The World Economic Forum collaborated with the International Organization for Public-Private Cooperation for the launch of ‘Blockchain Value Framework’ which is a part of the white paper, Building Value with Blockchain Technology: How to Evaluate Blockchain’s Benefits.
Today, organizations are trying to understand what role emerging technologies such as artificial intelligence (AI), the internet of things (IoT), immersive reality and even quantum computing will have in their business.
In light of the developing technology, based on a global survey which was conducted along with the new framework:
- 51% of survey respondents identified “missing out on developing new products/services” as the number one expectation if they do not invest in blockchain technology in the near future.
- The other two most common answers were missing out on speed/efficiency gains (23%) and missing out on cost savings (15%).
Sheila Warren, Head of Blockchain at the World Economic Forum commented
This new framework is for those business leaders that have figured out blockchain is the right solution for a specific problem, but don’t know what to do next.
In order to better understand how blockchain works, the paper presents blockchain’s value framework:
- Understand the impact of the idea to the business.
Each use-case should initially be assessed for the pain points it addresses and/or the opportunities it creates. Next, those pain points and opportunities are prioritized. This assessment of the current state captures an honest picture of the present situation, and what matters most – without thinking about how to solve issues, or which technology to use.
- Think through blockchain’s role.
Blockchain use-cases have the potential to transform the business across three main dimensions: 1) improving productivity and quality; 2) increasing transparency among parties; and 3) reinventing products and processes. Bucketing the pain points and opportunities into these three groups simplifies the next steps
- Use the Blockchain Value Framework Cheat Sheet to assist in moving from current-state assessment to future-state blockchain opportunity
Each dimension includes the blockchain-enabling capabilities that – at times singlehandedly, but often in conjunction with others – provide a solution to the pain point or present areas of opportunity. Consider this as the validation that blockchain is the correct technology to solve the current-state priority and a first step for future development to focus on.
- Identify where the value will be created.
The value drivers are where you’ll find your cost savings, your increased revenue and your improved customer experience. Each driver touches on important components of the business that are driven by technology – and when the time comes, these value drivers become the basis for any business case.
In the meantime, the paper also provides those interested with the challenges and obstacles that come along with the use of the blockchain technology.
- Beware of the hype
- Moving from proof of concept to production requires stakeholder buy-in
- Working with others is difficult and it is hard to capture ecosystem value
- Uncertainty exists
So, for those interested in following the developments and discover blockchain, the paper recommends that they should take time to better-gasp technology. Also, those interested should set realistic expectations and know where they stand. In the meantime, blockchain-users are recommended to think outside the box and beyond their individual organisation, while also align their strategic priorities. Concluding, those that are to use blockchain should primarily evaluate blockchain’s value relative to other technologies.
To explore more, click on the PDF herebelow
