There has been no shortage of promises about blockchain (or distributed ledger technology), but actual returns to date have been uncertain. A recent survey of 550 executives, along with analysis of 79 blockchain projects from the World Economic Forum (WEF) and Accenture Research, finds blockchain has yet to deliver on an enterprise scale. Executives expected a 24% return on investment on early blockchain projects, but only saw a 10% return, the analysis shows.
Blockchain proponents need to pinpoint key areas of the business where progress can be measured and documented. The survey’s authors, Sheila Warren of WEF and David Treat of Accenture, have a few suggestions as to where they can start, and cite examples of key metrics that may fit:
Auditability: mistakes eliminated. Blockchain offers a shared ledger of transactions with full traceability of any assets and associated activity, enabling organizations to “raise levels of confidence in the data they are producing without having to manually validate the data.”
Compliance: risk mitigated. “Compliance brings with it a great deal of risk and damage if mismanaged. Knowing that blockchain can’t be tampered with can provide increased confidence in the data.”
Data management: improved product forecasting. “Blockchain can improve the management of data in data provenance and accuracy through knowing more about digital assets and accompanying data.”
Data security: data breaches prevented. “Blockchain technology makes use of military-level cryptography.”
Ownership: improved customer experience. “Blockchain technology can enable true digital ownership of both real-world goods and digital assets by creating improved intellectual property and personalized data profiles, without the need to…