KNOXVILLE, Tenn., April 21, 2021 /PRNewswire/ -- Blockchain has been one of the most hyped technologies of the last decade, predicted to lead a revolutionary change in the way businesses operate. Gartner estimates it will generate $3.1 trillion in new business value by 2030, addressing the real, oft-discussed problems and opportunities of end-to-end information sharing. A new study from the Global Supply Chain Institute (GSCI) helps companies determine whether blockchain is right for them.
"The only thing certain today is that uncertainty will continue," Alan Amling, GSCI fellow at the University and Tennessee, Knoxville's Haslam College of Business, says. Amling co-authors "When Is(n't) Blockchain Right?"
This uncertainty manifests in many areas. As supply chain leaders pursue network resiliency and flexibility, they often add new, relatively unknown supply chain partners. Blockchain's unique capabilities can ensure commercial trust for transactions within these increasingly distributed networks.
GSCI conducted dozens of case studies and interviews with leaders from a broad range of industries to discover the current benefits and limitations of blockchain. The paper breaks down the terminology and structure of the technology and helps supply chain management professionals understand how blockchain can be used, how organizations are using it and how to know if it will support their organization.
"Determining the ROI of blockchain can be challenging for many supply chain management professionals, who usually haven't fully explored its capabilities and compared them to their business models," co-author Randy V. Bradley, associate professor of supply chain management at Haslam, says. "Too many businesses waste time and effort on blockchain archetypes for problems that already have solutions in the market."
The study found that the interoperability of blockchains through standards being set by organizations such as the Blockchain in Transport Alliance (BiTA) could be a significant benefit. Executives interviewed consistently called it a game-changer. At present, blockchain is helping solve specific organizational challenges, such as establishing the provenance of products and invoice reconciliation. While the number of applications with a definitive ROI currently is limited, early adopters feel that learning the technology and required process adaptations now will give them a market advantage later.
For companies examining blockchain feasibility, this research can serve as a toolkit. Best practices from blockchain pioneers, such as requiring a value proposition for every member of the blockchain and making sure business professionals are involved in pilots, can save companies time, money and frustration. The paper also provides a blockchain screener and blockchain decision support framework to assess the relevancy of and resources required for blockchain investments.
About the Global Supply Chain Institute at the University of Tennessee, Knoxville's Haslam College of Business
The Global Supply Chain Institute is the hub of a global network of supply chain professionals, corporate partners, students, and academics. GSCI shares industry insights and best practices by producing some of the field's most cutting-edge white papers and industry research, giving its partners access to the ideas, network and education they need to stay ahead of supply chain trends and bring their organizations to the forefront of the industry.
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SOURCE University of Tennessee, Knoxville's Haslam College of Business