Blockchain technology is here to stay, so should your business be taking advantage of its capabilities? asks Martin Maya, director of Amatis Training.

There are a lot of questions to be asked, but first, let’s get down to the basics and look at who is actually using blockchain in today’s commercial world, what they are using it for and the benefits they are experiencing as a result. You no doubt know that blockchain is far more than the cryptocurrency its reputation was originally built on — its applications, in the financial sector in particular, are well documented. But what other industries are being revolutionized by this new technology?

How is Blockchain transforming the way we do business?

The pharmaceutical industry, for one, is undergoing significant transformation due to blockchain, in the areas of research and development as well as in supply chain.

On the development front, ten leading pharmaceutical companies came together a year ago to launch a ground-breaking project to accelerate drug research. The venture, code-named MELLODDY, enables the consortium contributors to share data while protecting their respective intellectual property rights. This ‘rights protected’ collaboration between companies that are also competitors, means that, for the first time, research can be conducted across the consortium’s decentralized databases. Needless to say, this is opening huge possibilities for the advancement of drug research.

The pharmaceutical supply chain is also leveraging the advantages of blockchain, through initiatives like MediLedger. The MediLedger project has created a permissioned blockchain network for the industry, based on open standards and specifications, to meet track-and-trace regulation. In this blockchain, every transfer of a product is securely verified as having authenticity and provenance.

Blockchain technology can also be credited with the upgrading of processes in the food industry. Now more than ever, customers want to know the origins of their food: where it was grown, what chemicals were used in the fields, where it was bred and raised and how. They also want to know the environmental and social impacts of their purchases. To meet this growing demand, London-based non-profit organization Project Provenance has created a blockchain to gather information from food suppliers along the chain. It uses Internet of Things (IoT) devices to pinpoint what is used, where it is used in the field and when and this gives companies like Waitrose and Tesco absolute clarity on the origins of its food products.

In fact, any industry where raw materials end up in the consumers’ hands could benefit from blockchain technology. In fashion, for example, where no-one really knows for sure how items of clothing have made their way into our homes, blockchain could be used to shed light on the entire process right from the planting of the cotton. Efficiencies can be improved in real estate processing and in logistics companies, like Maersk where information is passed from client to broker to carrier. This technology has the power to transform any industry that needs to speed the flow of information through the lifecycle of a transaction. And it can benefit any situation in which a group of people or organizations has a need for mutual trust, such as voting mechanisms and the tracking of music royalties.

The applications for blockchain are endless. This technology is and will continue to be, ground-breaking in terms of the number of companies that form strategic alliances or joint ventures to explore new products and new markets.

But should your business be considering blockchain?

So how do you know whether blockchain presents viable solutions for your organization? There’s no simple answer to this because every business and project will have its own unique challenges, but here are some of the key starter questions. If your answer to any or all of the following questions is ‘yes’, then you absolutely should take the next steps to finding out more.

  • Could your organisation benefit from shared data?
  • Are multiple parties involved?
  • Do these parties have conflicting interests?
  • Do you need to rely on these parties for compliance or liability?
  • Are there intermediaries or brokers in the business processes?
  • Are any of the transactions time-sensitive?
  • Do the transactions require verification?
  • Do you need to be able to control functionality?

Who should investigate the case for blockchain?

Deciding whether blockchain is the right technology for the business is the realm of the senior business analyst, as this is about understanding end-to-end business processes, having in-depth knowledge of the industry and being able to identify efficiencies. It is crucial that this person, or team, has the business case right from the outset. And to harness the power of the blockchain, they should be flexible enough to commit to completely new ways of thinking and working if necessary. The benefits of a blockchain are unquestionably greatest when different industry participants come together to form a shared platform, so the analysts must have a mindset of shared progress — considering your business needs and the issues you are facing, as well as how these will affect others in your industry.

What skills will they need to get started?

As long as you (or they) meet the criteria listed above and are proficient in the traditional business analyst skills, the next step is to take an introductory blockchain course. If nothing else, this will guide you through the questions you need to be asking — the questions that will help you to understand the possibilities, or not as the case may be, of blockchain in its wider application to your organization.

Blockchain is not easy to implement, so don’t cut corners. Choosing the right training is as important as choosing the right people. Whether you opt for a flexible online or mobile app-based course or classroom-based training, choose a provider that is recognized by a reputable institution — one that is BCS accredited and ISO certified.

Making the business case for Blockchain

The nature of your business, corporate culture and the skillset and experience within the business will all affect the approach you choose to adopt. But as with any other project proposal, the business analyst should build the business case on a tangible and intangible cost-benefit basis, including a return-, or even profit-, on investment. For example, an obvious tangible benefit would be from removing the need for a costly third party involved in the transactions.

Getting off the starting blocks

Building successful blockchain communities is hard work. No question about it. There will be lack of understanding. There will be fear of a ‘new’ technology. There will be barriers in the form of cost, lack of buy-in from the board, regulatory blocks and even trust issues. But it is just as clear that the benefits of a well-designed blockchain are significant.

It can be tempting to think that blockchain is overwhelming, out of reach, massive…. But, as blockchain consultant Andrew Baxter says:

‘Start at the beginning with that “essential” or “foundational” blockchain training course. And start small. Stay focused on the big picture, then find just one use, aim to put just one part of your business process on the blockchain and, all going well, you can build onto it from there.’

Whether or not blockchain is the right way forward for your business, understanding any new technology will always give the business analyst an advantage.