Blockchain is one of the most important technologies of today in guiding the digital transformation of manufacturing companies. Blockchain technology is a term that commonly identifies a specific kind of solution that ensures reliability and transparency. Blockchain makes it possible to provide the customer with more value, through the creation of a new model for the sharing of data, one that is safer and more transparent.
What is blockchain and what are its applications in manufacturing?
Blockchain technology is currently deemed to be one of the safest architectures for tracing data and for the permanent handling and recording of transactions. According to data by IDC, 2021 spending in blockchain applications will reach $6.6 billion, a 50% increase from last year. Turning to geography, the United States leads in spending, making up almost 40% of spending this year at $2.6 billion, followed by Western Europe ($1.6 billion) and China ($777 million). In terms of industry sectors, banking is the largest at 30% followed by process manufacturing and discreet manufacturing at 20%.*
Manifold applications are possible for the manufacturing industry, as blockchain guarantees scalability for companies, in terms of transparency in all areas of the production process, from procurement to raw materials and the delivery of finished product. Specifically, blockchain can intervene significantly in supply chain monitoring, quality controls and in the achievement of regulatory standards.
Therefore manufacturing companies can ensure full visibility of all transactions along the chain, thus reducing delays and costs. But there’s more. Greater levels of transparency guaranteed by blockchain also build trust between actors involved, who through a decentralised and distributed digital register can share and view all data in real time.
In terms of security, the digital register keeps track of transactions and authentications; data records are irreversible and protected by powerful encryption tools that prevent any tampering.
As far as customer experience (CX) is concerned, the combination of blockchain technology with modern CRM systems enables companies to reinforce customer trust. This is possible thanks to the automation of transactions with all actors involved in production, distribution and end product sale. Interoperability means that the customer’s most significant data and transactions can be stored in a single digital portfolio, generating advantages that are also palpable along the customer journey.
Blockchain and manufacturing: a roadmap for the future
The centrality and importance of blockchain in stimulating economic recovery is increasingly evident, especially for the manufacturing sector, one of the most important industries of many national economies. Today more than ever before, the promotion and protection of national manufacturing has become a vital requirement for the economic relaunch, not only in terms of the production of goods in the manufacturing industry, but also for the packaging of imported parts.
Blockchain spending will continue to see strong growth throughout the 2021-2024 forecast period with a compound annual growth rate (CAGR) of 48.0%*, a symptom of how companies are increasingly interested in investing in this technology.
However to really leverage blockchain power, manufacturing companies must change their strategic approach towards blockchain and create a company roadmap that includes the implementation of technology as well as cultural change, starting from management all the way through to operative teams.
The importance of a clear strategy to be followed
The support of consultants with blockchain expertise is fundamental in encouraging the adoption of a strategic approach to this technology. Such professionals are capable of identifying the requirements of companies, while also taking into account the needs of people involved. In an innovation project, the human factor, synergy and cooperation in the work team, is a fundamental element in the success of an initiative.
Atlantic Technologies has developed an inclusive change management methodology that enables the involvement of people in the solution adoption process, for the successful management of company change. Therefore Atlantic Technologies is the ideal partner for all companies that decide to take on the challenge of digitalisation, including blockchain.
We support our clients of the manufacturing industry in the adoption of this technology, above all due to its extraordinary potential in the field of Supply Chain Management.
For the manufacturing sector, the advantages of opting for Oracle blockchain applications also include:
● Improved traceability of goods and transparency along the supply chain
● Increased visibility thanks to a supply chain that includes different levels
● Concrete improvement of customer satisfaction
● Faster delivery of products
● Reduced supply chain costs
Thanks to the uniqueness of blockchain technology, manufacturing companies can leverage the greater visibility of production processes to improve the company’s decision-making process for a more rapid response to customer requirements and to seize all business opportunities on the market.
Blockchain can also work to the advantage of Customer Relationship Management (CRM). Specifically, thanks to the Salesforce Blockchain solution, it is easier to guarantee compliance with security and privacy standards and simplify relations with the customer. Companies can create a dedicated network for the safe sharing of data between applications they use, in a secure, reliable and simple way. In this way authenticated CRM data and processes can be grouped together and still be distributed on different levels.
Atlantic Technologies has solid experience in digital transformation and in the optimisation of supply chain processes. Add to this our 25 years of consultancy experience, making us a reliable technological partner for supporting the process of continuous innovation and digitalisation.
Discover how our consultants can help you to find the most suitable solution for your requests!