Why Your Business Needs a Blockchain Dictator

William Mougayar is a Toronto-based entrepreneur, an investor and advisor to CoinDesk’s annual conference, Consensus 2016, and the author of “Blockchain for Business.”

In this article, Mougayar explores how companies can use blockchain strategy as part of their corporate technological innovation.

While blockchain is becoming increasingly important in finance and business, it is unlikely to have a significant impact until it reaches the highest levels of corporate leadership: the boardroom.

While some boards discuss blockchain, they are often just curious. Top-down meetings led by boards with a vision for blockchain are rare.

A lot of it is because they don’t have a designated blockchain strategy. If an organization doesn’t have a clear direction in this area, the board won’t have a serious discussion about it.

This means how companies can implement it in an organized manner, what use cases are available for selection, development and deployment; and how to evaluate the benefits of blockchain solutions compared to existing solutions.

However, implementing a blockchain strategy is not an easy task.

Typically, it starts with middle management, finding someone to coordinate the company's internal resources and research various issues and options.

However, even for top managers, it takes a long time for employees to recognize and understand blockchain and the various views of senior leaders.

An organization can take inspiration from other businesses that have walked this path.

There are three common ways:

1. Build a lab

Some companies have set up a "blockchain lab" and recruit engineers who can quickly implement and demonstrate ideas.

Such companies typically have an internal “marketing department” or department within the company that trains other business units on the feasibility of blockchain.

This lab is sometimes part of an innovation company and brings the latest technologies into the organization by finding intersections or integration points between technologies and companies.

However, introducing innovative technology is one thing, and implementing it is another. The real challenge is not to incubate an idea, but to implement the concept into various departments and business units and make the service a reality.

2. Project Team

Some other companies have set up internal blockchain task forces, which are composed of stakeholders from different business units and meet regularly to communicate and discuss.

One approach I've seen is a committee with two co-chairs. One from the business side and one from the technology side. Just like IT, blockchain sits between business and technology.

The challenge of this model is that stakeholders in various departments have different levels of knowledge and enthusiasm, and they may not fully agree with a specific direction. This role in the enterprise is more suitable for knowledge sharing and learning rather than a specific development direction.

There is also a risk in this model, which is that after all the hard work, the enthusiasm for the proof of concept may not necessarily be stimulated, and the proof of concept comes to an end without generating the benefits they expect.

To be effective, the task force needs guidance and standards that enforce self-imposition so that the task can continue.

3. Blending Modes

The hybrid model is my favorite because it combines the strengths of both the lab and the project team.

In order for this model to work, you need to set up a "blockchain dictator" role.

The emergence of this role can be traced back to the corporate reform period in the 1990s, when Michael Hammer and James Champy proposed it in their book Corporate Reform. This reform dictator is the focal point that can generate appeal in the enterprise.

Implementing corporate reform is like pure corporate faith, and I hope that blockchain innovation and investment will be treated the same way. For example, I have served as a corporate reform dictator at HP, so I am very sure of the effectiveness of this approach.

The blockchain dictator is responsible for removing barriers within the organization, promoting education, planning and sharing best practices, and overseeing the implementation of various processes in the organization. This job is difficult because it involves identifying and eliminating legacy processes rather than just automating assembly-line tasks.

One of the tasks of a hybrid approach is to discover ideas from different organizations through general observation, prove the concept in the laboratory, and then select the most appropriate solution and find the most direct business unit leader to implement it.

Summarize

Whichever option you choose, it’s best to have a blockchain advocate who is a respected thought leader, a strong communicator, and a blockchain technology enthusiast.

Blockchain technology is a development strategy platform. Strategy is not just about reducing costs and improving transaction efficiency. Strategy means finding the right-hand man who can increase your competitive strength or provide unique advantages for your customers.

To get into a board meeting, you need to demonstrate and explain this strategic role of blockchain. The board wants to hear about the competitive advantage blockchain brings to the company, not just a test.

How companies can implement blockchain strategies within their organizations will be explored at Consensus 2016, CoinDesk’s annual gathering of leaders in blockchain innovation, including Barclays, Citigroup, Deutsche Bank, Philips and Thomson Reuters.