SAP Blockchain: The Impact of Blockchain Data Transparency in SAP Business Process
Blockchain, which is a distributed ledger, is a list of transactions. These transactions are stored in a number of computers instead of being stored on a single server. Hence, blockchain guarantees security and transparency. Blockchain Data Transparency is the most important concern of our futuristic world.
An Example of a Blockchain Transaction
Let’s look at an example of a blockchain transaction. A transaction which registers transfer of goods between two parties identified as two addresses in the blockchain. Most importantly the transaction lodged into the blockchain will have supply-chain-relevant information like location, date, price, and quantity. These would be available in the distributed ledger. The publicly available information in ledgers would make it possible to trace back every transaction to the grassroots raw material also. Thus, the decentralized ledger would make it impossible to manipulate since a single party does not hold ownership. Therefore, the cryptography-based immutable nature of the transactions would make it almost impossible to compromise the ledger. In fact, blockchain is considered to be unhackable. I see this as a challenge imposed on my ability as a technical consultant. You know what’s even more challenging? Blockchain is the only ledger which will become more secure with time and volume!
“Gartner Survey: 77% Of CIOs Have ‘No Plans’ For Blockchain “
Anything backed by data sounds even more logical to understand. It is clear that blockchain is indeed becoming a booming boon. Here are few statistics to make you understand better about blockchain:
- Approximately US$1.1 billion invested in blockchain technology. Moreover, by 2024, it will reach around US$20 Billion.
- Number of electronic payment service providers, led by PayPal followed by Google checkout uses blockchain.
- 42 systematically important financial institutions are doing active research on blockchain.
- The USA leads blockchain with almost 64 percent of market share followed by Britain and China.
- With blockchain, a bank could save up to 30% its infrastructure cost.
Based on statistics, the blockchain technology market worldwide from 2016 to 2020
The ecosystem is looking for greater transparency in the products they purchase. This is very much evident from the fact that people look out for products which are acceptable.
To make sense, they look up only to products having relevant features of their desire. This is where Blockchain’s data transparency in SAP’s supply chain comes into the picture.
We know that SAP’s Supply chain is an intricate system of interlinked networks, channels and businesses which leverages worldwide logistics. Thereby synchronizing supply with demand works behind the scenes in a quench to build a competitive infrastructure. This is supported to achieve a competitive edge through various details like involving multiple stakeholders, defining batches, methods for analysis and production, number of personnel and subcontractors involved, sustainability, HR practices, Investments and multiple standards.
A P2P Scenario
Let us consider a P2P scenario. In this situation, blockchain records and makes visible key events which take place in a purchaser/vendor relationship.
- A purchase requisition is created in an organization and converted into a purchase order. As soon as the PO is created, a blockchain is created visible to both the vendor and the purchasing organization.
- Receipt or acceptance of the purchase order by the vendor in turn updates the blockchain. This includes certain metadata like an expected delivery date.
- Other events such as proof of delivery, disputed invoices, or payment advice in turn update the blockchain providing status visibility across authorized parties.
Blockchain is an inevitable investment wherein you invest for the future. With right caution, I believe we can mitigate the risks associated with this booming field. I believe Blockchain has immense transformation potential. SAP would be the best choice to tap into this transformation potential. SAP should begin this new voyage with upfront strategies to make this world a better place to live in with SAP Blockchain.
Today, consumers are hyper-aware about how the world around them is evolving. Therefore, they demand details about systems and sources that deliver goods. In order to bring in a positive impact, we need to be very careful that we create a sustainable solution and adopt the right strategy with SAP Blockchain.