Nowadays everyone talks about Blockchain and it sounds as if this technology could solve any problem and can be used anywhere. But unfortunately this is not true and that’s why we developed a Blockchain business strategy that helps you to figure out when Blockchain makes sense.
Blockchain Business Strategy
Why, for example, would a company like Amazon disrupt a great service by using a new technology they don’t know?
We believe in the potential of the Blockchain and we believe that the majority of companies will use it in the future. But it doesn’t mean every company has to have it from the start. Sometimes it’s better to wait and see when the time is right.
If you want to integrate Blockchain into your company you have to ask yourself the following questions first:
- Did you need to make inefficient business processes more efficient?
- Can your company deal with the high costs of Blockchain integration?
- Do you have the resources to train your staff?
- Do you know Blockchain developers who can realize your vision?
- Can the existing business processes be paused?
- Are you willing to give control and trust to a system?
- Are you willing to risk failure?
If you can answer all these questions with yes, we can look in more detail if the Blockchain technology makes sense for your company.
If you just want to increase the efficiency of your business, you don’t have to integrate Blockchain directly. Most of the time it is enough to optimize existing legacy systems or digitize manual processes. Blockchain does not have to be the first step to increase efficiency and reduce costs.
If it is still a good decision to use Blockchain technology, you need to think about the form of implementation.
Should it be a public or a private Blockchain?
Do you want everyone to be able to join the network or should every participant be checked before joining the network?
Public Blockchains offer many useful functions, but at the moment this form is not useful for large amounts of transactions and data. Since this is usually the case with companies, the private Blockchain offers a good alternative for the time being. Although it requires complex implementations, it can manage data much better.
At the moment, there are much simpler implementations of a common database than the Blockchain, which can be integrated instead. Here you should ask yourself whether an alternative and a more secure solution would make more sense.
So when does the integration of Blockchain technology make sense?
Is your company dependent on a third-party provider for all its activities and does this cause enormous costs? Then Blockchain is an ideal way to take over the validation of transactions or data to save time and money.
Blockchain integration is very costly at the moment as there are a lot of scaling problems. This means that the transaction must be carried out on mainframes and the blockchain is responsible for validation. As a result, a lot of money has to be invested in mainframes to keep business processes running.
Also, Blockchain currently causes enormous power costs, which you must be able to recover if you want to implement Blockchain technology.
In addition to the high power costs, the costs for storage space in the Blockchain are still enormously high.
Future developments will address these problems, but it will take some time until Blockchain will be affordable.
Do you have business processes that have been digitized but are still not efficient? Then Blockchain can be a helpful alternative to optimize these processes.
Blockchain is both transparent and unchangeable, which can help enormously in the investigation of processes, requirements, and guidelines according to required standards. Due to the immutability, the accuracy of the data is guaranteed and the quality of processes can be assured.
But Blockchain can not only secure the quality of processes but also of products because it is tamper-proof. Since it is transparent, each part of the supply chain can be closely examined and examined.
Not only your infrastructure or processes need to fit for the implementation, but also your management level must be willing to learn this new technology. When everyone is against it, it doesn’t make much sense.
Also, your developers and IT staff need to understand how the Blockchain works and how they can evolve on it. First and foremost, they need to understand what smart contracts are and how they work.
Not only your employees but also your customers have to be ready for Blockchain technology because it shouldn’t hinder the relationship with customers.
What would a meaningful Blockchain business strategy be?
If you don’t have the resources, the need and the time to build a Blockchain business from scratch or completely restructure your existing business, you should make small changes and implement this technology step by step. There are already small Blockchain tools that can help you and are not difficult to integrate. This gives your employees and customers the chance to adopt the new technology and make them familiar with it.
Many companies are already in the process of making the Blockchain more accessible to companies. So instead of completely overhauling your infrastructure, this can be a sensible strategy for you.
We believe in the potential of the Blockchain and we believe that the majority of companies will take it over in the future. But it doesn’t mean that every company has to have it in the first place.