Blockchain in Supply Chain Management: A Review of the Capability Maturity Model
With the growing popularity of cryptocurrencies, Blockchain systems have found a new audience within the business environment. The decentralized ledger technology that allows the creation of verifiable transactions has extraordinary applications within bu
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and Bhajan Lal
Institute of Management, Nirma University, S G Highway, Ahmedabad 382481, Gujarat, India [email protected]
Abstract. With the growing popularity of cryptocurrencies, Blockchain systems have found a new audience within the business environment. The decentralized ledger technology that allows the creation of verifiable transactions has extraordinary applications within business. In this paper the authors have attempted to identify the core benefits of using Blockchain technology to improve Supply Chain Management (SCM). With industry 4.0 transformation in its preliminary stages, a discussion on how Blockchain systems can benefit SCM is important. Like any other information system, Blockchain implementation is not just limited to infrastructure changes but also requires organisational wide changes to reap the benefits of the new system. The inherent technological issues associated with Blockchain are preventing many organizations from adopting Blockchain systems at a large scale. The authors have presented a model to guide the implementation of the Blockchain based systems using the industry accepted Capability Maturity Model (CMM) as the reference. Keywords: Blockchain Supply chain management model Information system implementation
Capability maturity
1 Introduction The Global Supply Chain Forum (GSCF) defines supply chain management as “the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders” [1]. Chief among the issues faced in supply chain management is the issue of business process links as they have a significant impact on the performance of the supply chain [1]. To achieve a truly integrated supply chain, commitment from all the members is essential. To create an integrated supply chain, the buying organization has to invite its business partners into their organization. This goes beyond just sharing information about the products and requirements thereby including business partners into buying organization’s operational activities. This integration does come with a challenge since there is limited reciprocity from the business partners. The business partners are provided extensive information about the inner workings of the buying organization while they can choose to remain firewalled. This is a unique problem since the objectives of both parties may not be always in line. © IFIP International Federation for Information Processing 2020 Published by Springer Nature Switzerland AG 2020 S. K. Sharma et al. (Eds.): TDIT 2020, IFIP AICT 617, pp. 149–158, 2020. https://doi.org/10.1007/978-3-030-64849-7_14
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R. B. Unny and B. Lal
Additionally the creation of such an integrated supply chain often puts the buying organization at the risk of being held since there is an overwhelming reliance on the partners [2]. The sheer complexity of managing business partners through the entire supply chain is compounded by the limited willingness to create an integrated s
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