Analysis and Possibilities of Innovation of the Business Model Called Central Regulation Using Blockchain Technology

Abstract

Purpose: This paper clearly describes the possibilities of digitising a purchasing group’s processes using blockchain technology. The main focus lies on its core business, financial service called central regulation and other services. Methodology/Approach: After reviewing the literature, the most prominent blockchain projects in recent years in large companies were depicted to identify successful adoptions. The processes of purchasing group were described with the extension of innovative blockchain technology. A summary of potential advantages is presented in a table. Findings: The conclusions could potentially be of a benefit to the management of purchasing groups as evidence suggests an increase in transparency in the whole process of the supply chain and, at the same time, bring effectiveness in payment processing. Combining permissioned and permissionless blockchain could be a viable solution for a purchasing group which uses a central payment system. Research Limitation/Implication: The main limitation is the impossibility of testing the usage of blockchain technology in real-life conditions on a full scale. However, a sample of processes could be modelled further to test and develop the improvements and measure various parameters. Originality/Value of paper: This approach is the first of its kind as there is no literature or publication on the usage of blockchain technology in the central regulation system. This paper can help with the decision-making process at the management level.