When the general population is asked about blockchain, their understanding is often limited to Bitcoin and possibly other tokens. From there, they may associate blockchain with payments. Those with a more sophisticated understanding may understand the concepts of executing logic on a distributed ledger or distributed application platform.
Blockchain platforms that support DLT (Distributed Ledger Technology) and Smart Contracts are capable of hosting business data and the rules for managing the data.
Blockchain adoption will impact existing business processes and hence its comparison with BPM is inevitable. There are commonalities at a conceptual level because both technologies have the capability to maintain and manage the process state. BPM has evolved and matured over the years to provide business process design and implementation tools with advanced features such as workflow management, task delegation, escalation, etc. But any BPM implementation is essentially owned, built and maintained by the entity having the largest stake in that particular value chain.
Blockchain, on the other hand, creates a business network that can span across enterprises, introduces disintermediation, distributes the ownership and the risks while enabling the near-real-time exchange of data that can help in making faster-informed decisions.
Blockchain technology allows for the creation of a peer-to-peer BPM system that eliminates the central repository of information and allows multiple corporations to exchange information directly with counterparties while guaranteeing the integrity of the process. The system allows for organizations to verify and enforce that specific steps are being taken and performed correctly by any party on the network.
Thus it can be safely concluded that Blockchain technology will positively impact a wide spectrum of business processes by inculcating betterment in aspects related to efficiency, quality, agility, compliance, and networking of business processes. So organizations might as well be prepared for this new disruptive technology and embrace it as the NextGen BPM.
by Krishna Uppalapati