Webinar -Episode 5 – Enterprise Blockchain Adoption – Adoption/Implementation failure

Episode 5

Enterprise Blockchain Implementation And Adoption Failure Ghan Vashishtha

What will this webinar teach us?

Viewers can expect to get an understanding of the top reasons why enterprise blockchain adoption fails and how to circumvent them Top barriers for enterprise blockchain implementation Key steps required to avert chances of failure pertaining to enterprise blockchain adoption It will be a deep dive to help viewers better understand enterprise blockchain implementation pitfalls and how users can overcome them.

Explore the best blockchain implementation practices to follow An insight into how enterprise-grade security offered by Zeeve for deployment and web3 infrastructure management can help enterprises follow a structured approach towards enterprise blockchain adoption Blockchain Investment CAGR (2019-27)

Blockchain has the potential to add

$1.76 trn To the global economy by 2030

We predict that blockchain technology could enhance around

40 million Jobs globally by 2030

Pilot/proof-ofconcept projects currently underway

12% Active blockchain/ blockchain as a service implemented

17%

Having discussions, but no projects yet underway

8% Creating pilot projects

26% 5

Unsure/ don’t know

34% Not currently using or exploring blockchain

3%

Common Mistakes Why Enterprise Blockchain Systems Fail

1.

Blockchain technology can disrupt most industries, but it is not a solution to every problem. Not everyone understands it or knows its use cases.

Businesses should first figure out if their business needs blockchain before trying to apply it to everything.

2. Fundamental misunderstanding of the Blockchain’s economics and 5 the means to creating long-term monetization leads to enterprise blockchain implementation failures

3. Lack of proper governance structure and incentive mechanisms.

4. Regulatory concerns

Top Barriers to Blockchain Adoption

30%

30% 5

29%

Implementation

Regulatory Issues

Potential security Threats

Enterprise Blockchain Adoption Challenges

1.

Internal stakeholder buy-in

2. Network governance

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3. Adoption by network participants

4. Lack of talent 5. Regulation

Technological

Economics

Organizational

1.

Incentives for network

1.

participants

2. Performance

2. Cost of new IT,

3. Interoperability

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Maturity

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implementation and

4. Privacy

integration

5. Manageability

3. Quantifying the ROI

6. Ease of integration 7.

Supportability

Blockchain Implementation cost Finding the most suitable blockchain application is not as easy as a majority of them are not fully

5 developed. Further, the most convenient platforms come at a huge cost in terms of implementation and even energy costs.

Scalability Most of the potential users of enterprise blockchain platforms are multinational firms like banks whose clientele is in the order of tens of millions. Given that most blockchain solutions available are still under

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development, it is difficult to scale them to efficiently serve the huge number of customers without hitches

Security

Given the immaturity of the technology, there are glaring vulnerabilities that expose users to cybercrime. Until issues like scamming are fixed, potential users will continue to exercise caution and 5

mass adoption will not happen soon.

Criminal Activity

Blockchain has a credibility problem arising from the fact that many criminals use it to facilitate dirty endeavours. Notably. Some organizations do not want 5 to partake in Platform where they coexist with criminals, and they opt not to implement the technology.

Data Privacy It is clear that a blockchain network is based on a distributed ledger where all participants have

access to data on the platforms. As such, there is lack of data privacy and that firms will not be able to

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maintain their leverage against their competitors. Subsequently, many potential users shy away from

the technology for fear of losing their competitive advantage

Lack of partners

Blockchain is quite novel and understanding its basic principles requires assistance by those that are already knowledgeable. However, getting the night 5partner is problematic given that the law available are completely stretched with demand. Therefore, one is not likely to get the right kind of solutions.

Insufficient Blockchain Literacy Information regarding the yse and implementation of blockchain is scattered and accessing the most

useful piece of information is sometimes difficult. Further, organizations lack proper internal knowledge

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regarding use of blockchain. Therefore, it becomes difficult to develop a strong business strategy

centered on technology.

Transitioning Difficulty

Organization have grown used to extant structures, and their staff are also specifically trained to utilize them. Given that enterprise blockchain implementation requires completely new structures, 5 transitioning from legacy structures, transitioning from legacy structures becomes difficult.

Unclear Regulatory Environment

Many government are still unclear about how they view blockchain from a legal standpoint. This results from the complexity of the technology. Therefore, potential users fear future legal problems 5

and elect not to engage in the ecosystem.

Interoperability Challenges

One constant hurdle to enterprise blockchain implementation is the incapability of users on one platform to sufficiently interact with users on other platforms.

This lack of interoperability is holding 5 back many potential users.

Steps involved in blockchain implementation

5

Famous Examples of Enterprise Blockchain Project Failures 1. Maersk and IBM are scrapped TradeLens, a supply chain ecosystem that facilitates information

exchange for more than 65% of containerised #trade, in a surprise announcement last month that marked the demise of yet another digital trade platform. It was also a example of failure of

enterprise blockchain implementation failure. The closure of Tradelens was due to competitors not wanting to share business-critical data on the digital platform.

2. We.trade, one of the world’s earliest and fastest-growing blockchain-based trade finance platforms,

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has ceased operating after failing to raise enough capital to fund operations for the remainder of the business year.

3. The Australian Securities Exchange (ASX) said it was scrapping a much-delayed blockchain announced in 2016 that was meant to replace the clearing and settlement

system that powers that equities market.

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Key questions companies should consider before implementing blockchain

1. How does blockchain disrupt the business?

2. Is the purpose of the business application understood?

3. Is the technology resilient, scalable, and secure?

4. What are the impacts of blockchain 5 technology on the market?

5. How does blockchain reduce cost or improve customer service?

6. How should blockchain be governed and administered?

7. Are we considering a 3-5-year plan for blockchain?

A structured approach to blockchain adoption

To Maximize the benefits of blockchain, enterprises need to take a planned and measured approach to adoption

1.

Objective assessment of how blockchain can solve business problems and also rank opportunities based on potential business impact as well as adoption ease

5 2. Identify & prioritize business use cases with quantifiable outcomes 3. Identify the data elements and network participants for each use case …also create governance for shared value creation 4. Align incentive for each participant in the network using ecosystem thinking as ecosystem thinking can maximize value from blockchain adoption and it also creates value for the industry

Some of best practices towards achieving wider enterprise blockchain adoption success rate as follows:

1.

Understanding of underlying problems and needs, then devising proper implementable solutions.

2. User focus + Value focus.

3. Make it simple and easy to use.

4. Familiarize with regulation.

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