The recent report explores the potential for blockchain technology to fuel a transformation in the retail and consumer packaged goods value chain. They “fully expect blockchain technology to achieve widespread, mainstream adoption in these sectors sooner rather than later.” But their research shows that long-term, sustainable success is only possible through careful planning and scheduled work programs.
The capability of blockchain to track, trace, and authenticate products, record contracts, guarantee the movement of information and record transactions means it can be put to use across the entire value chain. The benefits are consequently being passed on to the consumer in the form of savings, increased trust and transparency, and safer and higher quality products.
Practical applications of blockchain
They delineated data into three use-case groups that distinguish between the reasons for the blockchain application:
Consumer – Improving and protecting the consumer experience
Supply-chain – Improving process efficiencies across the supply chain
Payments and contracts – Improving transaction processes and ensuring the validity and implementation of contracts
Assessing opportunities and responding to blockchain
Businesses need to understand how much blockchain can generate additional commercial value and how it aligns with the overall business strategy. Depending on the strategic objectives of the enterprise, there are four segments of impact:
Trial projects - Opportunities that have a lower immediate value relative to others due to a narrower blockchain application
Explore - Opportunities relative to trial projects in terms of value but similar complexity (and cost), offering greater value relative to investment in the short-term
Wait and see - Opportunities that currently offer a lower value relative to other blockchain opportunities and are more complex (and costly) to implement
Plan - These offer the most attractive opportunities in terms of potential value
Blockchain is not a cure-all, but should be used as a tool to achieve strategic goals. This is the key to seeing a tangible value‑add from this emerging technology. Consumer focused businesses that have the resources and capabilities should be considering how they can harness the power of it.
By: BGN Editorial Staff