blockchain three ways to prevent it from failing in the enterprise

1. Blockchain – Three Ways to
Prevent It From Failing In The
Enterprise
Aaron Rorstrom, Principal Enterprise Architect
San Francisco, December 2017
#CWIN17

2. Blockchain – Three Ways
to Prevent It From Failing In
The Enterprise
Session Introduction

3. #CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 4#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
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Our Agenda
Blockchain has NOT Disrupting an Existing
Technology, it has Introduced Something Brand New
Challenges in the Enterprise
Internal Frictions, Business Models and Culture are
Challenges Across the Enterprise That Can Hinder
Blockchain’s Success
Mitigating Tactics to Succeed
Targeted and Practical Decisions and Actions can Help
Mitigate and Deal With the Internal and External
Challenges
A Quick What Is “Blockchain”?

4. What is Blockchain?
https://www.weforum.org/agenda/2016/06/blockchain-explained-simply/
Defined as “an incorruptible digital
ledger of economic transactions
that can be programmed to record
not just financial transactions but
virtually everything of value” by
“Blockchain Revolution” authors Don
and Alex Tapscott, the technology
holds massive promise for multiple
industries, particularly in regards to
securing data.
© 2017 Capgemini. All rights reserved.
Look Beyond “Economic Transactions” …
#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017

5. Blockchain Ecosystem
Distributed, Shared Ledger
Four Main Architecture Components of Blockchain
(A Simplified View)
1. a Node Application
2. a Shared Ledger
3. a Consensus Algorithm
4. a Virtual Machine
© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Node
Virtual Machine
Blockchain
Application
Blockchain Simplified
Architecture View
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Node
Virtual Machine
Blockchain
Application
Consensus Algorithm
Every Participant in the Blockchain (human
or machine) requires a computer running
the Blockchain Application

6. Failure Points within the Enterprise
| 7
• Monumental business
model changes enabled
by blockchains could
result in various types
of organizations and
significant changes
across the ecosystem,
including the tightening
of trust and a new
mechanism for value
exchange
• Lack of awareness for
the impact of
Blockchain to human
and technical systems
• Confusion over what
Blockchain is and
where it can hinder
realizing the benefits
from Blockchain
• Information,
Interaction and
Innovation – these
typically provide a drag
on efficiency
• The friction points exist
for internal and external
aspects of the business
1
Business Model PreparednessFriction Points
Breadth of changes
to business models
& processes
Human & Technical
systems require
specific attention
Three types of
frictions
2 3
#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017

7. 8© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Blockchain Ecosystem
Distributed, Shared Ledger
data storage and access
Having Data At the Center of the
Picture Requires a Different Approach
to Designing and Developing business
and technology solutions
Blockchains Can Be Open or Require
Special Permissions to Participate
Blockchain Technology Operates as a
Service Overlay Network … Each
Participating Computer Must Run the
Application / Service That
Interoperates within the Overlay
Network
Across the “chain” data moves from one block
to another and at each block specific things /
operations could transpire
Blockchain Puts Data in
the Center of the Picture
Block 1
Block 2
Block 3
Block <n>
Root Block
data flow
data flow
data flow

8. Blockchain Conditions
And Enterprise Use Cases

9. 10© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
The Design Principles are Core and
Fundamental to the Adoption and
Utilization of a Blockchain Offering …
You Need to be Prepared for the
Impact of Each
Principle Feel Like “Conditions”
Networked Integrity
Distributed Power
Value as Incentive
Security
Privacy
Rights Preserved
Inclusion
Don and Alex Tapscott have defined
7 Design Principles Implicit in Blockchain…
Design Principles for Blockchain
Source: “Blockchain Revolution”, Don Tapscott and Alex Tapscott, 2016
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5
6
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Some aspect of each will affect your chosen Application

10. 11© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Regulatory Compliance
Identity Management
Blockchain success in the enterprise will NOT come
from the cryptocurrency ledger offering but via
specific and selective enterprise use cases…
Supply Chain
Consider doing an achievable and correctly
scoped Proof of Concept that considers the
impacts on All Parties
As Your experience and success progresses,
consider applying multiple Blockchains within
a Value Chain / Value Stream
Practical application of
the concepts and
technologies introduced
by Blockchain can
facilitate success in the
enterprise
Some of the Enterprise Use Cases That Can Help
Blockchain be Successful?
…avoiding another Chipotle event
…accurate and timely reporting
…one person, one identity

11. 12© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Focus on Business Value Over the
Technology Shiny Object for Your
Practical Use Case(s)
Other Candidate Practical Use Cases
• Asset Life Cycle Management
• Digital Rights Management
• Contract Life Cycle Management
• Aircraft Operating, Service and
Maintenance Record Management
• Customer Engagement History
• Customer Profile Management &
Control
• Partner Engagement History
• Business Information Security
• Cross Enterprise Collaboration
• Medical Record History
• Medical Device Transaction Record
History
• Legal Matter Discovery and
Management
• (IoT) Device Transaction History
• Digital Thread Transaction and
Records Management
• Digital Asset Management
(Publication, Audio, Video, Product
Information, 3D Models, etc.)
• Product Configuration History
(from as-designed through as-
maintained and operated)
• Chemical Substance Declaration
Monitoring and Reporting
• Brokered Services – energy, data,
business process, business service

12. Facilitating Blockchain Success
In The Enterprise

13. #CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 14#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
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Consider the human, technical
and political aspects of adopting
and implementing Blockchain…
Be Sensitive to operational and
business changes resulting from
a Blockchain Application
becoming part of Your Business
Ecosystem and the Extended
Enterprise
3 Things to do to
Facilitate a
Successful
Adoption of
Blockchain That
You Can Grow
and Expand
Select a Use Case Based on Business Value
• Don’t Do Blockchain for Technology Sake … Do
Blockchain for its Explicit Value to an Aspect of the
Business, a Business Model or a Functional Area …
Focus on a Contemporary Problem
• Monitor and Govern the Adopters (internal, external)
Get Your House In Order
• Intentionally Breakdown Internal Silos
• Security and Identity Management
• Integration Services
• Prepare for an Accelerated Pace of Evolution
• Embrace Cloud Native Development
Conduct an Appropriately Scoped POC
• Scope a POC that is Achievable and that Will Test the
Business and Technology Aspects … Post Facto,
Verify the Areas of Impact
• Consider Including an External Party From the
Ecosystem
• Include Political Aspects in Planning for Expansion

14. 15#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
Your Journey Forward…
• Accept that Adoption of Transformational
Digital Capabilities (such as Blockchain) is
a “Human Endeavor”
• Focus Your Adoption Activities on a
“Practical Enterprise Use Case”
… Look Across a Value Chain or
Value Stream for a Use Case
Opportunity
• “Tightly Integrate Business
Actors” (internal, external)
Through a Central Depository
of Selective Business
Transactions and Actions / Behaviors
AND
• Aim to Achieve
“Secure By Design”

15. #CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved. 16#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
…embrace the exodus from the
“Centralized World” moving towards
a Decentralized Way of Working and
Exchanging Valued Assets
Blockchain is the First Important
Mechanism to Facilitate Our
Trajectory towards Decentralization
Digitization of the
Business is Moving
Us Towards a
Decentralized
World…

16. 17© 2017 Capgemini. All rights reserved.#CWIN2017 Blockchain | A. Rorstrom | Dec. 2017
Thank You!
Phone: +1 215 470-1272
aaron.rorstrom@capgemini.com
Aaron Rorstrom
Principal Enterprise Architect
Enterprise Business Technology Transformation
Expert Connects Network Member
@AaronRorstrom
Current Research & Innovation Development Areas:
• “Enterprise Architecture as Strategy”
• “Digital Transformation as a Human Endeavor”
• “Ecosystem Engagement Tactics at the Edge of the Enterprise”

18. Appendix
Additional information on the Blockchain topic

19. Example Portfolio of Proofs of Concept
Loyalty
• Digital loyalty tokens platform which enables multi-tenant, cross-platform collaboration and a
decentralized exchange for easy and quick conversion of loyalty tokens.
Syndicated Loans
• A decentralized solution which brings a common digital platform to a small group of stakeholders (lead
bank, participating bank and borrower) to increase efficiency (conversion from paper to digital).
Private Securities
• Private securities solution which enables capital markets firms to create digital assets and automates the
master order book, corporate action and exchange of digital securities, with the direct and immediate
access and oversight by state regulatory bodies.
Ripple Integration
• Based on our partnership with Temenos (core banking) and Bluzelle (Ripple Gateway), this solution allows
financial institutions to connect their core banking application directly to the Ripple Network.
PSD2 Compliance
• Ethereum solution for Payment Services Directive 2 (PSD2), which enable a common framework and
standard for third parties and financial institutions to authorize transactions between parties.
Fiat - Relay
• Fiat-Relay is an open source initiative by Capgemini and a partner bank to connect smart contracts to
traditional payment services.
Focusing on the commercial transaction use case, listed below is an example list of PoCs that Capgemini
has successfully conducted. Other examples include supply chain, digital rights management, et al.

20. #CWIN17 Blockchain | A. Rorstrom | Dec. 2017 © 2017 Capgemini. All rights reserved.
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