Blockchain has been one of the hottest technologies of the past decade, and is expected to lead to a revolutionary change in the way businesses operate. Gartner estimates that it will generate $ 3.1 trillion in new business value by 2030, addressing end-to-end information sharing issues and opportunities. A new study from the Global Supply Chain Institute (GSCI) is helping companies determine if blockchain is right for them.
“The only thing certain today is that the uncertainty will continue,†said Alan Amling, GSCI Fellow at the University of Tennessee, Haslam College of Business in Knoxville and co-author of the white paper.When is blockchain right?“
This uncertainty manifests itself in many areas. As supply chain leaders seek resilience and flexibility in the network, they often add new, relatively unknown supply chain partners. The unique capabilities of Blockchain can ensure commercial trust for transactions within these increasingly distributed networks.
GSCI has conducted dozens of case studies and interviews with executives from a wide range of industries to learn about the current benefits and limitations of blockchain. The document breaks down the terminology and structure of the technology and helps supply chain management professionals understand how blockchain can be used, how organizations are using it, and how to know if it will support their organization.
“Determining the ROI of blockchain can be difficult for many supply chain management professionals, who typically haven’t fully explored its capabilities and compared it to their business models,†said the co -author Randy V. Bradley, associate professor of supply chain management. at UT. “Too many companies are wasting time and effort on blockchain archetypes for problems that already have solutions in the market.”
The study found that blockchain interoperability through standards set by organizations such as Blockchain in Transport Alliance could be a significant advantage. Executives interviewed have consistently called him a game changer.
Currently, blockchain helps solve specific organizational challenges such as establishing the provenance of products and reconciling invoices. Although the number of current applications with a definitive return on investment is limited, early adopters believe that learning the technology and the process adaptations required now will give them an edge in the market later.
For companies examining the feasibility of blockchain, this research can serve as a toolkit. Best practices from blockchain pioneers, such as requiring a value proposition for every blockchain member and ensuring that professionals are involved in pilot projects, can save time, money and frustration for businesses. companies. The document also provides a blockchain filter and blockchain decision support framework to assess the suitability and resources required for blockchain investments.
When is blockchain right? by Alan Amling, PhD; Randy Bradley, PhD; Mary Holcomb, PhD and Emily Cagen is the 25th Global Supply Chain Institute White Paper.