Untangling blockchain consulting: How to embed strategic value in blockchain development

This thesis explores the topic of ‘embedding strategic value in blockchain development’ within the context of blockchain consultancy startup GoBlock. The result of this research was a process framework together with a workshop for validating a blockchain use case’s strength and potential. In recent years, blockchain technology has gained tremendous popularity. The Bitcoin craze of 2017 has led many people and companies to explore the core technology behind it: blockchain. This has resulted in a large influx of capital into the industry, as many companies are now looking to reap the widely speculated advantages this technology might offer. However, with the rise of its popularity there were also challenges that arose for companies experimenting with blockchain. First, the technology itself is still rather immature. There are no product archetypes which are considered to be industry standard. For some, Bitcoin is still the ‘perfect use case’ of blockchain, but many disagree. This has led to many projects trying to reinvent the wheel. To do this, significant expertise and manpower is required. This has led to a strong rise in demand for blockchain knowledge, in particular blockchain developers. GoBlock, a blockchain consultancy startup based in Amsterdam, recognizes this need and views it as opportunity. With a strong development department, they are looking to cater to the need of blockchain expertise. After all, a lot of money has been poured into the industry, and with milestones not being hit and succesful product launches being extremely rare, the pressure is on for these companies. This thesis hence aims to provide GoBlock with a way to structure their blockchain consulting process. The goal was to do this in a way that would result in the creation of succesful products (i.e. products providing value), as this is lacking in the industry. Initial findings showed that the blockchain industry, and with that blockchain projects, are largely dominated by engineers and developers. This results in a technology-centered approach to blockchain development. Research showed that a multidisciplinary and design-driven approach can benefit blockchain development, both on a product level and on an innovation level. An analysis of current consulting practices was conducted. It was found that the industry leader (IBM) utilizes Design Thinking methods in parts of their consulting process. However, it was concluded that the majority of competitors apply the technology-centered approach. Hence, herein lies an opportunity for GoBlock to distinguish themselves from the competition, while better addressing market needs. Additionally, a company analysis was conducted. First, a case study was done to study goBlock’s previous processes. This showed that there was a fundamental lack of structure in GoBlock’s process. Moreover, the case study brought forward three main challenges that hinder the success of a blockchain product. These are: 1. Blockchain technology is used for cases in which the technology does not need to be used. 2. The strategic impact of a blockchain use case is not evident for the customer’s business. It is not always clear how business value will be created, if at all. 3. Stakeholder needs (i.e. user values) are left out of the equation. By not taking into account user needs and values, products are created that might never be adopted. Therefore, this thesis proposes the addition of a validation step in GoBlock’s process. GoBlock can play a key role in assessing the validity of blockchain use cases before engaging in a development project with their customer. This can not only benefit the technology’s reputation, but applying user-centered approach to blockchain use case development allows GoBlock to distinguish themselves from competition. To achieve this, a process framework is designed based on literature research and findings from expert interviews. This process framework contains two overall phases: validation and creation. In the first phase, GoBlock sits with the customer to assess the validity and potential of the customer’s use case. In this phase the use case can be reshaped and finetuned. This, in order to make sure that when the project reaches the development phase, an actual valuable product is developed, rather than just a pilot. The goal of the workshop is to spark awareness about blockchain’s actual strategic impact, and that people in the blockchain industry should look beyond the technological realm to determine whether a use case is good or not. If mass adoption is to be reached, a user-centered approach is needed. This is where Design Thinking can be of value. The framework and workshop were validated with students and the company, leading to recommendations for further development.