Blockchain Adoption – Factors to consider when implementing

Key Summary:

  • Blockchain adoption should go through the normal decision making process.
  • Organization strategy approach toward blockchain plays a significant factor in the “success” of the technology.
  • Identification of issues and goal setting metrics are critical indicators .
  • C-suite management support and guidance can be a deal-breaker.
  • Blockchain adoption is NOT for all organization type – even if the industry ecosystem is compatible.
  • Follow Hegion.com for latest guides & alternate news of everything blockchain and cryptocurrency.

The world we know today is a very different one from what we used to know. Emphasis on technology sky-rocketed largely thanks to the coronavirus. Blockchain is fortunately (from our point of view) is one of those industries that experienced a boom in exposure – through many direct and indirect factors. 

Majority of layman who have heard of blockchain would understand that fuzzy benefits the technology can offer:

  • Cost saving 
  • Clearer record management 
  • Safe and secured network 
  • Privacy concerns allayed 
  • Tailored-suited requirements 

While these may be true to a significant extent, personnel spearheading their organizations (or their own agenda) push towards blockchain adoption should consider certain factors – factors that can essentially determine if the blockchain implementation is a failure or success. These factors if not implemented optimally may cause more headache to the organization.

Kindly note that the following factors are generic and may not apply universally. 

Decision making process

As with all other forms of decision making thought process, due diligence has to be conducted with strong support of the C-suite management. Implementing blockchain into an existing organizational structure should not be taken lightly. You would have to factor in –

  • Training resources for staff and external stakeholders
  • Technical know-how and talent required for optimal utilization of chosen blockchain technology 
  • S.M.A.R.T goals that determines what you want blockchain to achieve 
  • Potential down-time and initial confusion that may arise 
  • Feedback and monitoring infrastructure should be robust enough to monitor and track progress

Blockchain adoption (latest versions) may solve issues that current technology may not have solutions to. However, always keep in mind that due diligence into adopting blockchain technology is not a process to be taken lightly. Certain industries – for example in the mining, construction sectors do not have the pressing need to adopt it. Although it (blockchain technology) may be useful in certain areas, the overall cost-implementation ratio is not worth it.

Strategy approach

Organizations should decide on which approach it wants to adopt when implementing blockchain technology. There are 4 main strategic approaches – 

  • Leadership – The “leader” approach must be willing and committed to take advantage of their positional approach to set the standard norms in their industry.
  • Disruptors – Organizations who identify with the “disruptors” approach are often entering a market which they need not worry about protecting. They are non-dominant and may be practically unknown to the wider community.
  • Opportunists – Organizations who will undertake this approach will usually wait, weigh its options and implement the most appropriate technology when it is required. These organizations usually do not have the full resources or are not in position to adopt the leadership approach – the ability to encapsulate their market ecosystem – for any reasons. 
  • Innovators – The innovator approach is a more unique strategy for an organization to undertake. These are usually larger organizations or players who can easily adopt the “leadership approach” but are looking only to innovate or improve their current state of business / service. 

Depending on the approach, the type of blockchain technology will scale accordingly to the needs and requirements of the organization. For more information about Strategic Approaches, we have a dedicated article.

S.M.A.R.T goal setting

Having valuable data and feedback mechanisms for improvement of productivity is a key component to an organization’s success of its blockchain adoption. The five (5) SMART criteria are – Specific, Measurable, Attainable, Relevant, and Time-Bound

  • Specific – You need to know what the implementation of the blockchain technology will achieve for your organization or business
  • Measurable – Ensuring that data can be captured for future use such as analyzing patterns and behavior to improve productivity
  • Attainable – Goals must be set properly and carefully. It should be visionary yet attainable. Setting unrealistic goals can seriously dampen morale and jeopardize the blockchain project
  • Relevant – The blockchain technology should be engineered to solve relevant issues
  • Time-bound – Give your organization datelines. For accountability and practical reasons. This ensures that the blockchain project you have undertaken is worth the ROI

Especially for blockchain related technology – there should always be a robust form of measuring data and behaviour patterns. This technology has no fixed set of standardization or rules. Self-discipline & benchmark against performance indicators are one of the various ways organizations can track and validate their blockchain investment. 

Overcoming Psychological Barriers 

Lastly, the human mind is something everyone should take note. The perception of blockchain is not positive and always associated with negative key phases like – 

  • Complex
  • Scammers
  • Bubble burst 
  • Expensive and insignificant 

These words alone are not negative but when associated with the word blockchain, it becomes one (negative connotation). The implementation of blockchain has to be done in phases and tactfully. 

Imagine – When the decision has been thought through and has the blessings of the management, effort and resources will be allocated. The staff and external stakeholders input should be heard (if practical) and/or explanation should be provided. Training and guidance should be provided to all stakeholders – sharing the vision and easing the transition. It is easier to implement something with the collective backing and support of those involved. 

The transition to blockchain technology will be eased greatly when the puzzle is connected. Like the broken window effect, just the opposite. Never underestimate the strength and influence power of a single positive trait. 

Remember 

These factors are just some of the many factors that will play a role in ensuring a smooth implementation of the blockchain technology. There is no right or wrong –  just a varying level of importance of the factors which are unique to each and every individual organization.

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