Cap Gemini: supply chain blockchains lack clear ROI

Yesterday Cap Gemini released a report on blockchain for supply chain. The paper includes a decent introduction to blockchain and a survey. The key drivers for supply chain blockchain adoption are cost saving (89%), enhancing traceability (81%) and enhancing transparency (79%). When looking at barriers to blockchain, a lack of measurable ROI is the number one issue at 70%. But for the organizations that are more advanced in development that proportion rises to 92%.

Adoption barriers

The paper argues that ROI should be reconsidered as the sole criterion of success because of the wider impact such as network effects. The argument is that network effects bring benefits later. Instead it suggests a venture capitalist approach. “The idea would be to make small investments, allow them to rapidly iterate, identify those with potential, and shut down the rest.”

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