Blockchain to transform retail and CPG industries: Deloitte
A new report offers an analysis of potential blockchain use-cases and expects widespread industry adoption.
A new report has evaluated opportunities for blockchain technology to influence and improve the retail and consumer packaged goods (CPG) industries. The business applications and potential impact are enormous.
The latest insight report from professional services company Deloitte is entitled New tech on the block.
Deloitte carried out a detailed analysis of over 50 potential blockchain use-cases in both the retail and CPG industries and then developed a means of scoring these based on the added value that they will create.
Use-cases were grouped into three different categories: consumers, supply chain and payments and contracts.
The four main areas in which blockchain technology can help businesses succeed are:
- Trial projects – Narrow in scope, lower in immediate value but less complex to implement.
- Explore – Similar in complexity but offering greater value relative to investment in the short term.
- Wait and see – More complex and costly to implement but have potential to generate further benefits.
- Plan – Attractive opportunities that are heavily influenced by external factors and are high risk.
The criteria used to assess the value of blockchain on a particular industry or business was based on the ways in which it might boost revenue growth, better operating margins and improve asset efficiency and expectations.
Deloitte’s report reveals that the company expects a “tipping point” to occur within the next five years, as businesses start to develop prototypes, pilot and eventually adopt blockchain technology solutions.
“The ability of blockchain to track, trace and authenticate products, record contracts, guarantee the movement of information and record transactions means it can be used across the entire value chain, benefiting businesses and consumers alike,” according to the report.
“Interest will grow over the next two to three years as more businesses develop detailed enterprise strategies and implement blockchain prototypes. The more advanced businesses will focus on how to scale-up the opportunities they have identified.”
A survey of executives in the consumer products and manufacturing industries expressed the most bullish blockchain outlook, with two fifths (42%) planning an investment of $5 million or more in the coming year.
Blockchain or distributed ledger technology (DLT) is a digital register that records cryptocurrency transactions. It provides complete transparency and is secure because no-one can tamper with the transaction history. Without the blockchain, digital currencies like Bitcoin, Ethereum and Ripple wouldn’t be possible.
Despite a $400 billion cryptocurrency market capitalization, significant technological developments and dynamic new business partnerships, the interest in and appropriation of distributed ledger technology (DLT) remains exceptionally low among corporations’ digital strategy professionals, according to the latest survey.
However, there is potential for blockchain technology to reduce the costs and complexities associated with the insurance industry over the long term, according to the latest special report published by Fitch Ratings.
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