Blockchain moves beyond early users and into a wider range of companies. It has the potential to disrupt traditional practices, especially in the areas of procurement and the supply chain. And it can reduce inefficiencies in operations and costs and open up new revenue streams.
Blockchain is a technology that every business should consider. But it was also exaggerated. As with Big Data and Hadoop, the idea that you can implement Blockchain overnight – and without a legitimate business need – leads to failures, embarrassment, and a confusing budget.
An all-rounder that begins with Blockchain's approach is doomed to failure. A better way to test and build blockchain functions is through a series of small, controlled explosions with a specific timeline. With a tailor-made approach to blockchain, you can test the technology within the parameters of existing processes and systems to extend or enhance selected areas of your business. If you can not prove that Blockchain is useful and cost effective in 1
Step by step
No radical overhaul of existing technologies is required for success Using blockchain as a rip-and-replacement technique. On the contrary, when blockchain strategies such as controlled explosions are used – small projects with a limited explosion radius – teams will better manage risk, learn and experiment, and become the ultimate goal: enterprise-wide scale with real business impact.
Start with a vertical or functional area, ideally with a well-defined project that can be completed in 12 weeks. Like any emerging technology, Blockchain requires significant process redesign, culture change, and collaboration, so a smaller experiment provides the insight needed to successfully adapt to larger, more far-reaching projects.
Based on several blockchain experiments I've seen. For example, in manufacturing, healthcare, and telecommunications, 12 weeks provide a window to create, test, and measure a proof of concept, and above all, to prevent over-investment in an unsuccessful project. In some cases, you may want to shorten this window to 10 weeks. A defined timeline enables the Blockchain teams to make quick assessments and adjustments, to prove a positive ROI, and to ensure that the blockchain being built can ultimately be switched to providing production levels. Simply put, if they can not overcome the complexity of a small blockchain project within a fiscal quarter, reaching the enterprise scale is a challenge.
These experiments can be performed in one of the company's three main areas: the front office (eg, sales or customer management), the middle office (eg, operational areas of procurement and supply chain), and the back office (corporate finance , Accounting, human resources).
A clearly defined project. Tested within the framework of a proven Enterprise Resource Planning (ERP) system, the best opportunities for achieving business value will exist.
For example, drug recalls and fraud are a major problem that can be deadly – according to the US Food & Drug The Association introduced a new Drug Supply Chain Security Act (DCCSA) to tackle this problem and increase the visibility of the pharmaceutical supply chain to increase. Blockchain is actively being used as a solution to help companies comply with this new law – a step that could save lives.
Fraud is also widely used in the high-end commodity market for items such as art objects, jewelery, antiques and handicrafts, and is referred to as blockchain. Improved traceability through product origin and ownership eliminates counterfeiting. Blockchain will provide brands with a better understanding of the history of a product in the future.
Finally, Blockchain is used to help with sudden and unpredictable changes in fares and taxes. The increased transparency of cross-border goods movements enables companies to streamline their tax payments – a step that brings significant benefits.
With the crypto-currency-driven hype around blockchain falling, it's time to look at this technology in a more realistic context. By setting parameters for when and how to use Blockchain to solve a business challenge, companies will appreciate their value through process transformation, operational efficiency, cost savings, and revenue generation.
Arun Ghosh is American blockchain leader at the service company KPMG.