The Y2K hysteria happened because software developers assumed more efficient enterprise software solutions would emerge. Indeed, they also thought that another software suite would replace their two-digit date system before the year 2000. No doubt, few CIOs (Chief Information Officers) would have explained to the would-be efficient software developers that if something is not broken, there is no need to fix it. Nonetheless, this never happened. While many people perceived CIOs as mere technology enthusiasts, this is no longer the case. Today, IT systems are deployed in mission-critical environments. Changing them, even a tiny bit in itself, culminates in a significant degree of risk.
Risk Management in Enterprises
In relation to corporate concerns, risk management in such an environment is dicey. There is no doubt that many companies already have a lot on their plates. In essence, this means that they must work hard to keep their risks minimal. Therefore, companies cannot afford to do away with existing enterprise IT solutions because another has just hit the market. Guess what, this also applies to blockchain technology. In truth, nobody should expect any firm to jettison their SaaS solutions because blockchain technology is now the in-thing. This becomes particularly challenging when they need to bring along many new team members to deploy it.
Blockchain in the Enterprises
When it comes to deploying blockchain in an enterprise, some elements that appear as potential applications won’t gain traction. Indeed, the obvious blockchain solution that doesn’t gain traction is supplier collaboration. Sure, blockchain technology is ideal in multi-party, complex solutions. Over time, tokenization has proven to be a powerful tool for supply chain management. The reason is that when a company tokenizes its supply chain, each piece of inventory is subject to reconciliation and double-spend controls.
To have a grasp of enterprise double-spend, one needs to understand the concept of supply chain management. In the current enterprise, IT system-based supply chain structure, it allows users to create inventory anywhere even without reconciliation. Coming to the tracking system, given that there is no link between the enterprise system and the tracking system, there are no definite controls in place.
Tokenizing the Supply Chain
By tokenizing the supply chain, inventory tokens can now go through double-spend controls. Accordingly, the outcome is a process that takes the shape of banking. As a result, there is an increase in the accuracy of enterprise operations of up to 20%.
Nonetheless, there is a downside. Well, the challenge is that most large organizations have supplier relationship management systems, which handle the exchange of inventory data, invoice, and shipments. These systems are often point-to-point customer-centric structures, which connect customers to suppliers, eliminating middlemen. While these systems seem to be somewhat serving their purposes, they have lots of setbacks. Notably, they are expensive, grossly inadequate, and a departure of what blockchain can do. The biggest threat is that replacing them could result in a major crisis or the collapse of the entire supply chain.
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