Financial Reporting Guide For Small Businesses

Erwan Philippe

As a small-business owner, you need to stay on top of many different aspects of your business: marketing your products or services, managing your staff, securing funding and investments, creating business strategies, and making sure you don’t break the law while doing all of these and more.

The ultimate goal? Profitability. Excellent financial health.

Knowing your financial status is important, both to external entities (the government, finance institutions, and investors) and to your organization’s internal stakeholders and decision makers. The process of producing statements and reports for these stakeholders is a vital aspect of financial reporting.

Financial reporting needs for small businesses are quite different from those of large, publicly traded companies. This quick guide will tell you all you need to know about financial reporting for your business.

Preparation of financial reports

An effective financial report should give you a good idea of how your business is faring. To do this, you should be able to evaluate and analyze your data based on different standards or benchmarks. How did your business do over a certain period of time? Are you doing better, worse, or similar to other businesses in your industry? Are you making money or losing money?

Your financial reports show how much your business is worth, how much you are making or losing, how much of your income is taxable, and how much money is going in and out of your business through its day-to-day transactions. On one hand, an accurate picture of your company’s financial health gives you a sound, data-driven basis for future decisions and strategies to further improve your business. On the other, people outside your business will also expect you to have financial statements. Most commercial banks, for instance, require financial statements to facilitate the approval of business loans.

Your financial report must have these three key components: the balance sheet, income statement, and cash flow statement. Keeping these statements accurate and up-to-date is crucial to the success and survival of your business. Even the slightest accidents or mistakes can cost your business thousands or millions in losses.

Balance sheet

Your balance sheet is a snapshot of how much your company is worth, taking into account your assets (the cash and property you own), liabilities (debts and other obligations), and equities (the value of your interest in the company).

This is expressed by the formula: Assets = Liabilities + Equity.

Your financial report must show that both sides of the equation are equal or, as the name suggests, balanced.

Correctly classifying assets and liabilities is one major challenge to small businesses when running balance sheets. A long-term liability accidentally entered as a short-term liability, for example, will make it look like your company is obliged to spend on debt payments sooner rather than later, making your company look less financially healthy to potential financiers.

Balance sheets are usually locked at the end of the year since it’s highly unlikely that any changes will have to be made after closing the books. A lot of solutions that businesses use, however, are not able to do this. As a result, accidental entries may mess up your business’ balance.

To work around this, you can do one of two things. First, you may check your balance sheets every once in a while to make sure that no unnecessary changes have been made. Your second option is to put systems in place to make sure that balance sheets from previous years are saved as historical documents that can no longer be edited.

Income statement

Also known as a profit-and-loss statement, the income statement is a report on your company’s gains and losses over a certain accounting period. It records every sale and operating expense, down to the last dollar, as well as accruals such as foreign exchange gains and losses.

Just like with balance sheets, the accuracy of your income statement can make or break your company. Any inaccuracy may result in diminished profitability ratios, which can hinder you from securing the loans or investments to grow your business. It can also lead to unnecessary costs as well as errors in inventory projections.

An income statement includes two main components: operating and non-operating. Both of these include revenues (total sales) and expenses (costs of goods or services sold, plus expenses such as rent, salaries, utilities, and bank fees). Take note that you must include both cash and non-cash gains and losses.

Cash flow statement

Your cash flow statement shows where your money comes from and where it goes. While it seems almost similar to an income statement, cash flow statements include only cash transactions. Income statements includes non-cash gains and losses.

This part of your financial report is a summary of inflows and outflows of cash from three key financial activities:

  • Operations
  • Investing
  • Financing

The net inflows and outflows must equal the cash balance increase or decrease as indicated in the income statement. Hence, to prepare the cash flow statement accurately, you must make sure that other parts of your financial report – the balance sheet and income statement – are accurate as well.

Since your cash flow statement is a gauge of your business’ overall liquidity and solvency, accurately reporting and appropriately classifying cash flows are vital, especially for attracting investors or financiers. Internally, your cash flow statement is a good indicator of your ability to cover upcoming expenses, such as rents and employee salaries. Many businesses, unfortunately, end up with inaccurate cash flow statements due to basic accounting errors. Such inaccuracies, therefore, may throw off investors, get your loans denied, or make you spend cash you do not actually have.

Financial reporting standards for sound business financial analysis

Accurate preparation of financial reports is important to internal and external stakeholders and decision makers. While financial reporting may be indispensable as a self-monitoring tool within your company, your financial statements should comply with mandatory legal standards. In Singapore, for example, these legal standards are generally governed by the Singapore Financial Reporting Standard (SFRS), based on the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.

As enterprises around the world cross more international borders and as business owners take on overlapping markets, the demand for more sophisticated methods of business financial analysis also tends to increase. This raises accounting standards all over the world to ensure the transparent, seamless, and optimal function of global markets.

Compliance with these standards not only means you avoid any legal sanctions. It also means that your financial statements are prepared using the same standards used by another business in your locality, or even a different country or continent. This allows you to evaluate how your business is doing in comparison with other companies like yours.

Challenges of creating financial statements for small businesses

With limited financial and human resources, small business owners usually end up exhausting an equally important yet also limited resource: time. Whether you’re doing the financial reports yourself or paying someone to do it, you may encounter several challenges that could cost you money or waste time you could have spent on other aspects of growing your business.

  • Limited human resource pool: Assuming that you can afford to hire or outsource your business’ financial functions, finding the best people with the skills and experience to suit your needs can still be challenging. On top of this, businesses that produce their own financial reports manually end up exhausting their already limited labor resources even more.
  • Legal constraints: Along with the constantly evolving business landscape comes constantly changing compliance standards. Even the slightest changes or additions to these requirements may oblige you to change internal processes, which is often time-consuming and resource-draining.
  • Human error: Even the slightest data entry inaccuracies or technical glitches can bring huge losses to your company, compromise your access to financing, or worse, damage your financial integrity. The culprit? Look no further than the traditional, standard data management tool that most business owners still insist on using: manually processed spreadsheets.

Manually processing your financial reports and statements through spreadsheets can cost you a lot of wasted time, money, and human talent. The tiniest errors in formulas can mess up an entire report, while the mind-numbing task of manually entering data and formulas eats up hours of human labor. If you have multiple people working on your financial statements, even the smallest inconsistency among different versions of files and templates may lead to duplicated efforts, wasted time, and possibly even more reporting mistakes.

Manual data processing also leads to delays in accessing information that may be important in making time-sensitive decisions or purchases. It also means that you or your staff will sometimes have to rush work to meet deadlines, which increases the possibility of making costly mistakes that lead to wrong decisions.

With the right mindset, skills, and tools, however, you can overcome these challenges. Take note of the following steps:

1. Consider the time you spend on financial reporting as investments

While it may seem counterproductive to devote time and financial resources to preparing financial statements, it actually helps your business run more efficiently. It saves you time and money while protecting you from potential legal repercussions of inaccurate or substandard reporting.

2. Streamline your processes to ensure that your data is always up to date

Develop a system that includes contingency measures in case of staff turnover or changing compliance requirements. However, keep in mind that there is no one-size-fits-all approach to this.

3. Equip yourself with tools that work for you

You don’t need to be a slave to Excel forever. Contrary to misconceptions, small and large businesses can benefit from technology solutions that keep up with the demands of increasingly competitive markets while keeping in sync with compliance requirements.

What you need: financial reporting in the cloud

Cloud-based enterprise resource planning (ERP) solutions can automate and standardize your financial reporting, both for internal and external purposes. A good cloud-based ERP solution allows you to:

1. Allocate time and resources more efficiently

Most people would rather do something else than manually crunch numbers. With an automated reporting system, you spend less time figuring out the nitty-gritty details and technicalities of accounting, thus freeing up time and resources.

2. Make accurate and informed decisions

By standardizing all your reports and consolidating your data in a cloud-based system, an efficient ERP solution eliminates duplicate work and spares you from the tedious task of reconciling inaccuracies or correcting mistakes. Automation also makes the information you need more readily available, making it easier for you to make time-sensitive decisions.

3. Be more in control of your business

Having an accurate picture of your company’s financial health also empowers you to objectively strategize, forecast, and plan your finances. You can get a better grasp of how your business is doing through an accounting software that works along with standard spreadsheets and allows flexible comparison and analysis of financial data using various parameters.

Financial reporting is, indeed, an indispensable task to keep your business running. This, however, doesn’t mean that you need to spend more time, energy, or money than necessary. Through a comprehensive and integrated financial management solution, you can generate accurate, timely, and compliant financial reports that provide you with more returns in the long run.

Find out how SAP Business One can help you stay on top of generating your financial reports through cloud-based, automated, comprehensive financial management solutions.

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Erwan Philippe

About Erwan Philippe

Erwan Philippe is the head of SAP Business One Asia Pacific Japan, which also includes Greater China. Working in the APJ region for over 15 years, his career spans over 13 years in the IT sector, which includes various leadership positions in sales, business development, and operations. Today, Erwan is responsible for driving sales, operations, expansion, and growth of SAP Business One across Asia.

Innovation Without Boundaries: Why The Cloud Matters

Michael Haws

Is it possible to innovate without boundaries?

Of course – if you are using the cloud. An actual cloud doesn’t have any boundaries. It’s fluid. But more important, it can provide the much-needed precipitation that brings nature to life. So it is with cloud technology – but it’s your ideas that can grow and transform your business.USA --- Clouds, Heaven --- Image by © Ocean/Corbis

Running your business in the cloud is no longer just a consideration during a typical use-case exercise. Business executives are now faced with making decisions on solutions that go beyond previous limitations with cloud computing. Selecting the latest tools to address a business process gap is now less about features and more about functionality.

It doesn’t matter whether your organization is experienced with cloud solutions or new to the concept. Cloud technology is quickly becoming a core part of addressing the needs of a growing business.

5 considerations when planning your journey to the cloud

How can your organization define its successful path to the cloud? Here are five things you should consider when investigating whether a move to the cloud is right for you.

1. Understanding the cloud is great, but putting it into action is another thing.

For most CIOs, putting a cloud strategy on paper is new territory. Cloud computing is taking on new realms: Pure managed services to software-as-a-service (SaaS). Just as legacy computing had different flavors, so does cloud technology.

2. There is more than one way to innovate in the cloud.

Alignment with an open cloud reference architecture can help your CIO deliver on the promises of the cloud while using a stair-step approach to cloud adoption – from on-premise to hybrid to full cloud computing. Some companies find their own path by constantly reevaluating their needs and shifting their focus when necessary – making the move from running a data center to delivering real value to stakeholders, for example.

3. The cloud can help accelerate processes and lower cost.

By recognizing unprecedented growth, your organization can embark on a path to significant transformation that powers greater agility and competitiveness. Choose a solution set that best meets your needs, and implement and support it moving forward. By leveraging the cloud to support the chosen solution, ongoing maintenance, training, and system issues becomes the cloud provider’s responsibility. And for you, this offers the freedom to focus on the core business.

4. You can lock down your infrastructure and ensure more efficient processes.

Do you use a traditional reporting engine against a large relational database to generate a sequential batched report to close your books at quarter’s end? If so, you’re not alone. Sure, a new solution with new technology may be an obvious improvement. But how valuable to your board will you become when you reduce the financial closing process by 1–3 days? That’s the beauty of the cloud: You can accelerate the deployment of your chosen solution and realize ROI quickly – even before the next full reporting period.

5. The cloud opens the door to new opportunity in a secure environment.

For many companies, moving to the cloud may seem impossible due to the time and effort needed to train workers and hire resources with the right skill sets. Plus, if you are a startup in a rural location, it may not be as easy to attract the right talent as it is for your Silicon Valley counterparts. The cloud allows your business to secure your infrastructure as well as recruit and onboard those hard-to-find resources by applying a managed services contract to run your cloud model

The cloud means many things to different people. What’s your path?

With SAP HANA Enterprise Cloud service, you can navigate the best path to building, running, and operating your own cloud when running critical business processes. Find out how SAP HANA Enterprise Cloud can deliver the speed and resources necessary to quickly validate and realize solid ROI.

Check out the video below or visit us at www.sap.com/services-support/svc/in-memory-computing/hana-consulting/enterprise-cloud-services/index.html.

Connect with us on Twitter: @SAPServices

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Michael Haws

About Michael Haws

Michael Haws is the Vice President of HANA Enterprise Cloud at SAP. His specialties include Enterprise Resource Planning Software & Services, Onshore, Nearshore, Offshore--Application, Infrastructure and Business Process Outsourcing.

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Consumers And Providers: Two Halves Of The Hybrid Cloud Equation

Marty McCormick

Long gone are the days of CIOs and IT managers freely spending money to move their 02 Jun 2012 --- Young creatives having lunch and conversation. --- Image by © Hero/Corbisexisting systems to the cloud without any real business justification just to be part of the latest hype. As cloud deployments are becoming more prevalent, IT leaders are now tasked with proving the tangible benefits of adopting a cloud strategy from an operational, efficiency, and cost perspective. At the same time, they must balance their end users’ increasing demand for access to more data from an ever-expanding list of public cloud sources.

Lately, public cloud systems have become part of IT landscapes both in the form of multi-tenant systems, such as software-as-a-service (SaaS) offerings and data consumption applications such as Twitter. Along with the integration of applications and data outside of the corporate domain, new architectures have been spawned, requiring real-time and seamless integration points.  As shown in the figure below, these hybrid clouds – loosely defined as the integration of data from systems in both public and private clouds in a unified fashion – are the foundation of this new IT architecture.

hybridCloudImage

Not only has the hybrid cloud changed a company’s approach to deploying new software, but it has also changed the way software is developed and sold from a provider’s perspective.

The provider perspective: Unifying development and operations

Thanks to the hybrid cloud approach, system administrators and developers are sitting side by side in an agile development model known as Development and Operations (DevOps). By increasing collaboration, communication, innovation, and problem resolution, development teams can closely collaborate with system administrators and provide a continuous feedback loop of both sides of the agile methodology.

For example, operations teams can provide feedback on reported software bugs, software support issues, and new feature requests to development teams in real time. Likewise, development teams develop and test new applications with support and maintainability as a key pillar in design.
After seeing the advantages realized by cloud providers that have embraced this approach long ago, other companies that have traditionally separated these two areas are now adopting the DevOps model.

The consumer perspective: Moving to the cloud on its own terms

From the standpoint of the corporate consumer, hybrid cloud deployments bring a number of advantages to an IT organization. Specifically, the hybrid approach allows companies to move some application functionality to the cloud at their own pace.
Many applications naturally lend themselves to public cloud domains given their application and data requirements. For most companies, HR, indirect procurement, travel, and CRM systems are the first to be deployed in a public cloud. This approach eliminates the requirement for building and operating these applications in house while allowing IT areas to take advantage of new features and technologies much faster.

However, there is one challenge consumers need to overcome: The lack of capabilities needed to extend these applications and meet business requirements when the standard offering is often insufficient. Unfortunately, this tempts organizations to create extensive custom applications that replicate information across a variety of systems to meet end user requirements. This development work can offset the cost benefits of the initial cloud application, especially when you consider the upgrades and support required to maintain the application.

What this all means to everyone involved in the hybrid cloud

Given these two perspectives, on-premise software providers are transforming themselves so they can meet the ever-evolving demands of today’s information consumer. In particular, they are preparing for these unique challenges facing customers and creating a smooth journey to a hybrid cloud.

Take SAP, for example. By adopting a DevOps model to break down a huge internal barrier and allowing tighter collaboration, the company has delivered a simpler approach to hybrid cloud deployments through the SAP HANA Cloud Platform for extending applications and SAP HANA Enterprise Cloud for hosting solutions.

Find out how these two innovations can help you implement a robust and secure hybrid cloud solution:
SAP HANA Cloud Platform
SAP HANA Enterprise Cloud

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Marty McCormick

About Marty McCormick

Marty McCormick is the Lead Technical Architect, Managed Cloud Delivery, at SAP. He is experienced in a wide range of SAP solutions, including SAP Netweaver SAP Portal, SAP CRM, SAP SRM, SAP MDM, SAP BI, and SAP ERP.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

Link to Sources


From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Blockchain: Much Ado About Nothing? How Very Wrong!

Juergen Roehricht

Let me start with a quote from McKinsey, that in my view hits the nail right on the head:

“No matter what the context, there’s a strong possibility that blockchain will affect your business. The very big question is when.”

Now, in the industries that I cover in my role as general manager and innovation lead for travel and transportation/cargo, engineering, construction and operations, professional services, and media, I engage with many different digital leaders on a regular basis. We are having visionary conversations about the impact of digital technologies and digital transformation on business models and business processes and the way companies address them. Many topics are at different stages of the hype cycle, but the one that definitely stands out is blockchain as a new enabling technology in the enterprise space.

Just a few weeks ago, a customer said to me: “My board is all about blockchain, but I don’t get what the excitement is about – isn’t this just about Bitcoin and a cryptocurrency?”

I can totally understand his confusion. I’ve been talking to many blockchain experts who know that it will have a big impact on many industries and the related business communities. But even they are uncertain about the where, how, and when, and about the strategy on how to deal with it. The reason is that we often look at it from a technology point of view. This is a common mistake, as the starting point should be the business problem and the business issue or process that you want to solve or create.

In my many interactions with Torsten Zube, vice president and blockchain lead at the SAP Innovation Center Network (ICN) in Potsdam, Germany, he has made it very clear that it’s mandatory to “start by identifying the real business problem and then … figure out how blockchain can add value.” This is the right approach.

What we really need to do is provide guidance for our customers to enable them to bring this into the context of their business in order to understand and define valuable use cases for blockchain. We need to use design thinking or other creative strategies to identify the relevant fields for a particular company. We must work with our customers and review their processes and business models to determine which key blockchain aspects, such as provenance and trust, are crucial elements in their industry. This way, we can identify use cases in which blockchain will benefit their business and make their company more successful.

My highly regarded colleague Ulrich Scholl, who is responsible for externalizing the latest industry innovations, especially blockchain, in our SAP Industries organization, recently said: “These kinds of use cases are often not evident, as blockchain capabilities sometimes provide minor but crucial elements when used in combination with other enabling technologies such as IoT and machine learning.” In one recent and very interesting customer case from the autonomous province of South Tyrol, Italy, blockchain was one of various cloud platform services required to make this scenario happen.

How to identify “blockchainable” processes and business topics (value drivers)

To understand the true value and impact of blockchain, we need to keep in mind that a verified transaction can involve any kind of digital asset such as cryptocurrency, contracts, and records (for instance, assets can be tangible equipment or digital media). While blockchain can be used for many different scenarios, some don’t need blockchain technology because they could be handled by a simple ledger, managed and owned by the company, or have such a large volume of data that a distributed ledger cannot support it. Blockchain would not the right solution for these scenarios.

Here are some common factors that can help identify potential blockchain use cases:

  • Multiparty collaboration: Are many different parties, and not just one, involved in the process or scenario, but one party dominates everything? For example, a company with many parties in the ecosystem that are all connected to it but not in a network or more decentralized structure.
  • Process optimization: Will blockchain massively improve a process that today is performed manually, involves multiple parties, needs to be digitized, and is very cumbersome to manage or be part of?
  • Transparency and auditability: Is it important to offer each party transparency (e.g., on the origin, delivery, geolocation, and hand-overs) and auditable steps? (e.g., How can I be sure that the wine in my bottle really is from Bordeaux?)
  • Risk and fraud minimization: Does it help (or is there a need) to minimize risk and fraud for each party, or at least for most of them in the chain? (e.g., A company might want to know if its goods have suffered any shocks in transit or whether the predefined route was not followed.)

Connecting blockchain with the Internet of Things

This is where blockchain’s value can be increased and automated. Just think about a blockchain that is not just maintained or simply added by a human, but automatically acquires different signals from sensors, such as geolocation, temperature, shock, usage hours, alerts, etc. One that knows when a payment or any kind of money transfer has been made, a delivery has been received or arrived at its destination, or a digital asset has been downloaded from the Internet. The relevant automated actions or signals are then recorded in the distributed ledger/blockchain.

Of course, given the massive amount of data that is created by those sensors, automated signals, and data streams, it is imperative that only the very few pieces of data coming from a signal that are relevant for a specific business process or transaction be stored in a blockchain. By recording non-relevant data in a blockchain, we would soon hit data size and performance issues.

Ideas to ignite thinking in specific industries

  • The digital, “blockchained” physical asset (asset lifecycle management): No matter whether you build, use, or maintain an asset, such as a machine, a piece of equipment, a turbine, or a whole aircraft, a blockchain transaction (genesis block) can be created when the asset is created. The blockchain will contain all the contracts and information for the asset as a whole and its parts. In this scenario, an entry is made in the blockchain every time an asset is: sold; maintained by the producer or owner’s maintenance team; audited by a third-party auditor; has malfunctioning parts; sends or receives information from sensors; meets specific thresholds; has spare parts built in; requires a change to the purpose or the capability of the assets due to age or usage duration; receives (or doesn’t receive) payments; etc.
  • The delivery chain, bill of lading: In today’s world, shipping freight from A to B involves lots of manual steps. For example, a carrier receives a booking from a shipper or forwarder, confirms it, and, before the document cut-off time, receives the shipping instructions describing the content and how the master bill of lading should be created. The carrier creates the original bill of lading and hands it over to the ordering party (the current owner of the cargo). Today, that original paper-based bill of lading is required for the freight (the container) to be picked up at the destination (the port of discharge). Imagine if we could do this as a blockchain transaction and by forwarding a PDF by email. There would be one transaction at the beginning, when the shipping carrier creates the bill of lading. Then there would be look-ups, e.g., by the import and release processing clerk of the shipper at the port of discharge and the new owner of the cargo at the destination. Then another transaction could document that the container had been handed over.

The future

I personally believe in the massive transformative power of blockchain, even though we are just at the very beginning. This transformation will be achieved by looking at larger networks with many participants that all have a nearly equal part in a process. Today, many blockchain ideas still have a more centralistic approach, in which one company has a more prominent role than the (many) others and often is “managing” this blockchain/distributed ledger-supported process/approach.

But think about the delivery scenario today, where goods are shipped from one door or company to another door or company, across many parties in the delivery chain: from the shipper/producer via the third-party logistics service provider and/or freight forwarder; to the companies doing the actual transport, like vessels, trucks, aircraft, trains, cars, ferries, and so on; to the final destination/receiver. And all of this happens across many countries, many borders, many handovers, customs, etc., and involves a lot of paperwork, across all constituents.

“Blockchaining” this will be truly transformational. But it will need all constituents in the process or network to participate, even if they have different interests, and to agree on basic principles and an approach.

As Torsten Zube put it, I am not a “blockchain extremist” nor a denier that believes this is just a hype, but a realist open to embracing a new technology in order to change our processes for our collective benefit.

Turn insight into action, make better decisions, and transform your business. Learn how.

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Juergen Roehricht

About Juergen Roehricht

Juergen Roehricht is General Manager of Services Industries and Innovation Lead of the Middle and Eastern Europe region for SAP. The industries he covers include travel and transportation; professional services; media; and engineering, construction and operations. Besides managing the business in those segments, Juergen is focused on supporting innovation and digital transformation strategies of SAP customers. With more than 20 years of experience in IT, he stays up to date on the leading edge of innovation, pioneering and bringing new technologies to market and providing thought leadership. He has published several articles and books, including Collaborative Business and The Multi-Channel Company.