Blockchain: Connecting ERPs

It is about internal and external commercial environment control, internal control come by using ERP(Planning, Assets & liabilities and Revenue & cost) and external control can come from by using blockchain(maintenance of ownership of assets/contracts, commercial exchange of currency for sell or buy, recording of transaction and security).

Explaining this by taking example of Leasing of car - Business process, car is manufactured by car manufacturer and sold to dealer, dealer sell this to leasing company and which leased car to lessee, after lease end and end of life of car comes it is sold to scrap merchant, in this process ownership of asset transferred to each other and money transactions happened.

The attached diagram explains, entities involved in this exchange are  Manufacturer, Dealer, Leasing company, Lessee and Scrap dealer, these are legal entities and operate their business by using ERP(OLTP systems).

In figure A, Situation is that each entity has their own ERP and do transactions in this exchange of ownership, there is no connection in between the ERP of these entities, integration can be done by EDI or creating interface but it will be very complex and time consuming and chances of error & omission. There will be no track of assets, contract and their ownership.

In figure B, Blockchain technology can be used securely to integrate, exchange, collaborate, transact and to know the ownership of asset.