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About this Blog

As enterprise supply chains and consumer demand chains have beome globalized, they continue to inefficiently share information “one-up/one-down”. Profound "bullwhip effects" in the chains cause managers to scramble with inventory shortages and consumers attempting to understand product recalls, especially food safety recalls. Add to this the increasing usage of personal mobile devices by managers and consumers seeking real-time information about products, materials and ingredient sources. The popularity of mobile devices with consumers is inexorably tugging at enterprise IT departments to shifting to apps and services. But both consumer and enterprise data is a proprietary asset that must be selectively shared to be efficiently shared.

About Steve Holcombe

Unless otherwise noted, all content on this company blog site is authored by Steve Holcombe as President & CEO of Pardalis, Inc. More profile information: View Steve Holcombe's profile on LinkedIn

Follow @WholeChainCom™ at each of its online locations:

Entries in Supply Chains (38)

Thursday
Apr262012

The Tipping Point has Arrived: Trust and Provenance in Web Communications

By Steve Holcombe (@steve_holcombe) and Clive Boulton (@iC)

"The Web was originally conceived as a tool for researchers who trusted one another implicitly. We have been living with the consequences ever since." Sir Tim Berners-Lee

"One of the issues of social networking silos is that they have the data and I don't … There are no programmes that I can run on my computer which allow me to use all the data in each of the social networking systems that I use plus all the data in my calendar plus in my running map site, plus the data in my little fitness gadget and so on to really provide an excellent support to me." Sir Tim Berners-Lee.

The tipping point has arrived for trust and provenance in web communications. And it is not just because Tim Berners-Lee thinks it is a good idea. The control of immutable data in the Cloud by content providers is on the verge of moving out of research projects and into commercial platforms. The most visible, first-mover example known to us is provided by the Wikidata Project.

The rapidly emerging Wikidata Project, the next iteration of Wikipedia, will in its first phase (to be finished within the next 6 months) implement the deposit by content providers of data elements (e.g., someone's birth date) at a single, fixed location for supporting in Phase 2 (targeted to be completed by the end of 2012) the semantic relationships (i.e., ontologies) that Wikipedia users are seeking. Paul Allen's Institute of Artificial Intelligence and Google are two of the three primary benefactors of the Wikidata Project. And it is no surprise that the base of operations for this ground-breaking work is in Germany. The European Commission proposed in January, 2012 a comprehensive reform of data protection rules to strengthen online privacy rights and boost Europe's digital economy.

This blog site exists to discuss whole chain communications between enterprises and consumers. Along that line the Wikipedia folks aren't really thinking about the Wikidata Project in terms of supply chains. But that is what they are backing into. Daniel Matuschek (@matuschd) would seem to agree in his blog post, Wikidata - some expectations. Here's an excerpt:

"Some ideas for open databases that could make our live easier or better [include] Product data: Almost every product has an EAN code. There are some companies building and selling databases for specific products (e.g. food, DVDs), sometimes generated with community support .... The Wikidata project is currently not addressing [this kind of database], but if a platform is available, there’s a good chance that users start creating databases like this."

And granular permissions (in the hands of content providers) over individual data elements are on Wikipedia's wish list to be introduced later this year during Phase 2:

  • O2.5. Add a more fine granular approach towards protecting single facts instead of merely the whole entity.
  • O2.6. Export trust and provenance information about the facts in Wikidata. Since the relevant standards are not defined yet, this should be done by closely monitoring the W3C Provenance WG.

We suspect that as the Wikidata Project begins to provide "trust and provenance" in its form of web communications, they will not just be granularizing single facts but also immutabilizing the data elements to which those facts are linked so that even the content providers of those data elements cannot change them. This is critical for trust and provenance in whole chain communications between supply chain participants who have never directly interacted.

What are the other signs of the "tipping point"?

Another sign is the shift to forecasting demand certainty directly from a consumer interest graph. Walmart purchased Kosmix in 2011 to push into social commerce and to integrate products with social identity. This ia an important new way to give shoppers information, and get information from them. Analysts at the research firm Booz and Company said in a 2010 report.

“Social media, or places where people congregate to share information and mutual understanding, are replacing broadcast media as the primary way many people learn about products and services.”

"Doc" Searls, co-author of The Cluetrain Manifesto, and a former Fellow of the Berkman Center for Internet & Society at Harvard University, calls this a shift to the Intention Economy, Where Consumers Take Charge. Here is an excerpt from his May, 2012 publication:

Today, Walmart and Tesco and other global grocers have to wait for the checkout register to record a sale and pass the product sale information through a network of EDI processing to reforecast demand. Imagine the improvements when Walmart can see supply chain intent before the sale. Unlike Walmart, the FT calls Tesco tired.   

Indeed, Keith Teare on Tech Crunch posits Facebook's purchase of Instagram (and Google's falling earnings) signals the end of the Web 2.0 era. In the Web 2.0 era we consumed services on a web browser monetized by display ads. Now we are moving to a mobile app-centric world without desktop display ads. This is fertile ground for a shift into sharing at the identity and granular detail level via trust and provenance.

Does the Instagram purchase signal that Facebook will become a "trusted site" for granular information saved and shared in immutable objects? Facebook has to aggregate more and more data to build better services and makes its post IPO numbers. Will Facebook services come to provide W3C-type trust and provenance? We will see. But it is interesting to imagine that the Wikidata Project will be a "tipping point" for Facebook and other Web 2.0 providers toward granular trust and provenance in the Cloud.

 

What do you think? Share your conclusions and opinions by joining us at @WholeChainCom on LinkedIn at http://tinyurl.com/WholeChainCom.

Friday
Apr202012

Pardalis announces issuance of Canadian patent

April 20, 2012 — Pardalis, Inc. announced today the issuance of the following patent by the Canadian Intellectual Property Office:

  • Informational Object Authoring and Distribution System, Patent No. CA 2457936 issued February 28, 2012.

The issuance of this patent represents another milestone in the continued, global expansion of Pardalis' same-named parent patent, U.S. Patent No. 6,671,696, and its continuation patents and applications.

The Pardalis 696 Patent was issued by the United States in 2003 and is also entitled Informational object authoring and distribution system. Pardalis' 696 patent is the parent patent for the Common Point Authoring™ system.

The critical means and functions of the Common Point Authoring™ system are directed to a system in which a creator can create data which is then fixed (immutable) and users can access that immutable data but cannot change it. They provide for user-centric authoring and registration of radically identified, immutable objects for further granular publication, by the choice of each author, among networked systems. The benefits of CPA include minimal, precise disclosures of personal and product identity data to networks fragmented by information silos and concerns over 'data ownership'.

“Australia, Canada, China, Hong Kong, India, Mexico, New Zealand and, of course, the United States are the countries that have so far issued one or more patents to Pardalis,” said Steve Holcombe, Pardalis’ CEO. “We also have high expectations for similar actions on our applications pending in Brazil, Europe and Japan.”

About Pardalis, Inc.

Pardalis' Common Point Authoring™ system provides an object-oriented solution for introducing trust and provenance in web communications. For more information, see Pardalis' Global IP.

Friday
Aug052011

A New Way of Looking at Information Sharing in Supply & Demand Chains

The Internet is achieved via layered protocols. Transmitted data, flowing through these layers are enriched with metadata necessary for the correct interpretation of the data presented to users of the Web. Tim Berners-Lee, inventor of the Web says, “The Web was originally conceived as a tool for researchers who trusted one another implicitly …. We have been living with the consequences ever since ….” “[We need] to provide Web users with better ways of determining whether material on a site can be trusted ….”

Our lives have nonetheless become better as a result of Web service providers like Google and Facebook. Consumers are now conditioned to believe that they can – or should be able to - search and find information about anything, anytime. But the service providers dictate their quality of service in a one-way conversation that exploits the advantages of the Web as it exists. What may be considered trustworthy content is limited to that which is dictated by the service providers. The result is that consumers cannot find real-time, trustworthy information about much of anything.

Despite all the work in academic research there is still no industry solution that fully supports the sharing of proprietary supply chain product information between “data silos”. Industry remains in the throes of one-up/one down information sharing when what is needed is real-time “whole chain” interoperability. The Web needs to provide two-way, real-time interoperability in the content provided by information producers. Immutable objects have heretofore been traditionally used to provide more efficient data communications between networked machines, but not between information producers. Now researchers are innovatively coming up with new ways of using immutable objects in interoperable, two-way communications between information content providers.

A New Way of Looking at Information Sharing in Supply & Demand chains

Pardalis’ protocols for immutable informational objects make possible a value chain of two-way, interoperable sharing that makes information more available, trustworthy, and traceable. This, in turn, incentivizes increases in the quality and availability of new information leading to new business models.

Tuesday
Mar012011

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.

Monday
Aug022010

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.