The El Niño of the digital ecosystems

After digitizing current processes we started optimizing them. All purely focused on efficiency. Saving costs. Improving margins. Happier customers. Now is the time to start the real digital transformation. A revolution is needed.

Many organizations are working on process optimization. They are looking at eliminating human interaction by means of digitization, integration and robotization. Organizations working LEAN will go a bit further and will continuously try to improve the efficiency of processes. Mostly, this is all based on current revenue streams and business models. Also, it is assumed that the organization has a relevant function and will keep that function in the ecosystem.

What’s happening around us?

Every organization is part of an ecosystem. Ecosystems that become more and more digital. By exchanging information digitally between parties in such an ecosystem, these ecosystems will become more and more efficient. First we used EDI and today, in modern application landscapes we use APIs more and more. APIs that are becoming smarter and smarter and can find eachother more or less automagically. APIs that are a direct interface to an existing application. An application that most of the times is a system of record. Not a very “interesting” application most of the times, only capable of handling basic administrative needs such as handling orders and ship notices.

The middleman in crisis

There are only a few systems of record that really deliver true value add for an organization. The real value add of an organization usually is in the uniqe position in an ecosystem and the processes it delivers by means of a combination of all kinds of software systems, on-premises and in the cloud. But what happens when your combination of services suddenly is not relevant anymore? Because ecosystems have found a way to solve the isssues in another, much better way? Your organization actually doesn’t have a function anymore? Because you are actually the middleman? Crisis!

We are seeing everyday that new ways of working together in ecosystems evolve rapidly. The most important unique selling point of blockchain is to cut out the middleman. This is possible because the system enables collaboration without having trust in place. You don’t have to trust eachother. The trust has been digitized. By means of smart contracts. Look around you. Blockchains that enable peer-to-peer lending, that make wholesale and banks obsolete, that replace marketplaces and trading systems, etc. etc.

Blockchain is a revolution

Blockchain is the El Niño of the digital ecosystems; it changes traditional collaborations between companies and disturbs the balance. We will probably see an Al Gore like person in the near future who will warn us of the dangers. But, just like in nature, it will take a while but a new balance will evolve. After which the landscape will be thoroughly changed. There will be many victims, but sometimes that is needed to make the next step, as a whole.

If your organization will become a victim depends on how much value add you deliver. Oftentimes this depends on the need for physical assets or infrastructure. For example: A supplier of green energy who does not have assets but only handles the trade and contracts can be replaced by a blockchain. The supplier that also owns the wind- and solar farms and the infrastructure for homes and factories will be much more difficult to replace. Until the time that you’ll be able to generate 100% of your own energy need. But if energy surplus needs to go back into the net, you’ll be needing infra again. Uber can easily be replaced by a blockchain. Uber doesn’t have assets. And really no value add. Blockchain is a revolution. In every boardroom this should be on the agenda permanently. Make sure you understand the technology and its impact. Don’t be an American member of congres who doesn’t understand Mark Zuckerberg’s business model and technology. Work out a solution and really start innovating!

Cheers, Gijs