THE shipping and maritime sectors are moving into an era of increased collaboration which requires critical levels of corporate trust, writes Acando Management Consultant Erik Gaarder in an opinion piece for Fathom.
He believes blockchain has arrived at just the right time. But do we trust it to replace ineffective systems that are commonplace in industry today?
After listening to several keynote presentations at Nor-Shipping 2017 I have reflected on a number of points from keynote speakers: The word ‘trust’ came up many times but mostly related to data, and collaboration was brought up a few times but there are few collaborative initiatives.
Trust is the basis of all business. In today’s shipping industry, this trust has been developed through the existence of middlemen who add considerable costs without reducing operational friction substantially. We have an ineffective system that is ready to be replaced, but how and by who?
If we are serious about developing the TRUST needed to reduce operational friction, you must collaborate with existing players and competitors in the shipping industry. If there is no collaboration and everybody develops their own “UBER” model, you will not succeed and there might be uncontrolled industry disruption by new entrants!
The best technology for operational collaboration is the Blockchain, because it has built in TRUST. This is a megatrend that will become the backbone of the new digital era, redefining the way organizations create and exchange value. Suppliers to the industry presented proprietary solutions related to IoT and big data. Daily operations are venerable when data is handled though external third parties, increasing your operational risk. Blockchain technology ensures the TRUST in data they provide. The US Defense Department is working with blockchain to ensure the security of their nuclear weapons and Toyota is working with blockchain to secure the sensors in their cars so they can be autonomous! Maybe the shipping industry can collaborate on building a standard for mutual benefit?
In the next 5 to 10 years you will see radical changes in the way you finance, operate and manage risk within the shipping industry. The challenge for existing players is to establish a joint eco-system and start a journey into the world of blockchain. This will require a major change in mindset. Industry eco-systems built on blockchain platforms open a new world of opportunities by substantially reducing the barriers to connectivity & collaboration.
The battle of the Shipping Eco-systems: Is the industry entering a phase of collaborative transformation or disruption from new entrants?
If collaboration wins, existing shipping companies will create and exchange value in new ways requiring “Digital Capabilities” that enable new business and operating models. We have entered a period of substantial uncertainty! Your safest bet is to explore the possibilities through “Digital Insight” not just use cases based on existing operations. Your transition into the new era will require a strategic focus, balancing the development portfolio between new and existing operating models, to maximize value along the way. Can you afford not to invest in the strategic insight needed to succeed in this new digital era?
Erik Gaarder, Acando Management Consulting
