I was recently in an all day workshop with a customer and during a break the topic of blockchain came up. I knew I had a very short time before the workshop began again to share the business value of blockchain and how it applied to their business. Below is my one cup of coffee definition and explanation of blockchain.
Simple Definition in Business Terms:
Blockchain ensures the completion of complex business transactions without human involvement to verify the validity of the transactions or parties involved. The following business outcomes are realized by this trust and efficiency of each transaction:
- Complete visibility of the transaction
- Reduction in number of disputes filed between parties involved
- Reduction in the time required to resolve disputes
- Reduced cost by simplifying complex processes into a single process
- Increased trust and accountability among all parties involved
- Improved customer satisfaction
After this simple definition and explanation of business outcomes the conversation went into how ServiceNow could play into the world of blockchain. I explained that ServiceNow simplifies the interaction between producers and consumers by providing a platform that enables transactions between parties across the enterprise, suppliers and customers. If those transactions occur as part of a blockchain, the ServiceNow platform would need to be able to participate in the blockchain ecosystem in use.
Although discussion on this topic are early, I am currently working with a few customers in the manufacturing business to help them transform their business to get the value from their investment in ServiceNow, Internet of Things and their exploration of blockchain. Below are a few use cases that we are exploring with these manufacturing customers.
On-Demand Manufacturing:
This enables a marketplace of manufacturing services where the machines will have their own blockchain accounts and the users will be able to provision and transact with the machines directly to available manufacturing services. Blockchain can enable peer-to-peer networked manufacturing applications where the peers will be able to access manufacturing services.
Smart Diagnostics & Machine Maintenance:
Blockchain with ServiceNow can be used for developing smart diagnostics and self-service applications for machines where the machines will be able to monitor their state, diagnose problems, and autonomously place service, consumables replenishment, or part replacement requests to the machine maintenance vendors. Smart contracts between manufacturers and vendors for procurement of supplies and service of machines can help in automating the machine maintenance tasks.
Traceability:
Blockchain can be used for developing traceability applications for manufactured products. Smart contracts between the consumers and manufacturers can keep production records, for example, which factory and which machines within the factory were used for manufacturing a particular product. In case of product recalls (either due to manufacturing defects or faulty parts) after the products are delivered, traceability applications can help in identifying the affected products.
Supply Chain Tracking:
Blockchain can be used for developing supply chain tracking applications. The Blockchain and Smart Contracts can keep a formal registry of products and track their possession through different points in a supply chain. Such applications can also enable automated financial settlements on delivery confirmations.
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