Enterprise Blockchains – A Pragmatic & Realistic Guide for CIOs/CDOS – an Iceventure briefing Background for the Enterprise Blockchain briefing The blockchain promises to alter the way business transactions, data storage, industry value chains and associated revenue models. And unlike other innovation first deployed by start-ups many Enterprises as well as SMEs investigate the various use cases. For example, Banking & Financial Services is the leading sector in enterprise blockchain adoption with a high number of PoCs. Adoption of use cases around payments, trade finance, and wallets are advancing rapidly. Challenges for Enterprises/SMEs adopting an Enterprise Blockchain But the novelty of the Enterprise Blockchain technology brings also about a lot of questions asked by market participants and our customers alike. Some examples are: How to evaluate the advantages/disadvantages What are the value drivers Fitting it into the existing IT landscape Where is the market and what are my risks In a webinar, we therefore discuss the challenges of a successful Enterprise Blockchain use-case to separate the hype from reality. We also introduce a framework for evaluation Watch the slides for: A picture of the possibilities and challenges of the Blockchain The Blockchain technology in the Enterprise context A different use case valuation approach An overview of the current market with focus on Germany All Iceventure studies: https://www.iceventure.de/studien.html

1. ENTERPRISE BLOCKCHAINS
– A PRAGMATIC & REALISTIC
GUIDE FOR CIOS/CDOS
ICEVENTURE

2. ICEVENTURE BRIEFING
July 2018 Today‘s speakers
• Arnbjörn Eggerz
• Timothy Robb

3. ENTERPRISE BLOCKCHAIN ECOSYSTEM - GERMANY
Blockchain Tools
and Software
Providers
Rubix
Academia,
regulators, and
not- for profits
Blockchain
Solution
Providers
Service Providers Consultants Consortiums Startups
Blockchain
Platforms and
Frameworks
Permissioned (Private/Hybrid)
Fabric
Corporations
Partners Clients/Users
Illustrative, not comprehensive 07-2018
© Iceventure - Share with mention or link
Academia,
regulators, and
not- for profits

4. AGENDA: BLOCKCHAINWITHTHE EYES OF A CIO
• Technology
• The key problems of Blockchains
• The problem with the most prominent Blockchain app Bitcoin – too expensive
• Forget public blockchains – Enterprise blockchains made for you
• But you need to worry of Security, Reliability, Scalability and Costs … and integration
• Value Add, Costs and future of IT
• What is relevant for Enterprise blockchain
• Value capture definition, not use cases
• Cost & structural comparison to cloud // SaaS // databases
• Make or buy
• Integration
• Enterprise Blockchain projects – what do we know about active projects

5. BITCOIN – TOO EXPENSIVE
• original Blockchain structure scales badly
• Energy, computing requirements and transaction time skyrocket with transaction and
participant increase
• This known problem can be reduced by configuring and changing some of the underlying
components (in particular the so-called consensus protocol).

6. WHAT IS RELEVANT FOR ENTERPRISE
BLOCKCHAINS
• “Classic” Blockchain:
• Anonymous
• Immutable
• Transparent
• Decentral
• Trustless
• Enterprise Blockchain:
• Private
• Permissioned
• Centrally governed
• Based on trust to the central authority
• Different methods for reaching consensus, which largely drive the extreme differences in
performance and characteristics.

7. External Environment
Partners Vendors Customers Regulation
Organization
Line of Business Business Units Departments/Teams Stakeholders
Functions
Business Functions Business Functions Taxonomy
v
Processes
Business Processes Business Processes Taxonomy Events Business Objects
Business/
Market Rules
Activities
Roles
Business Data
Business DataMetadata
Data Flows
Data Translation
Business Data Taxonomy
Enterprise Architecture: IT Layers
Data ExchangeData Mgmt. Security
Remote Access
Location &
Directory
File Mgmt.
Graphics & Imaging Operating System
User Interface
Software Localization
Transaction Processing
Systems & Networking
Mgmt.
Services
System Applications
Interfaces Databases
Infrastructure
Network
Devices
SAN/NAS
Firewalls
Servers
Custom
Devices
Cabling
Racks
UPS
Virtual/Physical Environment
Communication Circuits

8. VALUE CAPTURE DEFINITION
• New Business Models
• Radical digitalization of legacy IT
• Transformation and improvements
• Automated transaction management, self-organizing (smart contracts)
• Reduced transaction cost
• Efficiency, effectiveness, cost improvements due to replacing legacy/obsolete software
infrastructure

9. VALUE CAPTURE DEFINITION
• Our approach:
• In the well-defined Enterprise IT landscape it is either a new business case or an IT replacement case
• Two requirements
• Needs to lower costs or be at par
• Needs to add value -> driver usage of decentralized data
• Value creation valuation framework
• Platform/marketplace – for the value add due to decentralized design
• Comparison to SaaS / database solution – for scales

10. APPLYING THE FRAMEWORK
• Blockchain has a strong value proposition as a way for non-trusting entities to transact.
• Following theValue CreationValuation Framework, this makes blockchain an interesting
alternative for all use cases which can be framed as marketplaces.
As such, finance and trading is an obvious choice. For commodities, particularly for
energy, the case is even stronger, as decentralization can drive participation effects (and
likely network effects) also for non-typical actors (prosumers).
• Other cases are more dependent on efficiency gains.

11. INDUSTRY BLOCKCHAIN INITIATIVES HEATMAP
Trading
Banking
Finance
Insurance
Energy
Supply Chain
Manufacturing
Logistics
Information Coordination
Life Sciences
Healthcare
Media
Public Sector
Services
Accounting
Legal
Real Estate

12. INDUSTRY BLOCKCHAIN INITIATIVES HEATMAP
Trading
Banking
Finance
Insurance
Energy
Supply Chain
Manufacturing
Logistics
Information Coordination
Life Sciences
Healthcare
Media
Public Sector
Services
Accounting
Legal
Real Estate
Marketplace Replacement

13. COMPARISONTO CLOUD // SAAS // DATABASES
• Central Architecture:
Everything is in the Cloud
• Servers
• SaaS Applications
• Databases
Cheap and easy access
• Decentral Architecture:
Everything is Everywhere
• DLTs
• Decentral Apps (Dapps)
• Decentral Databases
No single point of failure
Scales //TCO // OpEx Distributed // Secure

14. MAKE OR BUY – COST POINTS
Make
• Development costs
• Deployment costs
• Ppossibly hardware upgrades
• Maintenance, support
and security running costs
• Projekt risk
Buy
• Software configuration costs
• Hosting or aaS subscription
running costs

15. Decentral
SecureScalable
If the blockchain isn’t decentral, why use a blockchain?
If the blockchain isn’t scalable, why use a blockchain?
If the blockchain isn’t secure, why use a blockchain?
If it was all three, what’s the business model?
CURRENT STATE OF THE ART: YOU ONLY GET 2

16. DOYOU NEED A BLOCKCHAIN?
Do you need a shared database? Do you need shared write access for multiple
parties?
Do the parties mistrust each other? Is it unfeasible/unwanted to use a trusted
third party?
Do you need a verifiable, unchangeable ledger?
If you answered any of the questions with NO, then you probably do not need a blockchain.
But even if you answered every question withYES, does not necessarily mean that a blockchain is the best
solution for you.

17. ENTERPRISE BLOCKCHAIN
PROJECTS – WHAT DO WE KNOW
ABOUT ACTIVE PROJECTS

18. ENTERPRISE BLOCKCHAIN PROJECTS:
WHAT DO WE KNOW?
Phase 1
R&D
Solution Design
Phase 2
PoC/Pilot
Phase 3
Final Implementation
Production
On the Market
Vast majority of
projects is here

19. ENTERPRISE BLOCKCHAIN PROJECTS:
WHAT DOWE KNOW?
• Over 80 blockchain startups in Germany
• Over 15 cooperations and blockchain projects by large corporations
• The big SaaS/IaaS players offer blockchain-related services
• However, mostly PoCs are announced and implemented.There are few known cases of
efforts to go into production.
• In fact, there are first cases of Blockchain products going off the market (Share & Charge)
or being spun out of the corporation (ZF’s Car eWallet)

20. NOTABLE ENTERPRISE BLOCKCHAIN STARTUPS
Energy
▪ Adpteve
▪ Conjoule
▪ EnerChain
▪ Energy Web Foundation
▪ GridSingularity
▪ Motion Werk
▪ Share & Charge
Enterprise Infrastructure
• BigchainDB
• Medixain
• Monax
• Sunato
• Tymlez
• Unibright
• Xain
Internet ofThings (IoT)
• Weeve (formerly Eciotify)
• IOTA
• Ubirch
• Slock.it

21. GERMAN ENTERPRISE BLOCKCHAIN COLLABORATIONS
Automotive
Company Use Case Startup Consultants/Partners Sector Status
Allianz Captive Insurance Ernst & Young, Ginetta Automotive Proof of concept
Audi Supply Chain HP Enterprise Automotive Proof of concept
BMW Bonus miles Dovu Automotive Proof of concept
Daimler, LBBW corporate bond sale TSS, Targens Automotive Proof of concept
VW car history Carvertical Automotive Proof of concept
ZF Car E-Wallet Automotive Spun off
Energy
Company Use Case Startup Consultants/Partners Sector Status
EON Energy trading Enerchain Energy Proof of concept
RWE
EV charging
infrastructure Slock.it Energy Proof of concept
Siemens
decentral energy networks
Energy Proof of concept
Vattenfall energy trading Enerchain Energy Proof of concept
Company Use Case Startup Consultants/Partners Sector Status
Commerzbank FX-Forward-Trade
Finance and
Insurance Proof of concept
Deutsche Börse trading
Finance and
Insurance Proof of concept
Munich RE Inter-Company Transactions B3i
Finance and
Insurance Proof of concept
Finance and Insurance

22. BLOCKCHAIN STUDY 2018
Iceventure publishes a study on the status of Enterprise Blockchain, its risks and
opportunities, and costs and benefits in Q4 2018, both for large enterprises and SMBs.
It includes case studies and feasibility valuations for supply chains, finances, and EV charging
infrastructure.

23. CONTACT
Iceventure
Gottfried-Keller-Weg 6
85757 Karlsfeld, Germany
info@iceventure.de
Tel.: +49/8131/260224
Tel.: +39/33442578777