Final Part of article What is Blockchain Technology? Is it another “Tidal Wave” of Transformation ?
The Big Picture for Organizations
Organizations that benefit from “inefficiencies” will see their business models disappear when customers have the option to get “better (experience)” for “cheaper.” In other words, the middle man is about to be killed off in many aspects of the financial industry. The financial industry is the classic example of profiting from inefficiencies. The $1.7 Trillion per year charged for financial transactions could plummet to almost $0.
While financial institutions are trying to figure out their relevance in this new landscape, the good news is that there are ample opportunities for everyone. Where speed and security of transactions are critical, blockchain-based platforms will likely play a key role. For example, the booming model of peer-to-peer marketplaces (like Air BNB and Uber and Didi) unlocks the economic potential of assets (cars, houses, etc.) and will benefit from blockchain-based trust, identification and transaction technologies.
Key success enablers are going to be access and connectivity. What will matter for organizational leadership is allowing agile and creative people to seize the opportunities and also allowing them to fail and to learn and to be anti-fragile 1. Management is going to have to let employees challenge ideas and strategies—no matter how entrenched or successful these strategies are today. These organizations will be the new players to take on (and out) the established market incumbents.
In my first book, I talked about how financial, automotive and health care organizations that embraced technology versus organizations that moved more slowly were infinitely more agile and able to use technology to gain market leadership.2 The examples and discussions of trends were based on work with hundreds of decision makers over a 15-year period, data and experiences from thousands of documented Microsoft engagements with customers and best practices, as well as research from leading universities. While technology has changed since I published that first book, a few ideas are just as relevant now as they were then when it comes to blockchain technology:
- Organizations that embrace technology capabilities earlier than their competitors have a mid-term competitive advantage.
- In a world of change, the ability to adopt and re-learn are critical for individuals and organizations. Success is possible for nearly any agile and innovative organization that is willing to embrace and experiment.
- With IT capabilities being available “on demand” since the rise of cloud computing, organizational size is far less relevant to implementing and leveraging the latest technologies.
- Organizations can take advantage of new levels of “crowd sourcing.” It means tapping into collaboration innovation “on steroids” as new methods and technologies unlock innovative potential through “crowd” interactions.
- The creation of intellectual property and even IP ownership and management could be enabled far more efficiently and across organizations with blockchain technology-based infrastructure.
Interesting questions that ever organization should be asking
I’ll leave you with a few questions that every organization should be asking as they look to future development.
- Where in our current and future business can distributed databases/ledgers provide a competitive advantage? How would we position, defend and communicate such an advantage?
- Do we build our own blockchain or leverage somebody else’s?
- Are we engaging with the most innovative players in the ecosystem as well as we can? How can we improve agility, innovation potential, national and international partnerships?
- How do we assess and manage risks?
- How do we think about blockchains issued/controlled by “others”—communities, commercial organizations, financial institutions, governments?
- How does blockchain technology and entering the (money) transfer business impact relationships to customers, banking (partners), governments, regulatory institutions?
What is Blockchain Technology? Is It Another “Tidal Wave” of Transformation ? Part 1
What is Blockchain Technology? Is It Another “Tidal Wave” of Transformation ? Part 2
What is Blockchain Technology? Is It Another “Tidal Wave” of Transformation ? Part 3
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