Stay successful, explore blockchain – economists advise
An economic forecaster and analyser has advised businesses to get on the blockchain band wagon if they want to remain relevant in the future.
TRENDING: Momentum behind blockchain in the food industry is growing quickly
Food businesses that want to remain successful should turn their attention to blockchain, a report has said.
The latest study from RaboResearch, the research branch of Dutch economic forecaster RaboBank, Blockchain: The Trigger for Disruption in the Food Value Chain was published last week.
In it the economists argue that companies wanting to remain successful in the future food value chain should start to explore options for participating in blockchain initiatives in order to help them lower costs, increase efficiencies, offer sustainable products and explore opportunities for creating new value, which are also of benefit to the consumer.
“One advantage would, for example, be when tackling food safety issues”, said Harry Smit, Senior Analyst – Farming and Farm Inputs. “Product recalls can be much easier when the entire chain is transparent.”
Transparency of the food chain also means that the benefits of reputation that market leaders have will decline, according to RaboResearch. Trust in a product will become less dependent on the trust in the supplier, but more dependent on the information available in the blockchain. This enables smaller companies to establish premiums based on the intrinsic characteristics of the goods they supply, without necessarily having a longstanding reputation.
The available data also creates opportunities for developing products and services based on intelligence. For example, data can be used in predictive models to predict demand and/or success of a product by making use of new insights about correlations and causalities. As a result, business models can change from responsive to risk-based and predictive.
The company added that the key to reaping any of the benefits is a digitalisation of internal and external processes. “There are definitely benefits”, according to Harry Smit. “But two prerequisites have to be met in order for blockchain to become successful. First, processes within companies, and between companies, have to become digitalised and standardised. Second, a broad participation of stakeholders along the value chain is required; otherwise the value of blockchain is lost.”