Page 20 - FCW, Jan/Feb 2018

Emerging Tech
“Taste it, smell it, feel it, get your hands dirty,” the executive recom- mended. “Chip away at that risk. After that initial assessment, you still have to say, ‘OK, but are there other things out there that could solve this problem and that are better, faster, cheaper than a blockchain solution?’ You’re not just looking for a nail to hit with a blockchain hammer. It’s more of a thoughtful, responsible way of tackling problems.”
Another executive agreed on the need for caution. “When cloud came around 10 years ago, we didn’t start with our mission-critical systems. We don’t plunge into blockchain. Let’s try those low-hanging business processes rst.”
However, one of their colleagues said the situation is beyond the think- ing and testing phase; it is time to act before the U.S. is left behind. He cited the example of a China-based com- pany that provides the bulk of the world’s auto parts. It is investing $50
million into applying blockchain to the entire manufacturing and distribu- tion process.
“You’ve just created OPEC if you have that level of visibility and you have the ability to keep your labor costs low,” he said. “I think we have to push into it or else we will be governed by the rules that are estab- lished by whoever the rst mover is. You cannot turn your head on the fact that this is a competition.”
Beyond bitcoin
One participant predicted that “2018 will be the year when we see use cases that create business value. But we have to have a higher bar than that. Not only do they have to create business value, they have to create an understanding of what blockchain is. If we don’t remove the fear of
the unknown, no matter how much business value we create, it could be undone.”
Another executive had a slightly
different take: “The fear isn’t in the technology. The fear is in the invest- ment. I have to get an ROI that’s going to make my system more ef cient. That’s my bottom line: Is blockchain going to give me that ability to make something better?”
Some participants, however, said they are already using blockchain. One executive’s agency developed a smart contracting capability to automate nancial analysis and prepare for contract negotiations. He said setting up the smart algorithm was easy, but overcoming his colleagues’ skepticism and misconceptions was trickier.
“The hardest piece was getting away from ‘blockchain is used for bitcoin,’” the executive said. “All the documentation that exists is about that. The hardest part was getting everyone to say, ‘Well, we could
just try it for something a little bit simpler.’”
Another participant agreed, say- ing, “We started using the technology
18 January/February 2018 FCW.COM