blockchain case study deloitte

• Data, AI, & Machine Learning
• Managing Technology
• Social Responsibility
• Workplace, Teams, & Culture
• AI & Machine Learning
• Diversity & Inclusion
• Big ideas Research Projects
• Artificial Intelligence and Business Strategy
• Responsible AI
• Future of the Workforce
• Future of Leadership
• All Research Projects
• AI in Action
• Most Popular
• The Truth Behind the Nursing Crisis
• Coaching for the Future-Forward Leader
• Measuring Culture
• Pride Month

Our summer 2024 issue highlights ways to better support customers, partners, and employees, while our special report shows how organizations can advance their AI practice.

• Past Issues
• Upcoming Events
• Video Archive
• Me, Myself, and AI
• Three Big Points

What We’ve Learned So Far About Blockchain for Business

The biggest challenge to companies creating blockchain apps isn’t the technology — it’s successfully collaborating with ecosystem partners..

• Platforms & Ecosystems
• Technology Innovation Strategy
• Collaboration

Image courtesy of Dan Page/theispot.com

It’s understandable why many businesses have been slow to invest in blockchain. For the past few years, the C-suite has been showered with suggestions about navigating the next wave of blockchain innovation, identifying potential use cases across industries, and preparing for a blockchain future. 1 On the one hand, executives have been warned about blockchain’s potential to disrupt business models, disintermediate trusted third parties, and “change the very nature of economic, social, and political systems.” 2 On the other hand, leaders have been cautioned about blockchain’s hype and hidden vulnerabilities. 3 But doubts about blockchain are fading, according to a Deloitte survey, which found that more than half of senior executives place blockchain among their top five strategic priorities. 4

Blockchains are shared software applications that validate and create tamper-resistant records of transactions among participants in the network. At their core, blockchain applications enable programmable rules for value exchange and shared record-keeping. Everyone in the network agrees on what has happened because they’re all working from the same record. Bitcoin, released as the first live blockchain application in 2009, was a powerful proof of concept, but its use as a cryptocurrency initially deterred many enterprises from adopting it. Executives did not see the relevance to their businesses: They feared that cryptocurrencies’ anonymity would limit compliance with anti-money-laundering and know-your-customer laws, or they believed that the technology was too immature and unstable to meet enterprise requirements. Now, with pioneering enterprises reaping business benefits, more companies are ready to explore what blockchain can do for them.

Get Updates on Innovative Strategy

The latest insights on strategy and execution in the workplace, delivered to your inbox once a month.

Please enter a valid email address

Thank you for signing up

Privacy Policy

We’ve studied over a dozen live solutions in use across a range of industries and a variety of companies, including solutions to track shipping containers, trace food from farm to fork, authenticate pharmaceuticals, and compensate content creators. (See “The Research.�

About the Authors

Mary Lacity is Walton Professor of Information Systems and director of the Blockchain Center of Excellence at the Sam M. Walton College of Business at the University of Arkansas. Remko Van Hoek is a professor of practice at the Sam M. Walton College of Business and executive director of the CSCMP Supply Chain Hall of Fame, which is hosted by the college.

1. M. Ferguson, “ Preparing for a Blockchain Future ,” MIT Sloan Management Review, Sept. 11, 2018, https://sloanreview.mit.edu; L.W. Cong and F. Klotz, “Navigating the Next Wave of Blockchain Innovation: Smart Contracts,” MIT Sloan Management Review, Sept. 26, 2018, https://sloanreview.mit.edu; and T. Felin and K. Lakhani, “What Problems Will You Solve With Blockchain?” MIT Sloan Management Review 60, no. 1 (fall 2018): 32-38.

2. M. Iansiti and K.R. Lakhani, “The Truth About Blockchain,” Harvard Business Review 95, no. 1 (January-February 2017): 118-127.

3. S. Madnick, “Blockchain Isn’t as Unbreakable as You Think,” MIT Sloan Management Review 61, no. 2 (winter 2020): 66-70; and C. Catalini and P. Michelman, “Seeing Beyond the Blockchain Hype,” MIT Sloan Management Review 58, no. 4 (summer 2017): 17-19.

4. “ Deloitte’s 2020 Global Blockchain Survey: From Promise to Reality ,” Deloitte, June 16, 2020, www2.deloitte.com.

5. For an in-depth case study on the development of TradeLens, see T. Jensen, J. Hedman, and S. Henningson, “How TradeLens Delivers Business Value With Blockchain Technology,” MIS Quarterly Executive 18, no. 4 (December 2019): 221-243.

6. M.C. Lacity, “Blockchain Foundations for the Internet of Value” (Fayetteville, Arkansas: Epic Books, 2020).

7. R. Van Hoek, B. Fugate, M. Davletshin, et al., “Integrating Blockchain Into Supply Chain Management: A Toolkit for Practical Implementation” (London: Kogan Page, 2019).

8. J.V. Micallef, “ What’s in Your Cellar? Counterfeit Wines Are a Multibillion Dollar Problem ,” Forbes, Dec. 1, 2018, www.forbes.com.

9. G. Perrone, “ Restoring Trust in the Wine Industry, From Grape to Glass ,” Ernst & Young, 2018, www.ey.com.

10. S. Gupta, S. Duncan, T. Mondal, et al., “ HFS Top 10 Enterprise Blockchain Services 2020 ,” HFS Research, April 24, 2020.

11. S. Somerville, presentation at the Sam M. Walton College of Business Blockchain Center of Excellence Workshop, Fayetteville, Arkansas, June 6, 2019.

12. N. Morris, “ Automated Trade Payments Prove Popular for We.Trade Blockchain ,” Ledger Insights, January 2020, www.ledgerinsights.com.

13. Iansiti and Lakhani, “The Truth About Blockchain,” 118-127.

14. S. Wass, “ We.Trade and Batavia Merge Blockchain Platforms for Trade Finance ,” Global Trade Review, Oct. 3, 2018, www.gtreview.com.

15. “ The Launch of eTradeConnect and the Collaboration With We.Trade ,” Hong Kong Monetary Authority, Oct. 18, 2018, www.hkma.gov.

More Like This

Add a comment cancel reply.

You must sign in to post a comment. First time here? Sign up for a free account : Comment on articles and get access to many more articles.

7 Blockchain Case Studies from Different Industries in 2024

Cem is the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per Similarweb) including 60% of Fortune 500 every month.

Cem's work focuses on how enterprises can leverage new technologies in AI, automation, cybersecurity(including network security, application security), data collection including web data collection and process intelligence.

Global investment in blockchain technology is skyrocketing (see Figure 1) because blockchain can enhance data exchange in multi-party processes thanks to:

• Enhanced transparency
• Increased speed
• Reduced transfer costs. 

Blockchain pioneers have a chance to acquire a competitive edge . However, executives have many investment alternatives and maturity of some blockchain based solutions is low. Therefore, executives need to make smart decisions to invest in an optimal manner in blockchain based solutions.

In this article, we present 7 blockchain case studies. Real-world examples can help executives identify solution areas that are mature enough for investment.

Figure 1: Blockchain market size in billion US dollars

Procurement

1. blockchain ease supplier master data management: trust your supplier.

Business challenge:

Trust Your Supplier saw an opportunity to reduce costs and effort when it came to finding and onboarding a reputable supplier. Supply chain interruptions and quality expectations to comply with regulations or stakeholders’ environmental and social concerns , are two important risk aspects that firms must deal with. Finding a suitable supplier is a time-consuming and expensive process for businesses because verifying and obtaining data from providers is difficult since companies do not want to share their data openly.

Initiative:

Trust Your Supplier  collaborated with IBM to create an open source blockchain platform that allows businesses to securely and effectively share data with permissioned partners. Platform allows businesses to have their data confirmed by third-party verifiers such as:

• Dun & Bradstreet (business data).
• Eco Vadis (ESG data).
• Rapid Ratings (finance data).

Once your company’s data is confirmed, a blockchain-based corporate digital passport is created, allowing:

• Enhanced compliance.
• Enhanced risk management.
• Reduced onboarding duration of suppliers.
• Reduce supplier onboarding duration more than 70%.
• Lessen the cost for data verification to work with a suitable supplier 50%.
• Improve compliance by almost instantaneously checking international quality certificates of other parties like GRI, ISO, SASB etc.

2. Blockchain eases trade finance: Marco Polo Network

For both exporters and importers, international trading can be risky. When an importer pays in advance for goods, the exporter may collect the cash without sending the goods. However, if the exporter agrees to receive payment after delivery, the importer may refuse to pay after receiving the products. To overcome this problem, traders collaborate with third parties such as banks that employ instruments like letters of credit , which guarantee payment once goods are delivered to the importer.

Marco Polo Network utilizes blockchain technology to provide a platform for exporters and importers to transparently share delivery data by integrating with supply chain ERP systems and creating an irrevocable contract for parties that guarantees the exchange of money and goods under specified conditions (e.g. money transferred when goods receives the importer).

Initiative potentially eliminates the need for third party existence that solves “trust issue”. However, third parties also involve and benefit while they are using Marco Polo Network’ solution since the platform increases transparency.   

• Enhances working capital cycle for both buyer and seller.
• Automates transaction settlement process.
• Reduced complexity by digitizing documents.

Supply chain

3. blockchain improves compliance: renault .

The automotive sector is highly regulated . Renault, for example, deals with 6,000 regulatory and quality characteristics relating to:

• Safety regulations
• Geometric features
• Material quality
• Environmental concerns

A vehicle must meet certain internal and external compliance criteria in order to be offered on the market. A change in regulations needs to be communicated downstream to suppliers and suppliers of suppliers to ensure that they all build according to the new specifications. Therefore,  Renault needed a platform throughout the ecosystem in a transparent manner to ensure compliance. 

Renault and IBM collaborated to create the automotive industry’s first extended compliance end-to-end distributed blockchain platform for the traceability of components internal and external regulatory compliance. 

• Reduces expense of non-compliance by half. 
• The initiative reduces the cost of managing non-quality/non-compliance by 10%. 
• Renault wants to invest more in blockchain technology for the visibility of product carbon footprints and recycling operations as a result of the initiative’s success, aligning with the company’s ESG and circular economy ambitions.

4. Blockchain authenticates infant products quality: Nestle

After 300,000 newborns were sickened with melamine from powdered milk products in 2008, Chinese parents ‘ trust in infant nourishment products was damaged. Nestle was looking for ways to reassure Chinese parents about the quality of their newborn nourishment product NAN A2 to penetrate the market effectively.

Nestle teamed up with Techrock , a Chinese technology firm, to create a public blockchain platform that integrates with a mobile app . As a result, parents can verify the NAN A2’s following characteristics using their phone:

• Ingredients 
• Place the ingredients sourced from
• Origin of production
• Packaging details including the photos.
• Due to the transparency provided by blockchain, Nestle held the largest market share in China’s infant nourishment sector.

5. Blockchain ensures instant claims processing: Etherisc

Etherisc is an insurtech startup that was looking for ways to speed up the claims processing. Traditional claims processing comprises five processes, as shown in Figure 2. Though the time it takes to settle a claim varies by insurance company and type, it usually takes weeks. However, according to EY , nearly 90% of insureds choose an insurer based on the quality and speed of claims processing.

Figure 2: Steps of Claims Processing

To automate claims processing Etherisc uses blockchain technology which enables smart contracts that enforce the agreement when the certain conditions specified on the contract are met. 

Etherisc employed third-party data providers to determine if the payment arrangement’s terms were met or not (see Figure 3). Therefore, after alerting the insurance provider, Etherisc evaluates the initial claim investigation and policy check processes in real time, increasing its claims processing efficiency.

Figure 3: Claims processing with blockchain

• Reduces the time needed for claims settlement.
• Automatically investigates probable fraud using data from third parties ( IoT devices or reputable databases).

6. Blockchain optimizes the power grid: Tennet

TenneT , situated in the Netherlands and Germany, is an energy transmission operator. Because energy demand and supply are not always in balance, electricity distribution is difficult. Energy productivity of sustainable energy supplies varies instantly depending on the state of the weather. Wind turbine electricity generation, for example, differs depending on the wind conditions of the day. Similarly electricity demand varies within the day. Thus, optimizing electricity distribution becomes a challenging issue.

To optimize the power grid Tennet cooperated with IBM and Sonnen. IBM deployed blockchain Sonnen, producer of home energy storage systems provides an opportunity for interaction with minor energy producers and consumers. 

Energy storage systems linked to the TenneT’s power grid database via blockchain. Thanks to blockchain’s distributed ledger, inaccuracies in the demand and supply of electricity are transparently shared with a variety of stakeholders. Initiative enables the connected energy storage units to collect or release additional electricity as needed in a couple of moments, reducing grid transmission inefficiencies.

• Elevated curtailment and re-routing operations became unnecessary so the initiative saves millions of dollars.
• A significant step toward the transformation towards renewable energy sources has been taken. Because initiative provides a way of management for the significant supply volatility of renewable energy sources.
• Support local energy producers like home owners or farmers who deploy solar plants or wind turbines and lower their electricity expenses as well carbon footprint’s .

7. Blockchain assists the tracking of intellectual property (IP): IPwe

Many businesses do not have the opportunity to present the true value of their assets to potential investors so some companies are undervalued. IPwe   intended to transform the inefficient old IP system, in which patent holders, lawyers, corporations, intermediaries, and global patent offices lack communication for a variety of reasons, including the inability to transfer information from one source to another transparently.

IPwe teamed up with IBM to create a blockchain that allows IP to be tokenized and stored in the cloud. As a result, traders have easy access to IP and can invest in it based on clear data. IPwe also provides a place for businesses to fairly advertise their intellectual property.

• IPwe’s blockchain database has 80% of global patents.

If you think blockchain could help your company, use our data-driven lists to compare the best blockchain platforms and services .

If you have further questions regarding blockchain you can contact us:

This article was drafted by former AIMultiple industry analyst Görkem Gençer.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Cem's hands-on enterprise software experience contributes to the insights that he generates. He oversees AIMultiple benchmarks in dynamic application security testing (DAST), data loss prevention (DLP), email marketing and web data collection. Other AIMultiple industry analysts and tech team support Cem in designing, running and evaluating benchmarks.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

AIMultiple.com Traffic Analytics, Ranking & Audience , Similarweb. Why Microsoft, IBM, and Google Are Ramping up Efforts on AI Ethics , Business Insider. Microsoft invests $1 billion in OpenAI to pursue artificial intelligence that’s smarter than we are , Washington Post. Data management barriers to AI success , Deloitte. Empowering AI Leadership: AI C-Suite Toolkit , World Economic Forum. Science, Research and Innovation Performance of the EU , European Commission. Public-sector digitization: The trillion-dollar challenge , McKinsey & Company. Hypatos gets $11.8M for a deep learning approach to document processing , TechCrunch. We got an exclusive look at the pitch deck AI startup Hypatos used to raise $11 million , Business Insider.

To stay up-to-date on B2B tech & accelerate your enterprise:

Next to Read

Difference between permissioned and permissionless blockchain, 12 blockchain in supply chain case study in 2024, process mining blockchain in 2024: top 4 use cases & case studies.

Your email address will not be published. All fields are required.

Related research

Smart Contracts: What Are They & Why They Matter in 2024

Top 17 Blockchain Applications & Use Cases in 2024

• United States
• English English

Research leading blockchain use cases

Be inspired by how innovators are transforming their businesses through use cases built on the ibm blockchain platform. you can join an existing blockchain network or work with us to create your own..

Join an existing network Co-create a network with us

Driving auto supply chains forward with blockchain

Until recently, the only way automakers could keep track of the supply chain was through databases and paper trails. That all changed when Renault moved its documentation to blockchain, and invited the rest of the auto industry to join in the digital transformation.

Read the case study  

AI and Blockchain help discover and transact IP

IPwe helps companies make better use of their intellectual property. Yet the IP transaction platform saw inefficiencies and a lack of transparency in the ecosystem. With IBM Blockchain and AI, it created a suite of products to increase visibility and flexibility within the patent marketplace.

Sonoco and IBM: Safeguarding the efficacy of lifesaving medications with blockchain

Transporting temperature-sensitive pharmaceuticals is no easy task, especially with the global distribution of COVID-19 vaccines. With IBM Blockchain Transparent Supply, the many supply chain partners can communicate and gather reliable data.

Watch video (03:11)  

IBM and eProvenance: Preserving the quality and integrity of wine with blockchain

Ensuring the wine you bought in Europe is the exactly what you’re getting in the US. VinAssure is a blockchain-powered platform that supports wine quality and safety, unlocks the supply chain and enhances trust in the cold chain.

Watch video (03:07)  

Blockchain use cases

Solution area All Food Trust Platform Services Blockchain Transparent Supply

Industry All Banking & Financial Markets Consumer Cross Border Payments Government Healthcare Insurance Media and Advertising Services Supply Chain Manufacturing Cross Industry

Sort by Default Most Recent Oldest

supply, blockchain-transparent-supply, , , eProvenance, wine,integrity

Watch the video (03:07)  

supply,healthcare

supply,healthcare, blockchain-transparent-supply, , , Sonoco, vaccine,medication

Watch the video (03:11)  

cross-industry

cross-industry, platform,services, , , IPwe, digital assets,intellectual property,AI,patent

Learn more  

manufacturing,supply

manufacturing,supply, platform,services, , , Renault, automotive

banking,supply

Blockchain for invoice reconciliation and dispute resolution

banking,supply, platform,services, , , ibm,

Read the post  

Reopening venues with contactless blockchain digital ticketing

media, platform,services, , , True Tickets, ticketing,arsht

How IBM Blockchain technology powers IBM Digital Health Pass

healthcare, platform,services, , , ibm, healthcare,vaccine,watson

Improving the letter of guarantee banking process with blockchain

banking, platform,services, , , ibm, letter-of-guarantee,bank-guarantee,bci,lygon

AAIS: Enabling regulatory compliance and increased data access using blockchain

insurance, platform,services, , , AAIS,

Watch the video (02:00)  

ANZ Bank partners with a consortium to transform financial guarantees using IBM Blockchain

banking, platform, , , ANZ Bank,

Watch the video (01:58)  

supply,consumer

Farmer Connect and IBM - Connecting coffee growers and consumers with blockchain

supply,consumer, food-trust, , , Farmer Connect, food-supply-chain,traceability

Watch the video (03:03)  

supply,government,insurance,services

Coordinating disaster recovery efforts with blockchain

supply,government,insurance,services, platform,services, , , ,

UBS: we.trade offers fast, simple and secure trade transactions based on IBM Blockchain

banking, platform, , , UBS,we.Trade,

Watch the video (02:19)  

Protect Pharmaceutical Product Integrity with the Pharmaceutical Utility Network

supply, platform, , , Walmart,Merck,KPMG, drug-supply-chain-security-act

The Vertrax Blockchain is reshaping the oil and gas supply chain with the first multi-cloud deployment of IBM Blockchain Platform

supply, platform,services, , , Vertrax, multi-cloud

Read the case study (629 KB)  

Food Trust and Raw Seafoods: Connecting seafood suppliers and distributors with blockchain

supply,consumer, food-trust, , , Raw Seafoods, food-supply-chain,traceability

Watch the video (02:28)  

Blockchain helps trace responsibly produced raw materials

supply, platform, , , RCS Global,

TradeLens and Blockchain Technology Supply Chain Demo

supply, platform, , , Tradelens,

Watch the video (03:32)  

Diamonds are forever with a secure blockchain - The Everledger story

supply,consumer, platform, , , Everledger,

Watch the video (01:17)  

Plastic Bank: Enabling plastic recycling and financial inclusion with IBM Blockchain

banking, platform,services, , , Plastic Bank,

Watch the video (02:06)  

Nuarca transforms proxy voting using blockchain

government, platform,services, , , Nuarca, voting

INBLOCK: Improving cryptocurrency security with Blockchain and LinuxONE

banking, platform, , , INBLOCK, security

Watch the video (02:03)  

Marsh: Transforming proof of insurance with blockchain

insurance, platform,services, , , Marsh,

Watch the video (01:50)  

Helping companies trade seamlessly with IBM Blockchain

banking, platform,services, , , we.Trade,

Carrefour sales boosted by blockchain tracking

supply,consumer, food-trust, , , Carrefour, food-supply-chain,traceability

Learn more (link resides outside ibm.com)  

Blockchain for advertising: The new black for media buying

media, platform, , , Mediaocean,

Albertsons Joins IBM Food Trust Blockchain Network To Track Romaine Lettuce From Farm To Store

supply,consumer, food-trust, , , Albertson, food-supply-chain,traceability

IBM and Twiga Foods Introduce Blockchain-Based MicroFinancing for Food Kiosk Owners in Kenya

banking, platform, , , Twiga,

Transform healthcare outcomes with the simplicity of IBM Blockchain

healthcare, platform,services, infographic, , ibm,

See the infographic (188 KB)  

insurance,banking

Blockchain in insurance: Five reasons why openIDL will succeed

insurance,banking, platform, , , AAIS,AIG,Standard Charter,Marsh,

Watch the video (04:11)  

Building trust and transparency in insurance policies with blockchain

insurance, platform,services, , , AIG,

Watch the video (02:57)  

healthcare,government

CDC leverages IBM Blockchain technology for Electronic Health Records

healthcare,government, workshop, video, , CDC,

Watch the video (01:39)  

Banks team with IBM for blockchain powered trade finance

banking, platform,services, , , we.trade,

Watch the video (02:44)  

No use case match your criteria

What will we solve together?

Join an existing network and take advantage of innovation in your industry or use established networks to build your own. Either way, we have resources ready to help you.

Contact us to learn more

Co-create a network with us

• Digital transformation

10 blockchain use cases in finance that show value

Blockchain continues to grow in the enterprise as companies in the financial sector expand their use of the technology. here's a look at 10 established and emerging use cases..

• Mary K. Pratt

The financial industry continues to lead in blockchain adoption by making significant investments in the technology and expanding its use of it.

A 2022 study from FTI Consulting, "The State of Blockchain Technology and Digital Assets in Financial Services," spoke to that point. It found that the majority of leaders in financial services organizations consider investment in blockchain technologies a high priority for their business in the next 12 months and that 85% have a positive overall outlook on the future impact of these technologies.

Meanwhile, Global Industry Analysts, in its 2023 "FinTech Blockchain: Global Strategic Business Report," estimated that the global market will grow from $1.4 billion in 2022 to $43.1 billion by 2030.

That explosive growth comes as companies in the financial sector find more ways to use blockchain to support existing products and services as well as enable new ones. Here's a look at 10 blockchain use cases in the financial industry that showcase the promise and potential of the technology.

1. Faster, cheaper, and more secure financial services – and at larger scale

Because blockchain enables immutable transactions effectively in real time, experts credit it with offering a faster, more secure and highly scalable way to handle nearly all the traditional services offered in banking and financial services, such as money transfers, peer-to-peer payments and trade finance.

This article is part of

Blockchain for businesses: The ultimate enterprise guide

• Which also includes:
• Top 10 benefits of blockchain for business
• What are the 4 different types of blockchain technology?
• 7 must-have blockchain developer skills

Download this entire guide for FREE now!

Moreover, because blockchain reduces the need for intermediaries, such as transfer agents, and is nearly 100% tamper proof, experts say it can handle financial services at dramatically lower costs while nearly eliminating fraud.

Blockchain also provides more transparency, which can heighten trust and security while reducing friction in transactions.

Furthermore, blockchain supports the creation and use of digital identities, which can add even more trust and security to financial transactions by ensuring the validity of participating parties.

Contrast that with conventional processes in the financial sector. Financial institutions traditionally work as intermediaries to move payments between different entities, which involves complex and time-consuming processes that add friction to transactions.

Blockchain can streamline these processes -- notably reconciliation as well as clearing and settlement -- by removing the friction, thereby reducing the time and cost that financial institutions incur.

Similarly, the financial industry can use blockchain to eliminate the manual processes required to collect and share the documents often required for transactions, such as custom forms and insurance policies.

2. Collateral management

Blockchain has proved useful for collateral management as well as commodity tracking and tracing.

For example, a lending company processing a large loan for a corporate client with multiple assets could more easily collect and manage the assets being used as collateral and do so in real time, explained Ronak Doshi, a partner at Everest Group, a research firm.

In other cases, companies could use blockchain to track and even trade commodities as they move through a supply chain. They also could trace the chain of custody for insured commodities -- a particularly useful capability in insurance claims for gaining visibility into when and where losses occurred.

3. Stablecoin

The issuance of stablecoins is another area of interest among financial institutions. Stablecoin is a type of cryptocurrency, a class of encrypted digital currencies such as Bitcoin.

Unlike other cryptocurrencies, the value of a stablecoin is tied to another currency, commodity or financial instrument.

The goal is to provide a more stable valuation to investors than is provided by other types of cryptocurrencies, which historically have been volatile.

"Stablecoin is incredibly efficient, liquid and completely digital," said Paul Brody, a partner at professional services firm EY and its global blockchain leader.

4. Tokenization of real-world assets

Blockchain also enables real-world assets to be tokenized, which in turn enables fractionalized ownership.

"You can tokenize anything of real-world value, from real estate to private equity," said Lata Varghese, managing director of digital assets and blockchain solutions at the consulting firm Protiviti.

Tokenization helps owners more easily sell or trade their fractionalized assets or use them as collateral on loans.

In May, Bank of America reported that it sees the tokenization of real-world assets as a key driver of digital asset adoption.

5. Virtual world transactions and reward tokens

Many expect blockchain to be an essential component of the virtual world of the metaverse , as it can enable the digital financial transactions that are expected to take place there.

Doshi said blockchain also enables the use of participation and reward tokens on metaverse and metaverse-like platforms, whereby companies could award tokens to visitors to their virtual locations for participating in events or as rewards that could then be redeemed, like the cash-back rewards of retail loyalty programs and credit cards.

6. Crypto staking

Another emerging blockchain-created financial tool is crypto staking, in which owners of crypto assets agree to lock their assets for a set amount of time, which then supports the operations of a blockchain. They can then stake part of their assets for the opportunity to validate new transactions on the blockchain and add new blocks. When they validate legitimate transactions, they earn more crypto assets in return; if they validate fraudulent transactions, they lose some or all of what they stake.

However, Brody said securities-related legal and regulatory questions have come into play, making the future of crypto staking uncertain.

7. Invoice factoring

Another financial service enabled by blockchain is invoice factoring.

Factoring lets companies borrow against accounts that are due and is often used when organizations need to raise money quickly, Brody explained.

Companies can borrow against accounts receivable -- such as unpaid customer invoices -- through conventional channels. However, the effort associated with these transactions can be costly and time consuming, with much of the work focused on ensuring the accounts receivable are legitimate and calculating the value of each transaction.

Blockchain proponents say it can reduce costs and the potential for fraud, thereby potentially making this financing option more favorable for the parties involved.

8. Supporting new types of B2B networks

Because blockchain establishes trust between multiple parties, it can be used to extend ERP functions, such as inventory tracking and financial settlement, beyond the walls of individual organizations in a new type of business network called network resource planners. Everest Group described NRPs as a "blockchain-based software system that helps manage data and processes across multiple stakeholders in a business network" and enables organizations to deliver a more cohesive customer experience.

"We're seeing that there is a way for enterprises to come together to solve customer issues and create a better customer experience," Doshi said. "The only way to bring them all together is with a foundational infrastructure. Blockchain fits beautifully in this."

9. Facilitate and track data flow in a financial institution

Although blockchain is often championed for enabling trust between different organizations , financial institutions are beginning to use it to create trust between internal departments. Blockchain leaders said they have seen increased internal use of blockchain because it offers firms value for moving intracompany data as well as for protecting customer data and complying with regulatory requirements.

For example, some organizations are using blockchain to facilitate intracompany payments where financial information flows from one ledger to the next, with the technology creating more transparency into capital and liquidity.

Additionally, some organizations are considering blockchain for know-your-customer activities to ensure customer data is consistent and current throughout the organization, which is particularly critical when financial institutions use customer data to decide which risks to assume.

Large banks, for instance, often have multiple systems for customer records -- two dozen or more, in some cases. Having customer information spread among systems increases the chances of unintentional data discrepancies and intentional misrepresentations, both of which could negatively impact business.

Blockchain can counter such issues by ensuring data is current on every system and creating an audit trail of changes made to customer data.

Similarly, financial institutions can use blockchain for data lineage to assure for themselves and regulators that there's an auditable trail from the data's point of origin to its end state.

10. Paper currency replacement

If the world wants to move away from physical currency -- paper bills and metal coins -- and the problems and inefficiencies associated with it, it will likely need a distributed network like blockchain to make that happen.

According to experts, financial institutions have expressed a high degree of interest in this blockchain use case. Financial leaders believe such a move will further reduce friction and create more transparency, which will then speed transactions, generate further cost savings, increase security and reduce financial crimes.

They noted the work already happening with blockchain in the financial industry is moving the global economy in that direction. While it's unknown when the world will abandon physical currency for digital assets, many leaders believe it isn't far off.

Consider, for example, findings from Deloitte's 2022 "Merchant Adoption of Digital Currency Payments Survey," in which 85% of surveyed organizations said digital currency payments will be ubiquitous in their industry in five years, with the same percentage expecting their suppliers to accept stablecoins and cryptocurrencies.

Additionally, 64% said they see significant customer interest in digital currency, with another 32% seeing moderate customer interest.

According to the survey report, "Although digital currency payments may not yet be an everyday occurrence for the average customer, overall interest in digitally native solutions is significant, especially among younger generations."

Related Resources

• How do we build trust in the digital world Video –Okta
• Enable Deep Visibility for Applications, Users, and Devices With FortiGate ... –Fortinet, Inc.
• ITSM Problem Management: What Are Your Pain Points? –ServiceNow
• Time to rekindle the Digital Transformation drive –TechTarget ComputerWeekly.com

Dig Deeper on Digital transformation

central bank digital currency (CBDC)

A timeline and history of blockchain technology

NFTs vs. cryptocurrency: Key differences and how they work

AWS, Google, IBM and Microsoft offer machine learning certifications that can further your career. Learn what to expect from each...

Is it better to be 'first' or 'smart' in cloud? Compare the two strategies to determine which will help achieve your ...

Consistency and standardization are critical to a successful AWS tagging strategy. Consider these best practices to organize and ...

Apple has built a Private Cloud Compute server to process and then delete data sent from Apple Intelligence running on an iPhone,...

When setting up Android Enterprise devices, there are several enrollment methods IT should consider. Admins should learn how to ...

Mobile payments provide customers with a fast and secure way to pay without cash or physical cards. Managing these systems can be...

As climate change becomes a more pressing issue, these sustainability best practices can help your data center go greener, which ...

StorMagic looks to court customers with smaller data centers for SMBs and the edge with SvHCI, a new VMware alternative with a ...

A main focus of the Dell Technologies World 2024 conference was AI and how it impacts infrastructure environments. Dell ...

Identifying the ESG issues that are important to the business and to both internal and external stakeholders can help ...

The social factors of ESG have become more prominent. Here's what they involve and how companies can take tangible actions to ...

A thorough audit can rate corporate strategies on key environmental, social and governance metrics and ensure that ESG reporting ...

Discover the latest MyICAEW app for ACA students and members, available to download now. Find out more

• Benefits of membership

Gain access to world-leading information resources, guidance and local networks.

• Visit Benefits of membership

Becoming a member

98% of the best global brands rely on ICAEW Chartered Accountants.

• Visit Becoming a member
• Pay fees and subscriptions

Your membership subscription enables ICAEW to provide support to members.

Fees and subscriptions

Member rewards.

Take advantage of the range of value added or discounted member benefits.

• Member rewards – More from your membership
• Technical and ethics support
• Support throughout your career

Information and resources for every stage of your career.

Member Insights Survey

Let us know about the issues affecting you, your business and your clients.

• Complete the survey

From software start-ups to high-flying airlines and high street banks, 98% of the best global brands rely on ICAEW Chartered Accountants. A career as an ICAEW Chartered Accountant means the opportunity to work in any organisation, in any sector, whatever your ambitions.

Everything you need to know about ICAEW annual membership fees, community and faculty subscriptions, eligibility for reduced rates and details of how you can pay.

Membership administration

Welcome to the ICAEW members area: your portal to members'-only content, offers, discounts, regulations and membership information.

• Membership regulations

Members are required to supply certain information to the members’ registrar and to pay annual fees and subscriptions. These matters are governed by regulations.

• Continuing Professional Development (CPD)

Continuing Professional Development (CPD) is an integral part of being a successful ICAEW Chartered Accountant.

The ICAEW Chartered Accountant qualification, the ACA, is one of the most advanced learning and professional development programmes available. It is valued around the world in business, practice and the public sector.

ACA for employers

Train the next generation of chartered accountants in your business or organisation. Discover how your organisation can attract, train and retain the best accountancy talent, how to become authorised to offer ACA training and the support and guidance on offer if you are already providing training.

Digital learning materials via BibliU

All ACA, ICAEW CFAB and Level 4 apprenticeship learning materials are now digital only. Read our guide on how to access your learning materials on the ICAEW Bookshelf using the BibliU app or through your browser.

• Find out more

Take a look at ICAEW training films

Focusing on professional scepticism, ethics and everyday business challenges, our training films are used by firms and companies around the world to support their in-house training and business development teams.

Attract and retain the next generation of accounting and finance professionals with our world-leading accountancy qualifications. Become authorised to offer ACA training and help your business stay ahead.

CPD guidance and help

Continuing Professional Development (CPD) is an integral part of being a successful ICAEW Chartered Accountant. Find support on ICAEW's CPD requirements and access resources to help your professional development.

ICAEW flagship events

ICAEW boasts an extensive portfolio of industry-leading conferences. These flagship events offer the opportunity to hear from and interact with all the key players in the industry. Find out what's coming up.

Leadership Development Programmes

ICAEW Academy’s in-depth leadership development programmes take a holistic approach to combine insightful mentoring or coaching, to exclusive events, peer learning groups and workshops. Catering for those significant transitions in your career, these leadership development programmes are instrumental to achieving your ambitions or fulfilling your succession planning goals.

Specialist Finance Qualifications & Programmes

Whatever future path you choose, ICAEW will support the development and acceleration of your career at each stage to enhance your career.

Why a career in chartered accountancy?

If you think chartered accountants spend their lives confined to their desks, then think again. They are sitting on the boards of multinational companies, testifying in court and advising governments, as well as supporting charities and businesses from every industry all over the world.

• Why chartered accountancy?

Search for qualified ACA jobs

Matching highly skilled ICAEW members with attractive organisations seeking talented accountancy and finance professionals.

Volunteering roles

Helping skilled and in-demand chartered accountants give back and strengthen not-for-profit sector with currently over 2,300 organisations posting a variety of volunteering roles with ICAEW.

• Search for volunteer roles
• Get ahead by volunteering

Advertise with ICAEW

From as little as £495, access to a pool of highly qualified and ambitious ACA qualified members with searchable CVs.

Early careers and training

Start your ACA training with ICAEW. Find out why a career in chartered accountancy could be for you and how to become a chartered accountant.

Qualified ACA careers

Find Accountancy and Finance Jobs

Voluntary roles

Find Voluntary roles

While you pursue the most interesting and rewarding opportunities at every stage of your career, we’re here to offer you support whatever stage you are or wherever you are in the world and in whichever sector you have chosen to work.

ACA students

"how to guides" for aca students.

• ACA student guide
• How to book an exam
• How to apply for credit for prior learning (CPL)

Exam resources

Here are some resources you will find useful while you study for the ACA qualification.

• Certificate Level
• Professional Level
• Advanced Level

Digital learning materials

All ACA learning materials are now digital only. Read our guide on how to access your learning materials on the ICAEW Bookshelf via the BibliU app, or through your browser.

• Read the guide

My online training file

Once you are registered as an ACA student, you'll be able to access your training file to log your progress throughout ACA training.

• Access your training file
• Student Insights

Fresh insights, innovative ideas and an inside look at the lives and careers of our ICAEW students and members.

• Read the latest articles

System status checks

Getting started.

Welcome to ICAEW! We have pulled together a selection of resources to help you get started with your ACA training, including our popular 'How To' series, which offers step-by-step guidance on everything from registering as an ACA student and applying for CPL, to using your online training file.

Credit for prior learning (CPL)

Credit for prior learning or CPL is our term for exemptions. High quality learning and assessment in other relevant qualifications is appropriately recognised by the award of CPL.

Apply for exams

What you need to know in order to apply for the ACA exams.

The ACA qualification has 15 modules over three levels. They are designed to complement the practical experience you will be gaining in the workplace. They will also enable you to gain in-depth knowledge across a broad range of topics in accountancy, finance and business. Here are some useful resources while you study.

• Exam results

You will receive your results for all Certificate Level exams, the day after you take the exam and usually five weeks after a Professional and Advanced Level exam session has taken place. Access your latest and archived exam results here.

Training agreement

Putting your theory work into practice is essential to complete your ACA training.

Student support and benefits

We are here to support you throughout your ACA journey. We have a range of resources and services on offer for you to unwrap, from exam resources, to student events and discount cards. Make sure you take advantage of the wealth of exclusive benefits available to you, all year round.

• Applying for membership

The ACA will open doors to limitless opportunities in all areas of accountancy, business and finance anywhere in the world. ICAEW Chartered Accountants work at the highest levels as finance directors, CEOs and partners of some of the world’s largest organisations.

ACA training FAQs

Do you have a question about the ACA training? Then look no further. Here, you can find answers to frequently asked questions relating to the ACA qualification and training. Find out more about each of the integrated components of the ACA, as well as more information on the syllabus, your training agreement, ICAEW’s rules and regulations and much more.

• Anti-money laundering

Guidance and resources to help members comply with their legal and professional responsibilities around AML.

Technical releases

ICAEW Technical Releases are a source of good practice guidance on technical and practice issues relevant to ICAEW Chartered Accountants and other finance professionals.

• ICAEW Technical Releases
• Thought leadership

ICAEW's Thought Leadership reports provide clarity and insight on the current and future challenges to the accountancy profession. Our charitable trusts also provide funding for academic research into accountancy.

• Academic research funding

Technical Advisory Services helpsheets

Practical, technical and ethical guidance highlighting the most important issues for members, whether in practice or in business.

• ICAEW Technical Advisory Services helpsheets

Bloomsbury – free for eligible firms

In partnership with Bloomsbury Professional, ICAEW have provided eligible firms with free access to Bloomsbury’s comprehensive online library of around 80 titles from leading tax and accounting subject matter experts.

• Bloomsbury Accounting and Tax Service

Country resources

Our resources by country provide access to intelligence on over 170 countries and territories including economic forecasts, guides to doing business and information on the tax climate in each jurisdiction.

Industries and sectors

Thought leadership, technical resources and professional guidance to support the professional development of members working in specific industries and sectors.

Audit and Assurance

The audit, assurance and internal audit area has information and guidance on technical and practical matters in relation to these three areas of practice. There are links to events, publications, technical help and audit representations.

The most up-to-date thought leadership, insights, technical resources and professional guidance to support ICAEW members working in and with industry with their professional development.

• Corporate Finance

Companies, advisers and investors making decisions about creating, developing and acquiring businesses – and the wide range of advisory careers that require this specialist professional expertise.

• Corporate governance

Corporate governance is the system by which companies are directed and controlled. Find out more about corporate governance principles, codes and reports, Board subcommittees, roles and responsibilities and shareholder relations. Corporate governance involves balancing the interests of a company’s many stakeholders, such as shareholders, employees, management, customers, suppliers, financiers and the community. Getting governance right is essential to build public trust in companies.

Corporate reporting

View a range of practical resources on UK GAAP, IFRS, UK regulation for company accounts and non-financial reporting. Plus find out more about the ICAEW Corporate Reporting Faculty.

Expert analysis on the latest national and international economic issues and trends, and interviews with prominent voices across the finance industry, alongside data on the state of the economy.

• Financial Services

View articles and resources on the financial services sector.

• Practice resources

For ICAEW's members in practice, this area brings together the most up-to-date thought leadership, technical resources and professional guidance to help you in your professional life.

Public Sector

Many ICAEW members work in or with the public sector to deliver public priorities and strong public finances. ICAEW acts in the public interest to support strong financial leadership and better financial management across the public sector – featuring transparency, accountability, governance and ethics – to ensure that public money is spent wisely and that public finances are sustainable.

Sustainability and climate change

Sustainability describes a world that does not live by eating into its capital, whether natural, economic or social. Members in practice, in business and private individuals all have a role to play if sustainability goals are to be met. The work being undertaken by ICAEW in this area is to change behaviour to drive sustainable outcomes.

The Tax area has information and guidance on technical and practical tax matters. There are links to events, the latest tax news and the Tax Faculty’s publications, including helpsheets, webinars and Tax representations.

Keep up-to-date with tech issues and developments, including artificial intelligence (AI), blockchain, big data, and cyber security.

Trust & Ethics

Guidance and resources on key issues, including economic crime, business law, better regulation and ethics. Read through ICAEW’s Code of Ethics and supporting information.

Communities

ICAEW Communities

Information, guidance and networking opportunities on industry sectors, professional specialisms and at various stages throughout your career. Free for ICAEW members and students.

• Discover a new community

ICAEW Faculties

The accountancy profession is facing change and uncertainty. The ICAEW Faculties can help by providing you with timely and relevant support.

• Choose to join any of the faculties

UK groups and societies

We have teams on the ground in: East of England, the Midlands, London and South East, Northern, South West, Yorkshire and Humberside, Wales and Scotland.

• Access your UK region
• Worldwide support and services

Support and services we offer our members in Africa, America, Canada, the Caribbean, Europe, Greater China, the Middle East, Oceania and South East Asia.

• Discover our services

ICAEW Faculties are 'centres of technical excellence', strongly committed to enhancing your professional development and helping you to meet your CPD requirements every year. They offer exclusive content, events and webinars, customised for your sector - which you should be able to easily record, when the time comes for the completion of your CPD declaration. Our offering isn't exclusive to Institute members. As a faculty member, the same resources are available to you to ensure you stay ahead of the competition.

Communities by industry / sector

Communities by life stage and workplace, communities by professional specialism, local groups and societies.

We aim to support you wherever in the world you work. Our regional offices and network of volunteers run events and provide access to local accounting updates in major finance centres around the globe.

• Ukraine crisis: central resource hub

Learn about the actions that ICAEW members are taking to ensure that their clients comply with sanctions imposed by different countries and jurisdictions, and read about the support available from ICAEW.

Insights pulls together the best opinion, analysis, interviews, videos and podcasts on the key issues affecting accountancy and business.

• See the latest insights
• Making COP count

This series looks at the role the accountancy profession can play in addressing the climate crisis and building a sustainable economy.

• Read more on COP28

Professional development and skills

With new requirements on ICAEW members for continuing professional development, we bring together resources to support you through the changes and look at the skills accountants need for the future.

• Visit the hub

When Chartered Accountants Save The World

Find out how chartered accountants are helping to tackle some of the most urgent social challenges within the UN Sustainable Development Goals, and explore how the profession could do even more.

• Read our major series

Insights specials

A listing of one-off Insights specials that focus on a particular subject, interviewing the key people, identifying developing trends and examining the underlying issues.

Top podcasts

Insights by topic.

ICAEW Regulation

• Regulatory News

View the latest regulatory updates and guidance and subscribe to our monthly newsletter, Regulatory & Conduct News.

• Regulatory Consultations

Strengthening trust in the profession

Our role as a world-leading improvement regulator is to strengthen trust and protect the public. We do this by enabling, evaluating and enforcing the highest standards in the profession. 

Regulatory applications

Find out how you can become authorised by ICAEW as a regulated firm. 

ICAEW codes and regulations

Professional conduct and complaints, statutory regulated services overseen by icaew, regulations for icaew practice members and firms, additional guidance and support, popular search results.

• Training File
• Practice Exam Software
• Ethics Cpd Course
• Routes to the ACA
• ACA students membership application
• Join as a member of another body
• How much are membership fees?
• How to pay your fees
• Receipts and invoices
• What if my circumstances have changed?
• Difficulties in making changes to your membership
• Faculty and community subscription fees
• Updating your details
• Complete annual return
• Promoting myself as an ICAEW member
• Verification of ICAEW membership
• Become a life member
• Become a fellow
• Request a new certificate
• Report the death of a member
• Practising certificates
• Advancement to fellowship regulations
• Regulations relating to membership cessation, readmission and resignation
• ICAEW's guide to directors' duties and responsibilities
• Information to be supplied by members
• Payment of annual subscription
• Power to change subscription fees
• New members
• Career progression
• Career Breakers
• Volunteering at schools and universities
• ICAEW Member App
• Working internationally
• Self employment
• Support Members Scheme
• CPD is changing
• CPD learning resources
• Your guide to CPD
• Online CPD record
• How to become a chartered accountant
• Register as a student
• Train as a member of another body
• More about the ACA and chartered accountancy
• How ACA training works
• Become a training employer
• Access the training file
• Why choose the ACA
• Training routes
• Employer support hub
• Get in touch
• Apprenticeships with ICAEW
• A-Z of CPD courses by topic
• ICAEW Business and Finance Professional (BFP)
• ICAEW Annual Conference 2024
• Audit & Assurance Conference 2024
• Restructuring & Insolvency Conference
• Virtual CPD Conference
• Virtual Healthcare Conference 2024
• All our flagship events
• Financial Talent Executive Network (F-TEN®)
• Developing Leadership in Practice (DLiP™)
• Network of Finance Leaders (NFL)
• Women in Leadership (WiL)
• Mentoring and coaching
• Partners in Learning
• Board Director's Programme e-learning
• Corporate Finance Qualification
• Diploma in Charity Accounting
• ICAEW Certificate in Insolvency
• ICAEW Data Analytics Certificate
• Financial Modeling Institute’s Advanced Financial Modeler Accreditation
• ICAEW Sustainability Certificate for Finance Professionals
• ICAEW Finance in a Digital World Programme
• All specialist qualifications
• Team training
• Start your training
• Improve your employability
• Search employers
• Find a role
• Role alerts
• Organisations
• Practice support – 11 ways ICAEW and CABA can help you
• News and advice
• ICAEW Volunteering Hub
• Support in becoming a chartered accountant
• Vacancies at ICAEW
• ICAEW boards and committees
• Exam system status
• ICAEW systems: status update
• Changes to our qualifications
• How-to guides for ACA students
• Apply for credits - Academic qualification
• Apply for credits - Professional qualification
• Credit for prior learning (CPL)/exemptions FAQs
• Applications for Professional and Advanced Level exams
• Applications for Certificate Level exams
• Tuition providers
• Latest exam results
• Archived exam results
• Getting your results
• Marks feedback service
• Exam admin check
• Training agreement: overview
• Professional development
• Ethics and professional scepticism
• Practical work experience
• Access your online training file
• How training works in your country
• Student rewards
• TOTUM PRO Card
• Student events and volunteering
• Xero cloud accounting certifications
• Student support
• Join a community
• Wellbeing support from caba
• Student mentoring programme
• Student conduct and behaviour
• Code of ethics
• Fit and proper
• Level 4 Accounting Technician Apprenticeship
• Level 7 Accountancy Professional Apprenticeship
• AAT-ACA Fast Track FAQs
• ACA rules and regulations FAQs
• ACA syllabus FAQs
• ACA training agreement FAQs
• Audit experience and the Audit Qualification FAQs
• Independent student FAQs
• Practical work experience FAQs
• Professional development FAQs
• Six-monthly reviews FAQs
• Ethics and professional scepticism FAQs
• Greater China
• Latin America
• Middle East
• North America
• Australasia
• Russia and Eurasia
• South East Asia
• Charity Community
• Construction & Real Estate
• Energy & Natural Resources Community
• Farming & Rural Business Community
• Forensic & Expert Witness
• Global Trade Community
• Healthcare Community
• Internal Audit Community
• Manufacturing Community
• Media & Leisure
• Portfolio Careers Community
• Small and Micro Business Community
• Small Practitioners Community
• Travel, Tourism & Hospitality Community
• Valuation Community
• Audit and corporate governance reform
• Audit & Assurance Faculty
• Professional judgement
• Regulation and working in audit
• Internal audit resource centre
• ICAEW acting on audit quality
• Everything business
• Latest Business news from Insights
• Strategy, risk and innovation
• Business performance management
• Financial management
• Finance transformation
• Economy and business environment
• Leadership, personal development and HR
• Webinars and publications
• Business restructuring
• The Business Finance Guide
• Capital markets and investment
• Corporate finance careers
• Corporate Finance Faculty
• Debt advisory and growth finance
• Mergers and acquisitions
• Private equity
• Start-ups, scale-ups and venture capital
• Transaction services
• Board committees and board effectiveness
• Corporate governance codes and reports
• Corporate Governance Community
• Principles of corporate governance
• Roles, duties and responsibilities of Board members
• Stewardship and stakeholder relations
• Corporate Governance thought leadership
• Corporate reporting resources
• Small and micro entity reporting
• UK Regulation for Company Accounts
• Non-financial reporting
• Improving Corporate Reporting
• Economy home
• ICAEW Business Confidence Monitor
• ICAEW Manifesto 2024
• Election explainers
• Spring Budget 2024
• Energy crisis
• Levelling up: rebalancing the UK’s economy
• Resilience and Renewal: Building an economy fit for the future
• Social mobility and inclusion
• Investment management
• Inspiring confidence
• Setting up in practice
• Running your practice
• Supporting your clients
• Practice technology
• TAS helpsheets
• Support for business advisers
• Join ICAEW BAS
• Public Sector hub
• Public Sector Audit and Assurance
• Public Sector Finances
• Public Sector Financial Management
• Public Sector Financial Reporting
• Public Sector Learning & Development
• Public Sector Community
• Latest public sector articles from Insights
• Climate hub
• Sustainable Development Goals
• Accountability
• Modern slavery
• Resources collection
• Sustainability Committee
• Sustainability & Climate Change community
• Sustainability and climate change home
• Tax Faculty
• Budgets and legislation
• Business tax
• Devolved taxes
• Employment taxes
• International taxes
• Making Tax Digital
• Personal tax
• Property tax
• Stamp duty land tax
• Tax administration
• Tax compliance and investigation
• UK tax rates, allowances and reliefs
• Artificial intelligence
• Blockchain and cryptoassets
• Cyber security
• Data Analytics Community
• Digital skills
• Excel community
• Finance in a Digital World
• IT management
• Technology and the profession
• Trust & Ethics home
• Better regulation
• Business Law
• UK company law
• Data protection and privacy
• Economic crime
• Help with ethical problems
• ICAEW Code of Ethics
• ICAEW Trust and Ethics team.....
• Solicitors Community
• Forensic & Expert Witness Community
• Latest articles on business law, trust and ethics
• Audit and Assurance Faculty
• Corporate Reporting Faculty
• Financial Services Faculty
• Academia & Education Community
• Construction & Real Estate Community
• Entertainment, Sport & Media Community
• Retail Community
• Career Breakers Community
• Black Members Community
• Diversity & Inclusion Community
• Women in Finance Community
• Personal Financial Planning Community
• Restructuring & Insolvency Community
• Sustainability and Climate Change Community
• London and East
• South Wales
• Yorkshire and Humberside
• European public policy activities
• ICAEW Middle East
• Latest news
• The World’s Fastest Accountant
• Access to finance special
• Attractiveness of the profession
• Audit and Fraud
• Audit and technology
• Adopting non-financial reporting standards
• Cost of doing business
• Mental health and wellbeing
• Pensions and Personal Finance
• More specials ...
• The economics of biodiversity
• How chartered accountants can help to safeguard trust in society
• Video: The financial controller who stole £20,000 from her company
• It’s time for chartered accountants to save the world
• Video: The CFO who tried to trick the market
• Video: Could invoice fraud affect your business?
• Corporate reporting update and VAT on private hire vehicles
• AI in audit: the good, the bad and the ugly
• Company size thresholds and CGT on residences
• Lessons in leadership from ICAEW's CEO
• So you want to be a leader?
• A busy new tax year, plus progress on the Economic Crime Act
• Does Britain have a farming problem?
• Budget 2024: does it change anything?
• Will accountants save the world? With ICAEW CEO Michael Izza
• Crunch time: VAT (or not) on poppadoms
• Where next for audit and governance reform?
• More podcasts...
• Top charts of the week
• EU and international trade
• CEO and President's insights
• Diversity and Inclusion
• Sponsored content
• Insights index
• Charter and Bye-laws
• Archive of complaints, disciplinary and fitness processes, statutory regulations and ICAEW regulations
• Qualifications regulations
• Training and education regulations
• How to make a complaint
• Guidance on your duty to report misconduct
• Public hearings
• What to do if you receive a complaint against you
• Anti-money laundering supervision
• Working in the regulated area of audit
• Local public audit in England
• Probate services
• Designated Professional Body (Investment Business) licence
• Consumer credit
• Quality Assurance monitoring: view from the firms
• The ICAEW Practice Assurance scheme
• Licensed Practice scheme
• Professional Indemnity Insurance (PII)
• Clients' Money Regulations
• Taxation (PCRT) Regulations
• ICAEW training films
• Helpsheets and guidance by topic
• ICAEW's regulatory expertise and history
• Features and articles

Blockchain case studies

Blockchain has the potential to be a disruptive technology across industries, with varying impacts on finance. While many applications are still at the exploration stage, there are plenty of examples demonstrating how the technology could be used. Here you can read case studies gathered by the Tech Faculty and Deloitte.

There are a range of different ways blockchain technologies can be used to generate business benefits, such as improved visibility and near real-time reporting. Some applications are built around the synchronicity of the ledger and its ability to simplify reconciliation, while others are focused on removing middleman from systems, reducing cost and bias. A third group, meanwhile, are dedicated to hosting smart contracts, automating and adding certainty to contractual arrangements and transactions.

Case studies:

Asset registry, cryptocurrencies, interbank reconciliation, smart contracts, supply chain traceability.

• Further industry examples

Perhaps the clearest case for where blockchain could be advantageous is provenance and transfer of ownership of assets, and land registry is a particularly good case. There have been several pilot studies and proofs-of-concept made, including in Georgia, Sweden and Honduras, but none have yet reached large-scale testing.

If property transactions were handled on a blockchain, it could record the entire transaction history of a property, which would increase the efficiency of transaction processing and fight corruption by distributing the maintenance of records to all parties.

Using smart contracts, asset exchange could also follow specific instructions encoded as part of the transaction to be executed automatically once agreed criteria have been met, further increasing the efficiency of the exchange process.

As a public register, the openness of the blockchain is not an obstruction for land registry. It is acceptable for participants to see who owns, sells, and divides land. Furthermore, the verifiability aspect can help to add transparency where needed.

A land registry blockchain would have to start by tokenising land assets – that is, creating a representation of each section of land as a legally-equivalent digital asset, stored on the blockchain. This would be followed by ensuring the present owners had the ownership of the appropriate tokens assigned to them. This is no small undertaking as existing systems are already very complex, and there is a need to be flexible in future if existing land deeds are altered or split.

While bitcoin works because it is a wholly online system, with all participants agreeing to the ownership and provenance records, blockchain application in areas like land registry is more complex due to the need to register the ownership of assets and tie the records to the real world.

This causes problems in that the register must reliably reflect real-world existence and condition of assets, and there must be legal mechanisms for enforcing ownership rights when blockchain records indicate these are held, even against parties who are not part of the blockchain, or do not recognise it as legitimate.

Assuming that these challenges could be overcome, then a land registry blockchain could record sales of land (or other similar transactions), creating a verifiable and permanent record. The distributed nature of the ledger would mean that neither downtime nor server failure would ever affect the availability of the service.

Bitcoin is an online cash currency launched in early 2009. Bitcoin was created to be a form of electronic cash that could be sent peer-to-peer without the need for a central bank or other authority to operate and maintain the ledger, much as how physical cash is used.

The engine that runs the bitcoin ledger is original and largest blockchain, while other blockchains run several hundred other similar currency projects with different rules.

Bitcoin works by paying miners – those that do the computational legwork of posting new transactions – with newly-minted bitcoins. As long as the currency is desirable, it is self-sustaining. The system automatically adjusts the difficulty of posting transactions and the reward for doing so to control inflation.

Bitcoin is attractive to users for several reasons:

• payer-borne transaction costs are low;
• the valuation of the currency has generally been growing strongly since its creation; and
• the system is much less restricted than traditional banking.

As an internet-based currency, bitcoin also observes no international borders, meaning that transfer between territories is no different from any other payment. There are other blockchain projects, such as Ripple , that are looking to capitalise on this for international payments applications in central bank issued fiat currencies.

Blockchains are designed to be useful in systems that require reconciliation between parties. Many of the major players in banking are backing the R3 consortium , which is researching the use of a blockchain-like distributed ledger for interbank reconciliations and other financial applications.

Millions of dollars are spent each year reconciling ledgers between banks. If a distributed ledger solution could be created that is able to handle the volume of transactions between the banks, then this outlay could be greatly reduced.

This kind of application would be a private ledger – one where only invited parties can view the records or participate in creating new entries. However, it would allow for interbank transactions to form a single, authoritative record that all parties could verify. This could reduce the considerable efforts spent reconciling books with counterparties, and allow for a more efficient banking system.

A solution of this kind is not feasible with the present implementations of blockchain, either in volume or in speed, and indeed the R3 project has now morphed into other distributed ledger applications for the financial sector. However, assuming that these significant challenges could be overcome, this is potentially a very impactful area of application for blockchain. Others are looking at supply chain integration for similar reasons.

Smart contracts allow for transactions to be made automatically and without the need to rely on  a central party to adjudicate the operation of the contract terms. Blockchain offers opportunities in this arena, because smart contract code can be written directly onto a block and is examinable by the contracting parties ahead of time, just like a traditional legal contract.

If it is agreed to, then the smart contract will automatically execute its own terms. This could mean releasing a payment following a certain trigger, running a software escrow account or making an investment.

One potential advantage of smart contracts over traditional law is that they reduce counterparty risk. With a traditional legal contract, the courts act as a cure to breaches – if the contract is broken, they can enforce the terms after the fact. However, smart contracts can be preventative; they operate on the stated terms regardless, which binds its parties. What’s more, smart contracts are unambiguous – the contract will carry out the one and only meaning of its code.

There are some challenges to smart contract adoption. While the process of executing a smart contract might remove the need for an intermediary, there may still be a need for a trusted professional (ie, a programmer) to create the smart contract. If institutional trust (and cost) moves from the lawyers drawing up the contract to the programmers encoding it, there is no real advantage to be gained.

However, we are currently a fair way away from this reality. Courts would have to recognise that the operations of smart contracts are legitimate ways to transfer ownership and value between parties, and that the terms of smart contracts are enforceable in case a breach somehow does occur. What’s more, an answer would have to be found to the question: What redress is available if the smart contract is exploited in a way not expected by one of the parties? Could intent override the letter of the code?

This last issue is not theoretical – when the DAO (a smart contract-driven investment vehicle created for the Ethereum blockchain ) had much of its funding hijacked through a loophole in a poorly-written smart contract, there was a fierce debate over how to resolve the issue. This eventually lead to a fork, with most participants agreeing to roll back the loss of funds, but some kept the status quo and became a separate blockchain, which now exists under the name Ethereum Classic . This rollback was only possible because more than half of the participants agreed to implement it.

Today’s supply chains are increasingly complex and span across borders, meaning time-consuming, manual, inefficient and costly processes for all parties. Low traceability in a fragmented system can result in safety issues, counterfeited goods and inconsistent data. At the same time, consumers are demanding more transparency about the origin and quality of the products that they buy.

Blockchain technologies could significantly reduce processing time across every step of this process. Each transaction indicating a movement of goods would be recorded, from raw materials to the finished product. Documentation would be created, updated, viewed or verified by parties on the blockchain, enabling visibility of the entire supply chain.

A full audit trail would be created, which could be used to protect consumers from counterfeit goods and also gives businesses increased confidence in the authenticity and quality of goods, impacting sourcing decisions.

For finance, payments could also be initiated seamlessly between parties throughout the process, based upon agreements. As an extension, connected sensors and smart devices could measure the condition of containers and other information can be recorded to inform final settlements (eg if goods have been damaged).

Further examples:

You can read more industry-specific examples in the Finance in a Digital World eLearning resource :

• ‘Know your customer’ compliance in financial services
• Managing clinical trials in healthcare and life sciences
• Asset optimisation in the energy and utilities sector
• Royalty payments for musicians

Read out this code to the operator.

• Advanced Search

Harnessing No-Code Blockchain for DeFi: A Microcredit Case Study on AstraKode Blockchain

CEO and co-founder, AstraKode S.r.l., Italy

Head of Product and co-founder, AstraKode S.r.l., Italy

New Citation Alert added!

This alert has been successfully added and will be sent to:

You will be notified whenever a record that you have chosen has been cited.

To manage your alert preferences, click on the button below.

New Citation Alert!

Please log in to your account

• Publisher Site

EASE '24: Proceedings of the 28th International Conference on Evaluation and Assessment in Software Engineering

Spurred by Decentralized Finance's growth, the application of blockchain beyond cryptocurrency has seen a steady rise in recent years as smart contract-based solutions have become increasingly valuable in several other industries. Nonetheless, the technical complexities still pose significant barriers, especially for those lacking previous blockchain expertise. No-code platforms such as AstraKode Blockchain (AKB) offer to mitigate or even abate such barriers by providing a simplified, configurable environment that facilitates development and deployment. AKB's effective application in a microcredit project, the object of this paper, underscores the potential positioning of no-code platforms as key enablers for industries facing cost and complexity challenges in their blockchain adoption journey.

Recommendations

Blockchain technology explained: the simplified guide on blockchain technology (2018) blockchain wallet, blockchain explained, blockchain technology explained: (2018), blockchain: the ultimate guide to understanding the technology behind bitcoin and cryptocurrency (including blockchain wallet, mining, bitcoin, ethereum, litecoin, ripple, dash and smart contracts), login options.

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

• Information
• Contributors

Published in

Copyright © 2024 Owner/Author

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike International 4.0 License.

In-Cooperation

Association for Computing Machinery

New York, NY, United States

Publication History

• Published: 18 June 2024

Check for updates

• short-paper
• Refereed limited

Acceptance Rates

Funding sources, other metrics.

• Bibliometrics
• Citations 0

Article Metrics

• 0 Total Citations View Citations
• 0 Total Downloads
• Downloads (Last 12 months) 0
• Downloads (Last 6 weeks) 0

This publication has not been cited yet

Digital Edition

View this article in digital edition.

Share this Publication link

https://dl.acm.org/doi/10.1145/3661167.3661185

Share on Social Media

• 0 References

Export Citations

• Please download or close your previous search result export first before starting a new bulk export. Preview is not available. By clicking download, a status dialog will open to start the export process. The process may take a few minutes but once it finishes a file will be downloadable from your browser. You may continue to browse the DL while the export process is in progress. Download
• Download citation
• Copy citation

We are preparing your search results for download ...

We will inform you here when the file is ready.

Your file of search results citations is now ready.

Your search export query has expired. Please try again.

• Enterprise Training
• Train Yourself
• Custom Development
• Student Log In
• Verify A Cert

Plus -2 More

Deloitte Case Study

 andrew isikuru, don't leave without your free course.

Our new 90-minute Blockchain Basics online course is yours if you want it...

Choose the ID of the Quiz you want to render (chat button):

• Your Blockchain Training Assessment (copy) with ID: meHZyO
• Your Blockchain Training Assessment with ID: 3KHX2r

Choose the ID of the Quiz you want to render (link popup, external link popup, email link popup):

• Your Blockchain Training Assessment (copy) #quiz-meHZyO (internal) or https://blockchaintrainingalliance.com/#quiz-meHZyO (external, email)
• Your Blockchain Training Assessment #quiz-3KHX2r (internal) or https://blockchaintrainingalliance.com/#quiz-3KHX2r (external, email)

FREE MEETING: KEY TRENDS AND RISKS IN NFT GAMES– REGISTER

• Future of Web3
• Winners of Web3
• Web Stories

Real World Assets on Blockchain: Case Study of Artfi

Real-world assets (RWAs), either tangible or intangible, include a wide range of assets – from physical items like art and real estate to financial instruments such as stocks and bonds. All of which can be tokenized into digital tokens on the blockchain. 

Real World Assets on Blockchain are transforming the game in how we invest by offering increased liquidity, transparency and accessibility. By turning things like art and real estate into digital tokens, it lets more people own parts of these typically exclusive assets. In other words, allowing fractional ownership and democratizing access to these traditional asset markets.

Learn more about Real-World Assets (RWAs) with this DroomDroom article offering an in-depth exploration of RWAs, from use cases to protocols and more.

Among the foremost companies leading this domain, Artfi stands alone in its innovative approach of intersecting art and blockchain to democratize the traditionally exclusive art market.

By tokenizing high-value artworks, Artfi not only makes art investment more accessible but also integrates these assets into the DeFi ecosystem–ultimately making possible innovative use cases such as obtaining loans against art pieces, or investing in tokenized real estate for passive income.

Let’s explore Artfi’s role in advancing real world assets on blockchain tokenization, the multi-faceted benefits it offers, and the broader impact on the art market and DeFi.

Partnered with industry giants like Binance Pay, Metamask, Phantom, Solana Pay, Coinbase, OKX and many others, @artfiglobal is revolutionizing art investments! Get ready to jump into the future of fine arts! ➡ IDO: June 13th – 14th *Don’t forget to register for the IDO 🖱 pic.twitter.com/9UhuCD8opv — Seedify (@SeedifyFund) June 11, 2024

Artfi’s Innovative Approach to Real World Assets on Blockchain

Artfi has disrupted the art investment sector by using real world assets on blockchain technology to tokenize high-value artworks. The art market innovator’s process involves:

• Meticulously selecting high-value artworks with impeccable provenance and rigorous evaluation.
• Then, those selected artworks are digitized and tokenized on a blockchain platform to ensure fidelity and security.
• Later on, these tokens are then divided into smaller fractions for multiple investors to own a portion of the artwork.
• Ultimately, Artfi provides a dynamic marketplace for trading these tokens, integrating with major cryptocurrency exchanges to enhance liquidity.

By combining RWA and Fractionalisation through Blockchain integration Artfi is transforming the Art industry! For the first time in history, the barriers to entry are gone and anyone can invest in the $1.7 trillion fine art market. Join the revolution and become a part of this… pic.twitter.com/hy1IypMyui — Artfi (@artfiglobal) June 9, 2024

Undoubtedly this approach addresses several key challenges that are existing in the art market today – such as high entry barriers, illiquidity and lack of transparency. It can arguably be said that Artfi provides several transformative advantages such as:-

Enhanced Liquidity

The illiquidity of traditional art investments often means a significant loss in value when sold pretty hastily. Artfi’s model supports 24/7 trading of art tokens to increase liquidity of real world assets on blockchain.

Wider Accessibility

Artfi lowers the financial threshold for art investment as the digital art venture invites an extensive array of investors into the world of real world assets on blockchain.

Unmatched Transparency

The blockchain serves as an immutable ledger that meticulously records each transaction and ownership change – which ultimately enhances security and authenticity for real world assets on blockchain.

Market Democratization

By allowing retail investors to engage, Artfi breaks down barriers traditionally faced by non-elite investors, democratizing access to real world assets on blockchain.

These benefits do more than just attract investors – they create a more stable and predictable market environment.

This article explores the traditional lack of liquidity in the art market, where artworks were difficult to sell quickly but Artfi is enabling fractional ownership of those expensive pieces.

Impact and Innovations: A Closer Look at Artfi’s Initiatives

A key case study in Artfi’s impact is the tokenization of Joan Miró’s “Peinture (Femme au Chapeau Rouge),” valued at $28.7 million. This incredible project allowed thousands of investors to claim a stake in a prestigious artwork, thus bringing about a communal investment ethos through real world assets on blockchain.

This extensive article by DroomDroom describes how Artfi allows artists to sell their work for a higher price and to connect with a wider audience of potential buyers. Give it a read here.

Further strengthening the stage of investor relations, Artfi has developed a knowledge hub and an ambassador program to educate and engage prospective investors. 

Challenges and Artfi’s Solutions

Despite its innovative approach, Artfi faces several challenges that are common to the Real World Assets on Blockchain sector:

1. Regulatory Compliance: Ensuring compliance with diverse regulatory frameworks across different countries is extremely complex.

-Artfi addresses this by engaging with legal experts to walk through these intricacies.

2. Custodial Issues: Safeguarding the physical artwork while its digital tokens are traded poses a logistical challenge. 

-Artfi’s solution includes maintaining a secure, centralized custodial service in Dubai that ensures the physical assets are protected and insured.

3. Market Acceptance: Gaining trust and acceptance from traditional art collectors and investors requires demonstrating the security and benefits of this incredible technology. 

-Artfi’s educational initiatives and transparent operations help build this trust.

Broader Implications for DeFi and Beyond

The integration of RWAs into DeFi platforms definitely creates a mark of significance in the financial ecosystem. By tokenizing physical assets like art, DeFi platforms can offer diversified investment opportunities, reduce volatility and attract traditional investors.

Artfi truly showcases what blockchain can do when it comes to reshaping traditional markets with real world assets on blockchain tokenization. By tackling some core inefficiencies in the market and rolling out solid solutions, Artfi isn’t just making a mark in the digital economy – it’s also paving the way for new innovations across different asset classes.

The success of Artfi’s model truly proves just how crucial it is to have the right legal frameworks, stay ahead with tech, and provide comprehensive market education. It’s all about making the most of what blockchain has to offer for real world assets on blockchain.

You Might Also Like

Fantasy extreme: a revolutionary fantasy sports platform powered by icp, quantum leap labs launches north america’s first icp incubator, unlocking crypto airdrops: identify and prevent airdrop scams, evolution of web3 with ai, fundamental analysis of apecoin (ape).

Evolution of Bitcoin Mining: A Journey into Cryptocurrency’s Backbone

What is Polymarket? A Next Gen Crypto Prediction Market

Injective Protocol: Redefining Web3 Finance

The History of Binance: A Multi Billion Dollar Crypto Empire

What is a Bitcoin Futures ETF? How Does it Work? List of 16 Top Bitcoin Futures ETF

Get newest articles instantly.

Sign in to your account

Username or Email Address

Remember Me

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Share Podcast

Deloitte’s Pixel: A Case Study on How to Innovate from Within

If you’re an intrapreneur — or aspire to be one — this episode is for you.

• Apple Podcasts

In 2014, Deloitte launched Pixel to facilitate open talent and crowdsourcing for client engagements that need specific expertise — like machine learning or digital production. But uptake across the organization was slow, and some internal stakeholders resisted outsourcing consulting work to freelance talent.

In this episode, Harvard Business School professor Mike Tushman discusses his case, “Deloitte’s Pixel (A): Consulting with Open Talent,” which breaks down the challenges the firm’s leadership faced in growing Pixel within the firm — and how they overcame them.

He explains how the firm selected a leader for Pixel who already had credibility and strong social networks within Deloitte. He also shares how Pixel established credibility by collaborating with early adopters within the firm to generate positive client results.

Key episode topics include: leadership, disruptive innovation, innovation, organizational change, talent management, business consulting services, crowdsourcing, freelance talent, intrapreneurship.  

HBR On Leadership curates the best case studies and conversations with the world’s top business and management experts, to help you unlock the best in those around you. New episodes every week.

• Listen to the original Cold Call episode: Transforming Deloitte’s Approach to Consulting (2022)
• Find more episodes of Cold Call
• Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org

HANNAH BATES: Welcome to HBR on Leadership , case studies and conversations with the world’s top business and management experts, hand-selected to help you unlock the best in those around you.

Deloitte is one of the largest consulting firms in the world.  But, like many established firms, innovation is a challenge.

In 2014, Deloitte launched “Pixel” to   – like machine learning or digital production. But uptake across the organization was slow, and some internal stakeholders resisted outsourcing consulting work to freelance talent.

In this episode, Harvard Business School professor Mike Tushman breaks down the challenges Deloitte’s leadership faced in growing Pixel within the firm – and how they overcame them. You’ll learn how the firm selected a leader for Pixel who had credibility and strong social networks within Deloitte. You’ll also learn how Pixel established its own credibility by collaborating with early adopters within the firm to generate positive client results. And you’ll learn how Deloitte’s senior leaders built a narrative of innovation and adaptation around Pixel.

If you’re an entrepreneur – or an aspiring one  – this episode is for you. It originally aired on Cold Call in April 2022. Here it is.

BRIAN KENNY: There are few topics in business media covered as widely and as deeply as innovation. A Google search on the term business innovation yields 672 million results. Harvard Business Review alone has close to 6,000 active articles on this topic. It’s the subject that never gets old because it’s inherently about change. Oh, and it’s really hard to do, especially if you’re in a place that is set in its ways. Management guru, Peter Drucker, famously said, “Innovate or die.” And there are far too many examples of firms that fail to follow that advice and pay the price. But in this episode, we’ll focus on a firm that’s trying to get it right. Today on Cold Call , we’ll discuss the case entitled, “Deloitte’s Pixel: Consulting with Open Talent” with Professor Mike Tushman. I’m your host, Brian Kenny, and you’re listening to Cold Call on the HBR Presents Network. Mike Tushman’s work focuses on relations between technological change, executive leadership, and organization adaptation. And he has just published a new book called Corporate Explorers: How Corporations Beat Startups at the Innovation Game . That sounds exactly like the topic we’re going to discuss today, Mike. Thanks for joining me.

MICHAEL TUSHMAN: Hey, Brian, it’s so great to be with you.

BRIAN KENNY: Yeah. It’s fun to have you on the show. I want to talk about the case and I want to hear how those ideas relate to the ideas in Corporate Explorers , because there’s obviously a lot of crossover. We’ve had cases before that touch on this topic of how to innovate from within when you are in a well-established firm. And I think it’s so timely and relevant because many of our listeners are probably working in large established firms and they want to know how to innovate. They want to be the person who brings those energy and ideas to the surface. So, thanks for being here today to talk about it.

MICHAEL TUSHMAN: Hey great, Brian, looking forward to engaging you and hopefully your audience in our work on the corporate explorer.

BRIAN KENNY: Awesome, let’s just dive right in. Let me ask you to tell us what is the central theme of the case and what’s your cold call when you start the case discussion in the classroom.

MICHAEL TUSHMAN: The central theme of the case, and indeed the central theme of my course, is to help our students build organizations that don’t drop in the face of outside technical change. That’s the basic point of my course is to empower my students with the research in my field, so they don’t fall prey to the sickness that most incumbent organizations have when the world changes sharply, whether it’s because of technology or because of COVID. My cold call is a double barrel cold call, Brian. The cold call to Balaji, Balaji Bondili, everybody, is: it’s either go big or go home. What are you going to do? And why are you going to do it? That’s my Balaji cold call to the corporate explorer.

BRIAN KENNY: Yeah.

MICHAEL TUSHMAN: The other cold call I have is I ask the leaders of Deloitte Consulting, and by the way, this is a very, very successful organization, they’re at the top of the game, and I’m asking Matt David, who’s the head of Deloitte’s consulting business, why is he spending so much time on experimentation? You’ve got a great franchise. You’re doing super well in traditional consulting. Why so much time on experimentation? Those are my two cold calls, Brian.

BRIAN KENNY: All right. That’s a great way to start it off. And I love the idea of role playing. Maybe we should talk more about that as we get into the conversation and I know, you told me just before we started here, that you taught the course yesterday.

MICHAEL TUSHMAN: Yeah.

BRIAN KENNY: And Balaji was here, so you’ve got all these fresh ideas percolating. So, this is going to be great. This is like right in the moment. Tell us a little bit about how this course relates to your research and to the ideas in Corporate Explorers .

MICHAEL TUSHMAN: My research has been from the get go on how incumbents deal with outside technical change. I went to Northeastern University as an undergraduate. I was an engineer co-op and I worked at a firm that was called General Radio, GenRad, and it was filled with these great, fantastic engineers going back and forth, talking about the celebration of how great General Radio was, outside technical change, all of a sudden my carpool friends don’t have a job. I was totally scarred by this. How could a firm filled with fantastic engineers fail so quickly? My model was you have great technical talent, wow, you can do anything. Well, it turns out that they were strangled by the arrogance of success. And I have been studying that for decades now with my students. So, the point of my course is to help students understand several things, Brian. One is this notion of dynamic capabilities are rooted in playing two games well, simultaneously. A game of executing your existing strategy better than anybody on the planet, that’s one game. The second game is exploring into unknown futures. To play this explore and exploit game simultaneously, and those strategies are inconsistent. So, all of my work has been helping senior leaders deal with paradox and inconsistency. General Radio couldn’t do it, all these engineers were laid off. Second theme of my work and my course is organizations don’t change through incremental change by itself. They change through both incremental and punctuated change and those punctuated changes occur at these discontinuities. The third observation is the way you play this game is you don’t spin out the explore option. You have these ambidextrous organizations that explore and exploit simultaneously and the ambidextrous leader is the one who hosts contradiction.

MICHAEL TUSHMAN: And finally, the core idea of my book with Andy Binns and Charles O’Reilly, Corporate Explorer , is that it’s both top down, it’s from the C-level or the general manager level, and the entrepreneurs below in creating a social movement, so that firms evolve in this punctuated way.

BRIAN KENNY: And Deloitte’s a really interesting one for you to look at with regard to these topics. What’s the problem that they’re trying to solve in the context of this case?

MICHAEL TUSHMAN: What’s so unique about Deloitte is they actually don’t have a problem to solve. They are doing rockingly well in the high-end strategic consulting business. They have an opportunity to destabilize the consulting industry, at least according to the senior leaders, if they can figure out a new way of doing consulting that complements their existing way, they have the opportunity to disrupt the industry to their favor. So, it’s not that they have a problem to solve. It’s one of these rare examples of an opportunistic move by a really enlightened senior team to both do old-fashioned consulting really well and to do pixelated consulting really well simultaneously. And that is the challenge I want my students to leave prepared for is to lead into these opportunistic moments, which by the way, is partly organization renewal, Brian.

MICHAEL TUSHMAN: But it’s also personal renewal. It’s the Matt Davids of the world personally renewing how they lead because now they’re hosting this contradiction: old fashioned consulting, new consulting simultaneously.

BRIAN KENNY: Can you put a finer line on that? What is the difference between sort of old fashioned consulting and pixelated consulting?

MICHAEL TUSHMAN: Old fashioned consulting, the edge of this case, old fashioned consulting, at least at Deloitte, is Deloitte would… They had an HR strategy of hiring from the best business schools and then they train and socialize these MBAs to be trusted advisors, to be really brilliant with expertise, and information, and synthesizing that information in front of a client.

BRIAN KENNY: Yep.

MICHAEL TUSHMAN: And they do really well. That’s a business model that works.

BRIAN KENNY: We know a little about that here at Harvard business school.

MICHAEL TUSHMAN: Right. We sure do. Pixelating is completely different, Brian. Pixelating, what Balaji brings to the party is go to a client and say, “Here’s your strategic problem,” and they break it into components. And then they send the components of the work to freelance talent, gig talent, talent who in 100 years wouldn’t work for Deloitte, machine learning people, digital people, AI people, who don’t want to work for Deloitte. Balaji promises these really profoundly powerful platforms that bring talent to a client fast and inexpensive. That’s the difference, rather than having a bunch of really powerful consultants work on a project at a very high rate, Balaji gets better, faster, and less expensive client service with freelance talent. And it turns out it works really well. And the edge of the case is: this is really an identity threat at Deloitte.

MICHAEL TUSHMAN: It’s an identity threat of the consultants who own problems and solve problems, and it’s an identity threat to the firm because after all we’re Deloitte and we have this brand, and can we retain this brand and can we retain the identity of our professionals even while we do this fundamentally different form of consulting.

BRIAN KENNY: Yeah, and it’s a great example of disruption happening right from within, so that’s the tension for sure in the case. And I want to talk a little bit more about that. Deloitte founded an Office for Innovation to sort of drive this, talk a little bit about that office, and I’d love to hear more about Balaji, background, and why he decided to take this on. This seems like a really dicey move for somebody who’s trying to build a career within the firm.

MICHAEL TUSHMAN: Yeah. What’s interesting about Balaji Bondili is he is a professional interested in client services. And I don’t want to speak for Balaji, but my sense of Balaji is he’s not anchored to Deloitte. He’ll do this work wherever. And I think he has found a way to do great professional service work, great client service work, and has enough of an entrepreneurial flare to push this inside of Deloitte. What we’ve learned in our , book is there are a whole bunch of people like Balaji who tend to get ignored, is that they have the passion for entrepreneurialism. They have great change management skills and are able to help skeptical, in this case, partners change the coding of the work from a threat to an opportunity. And that is relatively rare. When a corporate explorer is able to help others who code that person as a threat to say, “Hey, wait a minute. Actually, I can do better client service work and I can do it too.” The beauty of Balaji is he had the entrepreneurial edge and he wasn’t in their face. He had a lot of respect for the partners at Deloitte and brought them a tool that could help them do their work better. So, partly it’s bottom up, Brian, and partly he could not have done this and he knows it, he could not have done it without really strong senior support with Matt David. What is,nice about the Deloitte case, Brian, is it starts with really senior level support, that is the head of U.S. Deloitte says we need an Office of Innovation, tax, audit, consulting. We need a view into the future and they create this Office of Innovation, which hosts roughly 60 experiments, Brian. And then Amy Feirn says in consulting, “I’m going to take some of those and bring them into consulting.” That was Balaji. There were maybe 20 experiments inside just consulting. So, the Office of Innovation was a corporate level hatchery, if you will. We talk about ideation and incubation going to scale, they incubate a bunch of things at corporate and then some of them are dropped down into the business units, tax, audit, in this case consulting. So, the corporate level Office of Innovation provides the overall senior support that permitted Matt David in consulting to experiment, which in turn permitted Balaji to be the corporate explorer.

BRIAN KENNY: What kind of a welcome did Balaji receive as he started to socialize this idea with the rank and file consultants, the people who were leading the client work?

MICHAEL TUSHMAN: It was a third of the partners said, “Hey, Balaji, this could be fantastic.” Two thirds said, “Please go away.” And it was either aggressive please go away or was passive aggressive, “Hey, we’ll study this Balaji.” And so, the nub of the case is if your Balaji, who knows he has something big, do you try to go big inside Deloitte or do you leave? Do you go home? And if you stay, what do you need from the leadership community to make this thing real?

BRIAN KENNY: You talked about some of the pilots that they launched and I imagine the pilots were a way to demonstrate the efficacy of this approach to people who were leading client teams and to get their buy-in,that they would think yeah, I can have it both ways. Right? Can you give some examples of what some of those pilots were? Because I’m curious again, about the pixelated approach and how different that sounds to me than what I’m familiar with having worked with consultancies over the years.

MICHAEL TUSHMAN: So, Balaji was pressed when Pixel was brought down into consulting to provide case and points, data points, will this thing work, will clients pay for this? What are client’s response to this? You’re not using Deloitte partners, you’re using freelance talent. Would clients buy this? They had projects with Richard Walker, who’s one of the individuals in the case, who was a partner in the banking piece of consulting, who actually loved it. And they would take strategy projects for one of their major clients, and it had a big AI machine learning piece to it, and they pixelated it and they got a great solution to this banking strategy. And the client thought it was better. Once Balaji had two or three of these examples, skeptical partners said, “Hey, wait a minute. What’s happening over here in banking with Richard Walker? And once credible leaders across the organization picked this up, Brian, then it took off like wildfire.

BRIAN KENNY: If you look at the tension that’s underlying this case, I have to admit, I probably would be in one of those two thirds, that group of two thirds consultants, who is like, wait a second, this is a threat to me and my role. If we’re going to have gig consultants coming in and doing all this client work, and it’s going to cost less, and they’re going to deliver a better product, that to me sounds like a real danger to my career. How did Balaji manage some of that tension that I’m sure he was hearing about from within the firm?

MICHAEL TUSHMAN: Yeah, that is the exact nub of my work on structural ambidexterity, Brian. It’s up to the corporate explorer to help these powerful partners recode this from a threat to an opportunity. Partly Balaji can do that by making it easy by not being in their faces, by being very solicitous of the partners need to do great client service work. The edge for your question is with Matt David, who was the leader of the consulting business, who had to create a narrative in his organization of we’re going to do the old kind of work, traditional consulting work better than anybody in the planet, and we’re going to go do this new work because the future is not the past and we’re going to experiment into the future. That’s the challenge of my ambidextrous leader, who is Matt David, who is pushing the organization that can celebrate the past, and can own the future, and they’re contradictory. That’s what the Matt Davids of the world have to bring to the party. And one of the things we’ve learned, and it’s a big part of my work with Charles O’Reilly and with Andy Binns, is one of the roles of the Matt Davids is to help create an identity for their firm or my friend, Ranjay Gulati, talks about purpose, as we aspire to be the world’s greatest consulting firm. This is my words, not theirs.

MICHAEL TUSHMAN: And if you’re Matt David with that kind of aspiration, or Srikant at HBS, we’re here to create leaders who make a difference in the world. Well, we can do that through Advanced Management Program (AMP) on campus and we can do that through AMP online.

MICHAEL TUSHMAN: And yeah, they’re completely different architectures, and structures, and cultures, but that’s what we’re all about, creating leaders who make a difference in the world. That kind of overarching purpose or identity helped Matt David at Deloitte with a narrative to his powerful partners to say, “Hey everybody, we’re going to embrace the future, and we’re going to embrace the past, and yes, it’s contradictory. We’re going to do it together to be the world’s greatest consulting firm.”

BRIAN KENNY: Yeah. And that takes leadership that is not just visionary, but also really client centric so that they’re not going to let the politics, the internal politics of the firm prevent them from pushing this forward because they know it’s the right thing in the end for client service.

MICHAEL TUSHMAN: When you have that kind of aspiration, world class client service, or the work I did with one of my doctoral students, Hila Lifshitz, on NASA. One of the things they found is that the scientists at NASA rejected open innovation, open research. And as soon as the leader said, “Hey, we’re here not to do great research, we’re here to keep astronauts safe in space,” that new coding permitted these scientists to do research the old fashioned way and the new way.

MICHAEL TUSHMAN: So, that passion, that identity, that strategic intent is a real important piece of my research of structural ambidexterity and how to make that work and is a big part of this Deloitte Pixel case.

BRIAN KENNY: Do you think… This is probably a question with no singular answer, but I’m going to ask it anyway. Do you think it’s harder to be an entrepreneur within a firm or to be an entrepreneur who’s starting your own thing and kind of putting it all together on your own?

MICHAEL TUSHMAN: I think it’s both really difficult, Brian. The challenge for the corporate explorer is less the capital markets, because the reason he’s going to do it at Deloitte is because Deloitte has the cash to fund it. But the risk is much more, can you get an organization to change?

BRIAN KENNY: Mm-hmm (affirmative).

MICHAEL TUSHMAN: Can you create a social movement? And the research is really clear, exploit kills explore. The better you are at doing what you’re currently doing, the worse you are at exploring. And the challenge for the corporate explorer is to create a social movement, when the powerful actors don’t want to do it. So, you can’t do it on your own, you have to do it both top down and bottom up. And the big aha for me in this research over the past 10 years, it’s not just top down, because we have many examples of top down leaders that get stuck because they’re no corporate explorers. So, it’s a combination of top down and bottom up that creates this social movement around change.

BRIAN KENNY: Let’s say we’ve got some senior executives that are listening to this podcast right now and they’re thinking, wow, I better get on this, how do they identify a corporate explorer within their midst? Do you advertise that as a new job? Or how do you think about that?

MICHAEL TUSHMAN: Wow. Great question. Our most successful corporate explorers are those individuals who have legitimacy and credibility inside your firm.

MICHAEL TUSHMAN: The combination of credibility, this individual has the technical capability, has the social networks in the firm, and they have an edge about them, an entrepreneurial edge around the future, those are the corporate explorers that work. What we know from our research, Brian, is the extent to which you go out and hire someone like that and bring them in, they’ll almost always fail.

BRIAN KENNY: Why is that?

MICHAEL TUSHMAN: Because they don’t have the social networks, they don’t have the credibility, they don’t have the legitimacy inside the firm. The beauty of Balaji at Deloitte is he was known quantity. People knew him and trusted him and he had the degrees of freedom to play this exploration game and then build these networks.

BRIAN KENNY: Okay. Let me ask the same question in the inverse. If I feel like I am that person that you just described and I’m listening to this podcast, how do I create that sense of urgency, create that burning platform to my leadership team so that they know we got to do this?

MICHAEL TUSHMAN: Yeah. Yeah, really great.

BRIAN KENNY: This is what I call a cold call, Mike. I’m putting you on the hot seat.

MICHAEL TUSHMAN: Yeah. Yeah, no, this is a great, great question. For those explorers who have a potentially great idea, and again, ideation and incubation circa 2022, I think is relatively easy to do. It’s relatively easy to get ideas, it’s relatively easy to incubate either inside a firm or outside a firm. It’s really hard to pivot to scale whether you’re an entrepreneur on your own or an entrepreneur inside the firm.

MICHAEL TUSHMAN: So, to me, it’s the, of the Balajis of the world, the possible set of corporate explorers, can you find an organization that has the cash, the willingness, and has the identity of playing multiple games well simultaneously? They’re comfortable with today, but they’re really, really uncomfortable with the uncertainty of tomorrow and therefore they want to create it. If I can find those kinds of leaders in incumbent firms, those are the ones I want to work with if I’m a corporate explorer. If I can’t find them, I’ll stick on my own.

BRIAN KENNY: Mike, this has been a great conversation. I can’t let you go without asking one more question, which is, if you want our listeners to remember one thing about the “Deloitte” case and about Corporate Explorers, what would that be?

MICHAEL TUSHMAN: You cannot get to the future by doing what you have done in the past. It’s imperative that you excel in what you’re currently doing and create the future and that’s what the role of corporate explorers are. They help you create the future and to do that, it’s the structural ambidexterity, which is pretty straightforward, structure is structure, but that link to a purpose and identity that permits contradiction to exist in your organizations. That’s my sort of long-winded answer to your short question, Brian.

BRIAN KENNY: Mike Tushman, thanks so much for being here today to talk about the case.

That was Harvard Business School professor Mike Tushman – in conversation with Brian Kenny on Cold Call . Tushman is coauthor of the book Corporate Explorer: How Corporations Beat Startups at the Innovation Game.

We’ll be back next Wednesday with another hand-picked conversation about leadership from the Harvard Business Review. If you found this episode helpful, share it with your friends and colleagues, and follow our show on Apple Podcasts, Spotify, or wherever you get your podcasts. While you’re there, be sure to leave us a review. When you’re ready for more podcasts, articles, case studies, books, and videos with the world’s top business and management experts, you’ll find it all at HBR.org.

This episode was produced by Anne Saini, and me, Hannah Bates. Ian Fox is our editor. Music by Coma Media. Special thanks to Maureen Hoch, Erica Truxler, Ramsey Khabbaz, Nicole Smith, Anne Bartholomew, and you – our listener. See you next week.

• Subscribe On:

Latest in this series

This article is about leadership.

• Disruptive innovation
• Organizational change
• Talent management
• Business consulting services

Partner Center