How to make blockchain a success for your business

Few technologies have received more attention over the last decade than blockchain. Touted as a potentially transformative business technology, it was essential to the rise of bitcoin, and has been on the lips of financial services professionals particularly, for several years. However, a range of other industries stand to benefit from this pioneering innovation – provided they are able to use it strategically and attract the right people to make it a success.

So, what is blockchain, and how can businesses make blockchain uptake a success?

Blockchain and its key enablers

Built on cryptography (the study of secure communications), blockchain is essentially an open and decentralised database which records various kinds of transactions between parties. It removes the need for intermediaries by connecting a wide network of computers, making the transactions traceable and transparent – as well as difficult to fake.

As with any such technology, it will be necessary to lay the groundwork for successful adoption and use of blockchain. One impact of the global Covid-19 pandemic, and the lockdowns it necessitated, has been widespread digitalisation of businesses. With so many important processes, including financial ones, now taking place digitally, blockchain could emerge as means to ensure efficiency and security.

Blockchain’s entry into the mainstream will also depend upon adoption by market leaders. Its use cases thus far have been largely limited to cryptocurrency, but many believe that the technology will soon have wider uses across the financial ecosystem. As well as this, there is the possibility of central banks soon using digital currencies to complement, rather than replace, existing currencies. 

Max Soyref, Associate Director of Blockchain at KPMG, says he has seen much development around blockchain in recent years. “Many enterprise players are starting to embrace the technology, which means more development and more applications that use it. In the long run this will mean more value created and business problems solved,” he said.

Areas of application

But what use cases could blockchain have beyond the financial landscape? There are many, but the key to success will be in identifying areas where blockchain can be used to solve clear problems and to create efficiencies. It cannot be treated as a ‘magic bullet’ to transform every process – instead, it should be used where there is a tangible value-add. 

One particularly current example would be in supply chains, which have received much scrutiny in the last few months. Blockchain could enable greater providence transparency, enabling consumers to access more information about product origin, production, modifications, and custody, and therefore make more informed purchasing decisions. It would also facilitate the sharing of quality and real time transportation data, while traceability data would improve risk management through predictive analytics and recall management. 

Similarly, supply chain financing could be simplified and made easier with blockchain. Where financial institutions often struggle to keep track of suppliers, suppliers to suppliers, and various other stakeholders, blockchain would offer a transparent and accessible record of the financial processes behind a given supply chain. 

Another example would be the medical insurance space, where blockchain could transform the way in which claims are made. From eliminating many of the current document submission processes to reducing the risk of false claims, the technology would establish new level of convenience and trust between patients and insurers. 

This process is well underway in many parts of the world, including Hong Kong, where Shanghai Dianrong Information Technology is already working on a blockchain-based medical insurance platform in Hong Kong. More than ten insurance companies and 200 private clinics have signed on, with millions of users. 

Xiao Shiyuan the company’s Chief Scientist, predicts that, “In the future, all you will need to do is to see a doctor, scan a QR code and confirm the cost after a specific treatment. You won’t have to worry about settlements, expenses and claims. All of this will be done automatically.”

Clearly, the transformative potential of blockchain is cross-industry. But it is likely to see the fastest success in contexts where a clear problem can be solved, or an inefficient process remade. The companies approaching blockchain with this mindset will be among the first winners. 

How to hire in the age of blockchain

Exciting though these ideas are, their realisation will still depend on talented professionals and teams of professionals capable of turning concepts into reality. But what do these professionals look like, and how can companies attract them?

There are many developers and engineers who are excited by the prospect of working with blockchain, but far fewer with actual industry experience. The latter is perhaps more challenging, since skills can ultimately be trained, whereas experience takes time to accrue. And while technical knowledge is important, candidates cannot afford to lack commercial understanding.  

Soyref comments that, “Not everyone will need to build a product from scratch. While knowledge of smart contracts or strong programming fundamentals is important, the business side is also critical. Finding people that understand the value blockchain creates and can also translate it into business outcomes across business analysis, product and traditional project domains is vital,” he said. “We need more people supporting business services with a strong understanding of blockchain, including accountants, lawyers and tax people that understand public and enterprise blockchains.” 

Moreover, companies looking for blockchain experts are seeking soft skills in candidates as keenly as ever. The best blockchain professionals can think outside the box, communicate effectively in teams and with clients, as well as learn quickly, and show resilience. 

Another key trait in a strong blockchain hire is a capacity for lateral thinking. In the technology field, candidates often break down into those with deep expertise in a particular field, and those with a wider skill set and more commercial knowledge, which allows them to work cross functionally, manage projects and provide leadership. 

The latter is in short supply in blockchain, and to attract them, companies need to make sure they are offering the right things to the right people. This goes not only in terms of salary, but also benefits, flexible working, and most importantly, autonomy and the opportunity for creative and exciting work. Without these, companies will find it hard to compete for the small pool of blockchain specialists currently on the market. 

Or, if you are looking for top technology talent to join your team or am exciting new role in the space, you can get arrange an introductory call with one of our expert consultants.

This article is a part of our ABC’s of Technology series. For a detailed exploration of the artificial intelligence landscape, check out our Humans of AI eBook here.