Blockchain importance in Finance

lallylally Posts: 323Member
Hi All,

Traditional financial or ERP systems operate with a centralized database, which would help to analyze the business transactions by using various reports such as Balance sheet statement, P&L statement, Cashflow, TB.... and ERP's can be accessed by the authority people, who all have appropriate access. In addition to that ERP's has a lot of rich functionality in each module, automated functionality, and Workflows, which has been helping to solve the complex business problems.

But new technology Blockchain says that it can be integrated with ERP's to address the complex problems.

I'm clueless that what is the finance functionality that can be met by using blockchain, but not available in MS Dynamics ERPs.What is the problem statement that blockchain is trying to solve in ERP's world? Except for chain of records ?

Could anyone explain that how does really blockchain can improvise any finance business process in ERP?

Thanks in advance.
lally

Answers

  • KTA8KTA8 Posts: 298Member
    Blockchain could have an interesting use in relations between parts, bussiness itself is one of them. But first you should see a general use in loans, letter of credit, ... banks are the ones which have more interest in this technology but you couldn't use any of those these days.
    In the future it could be used in contracts between vendor and purchaser but the implementation in ERP needn't be mandatory.
  • lallylally Posts: 323Member
    Thanks for the reply ,KTA.

    you cited as it could be used in contracts between vendor and purchaser, but this functionality is also available in ERP packages.

    Could you share some light on the point highlighted or Didn't catch your point ?

    Thanks in advance.


    lally
  • Slawek_GuzekSlawek_Guzek Posts: 1,684Member
    I can think of managing serial numbers of items using public blockchain. With that technology you could potentially trace the origin of an item (or rather its serial number) and prevent counterfeits.

    The general idea imho is not what you can do in general,which cannot be done, but what can you do better in ERP using blockchain
    Slawek Guzek
    Dynamics NAV, MS SQL Server, Wherescape RED;
    PRINCE2 Practitioner - License GR657010572SG
    GDPR Certified Data Protection Officer - PECB License DPCDPO1025070-2018-03
  • lallylally Posts: 323Member
    Thanks for the reply Slawek ,

    As you cited that " I can think of managing serial numbers of items using public blockchain. With that technology, you could potentially trace the origin of an item (or rather its serial number) and prevent counterfeits "

    But the above functionality is already available in ERP systems such as backward/forward tracking of the serial/Batch number.

    Could i know in what view you suggest that serial number trace functionality?

    You also added that " what can you do better in ERP using blockchain " , this is exactly what I'm looking on good business cases which would help to improve the business process, but i'm clueless since now a days most of the branded ERP's already enhancing their products as per customer needs.

    Any insights on good business cases?
    lally
  • Slawek_GuzekSlawek_Guzek Posts: 1,684Member
    You are looking at it from wrong perspective IMHO. Something like - why do we need an ERP system - we have everything in Excel, a few macros and everything works.

    Don't get me wrong and don't be offended please as I probably have the same (pretty much unconscious) attitude myself. Being a long time in the ERP market it makes me looking at blockchain technologies in context of ERP software through existing modus operandi - therefore limiting ideas of applications for blockchain.

    Every aspect of blockchain which works in financial market would work in ERP system too.

    If you take my serial number example - if you have production or assembly you could generate serial number based on serial number of each component, and include serial number of each component. The ERP system would not assign an arbitrary serial number - it would generate if from existing serial numbers of your components- plus something yours. It would be not possible for anyone else to fake that serial number.

    You could incorporate direct payments from ERP. Sure in current ERP systems you can generate files for some bank to process, or even integrate with some bank or PayPal/Visa/3rd party payment provider API now, but with blockchain you could pay directly.
    Slawek Guzek
    Dynamics NAV, MS SQL Server, Wherescape RED;
    PRINCE2 Practitioner - License GR657010572SG
    GDPR Certified Data Protection Officer - PECB License DPCDPO1025070-2018-03
  • lallylally Posts: 323Member
    Thanks for the reply Slawek ,

    still i'm not clear on this serial number process as cited by you " If you take my serial number example - if you have production or assembly you could generate serial number based on serial number of each component, and include serial number of each component. The ERP system would not assign an arbitrary serial number - it would generate if from existing serial numbers of your components- plus something yours. It would be not possible for anyone else to fake that serial number "

    Since ERP's has a rich functionality of serial number . Could you share more on this ?

    You also highlighted that using blockchain you could pay directly. Do you have any blogs/videos available on this ?
    lally
  • lallylally Posts: 323Member
    Any additional insights from pioneers on this ?
    lally
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