(FAQs from my advisory and workshop events)
“Should we look at the industry value chain to create a competitive edge through digital transformation”
What many companies don’t realize is that Blockchain is a “revolutionary” technology. Businesses and executives still link Blockchain with bitcoin and cryptocurrency. The fact that blockchain can provide a huge competitive advantage to many businesses is still quite relatively unknown. Over the past couple of years, some companies have started experimenting with blockchain distributed technology and have created a successful proof of concepts. Some of them, have even implemented ruptured technology in their businesses. While the numbers are still limited but the adoption rate is increasing by the day.
Part of the reason is lack of awareness on what blockchain is all about and the other part is where people understand blockchain but the struggle to visualize relevant scenarios where they could implement blockchain.
In this article, we look at some of the scenarios where we can potentially implement a blocked solution. First of all, let’s talk about blockchain. Blockchain as technology provides the following:
- Distributed Multi-ledger: It is a multi-party multi-ledger system of records
- Internet of Value: Exchange of asset that is of value including IP, scientific discoveries, stocks, securities, information.
- Immutable: Provides platform to create immutability of transactions
- Trust: Collaboration and consensus-based system for verification and fraud protection
- Smart Contracts: Allows touchless, tamper-free and self-executing contract states
- Cost-effective: Highly cost-effective due to inbuilt security and preservation of data integrity
This was a quick overview of blockchain.
Now let’s look at some of the challenges that are plaguing the corporate and business world today where blockchain can provide great solutions.
- Multiparty data exchange: in the globalized world that we live in, we interact with multiple parties across different countries and jurisdictions. In fact, even within our own organizations, we have to deal with multiple parties and functions and regions. So now we have a global value chain where there are multiple parties that exchange amounts of information and data. It becomes a challenge for many companies to have a single system across the entire value chain. Whether it is the security of their ERP, access rights or simply the fact that they cannot have their customers and suppliers access their systems through a firewall, it makes it incredibly difficult to share information especially with parties that are outside your organization. With blockchain solution as it is a distributed multi-ledger, you can now provide access to multiple parties and because it’s secure and trustworthy, you can allow multiple parties to exchange information.
- Rapid technology evolution: Rapid technology landscape changes mean parties can’t keep up with the pace due to the significant cost of change thus each party has its own set of “diverse” systems. Due to this diverse range of systems, businesses and companies are looking for platforms through which they can interact with different parties, and again blockchain with its distributed ledger technology can bridge this gap without incurring significant additional costs.
- Data ownership: Data creation, calculation, modification, definition and interpretation differences with different parties cause integrity, ownership and trust issues. Blockchain when it’s a timestamp, Merkel tree, and hash function security, provides a very structured and robust platform for data ownership.
- Diverse level of automation: While a certain level of automation exists in businesses but there are still many manual touchpoints in the process. And that’s due to contextual knowledge and lack of bespoke solutions for these manual interfaces. Distributed technology of blockchain with a friendly user interface, can provide a solution in environments that has significant manual touchpoints. With the use of mobile devices and smartphone apps with a blockchain-backed backbone, can easily provide a solution in the space.
- Real-time visibility: having multiple parties across the globe we begin data real-time onto a blockchain backbone, it also allows organizations access to real-time data. Whether track and trace of parts, inventory position at warehouses, the value of goods in transit and source of origin, all of these items can be made available in real-time, thanks to blockchain.
- Data security: without getting into a lot of technical details, blockchain uses certain elements like a nonce, Merkle tree, hash function, timestamp and digital signatures, provide one of the most secure environments for data.
As you can see, Blockchain indeed provides a huge number of benefits, features and enabling technology tools that can clearly create a competitive advantage for the companies that can adopt blockchain in the near future.
In addition, with its ease of use, security, ability to be used by multiple parties and cheap implementation costs, blockchain can radically change the way you conduct your business.
We understand that organizations have concerns, questions and huge resistance in adopting blockchain. What we have found so far is that most of these resistances are stemming from lack of awareness and depth of understanding of what blockchain can offer rather than limits on Blockchain’s capability.
That is why we’re trying to create awareness on the functionalities and the benefits of this beautiful platform called blockchain. I understand that this article is just a very high-level summary of what blockchain can do but I hope that I have been able to slightly swing your opinion positively towards blockchain. I sincerely and honestly, hope that you take this next baby step and start looking and evaluating the Blockchain technology.
I would like to hear your thoughts and experience regarding the article. Moreover, if you have any questions or queries, feel free to reach out to me at firstname.lastname@example.org or leave a comment with this article.