Companies across the globe are increasingly interested in implementing blockchain for their operations. In fact, a new forecast from International Data Corporation (IDC) found that worldwide spending on blockchain business and technology services is expected to grow from $1.8 billion in 2018 to $8.1 billion in 2021. In addition, a recent survey by SAP found that 92% of business leaders view blockchain technology as a business opportunity.
Are you considering implementing blockchain? If you want your project to be successful, we recommend that you consider blockchain as an integral part of your company’s overall strategy and constrain your efforts according to instances where blockchain delivers a clear value proposition.
Before you get started, consider the following 5 business practices to increase the success of your project without jeopardizing your business.
1. Create a Blockchain Technology Group
Creating a blockchain technology group can help your organization to better understand the possibilities that blockchain has to offer. In addition, it will force you to come together to define your company’s strategic goals and how blockchain fits into the plan.
Focus on finding opportunities that could most improve the distinctive capabilities of your business. There should be stakeholders from all areas of your organization, including risk management, operations, finance, regulatory compliance, and IT so that you won’t be required to pause the implementation once it is underway because you also need their input.
2. Hire Blockchain Consultants
Employing the services of blockchain consultants is extremely important especially if your organization does not have individuals who specialize in blockchain. Some of the ways that blockchain consultants can help you plan your implementation include the following:
- Hiring. Different talent will be required at all stages of the implementation. As a result, it is important to ensure that the right staff is hired for your blockchain project.
- Fundraising. An Initial Coin Offering (ICO) may be an option to help you raise the funds necessary to implement your blockchain project. Blockchain consultants can suggest the best method of fundraising for your project, whether that is venture capital, crowdfunding, an ICO or a combination of strategies.
- Marketing. Blockchain consultants can help you write the whitepapers for your project, develop and maintain support communities, and more to help support adoption of your project.
3. Manage Risk Factors
While common business risks could be applied to any new technology there are inherent risks that affect every blockchain implementation. Mainly the problem lies in assuming that blockchain technology risks are a solved problem.
Currently, there is no legal framework in place either locally or globally for the application of smart contracts. While conditions are likely to evolve in the next three to five years, make sure that you are prepared to deal with a changing regulatory and compliance environment by seeking legal advice.
4. Invest in Training Programs
In order to successfully implement blockchain for your organization, you’ll need to invest in training for your staff. It is very unlikely that your staff fully understands how blockchain will transform your business or already has the competences needed to make business decisions about leveraging blockchain.
The scope of a blockchain technology implementation extends far beyond those who will be responsible for the IT and programming aspects of the implementation. As a result, you’ll likely want to involve your entire organization in the training, which can also help to get leadership on board. By beginning training ahead of the implementation, you’ll also be able to get a better sense of the readiness of your organization for the coming changes.
A clear indication that training is needed at your organization is the tendency of leadership to view blockchain technology as a complete business solution. While the term blockchain is often discussed as an innovative solution in industries such as supply chain management or finance, it is actually very much still a limited, foundation-level protocol. Realistically, there is still a lot of evolution that will need to take place before blockchain can be considered as a complete enterprise solution.
5. Plan to Scale
Scalability is an important consideration when implementing blockchain projects. That is because if your blockchain project affects core aspects of your business, it is likely that it will change everything. Unlike other technologies, blockchain may require you to completely overhaul your entire business model.
Plan for a few long-term goals, such as increased revenue, cost reduction, improved compliance, greater quality control and decide upon them now. Scalability is also closely tied to the way in which transactions are validated on the blockchain. Consider how the blockchain architecture might need to be adjusted in order to accommodate changes in business processes, as well as, how old data can be accessed after changes have been made.
Finally, don’t assume that today’s leading platforms will still be dominant in the future. As with the social, mobile, and ecommerce platforms of the past, it’s more than likely that the most effective technology for your organization still has yet to be invented. Consider your blockchain technology stack for your current implementation as just a short-term option so that you can upgrade as new technologies become available.
Final Thoughts
While your organization has likely undertaken many software implementations in the past, the implementation of blockchain should come with the anticipation of failures given the risks associated with such complex projects. While improving the odds of blockchain implementation success may seem impossible, it can be done. It all starts with strategic planning that establishes a consensus among all stakeholders involved.
Looking to take the plunge into blockchain? Contact us today for a free consultation and review of your project. Get the latest blockchain implementation advice by signing up for our newsletters.
