This eliminates the possibility for human error.”  This is an actual quote taken from one of the many blockchain ‘credible’ websites readily available—citation withheld to protect the guilty.    And, the Titanic was unsinkable!

From another credible sources, “Is blockchain secure for my business?  Simply put, it can be.  But, not by just turning the key.  Security will depend on a variety of factors, none sic (not) the least of which requires a robust risk management framework?”[i]

In their white paper, KPMG argues that while the current blockchain frenzy is focused on the new technology, the question of its applicability to a business solution remains elusive.  Falling in love with a ‘shiny new software object’ has been seen before.  Most recently, digitalization and IoT.[ii]

The organization’s economic buyer requires more depth in the decision-making process.  Has a valid Business Use Case been developed for its implementation?[iii]  This can be a time-consuming activity as the various constituencies must be queried to assess their assessment of the Economic Value of this CAPEX.[iv]  Unfortunately, there are no shortcuts to this risk mitigation process.

This blogger has focused on the need for Governance and appropriate Management Systems for many years.  Historically it has been a challenge for business and government entities to keep up with the explosion of technology.[v]

While third parties are often the weakest link in supply chain management and this is one of the problems that Chain of Custody solutions address, technology alone is not a solution.  As with any transformational initiative, the broader impact, unintended consequences as well as other tangible and intangible exposures must be understood and managed accordingly.

Just for the record, human error can never be eliminated.  It is human folly to believe that a technology can free us from our human nature.  High Reliability Organizations (HRO) recognize this frailty and respond accordingly.

The promised of today’s technology suites can be of high value.  History teaches us that this value may not be realized if the problem being addressed, their implementation and sustained (maturity) processes are inadequately formulated.

How Will Your Organization Assure It Will Realize the Value from Blockchain Investments?

 

[i] https://advisory.kpmg.us/articles/2017/securing-the-chain.html

[ii] Shemwell, Scott M. (2018, October). How to make the case to the C-Suite: Selling Large Scale Data Management Projects to the C Suite. Foundations: The Journal of the Professional Petroleum Data Management Association. Volume 5 Issue 2. pp. 6-8.

[iii] https://sceweb.uhcl.edu/helm/RationalUnifiedProcess/process/modguide/md_bucm.htm

[iv] https://therrinstitute.com/economic-value-proposition-matrix/

[v] https://therrinstitute.com/are-organizational-governance-models-broken-why-cant-management-get-a-handle-on-things/