CHAPTER 7: CASE STUDY 2
7.4 Findings of the Case Study
7.4.4 Fourth Proposition: Findings
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Figure 35: eCommerce Blockchain network key nodes, Source (Entity 2 ,2018)
Blockchain technology has been used to build this platform; the department utilized a distributed ledger for recording transactions, maintained by multiple nodes without central authority through a distributed cryptographic protocol. All nodes must validate the information to be appended to the platform, and a consensus protocol ensures that the nodes of customs, courier, logistics and eCommerce companies agree on a unique order in which entries are appended. The platform is also integrated with a set of internal operational systems.
Also one more advantage resulted by the usage of Smart contracts Blockchain concept which is solving the trust issue between multiple parties in eCommerce eco-system. Smart Contracts are digital agreements between transacting parties that are written in computer code and deployed to the Blockchain nodes, where they will self-execute when predetermined conditions are met. It is used to reduce complexity in a supply chain through automated verification and execution of the multiple business transactions involved. In regard to the scope of work, C2 Business Analyst said:
“Because the technology was supposed to be added and then we started to identify where we could fit it. But currently as we are moving forward we have other projects coming to the picture which are of a Blockchain nature, so at certain points of time in the coming few months after maybe the first release of logistics, we will be able to define where are we heading to, currently it is going to be B2C implementation but there are many
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clients who would love to be part of this. So yes, we have some inputs coming from different players and I guess that will be the input for the future roadmap. It was a learning process from the last one and a half year, and now we have fully successful Blockchain implementation, to move forward.” (C2 Business Analyst)
Business Gaps
After building the required competencies regarding Blockchain, concerned project stakeholders focused on identifying clear business gaps that could be recovered using the offered Blockchain functionalities, and then developed a clear project mission according to the identified gaps. The below diagram shows the key business gaps identified for the eCommerce Blockchain project:
Figure 36: Key eCommerce Business Gaps, Adopted for this study
After identifying a clear set of business gaps, the project team defined the proposed Blockchain features that would be utilized to overcome each gap. Also, the gaps are considered as key performance indicators for measuring the success of the project. The
eCommerce Business Gaps Difficulties in pulling correct
information from various documents
Growing Problem of Goods return
Creation of Customs declaration documents is very complex Ecommerce
Companies often involve
third party providers Growing
volumes of cross-border E-
Commerce shipments Probability of illicit trade and noncompliance
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eCommerce platform allowed the department to improve and resolve all these business gaps.
But in conclusion, the best utilization for Blockchain features is very powerful for overcoming different business gaps and allowing the department to improve the business significantly. C2 Program Manager said that:
“Certainly, we see the entire reason for eCommerce is to ensure that the clients can accept their orders lithely so the fulfilment rate ought to be higher, not all that, likewise to urge eCommerce players to come to Dubai which will help Dubai business itself, so for us when we began, we began with one of the messenger organizations here, one of the notable dispatch organizations and we had one of the gatherings with them, we discovered there is a colossal cycle to be followed with regards to presentations creation, so the thing was going on that customers used to send their orders which messenger organizations dealing with their stockrooms and in view of the orders eCommerce request when it come, you realize those messenger organizations start their preparing, which for the most part they will have 100 orders each day, so it just takes them from 6 to 7 hours only for information passage before they can submit to Dubai customs; this was going on and simultaneously they would not have the option to isolate what is eCommerce and what isn’t eCommerce inside their own framework and there is zero ability to see to it. Subsequent to examining with that. So subsequent to examining with them, we chipped away at how might we diminish their functional cost and give them an advantage where these sort of assertions which are just eCommerce can be mechanized, so our principle part was that since dispatch organizations have these data, we proposed
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for them to have a Blockchain and associate with our foundation, where we will approach their data so naturally we will give the revelation structure for them.
And all that planning will be put aside for them. Which is around 6 to 7 hours they need on a regular routine.”
(C2 Program Manager) Benchmarking
One of the key approaches followed by the department in the adoption of new technology is to follow a successful benchmark, and this has been done in the eCommerce Blockchain project. Firstly, they defined the benchmarking metrices to evaluate the benchmark case.
Secondly, to ensure efficient comparison of targeted cases, the department was looking for a similar case with the most possible common setting, for example the case of eCommerce implemented in China.
Thirdly, the benchmarking case was measured during meetings or by analyzing all available documentation. Provided documents allowed the department to measure the functional size.
Finally, a quantitative result was developed as a result of the benchmarking process, but it helped the department to predict some of the challenges associated with Blockchain adoption projects. C2 IT Director explained that:
“I would say as I referenced previously, the information was very much less in the extreme beginning stage about the actual innovation, that is an unequivocal factor.
Since the information was not that much as the innovation was not excessively adult, to be honest, as the specialized group we were relying on similar implementation achieved by any other country worldwide, like China. So we needed to continue to get into more data from this benchmarking case to sort out the thing that is actually going on and what is the prescribed procedure. Yet, over time, we had more information about how to utilize and what not to utilize.
I think it became like a case, likewise it was referenced
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by PwC in one of the articles that Dubai Customs had accomplished like a greater amount of sort of proof that the learning become productive. As a matter of fact our case is like other Blockchain cases, however it is a very wide reaching case and we are not managing the public straightforwardly. So in this space two and a half years back, we did not have many studios with IBM and they continued to ask us to lead the pack, and we took the last lead and became a pioneer for this situation.” (C2 IT Director)
In summary, scope definition, business gaps and benchmarking influenced the eCommerce project time and allowed the department to achieve success, and informed the project objectives and road map. However, these matters are classified by participants as one of the key aspects to be considered while adopting Blockchain technology.
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