NTT DATA’s Initiatives for Trade Platform using Blockchain ... · Group, one of the largest...

© 2019 NTT DATA Corporation

February, 2019 NTT DATA Corporation

NTT DATA’s Initiatives for Trade Platform using Blockchain Technology

Information type： Restricted Company： NTT DATA Corporation Information owner： Public Sector 2

© 2019 NTT DATA Corporation 2

1. About NTT DATA

2. Our initiatives for Trade Platform using blockchain technology in Japan

3. Lessons Learned and Future Vision

Agenda


About NTT DATA


■ Name: NTT DATA Corporation ■ Head Office: Toyosu Center Building, 3-3, Toyosu 3-chome, Koto-ku, Tokyo 135-6033, Japan ■ Established: May 23, 1988 ■ Common Stock: ¥142,520 million (as of March 31, 2017)

1988 NTT DATA Communications Systems Corporation spun off into a separate company from NTT 1995 Listed on the Second Section of the Tokyo Stock Exchange 1996 Changed English name to NTT DATA Corporation Listed on the First Section of the Tokyo Stock Exchange

2007 Achieved consolidated net sales of ¥1 trillion 2008 20th anniversary of establishment 2013 25th anniversary of establishment 2015 Achieved consolidated net sales of ¥1.5 trillion 2016 Start of three-year Medium-Term Management Policy (covering the period to March 31, 2019)

■ Overview of NTT DATA History

■ Fiscal Year: April 1 to March 31 of the following year ■ Business Areas: - System integration - Networking system services - Other business activities related to the above ■ URL: http://www.nttdata.com

NTT DATA is a leading IT innovator headquartered in Japan, and part of NTT Group, one of the largest telecommunication companies in the world.

Corporate data


NTT DATA : Growing Global Coverage

51 economies

210 cities

110,000+ professionals

We have been expanding our global business on a worldwide scale with strong presence in the local and regional markets.

Global Coverage of NTT DATA

Japan 33,000

APAC 21,000

US 18,000

EMEA 21,000


2017

Air N

AC

CS

S

ea NA

CC

S

1978

Air NACCS (ver. 1)

Import

procedures

1985

Air NACCS (ver. 2)

Added Export procedures

1993

Air NACCS (ver. 3)

Expanded applicable area

2001

Air NACCS (ver. 4)

Sea NACCS (ver. 1)

Customs clearance

1991

Sea NACCS (ver. 2)

Added cargo management

1999

2010

Air NACCS (ver. 5)

Integrated system

Sea NACCS (ver. 3)

NACCS (ver. 6)

2008

NTT DATA : 40 years of experience in Customs and Trade

History of NACCS (Customs Clearance and National Single Window System in Japan)

We, as a solo primary developer, have been engaged in the development and maintenance service of NACCS for 40 years from the beginning.


NTT DATA : Contribution to member economies

Myanmar Central bank of Myanmar: Start operation in Jan. 2016

Rollout of experience and expertise to member economies

Leveraging our experience and expertise on IT infrastructure development, we aim to contribute to member economies continuously.

NACCS

Viet Nam


legend

USER

USER

USER

USER USER

USER USER

USER

CoE

USER

USER USER

USER

USER USER

Public

USER USER

CoE (US)

Client： Business Domain CoE：

USER

USER

USER

USER

HQ CoE

(Japan)

USER

USER USER USER USER USER USER

Enterprise

Public Finance

USER

USER

USER

Public

USER

USER USER

USER

Public・Finance

USER Finance

Enterprise

Finance

Public

Public

Finance

Enterprise

USER

USER

Finance

USER

CoE (Europe)

USER

Finance

Enterprise

Public ・Finance・Enterprise

：

NTT DATA : Global Promotion on Blockchain

NTT DATA Group has developed many blockchain applications and conducted Proof of Concepts (POCs) with customers around the world.

Some of Implemented Use Cases

【UK, Germany】 • Identity Management • Know Your Customer (KYC) • ALASTRIA Consortium • Food Traceability, etc.

【Japan】 • International Trade • Insurance Claim • JBA PoC Platform • Digital Securities (Densai), etc.

【the US】 • Insurance • Healthcare, etc.


Our init iat ives for Trade Platform using blockchain technology in Japan


We aim to build a “Trade Platform” that connects stakeholders in order to improve the efficiency and convenience of trade procedures.

• Digitalization is undergoing by industry

• No cross-industry platform

• Many manual operations

• Trade Platform that connects stakeholders

• Integration with existing system by API*

• Efficiency and convenience

【 TO-BE】

Current Issues and Future Solutions of Trade Business

Not connected NTT DATA NTT DATA

Bank Bank

Cargo Owner

Cargo Owner

ProviderＢ

ProviderＣ

ProviderＡ

ProviderＤ

Paper

Logistic Company

Logistic Company

Japan Overseas Service Bureau/

Provider

Insurance Company

Cargo Owner

Contract L/C

SWB

P/L

I/V

S/I

Certification Authority

ProviderＢ

ProviderＣ

ProviderＡ

SWIFT

ProviderＤ

B/L

API

Blockchain ×

API

Trade Blockchain

Platform

…

…

NTT DATA

Bank

Insurance Company

Cargo Owner

Logistic Company

Overseas

NTT DATA

Certification Authority

Bank

Logistic Company

API

Japan

【 AS-IS】

*API(Application Programming Interface) specifies the rules and interface specifications for how software components should interact. By utilizing the API technology, it is expected to improve the accessibility of services.


Blockchain Technology : Best-suited to Trade Platform

1. Decentralized system operation

2. All Blockchain nodes retain the same information

3. System Scalability

4. Information sharing on a real-time basis

5. Prevention of data tampering

1. Equal standing of all participants

2. Possession of the same transaction data by participants in different economies

3. Gradual participation of multiple trade stakeholders

4. Management of transaction status and work flow

5. High level of reliability

Requirements of Trade Platform Characteristics of Blockchain

By conducting POCs, we reached the conclusion that Blockchain Technology is best-suited to Trade Platform.

Blockchain


Conducting POCs step by step, we are steadily nearing to the social implementation of Trade Platform with Blockchain technology.

L/C Open FY2015

FY2016

FY2017

Cargo Insurance

Trade Consortium

Series of Trade Procedures

POC with Singapore

FY2019 NEDO Project

FY2019 onwards Go Live

POC with Thailand ↑ We are here now!

※NEDO：New Energy and Industrial Technology Development Organization, which is an public organization under METI (Ministry of Economy, Trade and Industry)

History for Blockchain-Based POCs for International Trade

18 leading companies


Cross-Industry Consortium with Leading Companies

In August 2017 NTT DATA launched a consortium with 14 leading companies from “diverse industries”, unique member-composition of this kind. As of February 2019, the participants has grown to 18 companies.

Participating Companies (as of Feb. 2019)

Banks MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation Mizuho Financial Group, Inc./Mizuho Bank, Ltd.

Insurance Companies

Tokio Marine & Nichido Fire Insurance Co., Ltd. Sompo Japan Nipponkoa Insurance Inc. Mitsui Sumitomo Insurance Company, Ltd.

Cargo Owners

Sumitomo Corporation Sojitz Corporation Toyota Tsusho Corporation Marubeni Corporation Itochu Corporation Kanematsu Corporation Mitsui & Co., Ltd.

Carriers / Logistics Companies

Kawasaki Kisen Kaisha, Ltd. Mitsui O.S.K. Lines, Ltd. Nippon Express Co., Ltd. Nippon Yusen Kabushiki Kaisha Ocean Network Express Pte. Ltd.

Cross-Industry Discussion Scene


Wide Coverage of POC

Exporter

Correspondent Bank Issuing Bank

Importer

③L/Cs

Customs Customs

⑬B/Ls

Cargo

Cargo

①Sales Agreement

③L/Cs

⑦B/Ls

Insurance Company

⑩Negotiating Documents ⑪Payment Information

⑩Negotiating Documents

⑤Insurance Policy

④Insurance Application

②Request L/Cs

⑫Shipping Documents

⑨Shipping Notice

⑥Shipping Request

⑭Customs Entry /Permission

Export Entry /Permission

Import Entry /Permission

Transport Company /Customs Broker

Transport Company /Customs Broker

Trade Control Office Trade Control

Office

⑧Customs Entry /Permission

Verified Scope of

One of the POCs covered wide range of information flow of trade procedures, not only exchange of trade documents but also trade finance and issue of cargo insurance policy.


Scenario of POC and Document Handled on Platform

⑨ Shipment document （L/C ,I/V ,P/L ,B/L or SWB, I/P）, B/E

L/C issuing bank

Importer

Exporter Insurance company

Forwarder Shipper

Customs

Container yard

⑦E/P

Blockchain-based Trade Platform

⑧B/L or SWB

Web API

Blockchain

L/C I/V

I/P

P/L

B/L SWB

L/C: Letter of Credit I/V: Invoice P/L: Packing list S/I: Shipping Instructions I/P: Insurance Policy C/O: Certificate of Origin E/D: Export Declaration E/P: Export Permission CLP: Container Load Plan D/R: Dock Receipt B/L: Bill of Landing SWB: Sea Waybill B/E: Bill of Exchange

E/P B/E

S/I

Scenario of PoC Exceptional

Share information

Negotiation bank

⑩Settlement

E/PCLP

⑥ I/V P/L S/I

②Open L/C

③L/C (MT700)

③L/C

④Insurance apply （copy of L/C,I/V)

⑩Shipment document, B/E

⑤I/P

⑦I/V,E/D

⑦E/P

D/R

D/R

①I/V

⑪shipment document, B/E

C/O

Certificate Issuing system

⑦’C/O

⑥’C/O apply


Expected benefits from implementing Trade Platform

Industry Procedures Operational efficiency cost saving

Reduction rate

Cargo owners C/O application Reduce time for creating document by pulling data of I/V 60+%

Apply for negotiation of documentary bill

Reduce time for confirming the integrity of documents by check function 60+%

Banks

Negotiate documentary bill

Reduce time for confirming the integrity of documents by check function 60+%

Deliver documentary bill

Reduce time for delivering documents to customers 30~60%

Reduce cost of managing original documents 30~60%

Insurance companies

Issue insurance policy

Reduce time for creating I/P by pulling data of L/C 60+%

Reduce cost of delivering・managing documents by paperless and collection cost when revising I/P 60+%

Carriers/ Logistic companies

Issue SWB(B/L) Reduce B/L operation by paperless of SWB(B/L)

60+%

＜Terms description＞ C/O：Certificate of origin I/V：Invoice L/C：Letter of credit SWB：Sea Waybill B/L：Bill of lading

Based on the result of cross-industrial POC, we are expecting the improvement of operational efficiency and the cost reduction effect.


POC for Connection to Singapore’s Trade Platform

Networked Trade Platform NTT DATA’s Trade Platform Exchanges digitalized trade

documents between platforms

Trade stakeholders in Japan Trade stakeholders in Singapore

I/V P/O S/I SWB

: Invoice : Purchase Order : Shipping Instruction : Sea Waybill

I/V

S/I

P/O

SWB

I/V

S/I

P/O

SWB

In collaboration with Singapore’s Networked Trade Platform (NTP*), we have conducted cross-border POC, with the long-term goal of fostering greater trade and supply chain integration across the region.

Japan Singapore

*The NTP is a one-stop trade information ecosystem which enables the sharing and re-use of digital data on all trade-related transactions between businesses and the Singapore Government. By digitizing documents and the exchange of trade and supply chain data, the NTP is also improving productivity and minimizing the risks of fraud inherent in the existing paper-based system in trade finance.

Copyright © 2019 NTT DATA Corporation 18

For future full-systemized BtoBtoG process between Thailand and Japan. NTT DATA has been conducting proof of concept with stakeholders.

Trade Platform

NACCS

Japan (Export) Customs system National Single Window

Thailand (Import)

Gateway Service Provider

Cargo owner

Bank Maritime company

/FWD

Insurance company

Cargo owner

Bank Maritime company

/FWD

P/O I/V SWB P/O I/V SWB

PoC2

PoC1

Application Service Provider

Proof of Concept between Thailand and Japan


Lessons Learned and Future Vision


Lessons Learned

• A large amount of reduction in processing time through sharing/reusing documents across various industries and countries.

• The importance of providing API to create a harmonized

“ecosystem”, with existing systems. • The importance of promotion and/or provision of Trade

Platform as a social infrastructure by public organization. • Blockchain offers big potential but not almighty solution.

(The importance of recognition on suitable applicable areas)


Is blockchain a technology to replace all social infrastructure?

Decentralized systems do not replace all existing centralized systems. It is said that Blockchain technology will enable systemization in the

areas that were not cost-effective due to its complexity.

Area to be systemized by blockchain technology

Mainframe Open (in-house production

area)

Open (Commodity area)


Future Vision

node：

Blockchain：

NTT DATA aims to contribute to global trade facilitation by providing Trade Platform and connecting platforms across the economies.


Thank you for listening!

Zen Kawada (Mr.) Senior Manager in Public Sector, NTT DATA Email : [email protected]

mailto:[email protected]

NTT DATA’s Initiatives for Trade Platform using Blockchain ... · Group, one of the largest...

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