Blockchain
STRATEGY
Blockchain 1.0
Transaction
cost
Blockchain 4.0
Blockchain 2.0
Decentralized Blockchain Smart
Artificial
contracts
Intelligence
Blockchain 3.0
Decentralized
applications
Source: https://www.mckinsey.com/
Four strategies for blockchain success
Make the business case Build an industry ecosystem
Design deliberately Navigate regulatory uncertainty
Make the business case
https://www.menti.com/owz3fe7zim
Code: 7216 1368
Source: PwC
Make the business case
What are the top three reasons that’s stalling blockchain progress-
biggest barriers to blockchain adoption
Source: PwC
Build an industry ecosystem
What’s the right operating model?
sponsor-led model co-owner/co-operator
Source: PwC
Design deliberately
Source: PwC
Navigate regulatory uncertainty
“Blockchain’s potential for
transparency, as well as
the tamperproof record it
creates, could make it a
powerful tool for
regulators.”
Regulatory uncertainty
Source: PwC
•Transparency
Value drivers •Scope
•Immutability •Resource utilization
•Security •Interoperability
•Privacy •Transaction cost •Risks
•Tokenization •Extra and added services •Costs
•Fault tolerance •Organization scope and boundaries •Maintenance and management
•Risk control •Autonomous agents and decision making •Regulation, governance and legal boundaries
•Non-intermediaries •Performance and scalability
Prospective value Technology
opportunity adoption
Value analysis and technology adoption
Institutional
Regulatory Factors
Technological (Norms & culture;
guidelines Regulations,
stack and Governance)
and
ecosystem Market
compliances Factors
(market
structures; Analyzing
Contracts & Blockchain
agreements;
Business
Adoption
Processes)
Network
community
Technical
Factors
(Information
exchange; Design
Technology adoption components; DLT;
shared
infrastructures)
Opportunity
Identification &
• Industry Analysis • Business model
• Market segment • Partners
• Rationale • Idea/opportunity analysis • Operational
• Market research • Need and benefit
• Competitive analysis • Value
• Positioning statement
• Strategic positioning
Industry Analysis Execution
The Blockchain Strategy Document
Business Strategy
Business Initiatives
• Specific business initiatives that support the Business Strategy
Outcomes & CSF’s
Desired Outcome Desired Outcome
• Critical Success Factors
• Critical Success Factors
Tasks Key tasks that need to be accomplished to be successful
Data Source #1 Data Source #2 Data Source #3 Data Source #4
• • • •
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Architecture Governance
Stakeholders
What do we know?
Unclear about “How value is created” | “How
value is added?” along the supply chain
Rely on cues to assess the tangible and symbolic
values of the product
Customers Use heuristics to assess the potential risk of a
purchase (label-country of origin; certifications-
fair trade, organic; badges/brands etc)
Problem; forgery|sourcing & supply of
products?
Loss of confidence
in firm’s capabilities
of assuring the
provenance
• "Our chefs take painstaking
care to ensure our recipes
are developed to the highest
standard. We use only the
best ingredients and a
generous pinch of
imagination."
~Neville (2013)
Competitive
advantage
Origin
assurance
Custody Provenance Authenticity
Assurance Knowledge Assurance
Integrity
Assurance
Provenance: “Information about the creation, chain of custody, modifications or influence pertaining to an artifact”
How perceived
risks impact
purchase
decision?
“any action of a customer [that] will provide consequences
which (s)he cannot anticipate with anything approximating
certainty, and some of which at least are likely to be
unpleasant.”
How can customers’ knowledge of
products provenance reduce these
risk perceptions?
System that follows products
throughout their entire
lifecycle, from the initial
sourcing of raw materials to
manufacturing, distribution
and consumption
Blockchain
Traceability Certifiability Trackability Verifiability
Capabilities
Provenance
Origin Authenticity Custody Integrity
Knowledge
Stakeholder’s Psychological
Performance
Perceived Financial Risk and Social Physical Risks
Risk
Risks Risk
Improve Product Traceability to Drive More Profitable Customer Engagements
Business Initiatives
1. Increase product traceability (trace products with ease and comfort)
Outcomes & CSF
Develop an intimate knowledge of product’s life Act upon an intimate knowledge of "product lie” for the
stage, value chain and usage customers to create demand and stimulate purchases
The success of this strategy relies on our ability to…
1. Assurance provenance– Information about the creation, chain of custody, modifications or influence pertaining to
an artifact
2. Leverage assurance knowledge to reduce perceived risks– psychological, financial, physical, social, and performance risks
3. Integrate into value chain platforms
Tasks Collect information of product/product parts during the integration, transformation, transportation, assembly etc.
Generate actionable intelligence on provenance knowledge to generate assurances
Use intelligence to have relevant interactions with each customer
Track operational execution and results
Custody data Origin Data Authenticity Data Integrity Data
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