CHAPTER 6: CASE STUDY 1
6.4 Findings of the Case Study
6.4.1 First proposition: Findings
The first proposition developed in this study assumes the Blockchain adoption project is impacted by the in-pace structure, rules and resources. This section discusses the extent of translating this conceptual proposition into experienced reality.
Figure 10: Structure Proposition Matrix Coding Query
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The above diagram shows the emerging codes captured from the transcribed interview, in addition to the weight of each code comparing to other codes based on the number of related references for that code in the transcribed interviews. These are the key codes mapped to the structure and rules proposition. These codes are explained and discussed below in detail.
Technology
The technology played a significant role and has a significant impact on the project, firstly the selection of the right Blockchain platform to be adopted as a majority of available Blockchain platforms were immature and unstable. The most challenging aspect of any Blockchain selection process is making sure the selected option ideally meets the entity requirements. Therefore, the IT team worked to intimately understand the Blockchain requirements, and agree to their relative importance in current and future scenarios. C1 IT Director said:
“The decision for the technology came first as an objective towards adopting Blockchain, but then we were working to find a scenario applicable on Blockchain and ensure that the selected technology will allow us to meet all business scenario requirements, hence technology was selected.” (C1 IT Director)
One core aspect governing the technology selection is to ensure the internal security policy can be met; accordingly, the IT department evaluated how the proposed technology can control Blockchain users’ access and permissions within the network, ensuring the right network node is able to see and update the right set of data. So, the selection of technologies must allow the department to control access and permissions at all Block set of data, at common-level, and at specific-level. Also the proposed technology has to offer an audit trail that helps the department to track who made which changes and when. For external security, the department aimed to ensure the Blockchain system and selected technology will be highly secured and that only authorized network nodes will have access to the network chain.
C1 Solution Architect explained that:
“We aimed to adopt a technology that can reduce process time and offer a very secured system aligned with our security policy where data can easily be accessed by all Blockchain network nodes but in a very secured way.” (C1 Solution Architect)
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Moreover, one of the most important criteria for the selected Blockchain technology is level of technology interoperability, and how easily the selected Blockchain technology can integrate with existing business applications and infrastructure. The department aimed to invest in a Blockchain technology that can help speed up integration efforts and optimize the cost of integrations development over time.
Additionally, the department aimed to select a technology, but this depended on how much it would cost the department. The strategic and selection decision was based on understanding the technology’s total cost of ownership that consisted of three main components: installation costs, recurrent license costs and support costs. In addition to the intangible costs, i.e. staff time, staff training etc., this aspect was one of the main challenges when selecting the right technology.
As a summary, the right technology selection, especially for novel technology such as Blockchain, was one of the key activities impacting on the overall project timeline and progress. C1 Project Manager said that:
“I believe there were many targets we wanted to achieve by adopting Blockchain in the distributed lease smart contract system, for example optimize the business cycle and rent journey for end users. But selecting the right technology was one of the most critical targets to achieve and it consumed a lot of time.” (C1 Project Manager)
Process & Procedures
Blockchain Ejari systems have made significant steps in rental processes. As rental processes have been changed to be fully automated, secured with Blockchain smart contracts, and concerned network nodes have direct but permissioned access to the data, this changed the day-to-day users’ activities. The below diagram shows the new process adopted using Blockchain technology:
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Figure 11: Blockchain Real State Business Process, Source (Entity 1, 2018)
The new approach of delivering tenant contracts as a Blockchain smart contract allowed the department to manage the flow of information to secure and verify details against policies, claims and fees payments while protecting the chain data and complying with data confidentiality policy. But to achieve this new approach, business users and the IT team worked closely to come up with this new approach, and it was a time-consuming task and needed creativity and the building of knowledge with Blockchain Technology. In this regard, C1 Business Architect explained:
“Our management requested us to change the business process in the new system, aiming to automate the full cycle of tenancy contract renewal service. Automation will not cover only our procedures, it will cover other external partners as well like Developer Company, Bank and any other possible departments. Defining the new process was very challenging as the delivery approach is totally changed using Blockchain.” (C1 Business Architect)
Finally, focusing on the human side; adopting new government service delivery approach to conducting daily activities needs a significant time frame. In order for the department to adopt the new technology, there was a technology learning curve, but from businesses’ point of view, the shift in processes was the greater challenge in addition to learning the Blockchain platform itself and adapting new practices accordingly.
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In parallel with all Blockchain adoption activities, the department worked to define a new policy that aims to achieve numerous objectives, define the new scope of tenant smart contract operation, ensure operation of the new process in a compliant manner, and define the authorization matrix. Moreover, the department planned a continuous improvement cycle that adjusts to lessons learned, as the concept is new and the technological landscape is rapidly changing.
The department recognized that it is essential to adopt very flexible policies while adopting Blockchain, which makes the department ready for a fast-paced and ever-changing technology landscape. Hence, rigid polices risk was a big concern for the key project stakeholders. C1 IT Director said that:
“Blockchain gives us huge expansions and options to design our business flow. But, I had many concerns about our control over the process, and our data confidentiality and the level of optimization we can reach with Blockchain.
Blockchain gave us the possibility to address all my concerns perfectly but after we defined a new policy.
But on the other hand, Blockchain caused different types of challenges, mainly the unification of platforms for different partners while each partner has its own policies and regulations.” (C1 IT Director)
Moreover, the department aimed to ensure interoperability and data exchange (mainly interoperability between tenancy smart contracts), and it was necessary to develop a policy on the technological level. The department has developed these standards in collaboration with the IT team, Blockchain experts and other concerned stakeholders. The final version of this policy was developed after the completion of the pilot project implemented at a very early stage in the project.
Strategy
The initial strategic objective target by the department towards Blockchain was aligned with UAE Blockchain vision; however, while adopting the Blockchain Pilot project, the department figured out the need for developing a detailed Blockchain strategy and road map
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that enables the advancement of a national e-Real Estate strategy that covers the Blockchain vision, road map and the Blockchain digitization evaluation framework.
In the ICT strategy, the department developed a road map for adopting Blockchain; this can be explored from the below road map time line diagram:
Figure 12: Blockchain Road Map, Source (Entity 1, 2017)
Departments’ Blockchain strategy was development to achieve the following main objectives:
Bring end to end real estate processes on Blockchain to enhance the scalablity, transparency, security and distribution of real estate data to all the stakeholders of the trusted network.
Achieve parperless environment and replace with digital records and digitally signed documents.
Utilize Blockchain network tp integrated all stakeholder’s entities and eliminate the manual processes.
Imporve sharing data between entities in order to achieve the Open Data modern model.
Improve the efficiency of the real estate process and transactions.
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Finally, the key project stakeholders agreed that this strategy has to be revised periodically for continuous improvements, and moving towards Blockchain without a clear road map and objectives is a huge risk due to the novelty of the technology. C1 IT Director explained in this regard:
“Our road map was not defined at an early stage but started with automating part of the steps using Blockchain as a pilot project, then expanding these functions to cover the whole rent process. During the pilot project, we aimed to check the technology capabilities, our readiness from all aspects, technological, legal, procedural and governance. Then the implementation of remaining part of the process will be clearer and can be easily planned. But in fact, having a clearer road map at the initial stage would help the project a lot. “(C1 IT Director)
In conclusion, the adoption project for Blockchain in the department is impacted by the existing structure, mainly with Technology itself, ICT strategy, Process & Procedures and policies. All these components need to be taken into consideration at an early stage of the project.
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