With the advent of IoT and BlockChain driving the business in today’s digital world, let me put forth my thoughts on how these technologies and platforms would enhance the business values and pave way for new business models.
Vehicle -> Smart Vehicle:
- Modern vehicles are not just vehicles they are SMART Vehicles.
- Smart Vehicles are fitted with various sensors and gateways that propagate almost each and every movement and changes in the vehicle as well as the driving behavior.
- This has resulted in various use cases like Driving behavior analysis, Value depreciation forecast, Driving pattern based incentive/insurance etc.
Connected Logistics & Digital supply chain:
- Due to the fact that Smart vehicles are sending numerous data points, it is easier to track and trace the fleet of vehicles and even control them with Alerts, notifications and instructions.
- This also paves way for a connected logistics where all the stakeholders are connected and are able to get real time information on the complete logistics movement.
- We are now in the era of Digital supply chain that gives lot of advantages in terms of processes and cost aspect.
Pain points and Complexity:
- There are numerous digital entities that are involved in the Supply chain space including Payment gateways, Fleet tracking systems, IoT enabled cargo, smart vehicles, vehicle gateways, Business systems(like SAP ERP),etc.
- These are interconnected and has to work hand in hand. When one or more entities or THINGS fail or hacked, then the entire chain gets impacted resulting in business impacts.
- Also the financial transactions are passed via multiple business systems, payment gatewways etc. which delays the processes as it requires multiple checks and verifications before acknowledging the payee to proceed further.
- Improper forecast on sales and demand as not all the sales transactions are recorded for reference (Manufacturer->Distributor->Sub-dealers->Retailer->End customers)
Block chain to the rescue :
Block chain is a digital, distributed, secure and reliable ledger that stores digital transactions.
- Digital supply chain and logistics with many stakeholders and THINGS performing thousands of minor and major transactions are to be chained together with Block chain that results in
- Reliable transactions (Immutable and authenticated transaction)
- Easy to track and trace the transactions (Trace back till the origin)
- No centralized authority of control (No SPOF)
- Payments are made simpler and faster (Bitcoins can be used to make it even quicker)
- Maintain any legal/confidential documents (tamper proof) related to stocks, tax, inventory, sales, etc.
- Fleet and goods insurance claims can be transacted with authenticity (No more struggle to authenticate valid and legitimate claims)
- Hacking THINGS and impacting the business data can be restricted
- Safely share sensitive data such as shipment details, PO, import duty details, etc., with only intended stakeholders (privacy)
- End to end transactions including the thing data are recorded in Blockchain providing flexibility to access transaction history at a particular point in time.
- Accurate sales and demand recorded – useful for forecast and reduce surplus production/inventory
Summary (one liner) :