Knowing what blockchain is and how it can contribute to solving some of the world’s biggest challenges is one thing; knowing how to develop a blockchain strategy is another thing altogether. Meanwhile, understanding how to implement a blockchain strategy within your business is even more difficult.
Blockchain, particularly when used in concert with emerging technologies such as Big Data Analytics, Artificial Intelligence or the Internet of Things, offers organisations an opportunity to re-think their internal processes, remove inefficiencies and build a better organisation. However, within large process-oriented organisations, transforming a centralised business to a decentralised organisation, where cryptography is used to create trust, where smart contracts automate decision-making, and where governance is embedded in the code, can be a daunting task. While in fact, the steps that are required to transform your business into a decentralised organisation are clear and straightforward.
At its core, Blockchain is nothing more than a database technology, but the implications of the technology are far-reaching. Therefore, if you wish to start with Blockchain within your organisation, it is crucial that there is a shared understanding of what Blockchain is and what it can do for your organisation and industry. Blockchain can be applied to any industry and any business objective, and for each industry, Blockchain offers different opportunities, ranging from data or product provenance, improved identity and verification systems to increased payment efficiencies. Therefore, creating a shared understanding, at board level, of what Blockchain can do for your business is a vital first step.
Knowing what Blockchain is and what it can do for your business will help to obtain management support and buy-in from the rest of the organisation. With the enormous potential of Blockchain, it is more a strategy matter than an IT matter. Especially, if you wish to take Blockchain serious, it will take time, and in the beginning, the return on investments made maybe unclear and could even be negative at first. Having a shared understanding of the decentralised future of your business will help to achieve your long-term vision.
Blockchain can solve many problems, but not every problem requires a blockchain solution. Therefore, it is vital to understand what the problem is that needs to be solved. Once you have identified the problem that requires a blockchain solution, it is wise to start small and develop a Minimum Viable Product.
Start small and grow from there is the best way to learn a new, disruptive, technology and slowly implement it throughout the organisation. Besides, Blockchain differs from any other emerging technology as it often requires organisations to collaborate with industry partners, customers or even competitors as only through decentralised collaboration with your stakeholders, the benefits of Blockchain become truly visible.
In addition to this, the Blockchain ecosystem is still being developed. At the moment, the development of this ecosystem is as far as the internet was in 1994 or 1995.
