Blockchain can certainly be regarded as a disruptive technology due to its enhanced security features enabled with the decentralized ledger that ensures frictionless, tamper-proof transactions. It also encompasses next-generation technologies such as machine learning, the Internet of Things, and artificial intelligence (AI) to reshape the way organizations function in the future.
One key advantage is the traceability feature that enables the end-user to track status changes in real time. Finally, blockchain helps to maintain an error-free and touchless process within the wider blockchain ecosystem.
From the other perspective, blockchain is still relatively new and requires both investment and change management across the organization. Implementing a blockchain solution involves calculated business risk that might affect an organization’s existing vendors, customer, partners, and
- Enhanced security – leveraging a virtual and decentralized ledger enables organizations to enjoy efficient and tamperproof transactions
- Improved technology – leveraging best-in-class, next-generation technology helps organizations reshape the way their business functions in the future
- Improved traceability and quality – blockchain provides the ability to track the movement of goods from their origin (see Figure 4)
- Increased accountability – eliminates human error, prevents malpractice and fraud, and guarantees accuracy
- Frictionless operations – redesigning a business operations model often means an organization must not only re-engineer and streamline their internal processes, but also those that involve their business vendors, customers, and partners.
Source: Capgemini Research Institute, “Does blockchain hold the key to a new age of supply chain transparency and trust? ” October 2018
- The need for change – as blockchain is still relatively new, it requires an extensive organizational change management strategy both in preparation of implementation and once the technology is in place
- Increased cost of technology – implementing blockchain often incurs a certain level of cost due to the incorporation of machine learning, artificial intelligence (AI), the Internet of Things.