Real-time, supply chain test marketing of new product lines

Assume that a retailer, a class of beef product pre-retailers (i.e., wholesalers, processors and vertically integrated operators), and a class of consumers are all multi-tenant members of a centralized personal data store for sharing supply chain information.

I gave an example of a multi-tenant Food Recall Data Bank in an earlier blog entitled Consortium seeks to holistically address food recalls. At the time I wrote this earlier blog I vacillated between calling it what I did, or calling it a VRM Data Bank. I refrained from calling it the latter because while the technology application is potentially very good for consumers (i.e., food recalls tied to point of sale purchases) it still felt too much like it was rooted in the world of CRM. For more about the VRM versus CRM debate see The Bullwhip Effect.

Below is a technology application whereby supply chain tenants may register their CPA informational objects with permissions and other instructions for how those objects may be minimally accessed, used and further shared by and to other supply chain participants. What one then has is what may more appropriately be called a VRM Data Tenancy System (VRM DTS).

So what can one do with this architecture? How can it get started in the marketplace of solutions? A reasonable beginning point is with real-time, supply chain test marketing of new food product lines. And by supply chain test marketing, I mean something clearly more than just consumer test marketing. What I am describing below is multi-directional, feedback loop for:

1. test marketing a new consumer product line for the purpose of driving retail sales, and
2. concurrently generating procurement and wholesale interest and support from pre-retailers.

Assume that a retailer has been receiving word of mouth consumer interest in a particular beef product class (e.g., "ethically raised" beef products). Assume that pre-retailers have heretofore not been all that interested in raising, processing or purchasing "ethically raised" meat products for wholesale.

An initial "test market" object is authored and registered by the retailer for polling consumer interest via asynchronous authoring by individual consumers of their store outlet preferences, likely beef product quantity purchases of the new product line per week, etc. This object is revealed to a consumer class via their tenancies in the VRM DTS. The object is concurrently revealed to a class of pre-retailers via their tenancies, too. Each consumer is anonymous to the other consumers, and anonymous to the pre-retailers. Each pre-retailer is anonymous to the other pre-retailers, and anonymous to the consumers. But each consumer, as is each pre-retailer, is nonetheless privy to the consumers' real-time poll and the pre-retailers' real-time poll. The retailer watches all, being privy to the actual identities of both consumers and pre-retailers, while at the same time the retailer’s customer and pre-retailer client lists remain anonymous.

With this kind of real-time sharing of information, one can begin to imagine a competitive atmosphere arising among the pre-retailers. Furthermore, there is no reason the retailer's object could be further authored by the retailer to solicit real-time offers from the pre-retailers to procure X quantities of the beef products for delivery to identified outlets of the retailer by dates certain, in the same specific beef product class, etc. And there's no reason the "test market" object could not be further used to finalize a procurement contract with one or more pre-retailers ...

... which at the moment of execution shares real-time, anonymized information over to consumers as to dates of delivery of X quantity of beef products at identified retail outlets.

The "test market" object could be further designed for the consumer class to asynchronously provide real-time feed-back to the retailer regarding their experiences with the purchased product, and to perhaps do so even back to the pre-retailers based upon GLNs and GTINs. Depending on the retailer's initial design of the "test market" object, this consumer feedback to pre-retailers may be anonymous or may specifically identify a branded product. And, because food safety regulators are seeking "whole chain" traceability solutions, the government can be well apprised with minimal but real-time disclosures.

The dynamic business model for employing a VRM DTS includes greater supply chain transparency (increased, ironically, with consumer and pre-retailer anonymity), food discount incentives, real-time visualizations, new data available for data mining, and new product outlets for pre-retailers who have not previously provided products to the retailer. Perhaps most significantly there is the identification by the retailer of best of breed pre-retailers and loyal, committed consumers via an “auction house” atmosphere ...

 

... created from the sharing of real-time, sometimes anonymous information, between and among the pre-retailers and consumers.

Update on Thursday, November 21, 2013 at 8:31AM by Steve Holcombe

Consumer Control: Coming To A Store Near You 
Alessandra Lariu
7 November 2013

Alessandra Lariu, co-founder of SheSays, argues that people if take charge of their data, it could fundamentally change advertising dynamics

Update on Saturday, August 30, 2014 at 3:42PM by Steve Holcombe

Interesting ...

An open letter to Jeff Bezos: How to generate an extra $2B for Amazon

by Jasper Kuria on 8/29/2014 at 3:45 pm

http://www.geekwire.com/2014/open-letter-jeff-bezos-generate-extra-2b-amazon/

Consortium seeks to holistically address food recalls

The Department of Biosystems and Agricultural Engineering at Oklahoma State University (OSU BAE) is leading a multi-institutional, multi-disciplinary consortium in the preparation of funding applications for two significant coordinated agricultural projects. If successful, up to $25M for 5 years will be provided for each project beginning in 2011 under the USDA’s Agriculture & Food Research Initiative for Food Safety (CFDA Number - 10.310 - AFRI). Other institutions currently involved in this growing consortium include researchers and investigators from Michigan State University, North Dakota State University, University of Arkansas, Texas Tech University and the National Center for Food Protection and Defense, a DHS Center of Excellence. For the purposes of these activities, Pardalis Inc. is embedded within OSU BAE. The applications will be filed in September, 2010. More information can be found on this site at USDA AFRI Stakeholder Solicitations.

The vision of our consortium is to

• advance technologies for the prevention, detection, and control of foodborne microbes and viruses in agricultural and food products,
• manage coordinated agricultural projects with direct input from a stakeholder advisory workgroups, and
• improve upon real-time consumer responses to food safety recalls with innovative sensor, mobile and "whole chain" information traceability technologies.

The members of our consortium have been highly influenced in their thinking by the existing data showing that many consumers do not take appropriate protective actions during a foodborne illness outbreak or food recall. The Centers for Disease Control and Prevention estimates that every year at least 2000 Americans are hospitalized, and about 60 die as a direct result of E. coli infections. A recent study estimated the annual cost of E. coli O157:H7 illnesses to be $405M (in ‘03 dollars), which included $370M for premature deaths, $30M for medical care, and $5M for lost productivity. And that doesn’t include the costs of lost sales from consumers fearful of purchasing tainted meat due to the lack of real-time, reliable information.

Furthermore, 41 percent of U.S. consumers say they have never looked for any recalled product in their home. Conversely, some consumers overreact to the announcement of a foodborne illness outbreak or food recall. In response to the 2006 fresh, bagged spinach recall which followed a multistate outbreak of Escherichia coli O157: H7 infections, 18 percent of consumers said they stopped buying other bagged, fresh produce because of the spinach recall.

We envision the model implementation of a "whole chain" product traceability system (call it a "Food Recall Data Bank") to help solve the serious cry wolf problem experienced by consumers. The Food Recall Data Bank model would place a premium on privacy and loyalty. It would provide granular recall notices to pre-retailers, retailers and consumers. Each would centrally populate their accounts in the Food Recall Data Bank with GTIN or UPC product identifiers of relevance to their operations or consumption habits.

For instance, consumers could opt for retailers to automatically populate their accounts from their actual POS retail purchases. Consumers could additionally populate accounts using mobile image capturing applications (e.g., Microsoft Tag Mobile Barcode app). Supplemented by cross-reference to an Industry GTIN/GLN database, the product identifiers would be associated with company names, time stamps, location and similar metadata. Consumers would also be provided with a one-stop shop for confidentially reporting suspicious food to Recalls.gov.

This consortium is only just getting started. Other funding opportunities are being targeted. Let’s talk if you have a commercial or research interest in:

• the effects of financial damages suffered by enterprises - directly or indirectly - from food safety recalls,
• mining and analyzing the real-time data of agricultural product supply chains - including the real-time data of consumers purchasing habits, or
• the applicability of these issues to non-agricultural product supply chains.

Update on Monday, October 17, 2011 at 8:32AM by Steve Holcombe

The consortium identified above is now known as the Whole Chain Traceability Consortium™. The WCTC is comprised at its core of researchers and collaborators from Oklahoma State University, North Dakota State University, Michigan State University, the University of Arkansas, and Pardalis, Inc., an Oklahoma advanced technology company. Whole Chain Traceability Consortium™ is a trademark of Pardalis, Inc. For more information, see http://pardalis.squarespace.com/blog/2011/10/29/the-whole-chain-traceability-consortium.html

Top 12 Discussions - Data Ownership in the Cloud

Over the first 12 months of the Data Ownership in the Cloud group on LinkedIn, the following are the top 12 discussions as rated in descending order by the number of comments:

“Give Me My Data Back!” or “I want to SEE My SELF, so give me my data back, please.”
Posted by John Brian Hennessy, Entrepreneur, Start-up & Early Stage Management Consultant
54 comments

Why does data ownership matter to you?
Posted by Steve Holcombe, CEO at Pardalis Inc.
20 comments

Project VRM
Posted by Steve Holcombe, CEO at Pardalis Inc.
16 comments

The about tag is immutable
Posted by Steve Holcombe, CEO at Pardalis Inc.
13 comments

What are the security issues regarding cloud computing?
Posted by John Mooney, Information Technology and Security Solution Sales Specialist
12 comments

9th Internet Identity Workshop - Nov 3-5 - Mountain View, CA
Posted by Steve Holcombe, CEO at Pardalis Inc.
11 comments 

Firebombs & sacred cows...
Posted by Joe Andrieu, President, SwitchBook
11 comments 

Google in China - What is Going On?
Posted by Al Macintyre, Volunteer Consultant at Haiti Earthquake Disaster Relief & News
11 comments

Why Not One Big Database?
Posted by Steve Holcombe, CEO at Pardalis Inc.
10 comments

Will the next 'Google' be a traceability portal?
Posted by Steve Holcombe, CEO at Pardalis Inc.
9 comments

Is it the methods or the targets that make a hacker unethical?
From Anthony M. Freed, Director of Business Development, Managing Editor at Infosec Island Network
8 comments

Who owns supply chain visibility data?
Posted by Dirk Rodgers, Sr. Consultant, Serialization & Pedigree at Cardinal Health
7 comments

Thank you Brian, John, Joe, Al, Anthony and Dirk for posting very relevant and interesting discussions, indeed!

Ars Technica: Inside the AP's plan to "wrap" its content

The following was published by Nate Anderson for ARS Technica on 28 July 2009:

The Associated Press last week rolled out its brave new plan to "apply protective format to news." The AP's news registry will "tag and track all AP content online to assure compliance with terms of use," and it will provide a "platform for protect, point, and pay." That's a lot of "p"-prefaced jargon, but it boils down to a sort of DRM for news—"enforcement," in AP-speak.

For the complete article go to DRM for news? Inside the AP's plan to "wrap" its content. And see in particular the technical specifications for hNews, an extension of hAtom.

For a comparable publication, see Author-Level Digital Rights Management and the Common Point Authoring System: Protecting Information Exchange.

Microsoft Office Applications and Data Ownership

Part I of a two-part series ....

Microsoft Office Applications as Seamless Supply Chain Tools

There is systemic supply chain problem for small businesses (defined here as 1 to 10 employees in size) that reverberates throughout our global economies. It may be seen in any product or service supply chain comprised of small businesses.

• In other words, in the 'last mile' of any and every supply chain.

Of all the product supply chains in the world the U.S. beef livestock and meat products' industry is arguably the most challenging. There are approximately 110 million cattle in the U.S. and Canadian beef supply chain. Each year, about 44 million animals are slaughtered. In the U.S. there are approximately 1 million beef cattle operations the vast majority of which are small farms and family-owned operations commonly using Microsoft Office Excel for electronically storing and managing their livestock data.

Practically none of that data is shared, and even when it is shared it's in the form of difficult to trace and authenticate paperwork, faxes, e-mails and phone calls.

One reason is that there has heretofore been no 'chain of custody' SaaS designed for small businesses. Not only that but neither Microsoft Excel nor any other components of the Microsoft Office Applications (like Outlook or Word) have yet to be designed to be supply chain traceability and authentication solutions for small businesses.

Other reasons have to do with common fear factors. Farmers and ranchers constantly wrestle with convergent 'data ownership' issues related to genetics, pharmaceuticals, food safety, traceability, authentication, government regulation, product marketability, health records, and information producer confidentiality.

• Why provide ammunition to a competitor?
• Why let the government (i.e., the USDA, FDA, IRS, etc.) know how many cattle you - as a farmer - really own?
• And why do so especially if you - as a farmer - don't see an increase on your return on investment (ROI)?

So, the small businesses of de-centralized U.S. agri-food supply chains are not providing customers or regulators with traceable, pedigree data about their crops and livestock.

• The result? Continuing U.S. food safety crises. Mad cow prions, tainted spinach, hamburger recalls, etc.

And you don't have to be guilty, either, to be ensnared. The 2008 tomato recalls found the U.S. Food and Drug Administration (FDA) wrongly fingering the tomato industry for salmonella poisonings. That went on for weeks.

• What if small business users of Microsoft Office Applications could be seamlessly linked to the large and mid-sized enterprises already using ERP, CRM, SCM and other federated supply chain solutions?
• For example, what if a metadata service layer could transform Microsoft Excel into a supply chain solution for increasing ROI for small farmers who could then be paid for both their cash crop and the pedigree data identifying the history of their cash crop?
• And what if that metadata service layer also directly addressed the ‘data ownership’ fears prevalent among U.S. farmers that their data will be wrongly used by regulators or unfairly exploited by competitors?

Pardalis’ Metadata Service Platform

Pardalis’ metadata service platform helps draw small businesses into the emerging ‘Cloud’. With Microsoft technology (Windows server, SQL server, .Net, Excel-like UI), Pardalis has engineered a metadata SaaS platform for small business end-users to granularly author, register and control immutable data objects. Pardalis' business rules advance the capabilities of a relational database (i.e., SQL) toward an emerging, object-oriented Cloud. But the end-users merely see it as an affordable service for ‘banking’, porting and controlling access to their data products using a SaaS-anized Excel-like user-interface.

Early Market Validation

Pardalis’ platform is being deployed by CalfAID, a USDA process verified RFID cattle tracking program using ISO 9000 series standards for documented quality management systems. CalfAID is owned by the small farmers comprising the North Dakota Beef Cattle Improvement Association, and administered by North Dakota State University for:

• Linking small beef producers, feedlots, processors and restaurants with consumers,
• Bringing ultra-high frequency, RFID tags to commercial viability,
• Protecting livestock producers, food system industries, veterinary health, and consumer health from accidental or intentional disease outbreaks, and
• Overcoming the ‘scary picture’ of RFID tracking by empowering small farmers with direct, granular, data portability control over their identities and pedigree data.

The Value of Microsoft Office Applications As Seamless Supply Chain Tools

The vertical value of pedigree data gathered from agri-food supply chains, using Microsoft Office Applications communicating through a Pardalis metadata service layer, can now be monetized:

• Consumers retrieving deep search results (permission being granted by a data owner)  to determine food history, quality and safety,
• Retailers promoting consumer loyalty with pedigree-driven purchase orders directly communicated back through the metadata service layer to small business farmers,
• Farmers discovering a new profit center - pedigree data about their cash crops,
• RFID product vendors selling outside of federated supply chains and into the ’last mile’, and
• Regulators receiving more and better data for rapidly responding to food health crises.

Horizontally Monetizing SaaS in the Cloud with Data Ownership

Challenges related to data chain of custody are not limited to agri-food. There are approximately 500 million world-wide end-users of Microsoft Office Applications. So, what would be the definition of 'data ownership' that might horizontally pull these end-users into SaaS-anized versions of their Office Applications residing in the Cloud?

• That is, into the 'software plus services' versions of Office Applications as envisioned by Steve Ballmer for Windows Azure?

Empower the end-users with SaaS tools for tracing access to their data objects one-step, two steps, three-steps, etc. after the initial share. They'll know what data ownership is when they see it. The result? The Cloud becomes inflated sooner rather than later with traceable, trustworthy, authenticated data that would otherwise go missing from the invisible hand of informational capitalism.

• That is, sail past the siren-songs of abstract, privacy laws that small businesses don't trust anyway, and capacitate those small business with real, hands-on functionalities that they viscerally recognize as data ownership.

And then watch those small businesses grease the wheels for monetizing SaaS in the Cloud.

Go to Part II ...