Ever since the creation of Bitcoin in 2008, its underlying technology, blockchain, has been shifting how the world does business. Essentially, blockchain facilitates peer-to-peer transactions without any middleman such as a bank . It also keeps the user’s information anonymous, while validating and keeping a permanent public record of all transactions. The benefits of this are that personal information is secure, while all activity is transparent and incorruptible.
As we’ve seen the use of blockchain technology in real estate, insurance, and money transfers, there is a new growing need for blockchain to serve ERP. ERP software integrates all the different functions in an enterprise together by providing a single version of the truth in real time throughout the organization cutting across departmental boundaries. Blockchain technology is also similar in that it is a real time common database that provides a single version of the truth to all participants.
As we’ve learned in class there is sometimes confusion and lack of trust within the company by departments due to perhaps different formats and processes across departments. Blockchain seems like a neutral solution that everybody in the organization can adopt.
This article highlights one company in particular called Finlync that is developing what it claims to be the “world’s first technology to integrate blockchain into ERP systems like SAP.”
Sources:
- http://www.pymnts.com/news/b2b-payments/2017/finlync-blockchain-erp-data-integration-b2b-payments-automation-document-invoice-management-processing-ar-ap-buyer-supplier-banks/
- http://dontapscott.com/2015/06/blockchain-revolution-the-brilliant-technology-changing-money-business-and-the-world/
Interesting article. In my opinion when every transaction in the ERP system will be recorded as a block in the blockchain private network of an organization, it will eventually add more transparency to business transactions.
This is an interesting topic, and I think it could solve the problems you address. But do you think it will become widely adopted? Sometimes transparency is not valued as highly as it should be.
Really Nice article,In my opinion ERP has a lot of transactions which are not required to be that transparent, How do you think that can be mapped with block chain concept.
It is really interesting to integrate the use of block chain technology into ERP system. I believe it will make ERP system functions more efficiently.