
the benefit of our customers”
— Goh Choon Phong, Chief Executive Officer of Singapore Airlines

Blockchain in Action | Partner network management
Digital wallet
Reward points are stored in
the customer’s digital wallet
Partner retail location
Customers are able to redeem loyalty
points for goods and services from any
retail location in the partner network
SHARED LEDGER
Update: SFO  HKG: 7,000 miles
• Dec 2016 LAX  ICN: 6,000 miles
• Jan 2015 IAH  DME: 5,000 miles
• Jun 2015 JFK  FRA: 4,000 miles
• 7,000 miles = 700 points
• 2,200 points redeemed for:
o Free stay at hotel A
o Admittance to airport lounge B
o Spa treatment at resort C
Contract
updated
Contract
updated
Mobile app
Customers purchase their
ticket on their mobile device
Contract
created
Awarded miles
Each flight is worth miles that
are converted to rewards points
Contract
updated

Challenge
• Because of the high volume of hotel
bookings that pass through Webjet every
day, they often experienced booking
discrepancies between their systems and
those of hotels
• Booking errors negatively affect customers’
experiences, undermine trust between
Webjet and its partners, and can have
serious financial consequences
Strategy
• Webjet and Microsoft
developed a first-of-a-kind
blockchain solution to create
secure, independent
transaction records that all
parties can see – known as
Smart Contracts, they
streamlined the booking and
payment process, and
reduced errors
Results
• Blockchain reduced the risk of data inaccuracy,
boosted security and efficiency, and enhanced
trust and accountability between Webjet and its
partners
• The solution gave Webjet a competitive edge
and set a new industry standard
• Webjet is now capable of facilitating transactions
across the travel industry and selling its solution
into other sectors
Webjet | Reduce booking errors
“Microsoft’s ongoing investments in building the industry’s most trusted cloud platform around the principles of
security, privacy and control, compliance and transparency, along with its deep heritage in guiding businesses,
including Webjet, through periods of significant IT transformation made the decision to go on this journey with
Microsoft a no-brainer”
— John Guscic, Managing Director, Webjet

Blockchain in Action | Manage complex bookings
1 Car
2 Seats
Availability: April 28th
1 Room
Book now
Sport
sedans
Flight 288
Queen
rooms
5 Days
5 Days
Consumer
Seamless and reliable booking increases
customer satisfaction and loyalty
Hotel
Real-time visibility
Queen rooms
available
5
Rooms
booked
20
Rental agency
Sport sedans
available
2
Cars
booked
28
Airline
Seats
available
9
Seats
booked
171
Airline
Flight
Flight 288
Flight 262
Flight 873
Flight 971
Rental agency
Car
Mini vans
Pickup trucks
Sport sedans
Luxury SUVs
Hotel
Rooms
Double
Queen
King
Suite
SHARED LEDGER
Available
9
67
104
34
Available
7
3
2
11
Available
4
5
6
0
Booked
171
105
22
204
Booked
3
18
28
29
Booked
10
20
15
20

Challenge
• Bank Hapoalim wanted to improve their
process for issuing bank guarantees that
are required for large purchases like real
estate
• Traditionally, customers had to visit a
branch multiple times to move through the
application process
Strategy
• Bank Hapoalim and
Microsoft developed a real-
time blockchain enabled
platform to collaborate on
documents with customers
• The solution let customers
and banks update
documents securely without
in-person verification
Results
• Blockchain technology improved the customer
experience and confidence in the banking
system by enabling them to receive automated,
digital documents without the need to
repeatedly visit a physical bank branch
• The solution created a competitive advantage
and cost savings for Bank Hapoalim by
streamlining existing systems and services
“The use of Blockchain technology will significantly improve the customer experience and the level of trust in the
banking system”
— Arik Pinto, Chief Executive Officer of Bank Hapoalim
Bank Hapoalim | Streamline the bank guarantee process

Blockchain in Action | Remote bank guarantee issuance
Beneficiary
A healthcare organization
wants to build a hospital,
and seeks a bank guarantee
to verify solvency of
construction firms
Draft of guarantee
Beneficiary submits draft
to bank with desired terms
and conditions
Review and negotiation
Bank’s legal team and beneficiary
collaborate on non-standard language
Online application
Bank publishes finalized
guarantee as an easily
accessible online application
Bank approval
Construction firm meets
requirements and is
granted a bank guarantee
Automatic approval
Standard language is pre-approved
by bank
Customer
Construction firm applies
for bank guarantee online
SHARED LEDGER
Bank review
• Customer requirements:
Standard – approved
• Bank requirements:
Non-standard – revised to $40M
Final text of guarantee
• Customer requirements
established
• Bank requirements
established
Customer application
• Contractor license #:
L76GN4229
• Collateral available:
$5 million
Draft of guarantee terms and conditions
• Customer requirements:
• Provide valid license
• Provide $5 million in collateral
• Bank requirements: guarantee $50M
Bank guarantee
• Bank: signed
• Beneficiary: signed
• Customer: signed

Challenge
• Microsoft and the game publishers in the
Xbox business shared the problem of
reconciling and recalculating royalty
payments
• The existing royalty payment method
relied on spreadsheets, was expensive, and
the process typically took 45 days.
Strategy
• Microsoft and EY
codeveloped a blockchain
solution to deliver royalty
statements to XBOX game
publishers faster with
significant efforts reduction.
• XBOX Finance replaced
paper contracts with digital
smart contracts for
transaction processing.
Results
• The calculation process is more transparent
and exposes underlying data that can be
inspected and verified with a high degree of
security without wasting time on audits
• Publishers can analyze the sales performance
of a game as it happens. Accounting teams can
automate accruals daily. Finance can use timely
data to improve forecasting. Control testing
can be performed on an entire population.
XBOX | Faster royalty settlements
“We are developing an ecosystem within the gaming industry that connects developers and publishers
to game performance. Providing near real-time access to data greatly improves the process’
effectiveness and insights that lead to a more enriching experience for the partners.”
— Tim Stuart, Chief Financial Officer of Xbox

• Game Purchased
• Publisher ID
• Price
• Customer Age
• Customer Gender
• Location
CONTRACT CREATED
CONTRACT VISIBILITY
• Top Grossing Content
• Publisher Royalty
• Publisher Demand
• Net Revenue
Blockchain in action | Manage royalty payments
XBOX Platform
SHARED LEDGER DATA
CONTENT PUBLISHER A VISIBILITY
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher C
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
Publisher B
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
Publisher A
Content Publishers
Gain visibility into sales
data and royalty revenue,
enabling them to make
near real time decisions.
$
$
$
$
$
Licensing
Marketing
Distribution
Content
Provider
Content
Developer
$12.99
$59.99
$3.99
Media
Purchase
Movie
Video game
Song
Quantity
Quantity
XBOX Platform
Consumers purchase digital
content through the XBOX
platform. The data then is written
to the shared ledger. This
automatically makes royalty data
visible to the XBOX publishers.
XBOX PAYS
ROYALTIES
Media Sale: July 13th

21
Challenge
• One in six people worldwide live without
legal documentation, striping them access
to critical services like voting, healthcare,
housing, banking, and education
• Without means of identification, refugees
and asylum seekers face detention upon
arrival in a country
Strategy
• Microsoft has partnered
with Accenture to develop a
blockchain-based digital
identity system, combined
with biometrics to help
government agencies
• Establish digital identity,
securely registered on a
distributed ledger
Results
• The blockchain solution is used by the United
Nations High Commissioner for Refugees
which has enrolled more than 1.3 million
refugees in 29 countries
• Agencies can verify identity and interoperate
across systems to provide services
• Verifying identity means refugees can become
productive members of society more quickly
United Nations | Providing digital identity
“Everyone shall have the right to recognition everywhere as a person before the law.”
— Article 6 of the Universal Declaration of Human Rights

22

Challenge
• Currently, information about customers
and their vehicles is spread across
multiple information systems maintained
by automakers, insurers, repair shops
• Groupe Renault wanted to consolidate
this siloed information within a
streamlined, tamper-proof and secure
digital car maintenance book
Strategy
• Microsoft provided access to the
Microsoft Azure Blockchain technology,
the open, agile and cost-effective
platform and toolset used to develop
and deploy the solution.
• VISEO oversaw the implementation of
the project as well as the user design.
Results
• Groupe Renault digitally
transformed an entire vehicle
ecosystem creating the first ever
blockchain-enabled digital car
maintenance book
• Blockchain technology ensures
the information shared by all
can be trusted
“This digital car maintenance book will enable us to provide our customers with new services in an ecosystem alongside
insurers and dealers. Blockchain technology is able to create a reliable trust protocol. Beyond this project, this technology will
be a major step forward for connected vehicles and the micro-transactions and security requirements associated with them.”
— Elie Elbaz, Digital & Connected Vehicles Director for Groupe Renault
Groupe Renault | First-ever digital car maintenance book

Blockchain in Action | Digital maintenance book
Dealer
Manufacturer sells automobile
to customer through an
approved dealer
Repair
Brake repairs at an
approved repair shop
Maintenance
Battery replacement by owner
Insurance
Insurance payout is approved
for collision repair, premiums
adjusted
Inspection
Inspection agency verifies vehicle
condition, safety, and emissions
testing
Sale
Owner sells automobile,
ownership is transferred
Accident
Accident occurred,
required towing to
repair shop for repair
 Model
 Year
 Kilometers driven
Dealer
 Name, location of
repair shop
 Reason for repair
 Parts, services
required for repair
Repair/Maintenance
 Location of accident
 Damage
 Towing company name
 Arrival time in repair shop
Accident
 Inspection date
 Location
 Assessment of vehicle
condition, safety
 Verify emissions level
 Owner verifies vehicle
assessment
 Transfer of ownership
 Automaker recognizes sale
Insurance Inspection Sale
Consumer visibility
 Damages assessed
 Insurance payout
 Incident settled
between providers
 Premiums adjusted

Challenge
• Volkswagen needed to streamline a
complicated Over the Air supply chain for
vehicle firmware updates
• Ability to record high volume of
(incremental) updates and different
software versions
• Handle product recalls efficiently
Strategy
• Volkswagen, Microsoft
Services, and IOTA built a
blockchain-enabled platform
to perform real-time audits
throughout the Over the Air
software update lifecycle
Results
• Blockchain technology improved visibility in the
Over the Air supply chain, created an immutable
record of every transaction.
• Established transparency and digital trust with
customers, authorities and third parties.
• Ability to provide an evidence to external
parties.
• Tamper proof & transparent statistical recording
“Distributed ledger technologies are crucial for the future of trusted machine-to-machine transactions.”
— Johann Jungwirth, Chief Digital Officer of Volkswagen
Volkswagen | Support your update cycle

Blockchain in Action | Secure update lifecycles
The entire update lifecycle is documented in a shared ledger that can be easily audited by consumers, insurance companies, and regulatory agencies.
SHARED LEDGER
Vehicle requests update
from manufacturer
Manufacturer releases
critical safety update
Vehicle confirmations
successful installation
Manufacturer
• Update ID: 2.519.1
• Topic: Airbag deployment
Vehicle
• Vehicle ID: 83904
• Update status: Outdated
Manufacturer
• Update ID: 2.519.1
• Topic Airbag deployment
• Recipient ID: 83904
Vehicle
Vehicle ID: 83904
Update status: Updated
Update ID: 2.519.1
Manufacturer sends
authentic OTA safety update

Challenge
• World Bank issues USD $50-60 billion in
bonds every year and has responsibilities
to digitally innovate and respond to
investor needs.
• They needed a way to streamline
processes among numerous
intermediaries and agents to simplify
bond issuance; improve operational
efficiencies; and enhance investor
transparency.
Strategy
• The World Bank partnered
with Commonwealth Bank
of Australia and Microsoft to
develop the first blockchain
bond offered to global
investors such that the
entire bond process—from
creation to allocation and
management—takes place
on a blockchain.
Results
• Improved traditional bond issuance from a
manual bookbuild process and allocation
process, an extended settlement then a
registrar and a custodian, into something that
could happen online instantaneously.
World Bank | Simplify bond issuance
“This blockchain bond transaction is a milestone in our efforts to help countries transition to technology-led
development to acheive our goals of reducing poverty and promoting lasting development.”
— Denis Robitaille, Chief Information Officer of World Bank Group

Utilidex Reimagines Energy Trading with
Blockchain
Challenge
• The sector is becoming increasingly
complex, with new suppliers entering the
market.
• Markets have also suffered from increased
volatility, while generation trends have
shifted significantly towards renewable
sources such as solar power.
• Changing dynamics of the market, and
increasing value in energy flexibility.
Strategy
• Help customers buy, sell and
optimise their energy in an
open, transparent way.
• Worked with Microsoft to
trial blockchain technology
and prove the technology’s
application in buying and
selling energy.
Results
Utilidex’s blockchain technology will:
• Let users analyse data on plants.
• Make billing easier.
• Show real-time market data.
• Predict energy production.
• Feature a personal digital assistant that offers
instant alerts.
“This work is part of our broader ambitions to help customers buy, sell and optimise their energy in a very different way”
- Richard Brys, Chief Executive Officer of Utilidex

29
Challenge
• Carrefour is facing consumer pressure to
provide greater product transparency to
ensure local sourcing, sustainable
agricultural practices, and organic
certification.
• Needed a solution to provide farm-to-fork
traceability
Strategy
• Carrefour has partnered
with Microsoft to host their
blockchain projects which
leverage QR code labelling
to allow consumers to
identify every step in the
food supply chain
Results
• Consumers can scan a code to obtain
information on free-range chicken production
including rearing, feed, and meat processing
• Retailer receives brand value, with the ability to
highlight what they’re doing for farmers, local
economies, and to drive sustainability
• Expand project to other products and expand
to other countries (beyond France and China)
Carrefour | Ensure product traceability
“Become the leader of the food transition for everyone is the aim set for the Carrefour group. Making use
of blockchain technology is an exemplary step in meeting this aim. This is a first in Europe and will provide
consumers with guaranteed complete transparency as far as the traceability of our products is concerned.”
— Laurent Vallée, Head of Quality and Food Safety at Carrefour

30
Blockchain in Action | Provenance tracking
Processor
Chickens are verified
and meat is processed
Retailer
The meat reaches the retailer having been
accounted for at each step of the journey
Distributor
The meat is moved through a distributor under
high-quality assurance regulations
Customer purchase
The customer purchases free-range
certified chicken with quality
assurance from farm to fork
Producer
Farmer rears chickens out
in the open, doesn’t use
antibiotics nor GMO’s
Hatchery
Farmer hatches eggs under
specified conditions to earn GMO-
free and antibiotic-free certifications
Customer query
Customer queries the most updated
data in the secure, blockchain ledger
using the QR code
At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain
 Date of birth
 Hatchery name
 Hatchery
departure date
Hatchery
 Name, location of farm
 Qualifies as GMO-free,
antibiotic-free, free range
 Departure date to the
slaughterhouse
Producer
 Slaughter location
 Packaging and labeling location
 Transport to delivery platform
 Batch number
 Product use-by date
Processor
 Delivered date
 Name, location of
refrigerated storage
facility
 Delivered date  Guaranteed fresh
 Certified GMO-free,
antibiotic-free, free
range
Distributor Retailer Customer
Consumer visibility

31
Challenge
• Current methods to track geological
samples from collection through
shipment, analysis, and storage are error
prone and do not provide transparent
access to a sample’s current custodian,
location, status or history
• A transparent, real-time sample tracking
system is needed for sound business
decisions and accurate timely compliance
Strategy
• Microsoft partnered with
ConsenSys to build a
blockchain-based real-time
sample tracking system that
captures an auditable
history of custodianship and
immutable record of
associated analysis requests
and reports
Results
• This decentralized system allows BHP, its
analysis and storage vendors, the regulatory
agencies to share a single source of truth in
real-time.
• All parties can track live data material
movement throughout the supply chain
BHP Billiton | Track geological samples
“Everything right now is being tracked through spreadsheets. With blockchain, we can share data between
third parties and ourselves and have a constant understanding of where [all the objects] are.”
— Tyler Smith, a BHP geophysicist

32
Challenge
• A lack of connectivity, transparency, and
traceability in the food supply chain caused
food waste and inefficiencies.
• 25% of all harvested grain is contaminated
with mycotoxins and nearly half a billion
people are at risk of consuming aflatoxin
contaminated crops.
Strategy
• Buhler and Microsoft
developed a blockchain
strategy using multilayer QR
code labels to track grain and
ensure it’s handled according
to regulations.
• Augmented physical
machines with an AI-enabled
insights platform to ensure all
grains processed are toxin-
free.
Results
• Digitally verify that all grains are handled
compliantly as they move through the supply
chain, providing transparency to each
counterparty through a shared ledger.
• Assess any contamination and alert all parties in
real-time to avoid a public safety issue.
• Create a shared food-safety utility for the
agricultural industry that can guarantee crop
safety from farm to fork.
Bühler | Ensuring food safety
We’re not only going to get economic results, but hopefully we can transform and save lives at the same time.
It’s the most exciting and valuable project I’ve worked on in my 40 years with the company. It’s a really big thing.
— Ben Deefholts: Senior Research Engineer

33
Blockchain in action | Real-time grain tracking
Carrier 1
The product is securely shipped
with QR codes that verify that
shipping and handling happen per
manufacturer’s regulations and
compliance standards
Miller
The grains are milled and must be
handled per manufacturer’s regulations
and compliance standards
Granary
The grains are stored per
manufacturer’s regulations
and compliance standards
Retail store
Rejects the pasta products sent by food
processor A due to poor handling procedures
Harvest
The grains are harvested and
assessed for contaminants.
The remaining grains are
then packaged with
multilayer QR codes
Food processors
Transform the grains
into packaged goods
for consumption per
manufacturer’s
regulations and
compliance standards
A
B
C
Smart contract
created
Grain needs to be
harvested and
shipped.
Carriers
• Grains
delivered
• Compliant
handling
Granary
• Grains
stored
• Compliant
handling
Miller
• Grains
milled
• Compliant
handling
Food processors
A: Pasta products
B: Bread products
C: Rice products
Retail store
A: Rejected – non-
compliant handling
B: Accepted
C: Accepted
Harvest
• 25% of grains
have toxins
• 75% of grains
are shipped
Food processor A has breached the contract
and is liable for penalty
25% of grains are
found to have toxins
and are rejected.
SHARED LEDGER

Challenge
• To bridge the gap between the existing
corporate-based financing infrastructure in
Nigeria and a growing number of small to mid-
size enterprises in need of capital.
• Supply chain financing involves multiple
counter-parties who lack end-to-end visibility,
exposing lenders to risk, delaying financing,
and jeopardizing projects.
Strategy
• Interswitch partnered with
Microsoft to develop a
blockchain-based supply chain
financing service that brings
together major financial
institutions from different
countries to seamlessly
manage trade finance.
Results
• Banks reduce their exposure to loss or fraud and
streamline financing decisions, giving more people
access to more funding, while lenders can deliver
more value.
• Borrowers now secure financing in three weeks or
less, so they can take on more work in less time.
• Project contractors and suppliers can better predict
requirements, accelerate turnaround, and increase
sales cycles and volumes.
Interswitch | Seamless supply chain financing
Armed with a single version of the truth across the supply chain, Nigerian lenders and suppliers can identify and
build relationships with high performing entrepreneurs. That will help empower people to create more jobs,
more wealth, and a more prosperous Africa.
— Eghosa Ojo: Designer Thinker and Head of Innovation at Interswitch

Interswitch | Seamless supply chain financing
Contract updated
• The supplier receives
the guarantee and
fulfills the purchase
Contract updated
• Entrepreneur
receives the
supplies
Contract updated
• Bank and the
supplier agree on
guarantee terms
Smart contract created
• Entrepreneur submits a
purchase order to a
supplier
Supplier
Requires a bank
guarantee for the
purchase
Entrepreneur
Submits a
purchase order
to the supplier
Supplier
Receives the
guarantee and
fulfills the order
Entrepreneur
Receives
supplies
Bank Admin
Creates sales
contract
Corp. Sales Officer
Verifies the customer
with the bank
Bank Manager
Issues the bank
guarantee
Corp. Sales Director
Approves bank
guarantee terms
Bank Admin
Releases ATC to
customer
Bank Manager
Option to contend
the guarantee terms
Contract updated
• Supplier requests
a bank guarantee
SHARED LEDGER

36
Challenge
• The contract process between
Haier and suppliers is not
optimized and has been
proceeded manually, which
makes bottle necks of
business agility as well as
business unclearness
Strategy
• Haier partnered with Microsoft to
deliver a blockchain based platform that
will demonstrate digital contract
process between Haier and one
supplier, to track the linage of contract
version between different parties, to
keep the data integrity and reduce
lawyer’s repeatable effort
Results
• Helping Haier re-engineer the whole contract
management process to bring greater
operational efficiency and productivity,
reduced contract process from average two
weeks to two days;
• This project was an important strategic
initiative, sponsored by group CFO Tan lixia
and CIO Howard Yin.
Haier | Optimizing contract management
“Haier Group has about 900,000 business contracts in a year, with an average contract generation period of 22
days, and now through the blockchain technology, we reduce the contract generation cycle to 2 days.”
— Tan, Lixia CFO, Haier Group

37
1 Send new Contract
1 Review Condition
2 Send Count Offer
2 Review Counter Offer
3 Send Modified Offer
3 Check Check Modified Offer
4 Send Confirmation
4 Pass to 3rd Party Signature System
Supplier
Contract
1
Team Collab.
Contract
1
DApp
Contract
2
DApp
Contract
2
Contract
3
ESC
Team Collab.
Send Notification
Contract
3
DApp
Contract
DApp
4
Contract
4
Send Notification
3rd Party Signature
5 Put Signed Contract Document Information
Contract
5
Synchronized
Synchronized
Synchronized
Synchronized
Contract
Synchronized
Otherwise,
Loop
Otherwise
Process & Flow

38
Purchase Process re-engineering with Blockchain
Projecting E-Bidding Contracting Contract Sign Contract Execution Payment
Paticipants Haier
Suppliers
Haier Internal
Users
Haier Internal User
• Business Dep
• Finance
• Legal
• Purchase Dep
Haier
Supplier
Haier
Suppliers
Logistic 1
Logistic 2
Insurance
Haier
Suppliers
Haier’s Bank
Supplier’s Bank
Database
Consortium
Blockchain
Smart Contract # 2- Contract
Signature
• Haier and supplier review
and negotiation process
record on blockchain；
• Both side confirm and sign；
Smart Contract #1-Contract
Generation
• All participants make
relative policies and sign
to confirm
• Owner submit input and
generate contract;
Smart Contract #3 – Supply Chain
Goods tracking
Smart Contract #4 – Payment
process
Consortium
Blockchain
Smart Contract #5 – e-Bidding
process management
Smart Contract #6 – Supplier
management
Supply Chain
Blockchain
Smart
Contract
Phase I
Consortium
Blockchain

39
Haier Supplier Chain Contract Editing System

40
Challenge
• Schneider Electric’s clients in food and
beverage manufacturing are demanding
supply chain solutions that; prioritize
product traceability, ensure regulatory
compliance, are very low energy-
consumption, and allow multi-part
visibility.
Strategy
• Schneider has partnered with
Microsoft to explore
blockchain solutions that
utilise existing IoT capabilities
(shock/humidity sensors) to
automatically execute the
service terms and conditions
agreed by the different
stakeholders to provide
product traceability.
Results
• End-to-end traceability tool to monitor
products across the entire supply chain, both
upstream and downstream of manufacturing
plants.
• Telemetric readings will be archived securely
and shared between all members.
• Offer time savings by warning the distributor in
real time of any delays in delivery or
production
Schneider Electric | Monitor supply chains
"With this blockchain solution, companies can build an electronic passport for each product to fully automate
the contracts between them. For example, leveraging IoT, they can maintain an unbroken cold chain.“
— Benjamin Jude, Food and Beverage Segment Solution Architect at Schneider Electric

41
Supply Chain | Refrigerated Transportation
IoT Enabled
Origin
8ºC
60%
At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are
recorded on the blockchain
SHARED LEDGER
Warehouse
9ºC
64%
Carrier 2
8ºC
63%
Store
9ºC
64%
SMART CONTRACT
UPDATED
SMART CONTRACT
The package has to
be maintained at :
Temperature
< 10º C
Humidity < 65%
Food Processor
The milk product is sealed in an IoT
enabled package for shipping
PRODUCER
Milk producer supplies Milk to Food
Processing Company
CARRIER 1
The terms of shipping are registered using a
smart contract on the Blockchain
CARRIER 2 Warehouse
11ºC
66%
8ºC
60%
9ºC
64%
8ºC
63%
Carrier 1
9ºC
64%
9ºC
64%
Carrier 2
11ºC
66%
Retail Store
9ºC
64%
The conditions of the contract have been violated.
Carrier 2 is liable for penalty as the temperature of the package when it reached the retail store
was above the prescribed limit

42
Challenge
• UBS and other financial institutions
needed to improve the quality of
counterparty reference data through
anonymous reconciliation with industry
counterparts
• They needed to comply with new EU
legislature that aims to strengthen
investor protection and improve the
functioning of financial markets making
them more transparent
Strategy
• Partnering with 5 other
institutions, UBS leveraged
Microsoft’s blockchain
capabilities to develop a
permissioned platform
where smart contracts
reconcile data against
industry consensus and
provide each participant the
ability to detect anomalies
Results
• Solve regulatory requirements in a cost-
effective way
• Advanced data reconciliation among industry
participants in a timely manner
• Integrated interorganizational systems for ease
of doing business
• Strengthened collaborative appeal among
partnering institutions
UBS | Improve data quality
"Traditionally, a firm such as ours quality checks data against multiple sources but we
do not have a quality baseline against peers. Using smart contracts, the reconciliation
of data can happen in almost real-time for all participants, anonymously."
— Christophe Tummers, Head of Data at UBS

43
Challenge
• HSBC needed a way to streamline the
issuance of a Letter of Credit – a
guarantee that a payment will be received
by a seller under a set of conditions.
• Conventional exchanges for paper-based
documentation related to letters of credit
usually take between 5-10 days
Strategy
• Deployed on Microsoft
Azure, HSBC worked with
ING Bank to successfully
executed a blockchain-
based Letter of Credit
transaction for an
international shipment of
soybeans from Argentina to
Malaysia for Cargill using
R3’s Corda ledger
Results
• The exchange was performed in 24 hours
• This transaction brought all parties
together on a single, shared
infrastructure while ensuring the highest
levels of privacy and security
• The quick turnaround could mean
unlocking liquidity for businesses
HSBC | Improving trade finance transactions
“Trade finance transactions have been made simpler, faster, more transparent and more secure. The need for
paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous.”
— Vivek Ramachandran, Head of Growth and Innovation at HSBC

44
Trade Finance
 Current-state process
Establish Payment Terms Deliver Goods Settle on terms
Current-state process
• An importer and exporter agree to the sale of a
product at a future date and time
• The financial agreement is captured within an
invoice, which identifies the quantity of goods
sold, price and delivery timeline
• The importer provides a bank with a copy of the
financial agreement for review
• The import bank reviews the financial agreement
and provides financials on behalf of the importer
to a correspondent bank, which has established
a relationship with the export bank
• The export bank provides the exporter with the
financing details, which enables the exporter to
initiate the shipment
• A trusted third-party organization inspects the
goods for alignment with the invoice
• Local customs agents within the export country
inspect the goods based on the country code
• The goods are transported by freight from
Country A to Country B and local customs
agents within the import country inspect the
goods based on the country code
• Following inspection, the goods are delivered to
the importer, which provides a receipt notification
to the import bank
• Upon receiving notification, the import bank
initiates the payment to the export bank through
the correspondent bank
Importer (Malaysia)
1
2
3
4
5
6
7
8
9
9
Microsoft Confidential
1
Order
Goods
Provide
Invoice
Financial
Agreement
2
Exporter (Argentina)
3
Importer Bank
4
Correspondent Bank
Export Bank
5
Export
Inspection
company
6 Verified Goods
Argentina
Customs
7 8
Freight
Product Shipped
Malaysia
Customs
9
Receive
notification
Correspondent
Bank
Payment
ING Argentina
HSBC Singapore
Importer Bank
HSBC Singapore
Export Bank
ING Argentina
HIGHWAY
Importer (Malaysia)

45
Key participants establish terms of trade through the smart contract on
distributed ledger
All transactions among various parties are recorded at
every stage of delivery
Blockchain can facilitate the real-time approval of financial documents, create new financing structures, reduce counterparty risk and enable faster settlement
• Real-time multi-party tracking
• Simpler management of letters of credit
• Faster automated settlement
• Higher liquidity
• Lower operations costs
• Reduce counterparty risks
Customer Benefits
• Providing systematic transparency and
higher security in the system
• Reducing operational costs
• Providing faster and better customer
service
Start
• Need for correspondent banks as FIs
work directly with one another
• Long and expensive manual processes
with too many intermediaries
• Over provisioning cash for risk
exposure due to long settlement times
Stop
• Upsell more and launch new product
within global trade networks
• Increase customer satisfaction and loyalty
• Improve operational efficiency
• Increase collaboration and efficiency
among partners
• Better risk mitigation and compliance
Continue to differentiate
Trade Finance
Post delivery settlement based on the
terms of trade in the smart contract
Letter
of
Credit
Financial
Agreement
Smart
contract
Shared Ledger
Importer
(Malaysia)
Importer Bank
Exporter
(Argentina)
Export Bank
Shared Ledger
Exporter Importer
Inspection
company
Freight
Customs
Malaysia
Customs
Argentina
Importer Bank Export Bank
HIGHWAY

46
Trade Finance
Future-state process
Establish Payment Terms Deliver Goods Settle on terms
Future state process
• Following the sale agreement, the financial
agreement is shared with the import bank
through a smart contract
• The import bank reviews the arrangement,
drafts the terms of the letter of credit and
submits it to the export bank for approval
• The export bank reviews the letter of credit;
once approved a smart contract is generated
to cover the terms and conditions of the letter
of credit
• The exporter digitally signs the letter of credit
within the smart contract to initiate shipment
• Goods are inspected by a third-party
organization and the customs agent in the
country of origin (ideally using a digital
signature for approval)
• The goods are transported by freight from
Country A to Country B and inspected by
local customs agents prior to being received
by the importer
• The importer digitally acknowledges receipt of
the goods, which initiates payment from the
import bank to the export bank via a smart
contract
1
2
3
4
5
6
7
1
Order Goods
Provide Invoice
Financial
Agreement
Smart
contract
Importer Bank
2
Letter
of
Credit
Financial
Agreement
Smart
contract
Export Bank
3
Initiate
Shipment
4
Inspection
company
Verified
Goods
5 Argentina
Customs
Malaysia
Customs
Freight
Product
Shipped
6
Receive goods
Smart
contract
7
Shipment
received
Initiate
Payment
Payment Complete
Smart
contract
HIGHWAY
Importer
(Malaysia)
Exporter
(Argentina)
Exporter
(Argentina)
Importer
(Malaysia)
Importer Bank
Export Bank

“Blockchain offers a powerful new approach to asset tracking which could prove to be a valuable
tool in managing our vast data networks and improving the efficiency of our R&D operations.”
— Mark Buswell, Vice President of Technology for Discovery, Development and Lab Systems at GSK.
GlaxoSmithKline | Tracking drug serialization
Challenge
• Pharmaceutical supply chains have run
afoul of regulatory standards and can
face inexpert product management
issues
• GSK needed a transparent supply chain
management system to help better
ensure products are protected and
provide drug custodianship visibility with
partners
Strategy
• GlaxoSmithKline has collaborated with
Microsoft and Viant to develop a
blockchain-based supply chain
platform in the pharmaceutical sector
to track intellectual property (IP)
licenses as well as ensure that products
are produced, transported, and stored
in proper conditions.
Results
• Helped comply with the U.S.
Drug Supply Chain Security Act
mandate for unit-level track and
traceability for pharmaceuticals
by 2023
• Mitigate product mislabeling
and counterfeit medications
• Increased customer confidence
through trust and transparency

Challenge
• Providing scalable, reliable, cost-effective
digital factory solutions
• Making data available on local servers as
well as in the cloud
• Creating a secure chain of custody for
critical data
Strategy
• Teamed up with Microsoft
Digital Advisory Services
• Moved SaaS offerings from
AWS to Microsoft Azure
• Integrated Azure Blockchain
as a Service
Results
• Helps expand the acceptance of
digital transformation in pharma
• Accelerates speed of innovation
• Increases visibility with large accounts
Supply Chain Wizard | Secure marine insurance
“Microsoft Digital Advisory Services and the One Commercial Partner program helped us
accelerate the speed of innovation and market expansion of our solutions in pursuit
of digital transformation of pharmaceutical manufacturing.”
— Evren Ozkaya, CEO, Supply Chain Wizard

Challenge
• Pharmaceuticals
companies need
serialization solutions to
meet global regulations
for end-to-end tracking.
Strategy
• Adents combined its
industry expertise with
Microsoft technology
expertise to create
Adents Prodigi.
• The two companies also
collaborate on sales and
marketing.
Results
• By working with Microsoft, Adents
cut time-to-market in half, saving
18 months.
• Adents was first to market and
gained crucial competitive
advantage.
• Marketing with Microsoft adds to
brand value.
“Our alliance with Microsoft to co-develop Adents NovaTrack will offer game-changing
blockchain-based unit identification providing our clients total transparency all along
their supply chains and secure product authenticity for end users.”
— Christophe Devins, Founding Partner and CEO, Adents
Adents | Tracking drug serialization

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