Issue 6 2019

CEO MONTHLY / ISSUE 6 2019 17 Business Transformation Through Blockchain amount of paperwork, the possibility of illegal deeds, errors in public records, and lack of transparency, which can in turn lead to issues with the unknown liens, missing heirs, and fraud. The blockchain offers mechanisms to mitigate these challenges. Vehicle leasing Leasing a car involves many systems and processes, from verifying the financial status of a driver to managing vehicle inventory and car features to the final “fate” of each car after the lease contract is ended. By applying smart contracts and performing transactions within a public blockchain ledger, a company can let customers sign lease agreements and insurance policies literally from the driver’s seat. HR Management Blockchain technology applied in HR management allows HR specialists to keep records in good order, access much valuable information about job applicants (like verified details about their education and previous experience, or any criminal records), as well as to make sure that employment history isn’t falsified. On the other hand, individuals get control of their documents, which allows them to prevent misrepresentation. Charity The transparency ensured by blockchain provides exciting opportunities for charity. Blockchain allows precise tracking of charitable donations and makes sure that money goes to the right place. Besides, all financial reports are publicly accessible, which also makes it easier for charity organizations to report donations. A variety of blockchain use cases are still in the proof-of- concept phase, but it becomes increasingly clear that when paired with other leading technologies like the Internet of Things, Artificial Intelligence and Cloud Computing, the potential to add new business value is nearly limitless. Blockchain Business Integration Many startups in the fintech and insurtech sectors are parading the benefits of the blockchain technology supporting their innovative business models. However, almost any industry can apply blockchain solutions to improve the business and reach new goals. For best results, we would recommend the next five expert advice: 1. Preparation. It is all about creating a sense of urgency, educating stakeholders, and allocating resources. Just like other digital initiatives, the blockchain should be a part of the CEO agenda, and top management buy-in is crucial for success. It is recommended to form a dedicated blockchain task force made up of digital and functional experts who can help allocate the required capabilities and educate stakeholders on the implications of the blockchain. 2. Analyzing. The company’s leadership should focus on understanding the impact blockchain can have on the business. Companies must be able to answer three key questions: what can blockchain do; what is the main value blockchain adds and what are the costs of implementing blockchain? The analysis must be repeated frequently since the blockchain technology is changing rapidly. The blockchain of yesterday and the blockchain of tomorrow may be very different. 3. Collecting blockchain insights. The enterprise CEO is facing many tasks to solve and find the best solution for a company. For a start, the CEO needs to understand the customers’ pain points up and down the entire value chain. He also needs to understand which shared ledger technologies are the most appropriate for the company. Another good advice is to exchange insights in consortiums to discover what protocols and blockchain platforms are being built and which possible common standards for interoperability are being developed. 4. Designing and testing. It is recommended to test the initiatives on a small scale during an ideation phase by using rapid prototyping. This will also help to understand the benefits and constraints of the technology. 5. Implementing. This last step aims to identify the best strategy for putting blockchain initiatives into practice. Companies should focus on answering several questions. What business model should be operated to monetize the competitive advantage? What should the target organizational and governance model look like? Which fintechs and other partners should be cooperated with to achieve the blockchain goals? While implementation is ongoing, companies should continue to focus on streamlining and digitizing processes end to end, to increase implementation speed and avoid roadblocks. Blockchain gives an opportunity to radically transform the way companies do things by providing a standard architecture to address different business challenges. With blockchains, companies can completely redefine their cost structures and gain unprecedented proximity to their customers. The opportunities of the technology are out there. With more projects in line and an overall stronger blockchain community coming together, it’s just a matter of time before the world stops seeing blockchain technology as too hard to implement.