So, What's Blockchain?
Firstly, let’s try and define blockchain technology in simple terms. At its core, blockchain is a highly secure and collaborative way of recording transactions and storing data. It works by recording transactions between two parties in a verifiable and permanent way, using an open peer-to-peer network. In short, the transactions are recorded and visible; the parties involved are not.
And how does it tie into BPM?
Now to BPM! In many cases, business processes rely on data from information systems outside of their control, or from external enterprises. Blockchain technology can be an answer to the trust and transparency issues that occur when dealing with fragmented systems.
Blockchain and BPM
Not only can transparent collaboration of disparate parties in a business network become a single source of truth for process states, it also leads to improved quality of business processes, resulting in greater efficiency overall. The prompt availability of data on the shared ledger removes bottlenecks and enables better decision making and smart contract enabled validation results in greater flexibility and agility of business processes.
In many processes that cross organizational boundaries, information remains stuck in silos, greatly hampering collaboration. Therefore blockchain technology has the power to address issues such as:
- quality and safety in fragmented or globalized supply-chains
- errors and fraud for bank guarantees and insurance claims
- traceability and transparency in the transfer of ownership
- validation of authenticity and accuracy of important documents.
If you want to find out more about how emerging blockchain technology has the potential to drastically change the environment in which inter-organizational processes are able to operate, then drop us an email at email@example.com!
With so many potentially positive results, it looks like this (relatively) new, disruptive technology could be BPM’s next big ally. Watch this space!