The past few months have been a challenge for many companies. The automotive groups in particular had to face severe order declines, including the premium brand Mercedes-Benz. Now the group behind it, Daimler AG, can communicate positive news. Accordingly, Daimler and Ocean Protocol have carried out a proof-of-concept (PoC). As part of the PoC, the companies showed how the group can use the data streams in the company and in the supply chains for further monetization.
Ocean and Daimler announce cooperation
On July 7, 2020, the blockchain company Ocean from Singapore announced a cooperation with Daimler. The two companies want to concentrate their research on developing a decentralized solution for sharing internal financial data. This financial data and the corresponding sales statistics are to be made available to the company's various production sites.
In addition, selected external companies with which the group cooperates behind Mercedes-Benz also have access to the data. The pilot project included the Daimler headquarters in Stuttgart and the production center in Singapore. The various locations were given the opportunity to jointly access data and thus leverage the untapped potential of the data. At the same time, the blockchain solution enables the data to be checked and thus helps to limit access rights to selected data records.
“We believe in the power of blockchain to unlock the value of data in a decentralized way. On our way to becoming a data-driven company, working with Ocean Protocol enables us to build a secure B2B data marketplace for companies that want to monetize and use data. ”- Hartmut Mueller, Chief Technology Officer of Daimler AG
Dates – the real gold of modern times
For years, companies like Facebook, Google, Amazon or Apple have shown that user data is particularly valuable. Tesla also takes up this approach – the result is already visible today. Established companies are now starting to concentrate on the data. It turns out that data is one of the most valuable resources of our time.
If we take a look at companies like Daimler, BMW or General Motors, it is precisely those companies that focus on blockchain technology . Research is continuously creating new use cases – from managing vehicle data to managing the entire vehicle identity.
The statements by Bruce Pon, founder of Ocean Protocol and former employee of Daimler, are particularly interesting. Pon says corporations like Daimler are able to invest more than $ 300 million annually in software harmonization, management, and optimization. The focus is always on optimizing security measures. However, Pon sees enormous potential in these tasks, because a transparent solution for data exchange and exchange makes it possible to significantly reduce these costs.
From cost bearer to profit driver
Pon also reports that the PoC was more than successful. Accordingly, the internal and external data exchange would have worked well. In this way, Daimler AG IT can deal with blockchain technology and the company's management is also interested in the solution.
"Blockchain technology can transform IT from a cost center into a return center." – Bruce Pon
The new efficiency can be illustrated using the example of sales and financial data. This data would have changed fundamentally due to the special influences of COVID-19. However, external data, for example from the procurement of new tools and parts, could also be consolidated using the new solution.
Bruce Pon also notes that the entire blockchain industry is slowly gaining momentum. The reason for this is the numerous experiences in recent years. The hype year 2017 was characterized by numerous proof-of-concepts. Fewer PoCs are now taking place, but the companies have already had experience. Today, employees and companies know how the blockchain works – it is now increasingly about use cases.
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Daimler expects new business models around the car
If the car manufacturers use the data that is available to them, they could actively participate in the data competition. Cars are an excellent way of doing this because, in addition to the pure sensor data, the manufacturers also have a chance of personal user data.
"The decentralized data marketplace is an interesting proposal and offers us an exciting opportunity to aggregate data with a clear remuneration approach." – Frank Schur, Technology Manager at Daimler Singapore
In this way, the Ocean Protocol could help to implement such a decentralized marketplace in a safe and transparent manner. This is also confirmed by the managing director of Ocean Protocol. According to this, the company had been brainstorming with numerous automobile manufacturers in order to develop a suitable solution.
According to Pon, it will be possible in the future to secure the data stream using distributed ledger technologies . If automakers implement this, they could be on par with Google, Bloomberg and other data-driven companies in the future.
Conclusion: Blockchain is moving into the automotive market
The mobility business is one of the fastest growing business areas in the world. More and more people are getting access to individual mobility. While demand for cars is increasing in Asian countries, developed markets are stagnating at a high level. Nevertheless, we now have a promising market that attracts with comparatively low entry barriers. However, the established manufacturers, especially Daimler, are learning that there are new technologies that enable completely new approaches.
In cooperation with Ocean, the Stuttgart-based group has now successfully completed a blockchain-based PoC and has proven that the use of this technology leads to a transparent and secure data exchange. While in the first instance it should lead to more transparency in the entire supply chain, established industrial groups could also manage the data of customers and suppliers in the future and thus make the leap to the level of Google and Co.