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RE: Strategy - what is it and how can we create one that works? Can the blockchain play a role?

in #strategy7 years ago

One area where I see block-chain having a strategic impact, and therefore organizations (not just businesses) will need to consider their strategy is in supply chain. My career has been in supply chain and procurement, and for the last few years I was working on global procurement strategy, however I had found that many businesses including ERP tech giants have not really caught up to what block-chain can mean for their organizations.

Supply chains are discrete, disconnected, opaque and unmeasurable. Block-chain tech allows us to start having confirmed evidence of the provenance and origin of goods for example (checkout the UK company Provenance). So imagine if you can go to the supermarket, scan a QR code on a pack of tomatos, and that will get the origin of that indivudual pack, show you the farmers organic certificate and his steemit blog where he tells you his favourite ways to prepare his tomatos; this is a key differentiator not only for the farmer but the supermarket too, but for the farmer he can now get access direct to the consumer market; what strategically are the supermarket going to do with this, are they being disintermediated now, perhaps we can connect directly to the local farmers and get all our produce, especially if someone sets up a decentralized online matching algorithm. What is the supermarkets USP in this emerging structure, do they attempt to block this innovation, or are they a first mover taking market share from their slower moving competitors?
Imagine if your tech products can have every component, sub component and part tracked from source, you now know the rare earth minerals arent from conflict sources. But beyond that the secondary market will be enhanced because you will be able to see how many owners/cycles that device has been through. How will this impact warranty and repairs, you no longer need to go through complex RMA procedures, everthing about your device including repairs is knowable, so now everyone can gather device reliability data and choose producs that fail less; where does tis leave device manufacturers? How willthey strategically cope with that, extended warranties because the data allows them to design better products? Product recalls due to danger in the car industry can be far more efficient and reach down many levels of second hand ownership. Additionally there is possibility to build re-usable components that can be recombined and re-configured into late customizable, or even user customizableproducts, because product warranty can be tracked on a component level. Again, as a business do you fight this innovation, or do you become a first mover?
For international trade we can see dis-intermediation in areas such as customs formalities, as products move through supply chains and the exact make-up of the products is traceable, the documentation required can live with the product itself and remain with it throughout its lifecycle, product valuations will be knowable through smart contracts for sales/procurement and taxes and duties can be levied under smart contracts as well. Governments and regulators will need to consider why border controls exist, and how they will be able to best serve their nations, and if they are even needed in the block-chain era.

Just some of my early thoughts on blockchains and strategy there for you, I hope that helps with whatever you are thinking of for your future blog.

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Thank you so much for your thoughtful response, @scalextrix. We've been thinking about similar solutions here - I appreciate the perspective you share on SCM, an important area of value creation - and are impatient for apps to be developed which will facilitate the broader adoption of the technology. Following your blog now and looking forward to sharing ideas with you on how IoT, SCM and ERP solutions could revolutionise how we do business - for the better.

Thanks I'm following you as well, I should probably gather my thoughts and make a post.

Look forward to it!

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