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The Truth About Blockchain: The Value Trials

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Modern transport and automotive technology. Misato junction

The clamor surrounding Blockchain has set records for both the incredible noise level and the revolutionary claims related to this emerging technology.

Yet, as far as I know, there are almost no major business operations on Blockchain. There have been pilot projects to determine if the technology is viable at most large companies around the world. But most companies have not progressed beyond this stage and do not see a clear advantage over traditional systems and solutions.

Why?

When it comes to assessing Blockchain technology, too many companies focus on proving that technology works rather than on the value assessment that Blockchain can make to its business. But if properly addressed, significant value can be generated.

Here are our observations:

Blockchain is a tool for transformation

Blockchain excels in the tasks that go through the organizational silos. Provides information exchange and management of operations between disparate parties. It is not a substitute for a database or other automation tools you can currently& Nbsp; use, but rather provides unique features and excels in which information is shared between businesses and democratized participation is beneficial.

Technology is proven – it works

Blockchain works as advertised; there is no reason to test the technology. Instead, conduct a pilot project that generates observable business value by identifying Key Performance Indicators (KPI), comparing the current performance with the desired result (gap analysis) and structuring the business case. Be sure to work with an expert Blockchain integrator for key skills and tools. With the expert resources of a partner, a pilot can run in six to eight weeks.

If you're waiting for the winners to come out of the 17 blockchain technology platforms available on the market, do not do it. Ultimately, the industry will consolidate and the Blockchain platforms will connect directly or through specialized "smart platforms" that provide connectivity and governance.

Solve a business challenge

Too often, companies focus on duplicating an existing automated business process during a pilot project with Blockchain, rather than testing a business challenge that could provide real advantage in case of success. Blockchain's success is best achieved when selecting a pilot project that exceeds company boundaries, has suboptimal performance, a high return to your business if improved and is not well automated. The origin of the goods, the visibility of the supply chain and the flow of production are frequent examples of areas that are well suited to Blockchain.

It concerns the ecosystem

It takes a Blockchain ecosystem and the success of the ecosystem will depend on the participants who behave in an orchestrated way. The members of the ecosystem will go and go and, with the adoption of Blockchain, accelerate the new activities, regulatory and legal frameworks will be needed to manage the ownership of data, the sharing of information, the storage of data, participants' responsibilities, intellectual property, jurisdiction, cyber security and other critical aspects, but still to be identified elements.

Get support from senior executives.

Form an inter-functional steering committee. Blockchain is not an IT project or R & amp; D. It is a fundamental business transformation that, if properly implemented, will have a significant impact on revenues and costs. Several organizations, business functions and external parties may be interested and the buy-in is required to be successful.

Scale for production

The complexity and key to Blockchain's successful implementation is not in technology, but in ecosystem governance and in sharing data across logical and physical boundaries. After conducting a successful pilot project, here's what you should consider as following steps:

  • Build Blockchain competence. Establish an internal Blockchain unit to enhance skills and develop skills and abilities.
  • Design for sharing information. What information will be shared and with whom? Suppliers and customers will question the benefit for them and the need for transparency. For example, Why should a supplier be willing to share their skills?
  • Establish corporate standards. How the blockchain will be deployed. Which platforms will be used. Are standards of data sharing and ecosystems required? What about the audit and the impact on compliance? What terms should be included in information sharing agreements? How to ensure compliance with evolving regulations (eg the General Data Protection Regulation of the European Union) in multiple jurisdictions. How will the data be checked and certified for compliance?
  • & Nbsp;Determine the governance of the ecosystem.How will your Blockchain network be? Who will participate and how will it be governed? Will it be guided by you, a consortium or a third party and how will you encourage customers and suppliers to participate? & Nbsp;How will new participants enter and exit your Blockchain network?
  • Suitable as Blockchain platforms evolve. There is no standard Blockchain platform, so you need to consider the potential impact on your implementation as links and standards evolve. This factor alone has had a strong impact on the limitation of the widespread adoption of Blockchain.

Blockchain is a powerful transformation tool that offers competitive advantage, significantly increases revenue and reduces costs. Maintain focus on business benefits and perform quickly. Do not wait for a standard industry platform to evolve. You want an advantage and Blockchain can create it for you now.

& Nbsp;

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Modern transport and automotive technology. Misato junction

The clamor surrounding Blockchain has set records for both the incredible noise level and the revolutionary claims related to this emerging technology.

Yet, as far as I know, there are almost no major business operations on Blockchain. There have been pilot projects to determine if the technology is viable at most large companies around the world. But most companies have not progressed beyond this stage and do not see a clear advantage over traditional systems and solutions.

Why?

When it comes to assessing Blockchain technology, too many companies focus on proving that technology works rather than on the value assessment that Blockchain can make to its business. But if properly addressed, significant value can be generated.

Here are our observations:

Blockchain is a tool for transformation

Blockchain excels in the tasks that go through the organizational silos. Provides information exchange and management of operations between disparate parties. It is not a substitute for a database or other automation tools you can currently use, but rather provides unique features and excels in which information is shared between businesses and democratized participation is beneficial.

Technology is proven – it works

Blockchain works as advertised; there is no reason to test the technology. Instead, conduct a pilot project that generates observable business value by identifying Key Performance Indicators (KPI), comparing the current performance with the desired result (gap analysis) and structuring the business case. Be sure to work with an expert Blockchain integrator for key skills and tools. With the expert resources of a partner, a pilot can run in six to eight weeks.

If you're waiting for the winners to come out of the 17 blockchain technology platforms available on the market, do not do it. Ultimately, the industry will consolidate and the Blockchain platforms will connect directly or through specialized "smart platforms" that provide connectivity and governance.

Solve a business challenge

Too often, companies focus on duplicating an existing automated business process during a pilot project with Blockchain, rather than testing a business challenge that could provide real advantage in case of success. Blockchain's success is best achieved when selecting a pilot project that exceeds company boundaries, has suboptimal performance, a high return to your business if improved and is not well automated. The origin of the goods, the visibility of the supply chain and the flow of production are frequent examples of areas that are well suited to Blockchain.

It concerns the ecosystem

It takes a Blockchain ecosystem and the success of the ecosystem will depend on the participants who behave in an orchestrated way. The members of the ecosystem will go and go and, with the adoption of Blockchain, accelerate the new activities, regulatory and legal frameworks will be needed to manage the ownership of data, the sharing of information, the storage of data, participants' responsibilities, intellectual property, jurisdiction, cyber security and other critical aspects, but still to be identified elements.

Get support from senior executives.

Form an inter-functional steering committee. Blockchain is not an IT or research and development project. It is a fundamental business transformation that, if properly implemented, will have a significant impact on revenues and costs. Several organizations, business functions and external parties may be interested and the buy-in is required to be successful.

Scale for production

The complexity and key to Blockchain's successful implementation is not in technology, but in ecosystem governance and in sharing data across logical and physical boundaries. After conducting a successful pilot project, here's what you should consider as following steps:

  • Build Blockchain competence. Establish an internal Blockchain unit to enhance skills and develop skills and abilities.
  • Design for sharing information. What information will be shared and with whom? Suppliers and customers will question the benefit for them and the need for transparency. For example, Why should a supplier be willing to share their skills?
  • Establish corporate standards. How the blockchain will be deployed. Which platforms will be used. Are standards of data sharing and ecosystems required? What about the audit and the impact on compliance? What terms should be included in information sharing agreements? How to ensure compliance with evolving regulations (eg the General Data Protection Regulation of the European Union) in multiple jurisdictions. How will the data be checked and certified for compliance?
  • Determine the governance of the ecosystem.How will your Blockchain network be? Who will participate and how will it be governed? Will it be guided by you, a consortium or a third party and how will you encourage customers and suppliers to participate? How will new participants enter and exit your Blockchain network?
  • Suitable as Blockchain platforms evolve. There is no standard Blockchain platform, so you need to consider the potential impact on your implementation as links and standards evolve. This factor alone has had a strong impact on the limitation of the widespread adoption of Blockchain.

Blockchain is a powerful transformation tool that offers competitive advantage, significantly increases revenue and reduces costs. Maintain focus on business benefits and perform quickly. Do not wait for a standard industry platform to evolve. You want an advantage and Blockchain can create it for you now.

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