The buzz around Blockchain is getting louder with each passing day. We see many enterprises & service providers collaborating to do PoCs – especially in the financial and insurance sectors. The talk around savings, run into the billions of dollars.
But how much of this can actually be realized on the ground and translate into true cost savings or revenue gains seems to be a bit fuzzy.
While the excitement around the technology continues, we need to, in parallel, also look at how much of this can actually be translated into value for businesses – essentially reflecting in their top and bottom lines. This means not only looking at what Blockchain can replace or supplement, but also which of the existing technologies needs to be strengthened and other newer technologies introduced. We have to essentially look at businesses as an ecosystem of internal and external stakeholders and processes.
One thing that needs to be kept in mind is that, as with most technologies, there is usually a mid-path as far as technology adoption is concerned.
For this, one can start with the business process. Each business process needs to be looked at end to end and reviewed in the context of at least 3 components –the business process itself, availability, maturity & costs of new and innovative technology such as IoT, Blockchain, AI etc and infrastructure eg. 4G/5G, Cloud, Security etc.
Simulations need to be done, identifying various possible options and assessing business benefits of each. As in any business case evaluation, we need to look at the overall ROI. At the same time, Organizations should guard against the desire to go purely by the immediate ROI; they should also reflect on the possibility of irrelevance due to non-adoption – think Kodak, Blockbuster. Not changing today may mean there will be other, more nimble competitors with newer business models taking up market share.
How would you go about using Blockchain to improve your clients’ or your own business? Please leave your views in the comments below.