7 Challenges Supply Chain Leaders Face in Blockchain Adoption and How to Overcome Them

By neub9
5 Min Read

97% of financial services leaders believe they’ll lose out on competitive advantages if they don’t integrate blockchain into their operations. But the question remains: how exactly do you go about doing that?

As more industries begin to adopt blockchain to enhance their operations, increase transparency and security, and provide better customer experiences, ambitious business leaders may find themselves unsure where to start. Even those who have already begun experimenting with blockchain technology may have encountered roadblocks. Despite this, business leaders already using blockchain expect a 23% ROI five years out, and a 65% ROI in ten years. But the real challenge is how to reach those targets.

Understanding the Challenges Preventing Blockchain Experimentation

In a recent report on the “State of Blockchain Transformation in Supply Chain,” industry respondents shared the obstacles preventing them from fully embracing blockchain technology.

Integration with legacy systems: Successful integration of blockchain projects into current systems and networks is the biggest challenge faced by those already experimenting with blockchain.

Technical limitations and scalability issues: Many blockchain experimenters encounter hurdles due to lack of technical expertise or the ability to scale their projects.

Lack of clear understanding: Organizations that have yet to experiment with blockchain struggle to understand how the technology works and how it can benefit them.

Security concerns: Despite its security benefits, some organizations are hesitant to adopt blockchain due to concerns about its security compared to their current systems.

Regulatory and compliance concerns: Both groups face challenges in understanding the regulatory and compliance landscape, particularly in heavily regulated industries like financial services.

Budget constraints: Many organizations struggle with finding the necessary funds to invest in blockchain experimentation due to a lack of understanding of its benefits or low ROI on initial projects.

Finding the right tools and platforms: The search for suitable tools, platforms, and development resources presents challenges for both groups.

Steps to Overcoming Blockchain Challenges

While these challenges may appear daunting to those unfamiliar with blockchain technology, they can be overcome through a comprehensive approach that addresses not only the technology but also the people and processes involved. Here are five steps to help organizations navigate the hurdles and embrace blockchain technology:

1. Understand How Blockchain Provides a Competitive Advantage

Recognize the competitive advantages that blockchain offers, including increased security, scalability, and transparency. Blockchain can make transactions more secure and transparent, create a shared source of truth, improve security, reduce counterparty risk, and lower operational costs.

2. Define Your Blockchain Goals and Choose the Right Use Cases

Determine your objectives and goals for blockchain implementation, and select suitable use cases such as ESG reporting, data sharing, payments, real-time tracking, IoT integration, quality assurance, and compliance.

3. Invest in the Right Tools and Technologies

Invest in a suitable Blockchain Transformation platform that offers templates, customizable smart contract libraries, and integration assistance to simplify the complexity of blockchain projects for developers.

4. Build and Train Your Blockchain Teams

Form a cross-functional blockchain team, including developers, industry experts, and project managers, and provide them with the necessary blockchain knowledge and skills to lead the transformation.

5. Measure Your ROI for Increased Buy-In

Track and measure the ROI of your blockchain projects, highlighting their impact on operational efficiencies, application lifecycle savings, and incremental revenue. Demonstrating the benefits of your projects can increase buy-in from leadership, leading to larger budgets.

Empowering Blockchain Transformation

By addressing these challenges and embracing blockchain technology, organizations can realize the potential ROI and benefits that blockchain offers for the future of supply chain management.
The post 7 Challenges Supply Chain Leaders Face in Blockchain Adoption and How to Overcome Them appeared first on Datafloq.

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