Four ideas for creating value (with blockchain)!
Early blockchain adopters derived appreciable productivity gains from the technology when applying it to processes that were previously gridlocked. Still, the fabulous promises of an innovative business model and tokenization have yet to be realized. How can you reap the benefits?
Based on The Real Business of Blockchain: How Leaders Can Create Value in a New Digital Age by David Furlonger and Christophe Uzureau (Harvard Business Review Press, October 2019).
1 / DON’T DELAY!
Faced with an immature technology and gains that are still modest, you may well be tempted to let the early adopters tackle the teething problems. On the other hand…
- There will be no second place. Blockchain has initiated a “winner takes all” system, based on exponential growth. Although simply following the early adopters closely and copying them has long been a valid strategy, it is no longer. You won’t be able to make up for lost time.
- First possibility: test without risk. You can start with a downgraded version of blockchain, which will be neither decentralized nor tokenized. In short, it will be a glorified database that will help you develop skills internally. You’ll start slowly and generate some productivity gains.
- Second possibility: join a consortium. These Covid times favor the creation of alliances based on logistics, which will help you develop partnerships and a decentralized approach. Here you’re more in blockchain mode. Learning together, you can identify bottlenecks with other actors in your consortium.
2 / TOKENIZE!
One of blockchain’s advantages is that it uses tokens to monetize illiquid assets or micro-transactions that are impossible with traditional payment methods. The problem? These are assets that you wouldn’t normally think of capitalizing on: you may have to brainstorm identify them.
- What data could you tokenize? Which sectors and companies might be interested in the data you have? Don’t forget your customers: how could you reward them in exchange for their data? Like loyalty points, tokens can be used to encourage your customers to remain in your ecosystem.
Excerpt from Business Digest N°310, October 2020