{"id":2032,"date":"2019-10-25T05:08:30","date_gmt":"2019-10-25T05:08:30","guid":{"rendered":"http:\/\/kusuaks7\/?p=1637"},"modified":"2024-03-07T17:16:24","modified_gmt":"2024-03-07T17:16:24","slug":"the-blockchain-value-framework","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/the-blockchain-value-framework\/","title":{"rendered":"The Blockchain Value Framework"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2032\" class=\"elementor elementor-2032\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-1e54e2ce elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1e54e2ce\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5e15659a\" data-id=\"5e15659a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7a238edf elementor-widget elementor-widget-text-editor\" data-id=\"7a238edf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn July, 2019, the\u00a0<a href=\"https:\/\/www.weforum.org\/\" class=\"broken_link\" rel=\"noopener\">World Economic Forum<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.accenture.com\/us-en\/insights\/blockchain\/wef-building-value\" class=\"broken_link\" rel=\"noopener\">Accenture<\/a>\u00a0released\u00a0<a href=\"http:\/\/www3.weforum.org\/docs\/WEF_Building_Value_with_Blockchain.pdf\" rel=\"noopener\">Building Value with Blockchain Technology<\/a>, a white paper aimed at helping organizations evaluate blockchain\u2019s benefits and build an effective business case.\u00a0\u00a0The white paper is based on a global survey of 550 individuals across 13 industries, including automotive, banking, and retail; interviews with CEOs and public sector leaders; and a detailed analysis of 79 blockchain projects.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09d1200 elementor-widget elementor-widget-text-editor\" data-id=\"09d1200\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\nSurvey participants were asked for the top reasons that led their organizations to invest in blockchain solutions.\u00a0\u00a0Across all industries, the top three priorities were \u201cfull traceability of information on the blockchain\u201d; \u201cability to ensure data has not been tampered with\u201d; and \u201cincreased security\u201d.\u00a0\u00a0\u201cNew business products or services\u201d ranked last among the options for investing in blockchain, suggesting that at this early stage, improving existing products and services is a higher priority than considering new business opportunities.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a48088 elementor-widget elementor-widget-text-editor\" data-id=\"8a48088\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAs is often the case, fear that\u00a0<em>the train is leaving the station<\/em>\u00a0is another powerful motivator for investing in a new, fast growing technology.\u00a0\u00a0Worldwide spending on blockchains solutions is\u00a0expected\u00a0to reach almost $3 billion in 2019 and close to $12.5 billion in 2022.\u00a0\u00a051% of survey respondents mentioned \u201cmissing out on developing new products\/services\u201d as their top concern if they don\u2019t invest in blockchain in the near future; 23% mentioned \u201cmissing out on efficiency gains\u201d; and 15% were concerned with \u201cmissing out on cost savings.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de759eb elementor-widget elementor-widget-text-editor\" data-id=\"de759eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tBased on its analysis of almost 80 blockchain projects and its dozens of interviews with private and public sector leaders, the study developed the \u201cblockchain value framework.\u201d\u00a0 The framework is aimed at helping organizations identify the concrete value of blockchain technology in their use-case proposals and build a corresponding business case.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-051f6aa elementor-widget elementor-widget-text-editor\" data-id=\"051f6aa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe framework has three distinct dimensions: improved productivity and quality, increased transparency among parties, and reinventing products and processes.\u00a0\u00a0Each dimension includes a distinct set of blockchain-enabling capabilities that provide a solution to a concrete pain point or present an area of opportunity.\u00a0\u00a0\u201cConsider 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.\u201d\u00a0\u00a0In addition, the framework will help identify where the real value will be created.\u00a0\u00a0\u201cEach driver touches on important components of the business that are driven by technology \u2013 and when the time comes, these value drivers become the basis for any business case.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6e97ef elementor-widget elementor-widget-text-editor\" data-id=\"a6e97ef\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tLet me summarize the key capabilities in each of the three dimensions.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a4a48b elementor-widget elementor-widget-heading\" data-id=\"3a4a48b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Improved productivity and quality<\/strong>.<\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b4a518 elementor-widget elementor-widget-text-editor\" data-id=\"9b4a518\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><em>auditability &#8211;\u00a0<\/em>organizations can cut their auditing costs and raise confidence levels based on blockchain\u2019s ability to provide a fully traceable shared ledger of transactions to all parties;<\/li>\n \t<li><em>compliance<\/em>\u00a0&#8211; given that blockchain can\u2019t be tampered with, it provides increased confidence while streamlining processes and reducing costs;<\/li>\n \t<li><em>data security<\/em>\u00a0&#8211; blockchain\u2019s use of leading edge cryptographic technologies reduces the risk of a data breach while limiting the damage should a breach occur;<\/li>\n \t<li><em>process automation<\/em>\u00a0&#8211; business processes can be executed automatically via algorithmic-based smart contracts, improving efficiencies and worker productivity; and<\/li>\n \t<li><em>standards<\/em>\u00a0&#8211; organizations working together in a blockchain ecosystem must agree on a common set of protocols and rules by which they will work together, which will result in improved time to market and productivity<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-87eb524 elementor-widget elementor-widget-heading\" data-id=\"87eb524\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Increased transparency among parties.<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-17747a1 elementor-widget elementor-widget-text-editor\" data-id=\"17747a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><em>data sharing<\/em>\u00a0&#8211; blockchain enables trading partners to share real-time data, as well as the history of that data, including any modifications, which facilitates the timely resolution of disputes among partners;<\/li>\n \t<li><em>resilience<\/em>\u00a0&#8211; blockchain\u2019s distributed ledger mitigates the risk of data loss or corruption due to natural or man-made disasters, hacking attacks, malicious or incompetent employees, or other such events; and<\/li>\n \t<li><em>trust<\/em>\u00a0&#8211; blockchain significantly increases trust by cryptographically securing its information, thus mitigating business risks.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f9d2fce elementor-widget elementor-widget-heading\" data-id=\"f9d2fce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Reinventing products and processes<\/strong>.<\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d637f30 elementor-widget elementor-widget-text-editor\" data-id=\"d637f30\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><em>new and enhanced products and services &#8211;<\/em>\u00a0digital assets, such as digital rights management and land titles, \u201ccan exist beyond the umbrella of one organization, company or government,\u201d creating new potential business opportunities;<\/li>\n \t<li><em>new and expanded partnerships &#8211;\u00a0<\/em>new partnerships can be formed more easily given the increased confidence afforded by blockchain technologies, as well as more efficiently, given the ability to automate partnership interactions via technologies like smart contracts;<\/li>\n \t<li><em>authentication<\/em>\u00a0&#8211; blockchain\u2019s cryptographic technologies can help authenticated individual users across multiple networks, resulting in increased overall confidence; and<\/li>\n \t<li><em>identity management<\/em>\u00a0&#8211; blockchain technologies significantly improve the management and use of digital identities by relying on the cooperation of multiple institutions, instead of relying on just one institution.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a7ce37 elementor-widget elementor-widget-text-editor\" data-id=\"8a7ce37\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tFinally, the\u00a0<a href=\"http:\/\/blockchain%20wef%20accenture.pages\/\" rel=\"noopener\">white paper<\/a>\u00a0offers several recommendations:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa331ac elementor-widget elementor-widget-text-editor\" data-id=\"aa331ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Take time to understand the technology<\/em>.\u00a0\u00a0It\u2019s important to understand the characteristics and value drivers of blockchain, its potential business opportunities as well as competitive threats, and the overall impact on a given industry.\u00a0\u00a0\u201cEach organization should have a senior leader responsible for understanding and tracking what is happening with the technology and within industries.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b714872 elementor-widget elementor-widget-text-editor\" data-id=\"b714872\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Set realistic expectations<\/em>.\u00a0\u00a0\u201cLike any major business or organizational transformation, success is dependent upon more than simply plugging in the technology or spinning up a blockchain node\u2026\u00a0\u00a0Ensuring everyone is on the same page from the beginning, both within one\u2019s organization but also with external partners, will provide the greatest chance of overcoming impatience and unrealistic assumptions.\u201d\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-534cd69 elementor-widget elementor-widget-text-editor\" data-id=\"534cd69\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Align to strategic priorities.\u00a0\u00a0<\/em>The decision to implement a blockchain solution should be based on having identified a specific use-case, as well as a concrete problem or opportunity for the business.\u00a0\u00a0\u201cDifferent strategies are correct for different organizations \u2013 for some, not investing immediately is the correct response.\u201d\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ee06281 elementor-widget elementor-widget-text-editor\" data-id=\"ee06281\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Evaluate blockchain\u2019s value relative to other technologies<\/em>.\u00a0\u00a0\u201cFor many use-cases,\u00a0other technologies will be lower cost, lower risk, and implemented more quickly.\u201d\u00a0\u00a0That\u2019s why it\u2019s important that organizations carefully consider whether there are better-suited solutions for their use case before committing to blockchain.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f15cff0 elementor-widget elementor-widget-text-editor\" data-id=\"f15cff0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Remain agile in your approach<\/em>.\u00a0\u00a0Even if there is no clear use-case or value proposition now, continue to monitor potential opportunities as blockchain technologies evolve and improve.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-483938a elementor-widget elementor-widget-text-editor\" data-id=\"483938a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Think beyond your individual organization.\u00a0\u00a0<\/em>\u201cThe decentralized nature of blockchain makes a transformation from an isolated approach to end-to-end value-chain integration within fragmented and complex environments more attainable.\u00a0 In fact, a lack of collaboration can undermine \u2013 or even block \u2013 such transformation.\u00a0\u00a0In assessing value, it is important to consider network and scaling effects, particularly as enabled by collaboration.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The blockchain value framework is aimed at helping organizations identify the concrete value of blockchain technology in their use-case proposals and build a corresponding business case. The framework has three distinct dimensions: improved productivity and quality, increased transparency among parties, and reinventing products and processes.&nbsp;&nbsp;Each dimension includes a distinct set of blockchain-enabling capabilities that provide a solution to a concrete pain point or present an area of opportunity.&nbsp;In addition, the framework will help identify where the real value will be created.&nbsp;<\/p>\n","protected":false},"author":612,"featured_media":2489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[98],"ppma_author":[3320],"class_list":["post-2032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain"],"authors":[{"term_id":3320,"user_id":612,"is_guest":0,"slug":"irving-wladawsky-berger","display_name":"Irving Wladawsky-Berger","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Wladawsky-Berger","first_name":"Irving","job_title":"","description":"Irving Wladawsky-Berger, a Guest Columnist at WSJ CIO Journal, is Research Affiliate at MIT Sloan School of Management, Adjunct Professor at Imperial College, London, and Chairman Advisory Board at r4 Technologies."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/612"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=2032"}],"version-history":[{"count":6,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2032\/revisions"}],"predecessor-version":[{"id":36297,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2032\/revisions\/36297"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/2489"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=2032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=2032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=2032"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=2032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}