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Understanding the impact of blockchain technology by Odile Panciatici, Blockchain Vice President of Groupe Renault

It’s difficult to form an opinion on the blockchain subject when you read everything and its opposite on this technology!

While William Mougayar writes, “The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, which progresses slowly and gradually envelops everything in its path by the force of its progression. ", The New Digital Factory says it poses serious problems of trust and security" With the blockchain, we are asked to believe in the only technology: "code is law", in short on a system based on a stool with one foot, or even one and a half (the decentralized organization)!"

A revolution of the future or a vast speculative illusion?

What is certain is that the phenomenon is growing day by day and that this technology which had started in the financial field in a massive way is used more and more in other fields and other industries. Its demonstrated reputation for security and the transparency it induces meet the high expectations of today's society. Our need to have complete visibility into the origins of all our consumer goods for health or ethical purposes is increasing every year and this growth is not about to stop. This technology is a revolutionary brick in the digital transformation of companies.

It has very specific application cases: the need for certification, complex processes involving a multiplicity of actors. But the essential component of a blockchain is its network.

The major difficulty in implementing a blockchain therefore lies in the creation of this network and in the ability to federate companies to work in collaboration and move from a traditional customer-supplier relationship to a much more partnership relationship, with an unusual information transparency. We go from a centralized network with a master / slave relationship to a decentralized flat network where relationships are made in peer to peer. With the blockchain, no more unclear arrangements, but the traceability of the facts shared by all. Social pressure clearly goes in this direction, but are companies ready for this first breakthrough? We are no longer talking here of a simple digital technology but of a completely imperative change of mindset if companies want to continue to exist on competitive markets. Because some countries are ahead of a massive use of the blockchain, like China for example.

Most companies have operated or are operating their own digital transformation today. It is already complicated to make a real digital transformation and not a simple digitalization of the current process. With blockchain technology, we go beyond. A blockchain project is a collaborative multi-company digital project. Again, this is quite a challenge in the evolution of our operating methods which are becoming much more collaborative with the stake of a possible pooling of project development costs and thereby an opportunity to go faster in the digital transformation. In addition, it is an interactive cycle where the transformation brought by blockchain projects reflects on the digital transformation of each company involved.

Blockchain will also deeply transform processes. We can speak here of "lean ecosystem process" like the lean manufacturing known in the industry, since the blockchain by design eliminates many breaks in the transmission of data between members of the network and we are no longer in the search for information  but in the direct and instant sharing of the data with the possibility, via smart contracts, of having automatic alerts in real time of data change! We therefore find here a strong source of productivity and a reduction in tasks with low added value. The second breakthrough therefore lies in the operational excellence approach made possible by technology, with the stake of an evolution of skills towards professions with higher added value.

The third breakthrough and probably the most valuable is the creation of new shared data. We can share data, some of which remains protected by intellectual property thanks to encryption associated natively with technology, and we can use this protected data to generate, thanks to smart contracts, new data that can create new opportunities. We thus constitute a "collective intelligence" which brings new values to allow companies to create new businesses or to go much further in existing ones. Of course, artificial intelligence will be an asset in structuring this new data to make prediction, even prescription. This latest breakthrough is clearly the one that opens new doors to the future and innovation of industries.

Blockchain is the catalyst for an in-depth transformation of each company and the way companies work together.

The technology does indeed seem very attractive and promising and its reputation for security and trust has been consolidated by the first use cases.

Blockchain technology provides this data certification, this transparency in operations and this bond of confidence that has been shaken by the various scandals

Attend the Odile's sessions at the virtual Blockchain for Business Summit by registering for free.