Blockchain – Three Ways to
Prevent It From Failing In The
Enterprise
Aaron Rorstrom, Principal Enterprise Architect
San Francisco, December 2017
#CWIN17
Blockchain – Three Ways
to Prevent It From Failing In
The Enterprise
Session Introduction
#CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 4#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
1
2
3
Our Agenda
Blockchain has NOT Disrupting an Existing
Technology, it has Introduced Something Brand New
Challenges in the Enterprise
Internal Frictions, Business Models and Culture are
Challenges Across the Enterprise That Can Hinder
Blockchain’s Success
Mitigating Tactics to Succeed
Targeted and Practical Decisions and Actions can Help
Mitigate and Deal With the Internal and External
Challenges
A Quick What Is “Blockchain”?
What is Blockchain?
https://www.weforum.org/agenda/2016/06/blockchain-explained-simply/
Defined as “an incorruptible digital
ledger of economic transactions
that can be programmed to record
not just financial transactions but
virtually everything of value” by
“Blockchain Revolution” authors Don
and Alex Tapscott, the technology
holds massive promise for multiple
industries, particularly in regards to
securing data.
© 2017 Capgemini. All rights reserved.
Look Beyond “Economic Transactions” …
#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Blockchain Ecosystem
Distributed, Shared Ledger
Four Main Architecture Components of Blockchain
(A Simplified View)
1. a Node Application
2. a Shared Ledger
3. a Consensus Algorithm
4. a Virtual Machine
© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Node
Virtual Machine
Blockchain
Application
Blockchain Simplified
Architecture View
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Every Participant in the Blockchain (human
or machine) requires a computer running
the Blockchain Application
Failure Points within the Enterprise
| 7
• Monumental business
model changes enabled
by blockchains could
result in various types
of organizations and
significant changes
across the ecosystem,
including the tightening
of trust and a new
mechanism for value
exchange
• Lack of awareness for
the impact of
Blockchain to human
and technical systems
• Confusion over what
Blockchain is and
where it can hinder
realizing the benefits
from Blockchain
• Information,
Interaction and
Innovation – these
typically provide a drag
on efficiency
• The friction points exist
for internal and external
aspects of the business
1
Business Model PreparednessFriction Points
Breadth of changes
to business models
& processes
Human & Technical
systems require
specific attention
Three types of
frictions
2 3
#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
8© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Blockchain Ecosystem
Distributed, Shared Ledger
data storage and access
Having Data At the Center of the
Picture Requires a Different Approach
to Designing and Developing business
and technology solutions
Blockchains Can Be Open or Require
Special Permissions to Participate
Blockchain Technology Operates as a
Service Overlay Network … Each
Participating Computer Must Run the
Application / Service That
Interoperates within the Overlay
Network
Across the “chain” data moves from one block
to another and at each block specific things /
operations could transpire
Blockchain Puts Data in
the Center of the Picture
Block 1
Block 2
Block 3
Block <n>
Root Block
data flow
data flow
data flow
Blockchain Conditions
And Enterprise Use Cases
10© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
The Design Principles are Core and
Fundamental to the Adoption and
Utilization of a Blockchain Offering …
You Need to be Prepared for the
Impact of Each
Principle Feel Like “Conditions”
Networked Integrity
Distributed Power
Value as Incentive
Security
Privacy
Rights Preserved
Inclusion
Don and Alex Tapscott have defined
7 Design Principles Implicit in Blockchain…
Design Principles for Blockchain
Source: “Blockchain Revolution”, Don Tapscott and Alex Tapscott, 2016
1
2
3
4
5
6
7
Some aspect of each will affect your chosen Application
11© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Regulatory Compliance
Identity Management
Blockchain success in the enterprise will NOT come
from the cryptocurrency ledger offering but via
specific and selective enterprise use cases…
Supply Chain
Consider doing an achievable and correctly
scoped Proof of Concept that considers the
impacts on All Parties
As Your experience and success progresses,
consider applying multiple Blockchains within
a Value Chain / Value Stream
Practical application of
the concepts and
technologies introduced
by Blockchain can
facilitate success in the
enterprise
Some of the Enterprise Use Cases That Can Help
Blockchain be Successful?
…avoiding another Chipotle event
…accurate and timely reporting
…one person, one identity
12© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Focus on Business Value Over the
Technology Shiny Object for Your
Practical Use Case(s)
Other Candidate Practical Use Cases
• Asset Life Cycle Management
• Digital Rights Management
• Contract Life Cycle Management
• Aircraft Operating, Service and
Maintenance Record Management
• Customer Engagement History
• Customer Profile Management &
Control
• Partner Engagement History
• Business Information Security
• Cross Enterprise Collaboration
• Medical Record History
• Medical Device Transaction Record
History
• Legal Matter Discovery and
Management
• (IoT) Device Transaction History
• Digital Thread Transaction and
Records Management
• Digital Asset Management
(Publication, Audio, Video, Product
Information, 3D Models, etc.)
• Product Configuration History
(from as-designed through as-
maintained and operated)
• Chemical Substance Declaration
Monitoring and Reporting
• Brokered Services – energy, data,
business process, business service
Facilitating Blockchain Success
In The Enterprise
#CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 14#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
1
2
3
Consider the human, technical
and political aspects of adopting
and implementing Blockchain…
Be Sensitive to operational and
business changes resulting from
a Blockchain Application
becoming part of Your Business
Ecosystem and the Extended
Enterprise
3 Things to do to
Facilitate a
Successful
Adoption of
Blockchain That
You Can Grow
and Expand
Select a Use Case Based on Business Value
• Don’t Do Blockchain for Technology Sake … Do
Blockchain for its Explicit Value to an Aspect of the
Business, a Business Model or a Functional Area …
Focus on a Contemporary Problem
• Monitor and Govern the Adopters (internal, external)
Get Your House In Order
• Intentionally Breakdown Internal Silos
• Security and Identity Management
• Integration Services
• Prepare for an Accelerated Pace of Evolution
• Embrace Cloud Native Development
Conduct an Appropriately Scoped POC
• Scope a POC that is Achievable and that Will Test the
Business and Technology Aspects … Post Facto,
Verify the Areas of Impact
• Consider Including an External Party From the
Ecosystem
• Include Political Aspects in Planning for Expansion
15#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
Your Journey Forward…
• Accept that Adoption of Transformational
Digital Capabilities (such as Blockchain) is
a “Human Endeavor”
• Focus Your Adoption Activities on a
“Practical Enterprise Use Case”
… Look Across a Value Chain or
Value Stream for a Use Case
Opportunity
• “Tightly Integrate Business
Actors” (internal, external)
Through a Central Depository
of Selective Business
Transactions and Actions / Behaviors
AND
• Aim to Achieve
“Secure By Design”
#CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 16#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
…embrace the exodus from the
“Centralized World” moving towards
a Decentralized Way of Working and
Exchanging Valued Assets
Blockchain is the First Important
Mechanism to Facilitate Our
Trajectory towards Decentralization
Digitization of the
Business is Moving
Us Towards a
Decentralized
World…
17© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Thank You!
Phone: +1 215 470-1272
aaron.rorstrom@capgemini.com
Aaron Rorstrom
Principal Enterprise Architect
Enterprise Business Technology Transformation
Expert Connects Network Member
@AaronRorstrom
Current Research & Innovation Development Areas:
• “Enterprise Architecture as Strategy”
• “Digital Transformation as a Human Endeavor”
• “Ecosystem Engagement Tactics at the Edge of the Enterprise”
Appendix
Additional information on the Blockchain topic
Example Portfolio of Proofs of Concept
Loyalty
• Digital loyalty tokens platform which enables multi-tenant, cross-platform collaboration and a
decentralized exchange for easy and quick conversion of loyalty tokens.
Syndicated Loans
• A decentralized solution which brings a common digital platform to a small group of stakeholders (lead
bank, participating bank and borrower) to increase efficiency (conversion from paper to digital).
Private Securities
• Private securities solution which enables capital markets firms to create digital assets and automates the
master order book, corporate action and exchange of digital securities, with the direct and immediate
access and oversight by state regulatory bodies.
Ripple Integration
• Based on our partnership with Temenos (core banking) and Bluzelle (Ripple Gateway), this solution allows
financial institutions to connect their core banking application directly to the Ripple Network.
PSD2 Compliance
• Ethereum solution for Payment Services Directive 2 (PSD2), which enable a common framework and
standard for third parties and financial institutions to authorize transactions between parties.
Fiat - Relay
• Fiat-Relay is an open source initiative by Capgemini and a partner bank to connect smart contracts to
traditional payment services.
Focusing on the commercial transaction use case, listed below is an example list of PoCs that Capgemini
has successfully conducted. Other examples include supply chain, digital rights management, et al.
#CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
With more than 190,000 people, Capgemini is present in over 40 countries and
celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology
and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion.
Together with its clients, Capgemini creates and delivers business, technology and
digital solutions that fit their needs, enabling them to achieve innovation and
competitiveness. A deeply multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business Experience™, and draws on Rightshore®, its
worldwide delivery model.
About Capgemini
Learn more about us at
www.capgemini.com
This message contains information that may be privileged or confidential and is
the property of the Capgemini Group.
Copyright © 2017 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to
read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please
notify the sender immediately and delete all copies of this message.
CWIN17 san francisco-blockchain three ways to prevent it from failing in the enterprise

CWIN17 san francisco-blockchain three ways to prevent it from failing in the enterprise

  • 1.
    Blockchain – ThreeWays to Prevent It From Failing In The Enterprise Aaron Rorstrom, Principal Enterprise Architect San Francisco, December 2017 #CWIN17
  • 2.
    Blockchain – ThreeWays to Prevent It From Failing In The Enterprise Session Introduction
  • 3.
    #CWIN17 Blockchain |A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 4#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 1 2 3 Our Agenda Blockchain has NOT Disrupting an Existing Technology, it has Introduced Something Brand New Challenges in the Enterprise Internal Frictions, Business Models and Culture are Challenges Across the Enterprise That Can Hinder Blockchain’s Success Mitigating Tactics to Succeed Targeted and Practical Decisions and Actions can Help Mitigate and Deal With the Internal and External Challenges A Quick What Is “Blockchain”?
  • 4.
    What is Blockchain? https://www.weforum.org/agenda/2016/06/blockchain-explained-simply/ Definedas “an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value” by “Blockchain Revolution” authors Don and Alex Tapscott, the technology holds massive promise for multiple industries, particularly in regards to securing data. © 2017 Capgemini. All rights reserved. Look Beyond “Economic Transactions” … #CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
  • 5.
    Blockchain Ecosystem Distributed, SharedLedger Four Main Architecture Components of Blockchain (A Simplified View) 1. a Node Application 2. a Shared Ledger 3. a Consensus Algorithm 4. a Virtual Machine © 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 Node Virtual Machine Blockchain Application Blockchain Simplified Architecture View Consensus Algorithm Node Virtual Machine Blockchain Application Consensus Algorithm Node Virtual Machine Blockchain Application Consensus Algorithm Node Virtual Machine Blockchain Application Consensus Algorithm Every Participant in the Blockchain (human or machine) requires a computer running the Blockchain Application
  • 6.
    Failure Points withinthe Enterprise | 7 • Monumental business model changes enabled by blockchains could result in various types of organizations and significant changes across the ecosystem, including the tightening of trust and a new mechanism for value exchange • Lack of awareness for the impact of Blockchain to human and technical systems • Confusion over what Blockchain is and where it can hinder realizing the benefits from Blockchain • Information, Interaction and Innovation – these typically provide a drag on efficiency • The friction points exist for internal and external aspects of the business 1 Business Model PreparednessFriction Points Breadth of changes to business models & processes Human & Technical systems require specific attention Three types of frictions 2 3 #CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
  • 7.
    8© 2017 Capgemini.All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 Blockchain Ecosystem Distributed, Shared Ledger data storage and access Having Data At the Center of the Picture Requires a Different Approach to Designing and Developing business and technology solutions Blockchains Can Be Open or Require Special Permissions to Participate Blockchain Technology Operates as a Service Overlay Network … Each Participating Computer Must Run the Application / Service That Interoperates within the Overlay Network Across the “chain” data moves from one block to another and at each block specific things / operations could transpire Blockchain Puts Data in the Center of the Picture Block 1 Block 2 Block 3 Block <n> Root Block data flow data flow data flow
  • 8.
  • 9.
    10© 2017 Capgemini.All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 The Design Principles are Core and Fundamental to the Adoption and Utilization of a Blockchain Offering … You Need to be Prepared for the Impact of Each Principle Feel Like “Conditions” Networked Integrity Distributed Power Value as Incentive Security Privacy Rights Preserved Inclusion Don and Alex Tapscott have defined 7 Design Principles Implicit in Blockchain… Design Principles for Blockchain Source: “Blockchain Revolution”, Don Tapscott and Alex Tapscott, 2016 1 2 3 4 5 6 7 Some aspect of each will affect your chosen Application
  • 10.
    11© 2017 Capgemini.All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 Regulatory Compliance Identity Management Blockchain success in the enterprise will NOT come from the cryptocurrency ledger offering but via specific and selective enterprise use cases… Supply Chain Consider doing an achievable and correctly scoped Proof of Concept that considers the impacts on All Parties As Your experience and success progresses, consider applying multiple Blockchains within a Value Chain / Value Stream Practical application of the concepts and technologies introduced by Blockchain can facilitate success in the enterprise Some of the Enterprise Use Cases That Can Help Blockchain be Successful? …avoiding another Chipotle event …accurate and timely reporting …one person, one identity
  • 11.
    12© 2017 Capgemini.All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 Focus on Business Value Over the Technology Shiny Object for Your Practical Use Case(s) Other Candidate Practical Use Cases • Asset Life Cycle Management • Digital Rights Management • Contract Life Cycle Management • Aircraft Operating, Service and Maintenance Record Management • Customer Engagement History • Customer Profile Management & Control • Partner Engagement History • Business Information Security • Cross Enterprise Collaboration • Medical Record History • Medical Device Transaction Record History • Legal Matter Discovery and Management • (IoT) Device Transaction History • Digital Thread Transaction and Records Management • Digital Asset Management (Publication, Audio, Video, Product Information, 3D Models, etc.) • Product Configuration History (from as-designed through as- maintained and operated) • Chemical Substance Declaration Monitoring and Reporting • Brokered Services – energy, data, business process, business service
  • 12.
  • 13.
    #CWIN17 Blockchain |A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 14#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 1 2 3 Consider the human, technical and political aspects of adopting and implementing Blockchain… Be Sensitive to operational and business changes resulting from a Blockchain Application becoming part of Your Business Ecosystem and the Extended Enterprise 3 Things to do to Facilitate a Successful Adoption of Blockchain That You Can Grow and Expand Select a Use Case Based on Business Value • Don’t Do Blockchain for Technology Sake … Do Blockchain for its Explicit Value to an Aspect of the Business, a Business Model or a Functional Area … Focus on a Contemporary Problem • Monitor and Govern the Adopters (internal, external) Get Your House In Order • Intentionally Breakdown Internal Silos • Security and Identity Management • Integration Services • Prepare for an Accelerated Pace of Evolution • Embrace Cloud Native Development Conduct an Appropriately Scoped POC • Scope a POC that is Achievable and that Will Test the Business and Technology Aspects … Post Facto, Verify the Areas of Impact • Consider Including an External Party From the Ecosystem • Include Political Aspects in Planning for Expansion
  • 14.
    15#CWIN2017 Blockchain |A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. Your Journey Forward… • Accept that Adoption of Transformational Digital Capabilities (such as Blockchain) is a “Human Endeavor” • Focus Your Adoption Activities on a “Practical Enterprise Use Case” … Look Across a Value Chain or Value Stream for a Use Case Opportunity • “Tightly Integrate Business Actors” (internal, external) Through a Central Depository of Selective Business Transactions and Actions / Behaviors AND • Aim to Achieve “Secure By Design”
  • 15.
    #CWIN17 Blockchain |A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 16#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. …embrace the exodus from the “Centralized World” moving towards a Decentralized Way of Working and Exchanging Valued Assets Blockchain is the First Important Mechanism to Facilitate Our Trajectory towards Decentralization Digitization of the Business is Moving Us Towards a Decentralized World…
  • 16.
    17© 2017 Capgemini.All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 Thank You! Phone: +1 215 470-1272 aaron.rorstrom@capgemini.com Aaron Rorstrom Principal Enterprise Architect Enterprise Business Technology Transformation Expert Connects Network Member @AaronRorstrom Current Research & Innovation Development Areas: • “Enterprise Architecture as Strategy” • “Digital Transformation as a Human Endeavor” • “Ecosystem Engagement Tactics at the Edge of the Enterprise”
  • 18.
  • 19.
    Example Portfolio ofProofs of Concept Loyalty • Digital loyalty tokens platform which enables multi-tenant, cross-platform collaboration and a decentralized exchange for easy and quick conversion of loyalty tokens. Syndicated Loans • A decentralized solution which brings a common digital platform to a small group of stakeholders (lead bank, participating bank and borrower) to increase efficiency (conversion from paper to digital). Private Securities • Private securities solution which enables capital markets firms to create digital assets and automates the master order book, corporate action and exchange of digital securities, with the direct and immediate access and oversight by state regulatory bodies. Ripple Integration • Based on our partnership with Temenos (core banking) and Bluzelle (Ripple Gateway), this solution allows financial institutions to connect their core banking application directly to the Ripple Network. PSD2 Compliance • Ethereum solution for Payment Services Directive 2 (PSD2), which enable a common framework and standard for third parties and financial institutions to authorize transactions between parties. Fiat - Relay • Fiat-Relay is an open source initiative by Capgemini and a partner bank to connect smart contracts to traditional payment services. Focusing on the commercial transaction use case, listed below is an example list of PoCs that Capgemini has successfully conducted. Other examples include supply chain, digital rights management, et al.
  • 20.
    #CWIN17 Blockchain |A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2017 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message.