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Forbes: The Top 5 Key Factors for Success for Blockchain Enterprises

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This week, Forbes published an article listing the five key elements that enterprise blockchain must have to succeed.

Original Article Title:《Forbes: Five Key Elements of Enterprise Blockchain Success》

Original Source: BitpushNews

This week, Forbes published an article listing the five key elements that enterprise blockchain must possess to succeed. Forbes states that the impact of blockchain is driven by network effects. In other words, the more participants on a shared platform, the greater its potential value. However, executives have found that striving to support its ecosystem is a daunting task. By eliminating friction and opening up opportunities to enter new markets, the potential to unlock trillions of dollars in value exists. But to achieve this goal, organizations need to transition from a model where they have full control over applications and data to a model where applications and data are shared, which is a significant mindset shift.

Making this transition even more complex is the fact that this technology is also brand new, without established best practices or recognized return on investment. However, some executives in enterprises are continuously forging ahead, and best practices for blockchain collaboration are beginning to emerge.

1. Focus on a Single Common Issue

Nadia Hewett, project lead for blockchain and distributed ledger technology at the World Economic Forum, said, "When an entire industry rallies around a real pain point rather than just the blockchain, collaboration is best. Their pressure may come from regulators, investors, consumers, or employees, but regardless, when the industry faces an issue that every participant must address or that will affect every participant, a trend emerges."

This requires executives to shift from internal thinking to external thinking. They are no longer exploring how to optimize their own business internally but are coming together to identify issues that all members of the industry ecosystem must address, and then finding a collaborative approach. This naturally introduces complexity, so partners need a common reason to unite rather than attempting to solve various problems simultaneously.

2. Don't Rush to Plan Solutions

The farther you go in conceiving, architecting, and building a solution before key industry partners actively engage, the less ownership others will feel over the outcome, resulting in diminished support. Kim Harrington, head of the Bayer Blockchain Center of Excellence, explained, "Collaborating from the outset has been our top priority. The technology is not about individual organizations. We have been very cautious in reaching out to the industry and engaging people in the work we are exploring, which is critical to how we organize work." This requires ensuring everyone is on the same page, which takes time and patience. "Early on, I spent more time in external meetings with potential partners and collaborators rather than building solutions," said Harrington.

Since this technology is new, potential partners bring a range of experiences and misconceptions. Ensuring everyone has a basic understanding of blockchain's new capabilities is a crucial first step; before this, participants can align on their goals.

3. Involve People Who Can Make Tough Governance Decisions

Many projects start with governance decisions across organizations, paving the way for cross-organizational governance. "For blockchain to be meaningful, it must be decentralized, yet in reality, enterprises rarely start from there. Initially, they tend to try using a more centralized blockchain governance model because it is more efficient and easier to implement," said Mary Lacity, director of the Center for Excellence in Blockchain at the University of Arkansas. "It's a slow and steady migration towards decentralized governance."

Establishing a fair, inclusive governance system while ensuring ownership is not easy.

4. Don't Forget the Neutral Third Party

A neutral third party is often a vital part of blockchain initiatives involving competitors. It provides a venue to address various issues (which may include antitrust concerns) and can manage the project. Claus Jensen, Chief Technology Officer at CVS Health, said, "There needs to be a neutral third party trusted by all participants who must be willing to let that third party define the architecture of security and governance. Giving up that power is not easy."

5. Stay Agile

We are still learning how to design blockchain initiatives that promote collaboration and deliver ongoing value to all participants. The most successful initiatives realize they cannot solve all problems from the outset, so they actively incorporate new insights and experiences into their work. "If you were to list the most accomplished blockchain consortia, many are highly agile," shared Hewett. "This involves the business model, funding, and how they communicate and think. This agile approach and the recognition that decisions made today may be outdated a year and a half from now are crucial."

Lacity explained, "From the start, a consortium needs to constantly think about how to add value to each participant's business. This means evolving continuously and learning from mistakes."

Enterprises have long been striving to leverage new technologies. Blockchain adds complexity because the change needs to happen across multiple organizations simultaneously. It's not about mobilizing one organization; it's about mobilizing an industry. It's an incredibly challenging task. In this regard, Harrington says, "Successful managers are natural collaborators; they don't give up easily."