Gravitation of Blockchain in Shared Services: The Next Phase of Service Delivery Strategy

Abstract

A Blockchain is an immutable, tamper-proof, shared ledger of state changes of a digital asset. It is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. This digital ledger is managed via a distributed network across many nodes that can verify and confirm those transactions through consensus. The implications of the technology are far-reaching but there are conditions that should be met in order for Blockchain to be a viable solution. The purposes of this research are to (1) explore the current Blockchain use cases in Shared Services (2) understand the value created by Blockchain in Supply Chain Management and (3) study the tactical challenges in adopting a Blockchain strategy in Shared Services. In addition to a literature review conducted, we conducted in-depth interviews with selected Shared Services Leaders and experts. Results of our research indicate that Blockchain technology can deliver on expectations and implementation in Shared Services organizations will require simple steps. This study provides the data necessary for executives to build a business case for applying Blockchain technology in Shared Services and investigates the potential that Blockchain has to revolutionize industry and deliver gains in speed, security, transparency, traceability and accountability for a wide range of business processes.