In 2016, the industrial equipment market reached $ 3 trillion (1), and the factoring market was $ 3.2 trillion (2). Unfortunately, many manufacturers of industrial equipment sell their products using outdated and sometimes inefficient methods of sale (3), transportation (4) and factoring. Purchasing plants use inefficient methods of searching for and selecting equipment, which entails the purchase of poor quality or counterfeit products. Thanks to the technology of blockchain, AI (Artificial Intelligence), smart contracts, IOT (internet of things) and BIG DATA, it became possible to optimize this market and transfer it to a fundamentally new, more profitable (for all parties) level.
Against this backdrop, the question arose about creating a global self-renewing equipment base (the data of which is confirmed by real monitoring of operation thanks to the sensors installed in the factories) with the function of marketplace, where not only can you find the most powerful equipment, the effectiveness of which has been proved by the huge number of factories where it was installed, for its production, but also to buy it there directly from the manufacturers and deliver it to itself under the most favorable conditions through the very best carriers.
Our task was to find the most acute problems of the industrial equipment market, as well as to find ways to significantly increase the income of manufacturing plants (equipment) and customer plants (where this equipment will be installed). We found a solution to these problems in symbiotic integration in the processes of the following new technologies:
- IOT (Internet of things)
- BIG DATA
- AI (artificial intelligence)
What should we do to move to a new model of the digital economy?
- To build a unified network of interaction between factories that have industrial equipment installed. Agree with them on the possibility of exchanging data on monitoring the life of industrial equipment (which they have installed) obtained from IOT sensors for the mutually beneficial use of this accumulated information (in order to determine what equipment is the most powerful and viable and for maximum optimization and modernization of enterprises). When the factories will give this data, they will be able to receive data from other plants in processed form, that is, we must create quality profiles of each equipment based on real tracked data. For example, if at 1000 factories X1R2 equipment is installed, then collecting the monitoring data of its life from each plant, then we will be able to find the average quality indicators of this equipment (KPI, capacity, productivity) and the average time to breakages, which will allow predicting failure equipment and each of the factories to avoid production downtime with the help of a pre-made service of X1R2 equipment.
- Use the technology blockchain to create this network because of its simplicity, reliability, economic feasibility, security, irreversibility of the information entered, as well as the absence of a single center, that is, even we will not be able to modify the information collected after making that guarantees its reliability.
- Integrate blockchain, smart contracts and IOT (Internet of thing) into the supply chain and thereby reduce the transportation price to 50%, which can bring significant savings to the enterprises that this equipment is ordering.
- Replace factoring companies with their services based on smart contracts and data analysis algorithms. For the manufacturer, this means reducing the price of factoring to 70%, since artificial intelligence will analyze the interrelationship of the applicant, as well as his reputation, which will allow him to establish conditions that are acceptable to him (and for us). This can help partially replace the services of expensive factoring companies in the market. And also significantly simplify (there is no need to prove their solvency and do not need to go anywhere) and speed up (the transfer of money in case of approval, is made instantly) the process of obtaining a factoring loan.
- Exclude banks and notaries in the international B2B trade in industrial equipment, any contracts that were previously issued on paper can now be formed in smart contracts, with the help of the digital value of products, which is very significant on large volumes, and for low-margin trade such a commission is capable of significantly reduce the profit of the seller and the buyer. These organizations are custodians, which can be replaced, so they may be more appropriate to exclude.
- Make the companies’ reputation transparent, that is, to eliminate invalid reviews by allowing only those reviews whose parties have a transaction record in the blockchain database. And also with the availability of a self-renewing equipment base (installed in a number of factories), we will be able to classify manufacturers using quality analysis of products that will be displayed in their profile and will be available to all market participants.
We have come to the decision to create a powerful ecosystem that can successfully work and develop. We believe that only such a symbiosis of the use of digital technologies in industry and the gradual introduction into processes can have a great future and replace a lot of unnecessary intermediaries and low-quality equipment manufacturers. The potential of our platform involves a strong change in the market of industrial equipment and the entire industry as a whole.