The Impact of Blockchain on the Value Chain

Abstract

Today‚ businesses are operating in an increasingly complex and competitive environment. They are continuously challenged by the need to increase value chain efficiency‚ reduce operating costs‚ improve organizational processes‚ and consolidate business relationships with supply chain partners. To attain these multiple goals the integration of new technologies into the business value chain is a critical factor for ensuring competitiveness and strengthening the market position. In this regard‚ block-chain technology gains special attention from both industry and academia. Beyond its first use in cryptocurrencies‚ block-chain technology proves to be a workable solution for a multiplicity of supply chain application areas and responds to several emerging business needs. In this paper‚ we set out to provide comprehensive insight into the potentialities of block-chain technology by unifying its value-creating abilities in the well-known Porter’s value chain framework. Through the lens of the framework it is possible to gain a deeper understanding of how this technological phenomenon disrupts the value chain and reshapes existing business practices.