If there are flaws that technology evokes in humans, it is the need to consistently stay ahead of competitors, be at the front line of innovation and act as a leader in the market.
Instead of taking the time to create a long term, sustainable approach to implementing new technology, the fear of being left behind encourages companies to input this tech amongst legacy systems and old processes, leaving organisations wide open to cybersecurity breaches, break down in communication and a mess of old and new data that cannot work alongside each other successfully.
The questions that need to be asked from the beginning:
Why are we looking to input this technology?
What data and systems do we have already?
What is the end result we are looking for?
For some industry professionals, blockchain is past the ‘hype’ stage and is now a technology process that is helping banks and other financial services companies to take their current technology structures, review the flow of data and pull it into the twenty-first century.
This then begs the question; what can we expect for companies to experience 6 – 8 months down the line when blockchain technology draws attention to the lack of step by step procedures that was followed in the first place?
What have been the highs?
It is clear to see the benefits of having such a revolutionary piece of technology. A decentralised system makes blockchain practically immune, by today’s standards, to being infiltrated or corrupted by third parties. It distributes data across a wide network of disconnected computers, creating a ledger, making it available for anyone authorised to access and verify transactions. To put it simply – it provides the greatest level of control and transparency.
Fast, secure, and limited in its own limitations.
What have been the lows?
The industry and those viewing from the sidelines have seen the rise of blockchain and how companies have focused so heavily on its adoption, that it became detached from analysing real-world scenarios and what the future can look like.
There is no denying that legacy systems have been overdue for an upgrade but there is an argument to be had for the value that we can utilise and combine with these structures and the new tech element that is being brought in.
Rather than sitting down and establishing the challenges banks and financial organisations were trying to solve and then assessing if blockchain was the right move to make, technology tempted companies into starting it up and then figuring out what benefits it would bring. I would caveat that technology firms have had less regulation and legacy data to overcome, that has allowed them to channel more cash into these areas, whilst traditional companies in the banking sector haven’t been able to secure the capital.
Those that have taken the leap of faith will see if the gamble to adopt blockchain has delivered the results in the coming year(s)!
Never a failure, always a lesson
Over the last few years, blockchain has been a roller coaster of a ride for the industry and people are now feeling the realisation that they need to establish its place in their companies’ structure, particularly adopting its governance and ability to shorten the supply chain, with obvious financial benefits. It is also evident for those who have been considering blockchain that they need to understand if it gives them a competitive advantage.
Introducing technology to your business’s problems will only get you so far and maintaining the reasons, and sticking to them, during implementation is key. Blockchain and technology across the insurance industry bring significant risks as well. The potential to deliver high-quality and intuitive solutions Implemented for the wrong reasons could be costly.
This is a topic we thrive on discussing and finding solutions for. For more information please contact Mark Weller: mark.weller@ecmanagedsolutions.com
