5 Benefits Of Being A Socially Responsible Company

Ali Robins

Just as we choose to associate with good people in our lives, customers like to associate with good companies.

Being known as a socially responsible company is a great way to attract positive attention and make your employees proud to be part of your organization.

But before you can do this, it’s important to clearly define your company’s core values.

The definition of socially responsible companies

socially responsible companies quote

Investopedia defines corporate social responsibility as follows:

A corporation’s initiatives to assess and take responsibility for the company’s effects on environmental and social well-being. CSR may also be referred to as “corporate citizenship” and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change.

5 benefits of corporate social responsibility

The benefits of corporate social responsibility function on both an internal and external level.

  1. Build your brand

    Being socially responsible is a great way to build your brand and create a positive name. Factors like good will, trust, and an overall positive image are enhanced and developed through social responsibility. If you’re smart about it and you support the right type of business, it could also lead to co-branding and marketing opportunities.

  2. Attract and retain top talent

    A 2003 Stanford University study found that MBA graduates would sacrifice an average of $13,700 of their annual salary to work for a socially responsible company.

    Benefits of having a socially responsible company
    People want to feel like they’re making a difference in the world, and developing a reputation for social responsibility is a great way to attract and retain top talent.

    When employees are proud of where they work, they feel a sense of loyalty to the company and become company ambassadors.

    One way to measure your employees’ loyalty is with the Employee Net Promoter Score. Being socially responsible is an excellent way to get your employees on the high end of the scale.

    Millennials are especially connected to the idea of working for a socially responsible company. The Cone Millennial Cause Study found that 80 percent of 13- to 25-year-olds surveyed want to work for companies that care about their effect on and contributions to society.

  3. Customers love socially responsible companies

    A survey conducted by Nielsen group found that 50% of consumers surveyed worldwide would be willing to pay more for goods and services from socially responsible companies.

    The one caveat (and this is important for companies to remember) is that in countries where there is already some skepticism, the willingness to spend more is lower. This means that companies and the programs you’re implementing must be authentic.

    In their 2016 book, Good Is The New Cool, Afdhel Aziz and Bobby Jones highlight the importance of authenticity, inclusiveness, and kindness in everything from company culture to marketing campaigns.

    Quote about being socially responsible

    They want to contribute to something that makes a difference and that has a positive impact on the world.

  4. It helps engage your employees

    When you include your employees in larger processes and vision planning, such as designing and implementing a social responsibility program for your company, they’ll feel part of something bigger and more important than just their day-to-day tasks, and therefore they will be more engaged.

    Generally, employees are most engaged when they feel part of a holistic entity rather than bound only to their respective role and tasks.

  5. It keeps your company competitive

    Choosing a unique position as a company and doing things differently from competitors helps your business stand out. This applies to all facts of business, including social responsibility. Your relationship with society is as important as your relationship with customers. Having a strong vision and connection to a cause that makes a positive impact and gives you a competitive advantage.

Socially responsible companies

There are plenty of socially responsible companies today, and one of my favorite examples is an organization called 1% For The Planet.

This organization connects businesses with non-profits, and it has compiled a huge directory of companies that donate 1% of their profits to charity.

Here are some examples of well-known companies that practice social responsibility:

Coca Cola

Their #5by20 program empowers young women entrepreneurs. The plan is to bring 5 million women from the developing world into the company as bottlers or distributors. There is research that shows that this can have a multiplier effect, and create value for more than just those 5 million women.

Visa

Visa has partnered with several governments in the developing world to help offer financial solutions to those in need. Financial literacy is so important to advancing the lives of those in the developing world, and Visa is doing an amazing job to help.

Google

Google is well known for their giving program, and has been recognized as the most socially responsible company in the “workplace” category from the Reputation Institute. Not many people know about the kind of socially responsible investments that they make as a company.

Microsoft

Microsoft has corporate responsibility really deeply rooted in its culture, and organizes hundreds of social events every year, and has surpassed over $1 Billion in employee donations over 30 years.

Toms

For every pair of shoes Toms sells, they give a pair to a child in need.They’re currently given over 60 million pairs of shoes to children in need.

Patagonia

Patagonia’s mission statement is: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. They have awarded over $70 million in cash and donations to domestic and international grassroots environmental groups. However, their social awareness extends beyond the environment. You can read more about their very impressive impact here.

GSOFT

GSOFT’s core mission is to “make a positive impact on people’s lives at work.” Part of the way they do this is by creating a culture that is supportive of employees’ personal mission and causes. Last December, GSOFT offered to match all donations that employees’ had raised for their personal cause, 24hr Tremblant, a ski event that raised money for children in need.

Another example of GSOFT’s socially responsible mindset is their affiliation with Le Club Des Petits Déjeuners, in which employees spend a morning serving food to underprivileged children to ensure they are nourished and ready to learn. GSOFT also participates in the Dream Day at La Ronde, where employees take children from the St. Justine hospital for a fun day on the rides. It has been a poignant experience and one that’s in line with the company mission and culture.

How to build a socially responsible company

1. Choose a meaningful cause

If the nature of your company impacts or causes harm to a specific area, consider choosing a cause that helps improve that area. For example, if you print a magazine, perhaps a part of your proceeds can go to planting trees. Also, choose something that is meaningful to your team. Supporting something that you don’t connect with takes the fun, passion, and success out of the initiative.

2. Create an authentic socially responsible mission

Avoid one-time events or annual donations. Genuine social responsibility is an ongoing process that starts from within and extends outward—if you are going to do it, do it right!

3. Ingrain the mission into your company’s DNA

Every decision that’s made should address your mission so that it becomes part of the company culture, not just an outside initiative. It should be part of your company’s journey, not a standalone project. Whenever possible, think about how decisions might affect this cause or how new initiatives can include the mission into the planning.

4. Get employees involved and enthused

It is not only up to management to drive the initiatives that make your company socially responsible. Get the whole team involved and participating in the cause. You might set up an internal fundraising committee, for example, that allows employees to work hands-on with organizations to help give them a sense of ownership.

5. Offer employees time off to volunteer

The beauty of being a socially responsible organization is that you don’t necessarily need to spend money in order to be socially responsible. There are a lot of other cool ways that you can give back, such as with “volunteer time off” (VTO).

The idea here is to give employees a paid day off at least once a year to provide volunteer services, ideally for an organization of their choice.

Is your company socially responsible? Tell us about your great initiatives!

Comments

Digitization Is Crucial To Achieve UN Global Goals

Daniel Schmid

Concern, hope, enthusiasm: This was the mixture of sentiments that I perceived during the World Economic Forum (WEF) Sustainable Development Impact Summit in New York City last month.

More than 700 leaders from more than 70 countries took part—including government, business, international organizations, research centers, and not-for profits. Panelists included Salesforce CEO Marc R. Benioff, Mars president Jean-Christophe Flatin, Roche vice-chairman André S. Hoffmann, and Royal Philips president and CEO Frans van Houten.

Concern

Former U.S. Vice President and Nobel Peace Prize winner* Al Gore pointed out, in a panel discussion titled “Global Progress through Partnerships,” that the past two weeks saw two record-breaking climate-connected storms. Hurricane Harvey crossed the Gulf of Mexico, which was over four degrees warmer than normal, resulting in enormous amounts of rain. The rainfall totals in Houston were a once-every-25,000-years event. The monsoon in South Asia also brought 70 cm more rain than normal, with one-third of Bangladesh underwater.

Gore said, “We are departing the familiar bounds of history as we have known it since civilization began.” In contrast, other areas are experiencing devastating droughts: 80 percent of Portugal is in drought, and 70 large fires have burned in the western part of North America.

These conditions also create climate refugees. “Long before the civil war in Syria started, the worst drought in 900 years of record-keeping destroyed 60 percent of farms. One and a half million climate refugees entered the cities,” Gore pointed out, adding that this is a contributing factor to the war in Syria.

Hope

“But,” Gore added, “we are also meeting in a time of extraordinary and unprecedented hope.” The World Economic Forum was incremental in building the success of the Paris Agreement, and will continue to play a key role in implementing it. “Public private partnerships are the keys to putting in place the solutions we need.”

The day after the U.S. government announced it would leave the Paris Agreement, Gore said, political and business leaders, states, cities, etc., doubled down on their commitment, saying “We are still there!” SAP is one of the companies that is strongly committed to climate action: We plan to be carbon-neutral by 2025.

According to Gore, there are additional reasons for hope: Technology becomes better and cheaper all the time, a phenomenon known as the “cost-down curve.” Gadgets can now be run with wind or solar energy, and efficiency is better than ever. “The Fourth Industrial Revolution is also a sustainability revolution,” Gore said. Technology is key to meeting the sustainable development goals.

This was also consensus in the panel discussion “The Fourth Industrial Revolution: Technology-Driven, Human-Centred”: Panelists emphasized the opportunities technology brings, from artificial intelligence (AI) to improve working conditions to mobile phones in India that enable everyone to play a part in the economy (e.g. have a bank account)—even those who were formerly excluded. For girls in Africa, learning IT and coding skills bring hope for a better life.

My take? It is up to us to ensure that the opportunities technology offers outweigh the risks. To help drive awareness around the sustainable development goals (SDGs) and showcase examples of how IT can help contribute to them, SAP has published an interactive web book and iPad app as well as a free online course on openSAP: “Sustainability through Digital Transformation.”

Enthusiasm

The theme of most of the speeches and discussions I witnessed at the summit was “There is no planet B,” but also “Together we can make it,” meaning that government, public, and private-sector organizations need to cooperate to tackle the UN Sustainable Development Goals (SDGs). With partnerships and cooperation, they have the power to create positive economic, social, and environmental value through technology, solutions, and skills.

World Economic Forum founder and executive chairman Klaus Schwab described the summit’s intention: “What is needed is a true agenda for global public-private cooperation, with the objective not to defend individual interests, but to keep the destiny of humankind as a whole in mind.”

As a result of the summit, several major new initiatives that will advance public-private cooperation on the global goals were announced or launched, including:

These initiatives show the will to cooperate and the readiness to act of leaders from all over the world—let us all have a part in tackling the biggest challenges of the planet!

*The Nobel Peace Prize for 2007 was awarded to the Intergovernmental Panel on Climate Change (IPCC) and former US Vice President Al Gore for their efforts to obtain and disseminate information about the climate challenge. In Gore’s case, the award was grounded in his tireless campaign to put the climate crisis on the political agenda.

This story originally appeared on the SAP Community.

Comments

Daniel Schmid

About Daniel Schmid

Daniel Schmid was appointed Chief Sustainability Officer at SAP in 2014. Since 2008 he has been engaged in transforming SAP into a role model of a sustainable organization, establishing mid and long term sustainability targets. Linking non-financial and financial performance are key achievements of Daniel and his team.

Healthcare Consolidated Inc.: The 1mg Story

Devika Rao

Prashant Tandon’s healthcare data startup is an all-in-one platform empowering consumers to overcome the opacity of the healthcare sector. In 2007, when Tandon was at Stanford University Graduate School of Business, several fellow students were working on startup ideas. The desire to be an entrepreneur and create value was born then, he says. Back in India, he chose the healthcare sector for his startup, having gained some experience in the field while working for McKinsey’s healthcare practice after finishing business school.

In 2009, Tandon embarked on his first startup, Healthchakra.com, along with friend Sameer Maheshwari, whom he had persuaded to give up his Silicon Valley job and join him in India. The software enabled doctors to manage patients better, but the duo abandoned it within a year, as doctors were wary of sharing patient information with the platform. Their next venture, HealthKart, was a B2C venture for nutrition and wellness products. HealthKart attracted a range of venture capital investors, including Sequoia Capital, Intel Capital, Kae Capital, Omidyar Network, and MakeMyTrip founder Deep Kalra.

Within two years, HealthKart became profitable. At this stage, Tandon, who had always been troubled by the opacity of the healthcare sector, saw a fresh business opportunity in empowering consumers to make informed decisions about medicine buying. This led him to set up a separate company, HealthKart Plus, in 2012. Tandon headed the new venture, while Maheshwari continued to look after HealthKart. HealthKart Plus was subsequently rebranded as 1mg. The same investors who backed HealthKart also invested in 1mg, initially at $6 million, and $15 million in a subsequent round.

Trust is currency

At its simplest level, 1mg is an online drugstore, which delivers medicines in 605 Indian cities and towns according to prescriptions uploaded on its app. Tandon attributes the growth of 1mg to the intuitive and user-friendly interface of the website and the mobile app. Customers appreciate being able to see less expensive substitutes for the prescribed drugs and side effects of each brand. With an array of brands available in the country at widely differing prices, but delivering the same therapeutic effects, 1mg empowers consumers by enabling them to make well-informed, cost-effective decisions.

“Outside of the metros, patients don’t get access to a lot of drugs,” says Tandon. “There are also huge authenticity concerns.” Previously, there was no comprehensive database of medicines available either. “We worked with distributors to get information on the latest drugs, their prices, and side effects,” he adds. “We ended up creating what is probably India’s first database of medicines.”

To further empower customers, Tandon put the database in the public domain, ready to download for anyone who wanted it. A well-meaning customer shared this as a WhatsApp post in January 2013, and the database promptly went viral, with 300,000 downloads in three days. “It made us the most popular health app by far,” says Tandon. The transparency did wonders for business too, as people began to trust 1mg. “In healthcare, the biggest currency is trust,” he adds. Tandon’s 1mg app has been downloaded over 10 million times. No wonder Tandon believes that 1mg is the Wikipedia for medicines in India.

Adding new services

Keen to become a one-stop shop for all healthcare needs, 1mg has been adding services to its platform, such as laboratory diagnostics and e-consultations. The company has already made four acquisitions to further expand its portfolio and services – it bought Homeobuy, which sells homeopathic and Ayurvedic medicines, in June 2015. In July 2016, Medd, a marketplace for booking diagnostic and imaging tests was acquired. MediAngels, which caters to a wide network of super-specialty hospitals, was acquired in December 2016, and Dawailelo was acquired in August 2017 for its impressive network across India.

Tech for the consumer

The data that 1mg has collected provides a unique perspective on drug consumption patterns. “The quality and level of the data we have is rich, deep, and nuanced,” says Tandon. “We want to take this data to a stage where we can use it to make helpful interventions. We want to get into preventive and proactive management of healthcare.” The database can be used to predict what consumers of medicines are looking for and, in time, as it expands, can even provide the government insights into disease outbreaks.

While 1mg’s data is already displaying its transformative power, Tandon believes that artificial intelligence (AI) – or machine learning (ML) – will also play a significant role in enhancing the healthcare experience in the future. Already, 1mg uses machine learning in a simple form for triaging – or deciding which customer needs attention first. While earlier queries during e-consultations were sorted manually and redirected to specific specialists based on their nature, automation now does the job, saving time for both patients and doctors. As the data gets more robust, Tandon hopes AI can give the consumer a more nuanced, focused experience.

“We are trying to create a platform, where, based on our learning of a profile, we are able to send very relevant content,” says Tandon. Personalized customer experiences based on a customer’s stage of life or disease is on the anvil. However, it’s early days for AI at 1mg, he admits.

“Improving customer experience will always be an ongoing journey. We’ve just launched a Dropbox for consumers to store prescriptions. We’ve created a pill reminder. We’re making readability for people who need assistance, whether it is voice-based or larger text.”

To tap rural areas, the 1mg app has been made available in six languages so far. A voice-based interface is also under consideration.

Partnering for growth

Tandon is keen on partnerships to fuel growth. He would like to team up with insurance companies, for instance, for outpatient insurance, or with communications service providers to enable consumer access. He is also in talks with the government to assist the Pradhan Mantri Jan Aushadhi Yojna, under which the Department of Pharmaceuticals sets up fair price chemist shops across the country. “We believe healthcare will not work in isolation and we, as a platform, don’t want to stay as a closed system,” he says. “We want to partner with the rest of the healthcare ecosystem. It will give us much more access to information and data about the consumer as well.”

Tandon maintains the healthcare playing field is so vast that competition is welcome. “It’s great to have some competition as it helps develop the market,” he says. “All of us in the online health space put together are probably about 0.3-0.4% of the market. Right now the fight is not with other online players. The game is much bigger. Healthcare is recognized as a global area of interest, and I expect this space to get even more interesting.”

Find out how technology is heading off healthcare disaster; see Heroes in the Race to Save Antibiotics.

Comments

Devika Rao

About Devika Rao

Devika Rao is an entrepreneur and writer based in Bangalore. She has over 15 years of work experience in research, marketing and communications.

The Future Will Be Co-Created

Dan Wellers and Timo Elliott

 

Just 3% of companies have completed enterprise digital transformation projects.
92% of those companies have significantly improved or transformed customer engagement.
81% of business executives say platforms will reshape industries into interconnected ecosystems.
More than half of large enterprises (80% of the Global 500) will join industry platforms by 2018.

Link to Sources


Redefining Customer Experience

Many business leaders think of the customer journey or experience as the interaction an individual or business has with their firm.

But the business value of the future will exist in the much broader, end-to-end experiences of a customer—the experience of travel, for example, or healthcare management or mobility. Individual companies alone, even with their existing supplier networks, lack the capacity to transform these comprehensive experiences.


A Network Effect

Rather than go it alone, companies will develop deep collaborative relationships across industries—even with their customers—to create powerful ecosystems that multiply the breadth and depth of the products, services, and experiences they can deliver. Digital native companies like Baidu and Uber have embraced ecosystem thinking from their early days. But forward-looking legacy companies are beginning to take the approach.

Solutions could include:

  • Packaging provider Weig has integrated partners into production with customers co-inventing custom materials.
  • China’s Ping An insurance company is aggressively expanding beyond its sector with a digital platform to help customers manage their healthcare experience.
  • British roadside assistance provider RAC is delivering a predictive breakdown service for drivers by acquiring and partnering with high-tech companies.

What Color Is Your Ecosystem?

Abandoning long-held notions of business value creation in favor of an ecosystem approach requires new tactics and strategies. Companies can:

1.  Dispassionately map the end-to-end customer experience, including those pieces outside company control.

2.  Employ future planning tactics, such as scenario planning, to examine how that experience might evolve.

3.  Identify organizations in that experience ecosystem with whom you might co-innovate.

4.  Embrace technologies that foster secure collaboration and joint innovation around delivery of experiences, such as cloud computing, APIs, and micro-services.

5.  Hire, train for, and reward creativity, innovation, and customer-centricity.


Evolve or Be Commoditized

Some companies will remain in their traditional industry boxes, churning out products and services in isolation. But they will be commodity players reaping commensurate returns. Companies that want to remain competitive will seek out their new ecosystem or get left out in the cold.


Download the executive brief The Future Will be Co-Created.


Read the full article The Future Belongs to Industry-Busting Ecosystems.

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

Comments

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

About Timo Elliott

Timo Elliott is an Innovation Evangelist for SAP and a passionate advocate of innovation, digital business, analytics, and artificial intelligence. He was the eighth employee of BusinessObjects and for the last 25 years he has worked closely with SAP customers around the world on new technology directions and their impact on real-world organizations. His articles have appeared in articles such as Harvard Business Review, Forbes, ZDNet, The Guardian, and Digitalist Magazine. He has worked in the UK, Hong Kong, New Zealand, and Silicon Valley, and currently lives in Paris, France. He has a degree in Econometrics and a patent in mobile analytics. 

Tags:

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.

Comments

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.