Blockchain and Business Processes: A Comprehensive Exploration of Typology

In the current technological landscape, blockchain technology embodies the new frontier of innovation. Capable of engendering a profound transformation of business processes, it offers intriguing prospects in terms of decentralization, transparency, and security. To understand the potential impact of blockchain on business processes, it is essential to examine in detail the various variations of this technology and how they intersect with different types of business processes.

Modern business is experiencing an inevitable trend towards digitization. This dynamic of technological innovation revolutionizes traditional structures, and blockchain technology emerges as a promising catalyst for these changes. It has the potential to infuse the concepts of decentralization, transparency, and security into the core DNA of companies, thus redefining conventional business processes.

Born of distributed ledgers, blockchain is a shared and immutable database that ensures data security and robustness, finding applications in various domains. There are three variants of blockchain: private, public, and consortium. Each variant possesses unique attributes, suitable for different scenarios.

Varieties of Blockchain: From Private to Public

The private blockchain is controlled by a single entity, typically a company or organization. It offers a high level of control over participation and access to data, which can be valuable for internal business processes.

The public blockchain, conversely, is open to all. It offers unprecedented transparency and accessibility but also challenges related to governance and security.

The consortium blockchain lies between these two extremes, controlled by a group of organizations rather than a single entity. This configuration offers a balance between control, transparency, and security.

Typologies of Business Processes

Business processes can be grouped into several categories, including management processes, operational processes, and support processes.

Management processes are essential for the direction and guidance of an organization. They encompass tasks such as strategic planning, high-level decision-making, and resource control. These processes require high confidentiality and data integrity, making the private blockchain an appropriate technological choice.

Operational processes, related to the manufacturing and distribution of the company's main products or services, demand significant transparency, reliability, and traceability. This makes the consortium blockchain a particularly relevant choice for these processes.

As for support processes, they provide the essential resources and infrastructure to support operational processes. They can benefit from the clarity and efficiency provided by public blockchains.

Practical Applications of Blockchain

There are already concrete examples of how different types of blockchain can be used to enhance business processes. For instance, LVMH, Prada, and Richemont have implemented AURA, a consortium blockchain, to improve the traceability of their luxury products. In this case, the consortium blockchain offers a solution tailored to their operational processes, ensuring both transparency and necessary control.

Similarly, Spotify has utilized blockchain technology to manage copyrights, a crucial aspect of its support process. In this context, the decentralized and transparent nature of the public blockchain lends itself well to copyright management, an area requiring maximum visibility and accurate attribution.

Finally, with Fujitsu, we conducted an exhaustive study to assess the impact of blockchain on its business processes. This study identified potential improvements in financial management and governance, areas that mainly fall under management processes. In these cases, the private blockchain could provide a secure and efficient environment for the exchange of sensitive information.

Challenges and Prospects

The adoption of blockchain technology in business processes is promising, but it also presents challenges. Resistance to change, the complexity of implementation, and data security issues are factors that can hinder the adoption of blockchain. However, a methodical approach, coupled with effective pedagogy, can help overcome these obstacles.

Ultimately, the future of blockchain in business processes will depend on how companies manage to integrate this technology in a way that meets their specific needs. By relying on successful case studies and developing a deep understanding of the typology of blockchains and business processes, we can progress towards a more effective and transformative integration of blockchain in the business world. A forthcoming study combining Blockchain, Process, and Change management would be highly relevant.