Strategist | Jul 18 | Blockchain

presents

July 2018 | Volume 3 | Issue 1

BLOCKCHAIN: EMPOWERING THE BUSINESS OF TOMORROW

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2 STRATEGIST

‘

We aim to provide participants consulting projects and challenges that will equip them to tackle future assignments confidently and competitively. We also aim to facilitate growth of collective knowledge of the entire student community interested in the Consulting and Strategy domain. This magazine says it all. In this issue of Strategist we have emphasized on Blockchain, which is disrupting various industries through technology and challenging the established players, and how it is empowering the business of tomorrow. We hope you enjoy reading this issue of Strategist as much as we enjoy creating it.

-Team ConQuest

STRATEGIST 3

C O N T E N TS Blockchain Edition

1.

F ROM

THE

E DITORS ’ D ESK 4

– Team ConQuest 2.

B LOCKCHAIN D ISRUPTING C USTOMER E NGAGEMENT I NDUSTRY 6

– Siddhant Singh, IIM Shillong 3.

B LOCKCHAIN : O PPORTUNITIES

AND

C HALLENGES

– Vivek Kumar, IIM Shillong

4.

B LOCKCHAIN : H OW I T W ORKS ?

– Ashish Kumar Bastia , IFMR Chennai

5.

B LOCKCHAIN

IN

A N EW E NTRANT

IN

H OW

CAN

21

P HARMACEUTICAL I NDUSTRY

– Akash Gupta , RGIPT 7.

17

L OGISTICS

– Rajesh Ranjan & Vikas Kr. Yadav , IIM Calcutta 6.

11

B LOCKCHAIN

25

AFFECT DIFFERENT I NDUSTRIES IN

F UTURE ?

– Subhrajyoti Saha , IIM Shillong 8.

28

A LUM S PEAKS – Team Conquest

33

4 STRATEGIST

From the Editor’s Desk Team ConQuest In this edition of Strategist, we

the potential disruptors can be

the banking industry are under-

aim to analyze the potential

Blockchain. A Blockchain or

lying problems that the banking

paradigm shift in various busi-

‘Internet of value’ is a digital,

industry has faced. The con-

nesses due to Blockchain and

immutable, irreversible distrib-

sumers of those services are

how it can impact a common

uted ledger that chronological-

tied to the system because of

person as well as industries.

ly records transactions in near

the extraordinary regulation

real-time. The use cases of

that banking sector faces, in

Blockchain are widely spread

general. Traditionally, banks

and have the ability to influ-

have enjoyed a monopoly in the

ence multiple industries. In last

way they conduct their busi-

few years it has had a major

ness. In recent times the banks

impact on the banking indus-

have been challenged with the

try.

growth of alternative arrange-

Disruptive innovation creates a new market and value network that in due course disrupts an existing market and value net-

work, displacing established market leaders. Some of the significant disruptors in recent times have been Netflix, USB

The reasons for the growing

drives, Amazon, etc. One of

popularity of Blockchain in

ments. Some of the main reasons are globalization, increased

STRATEGIST 5 innovation in digitally secured

The applications are varied,

technologies and growth of

but some of the prominent

nonbanking financial institu-

use cases can be peer to peer

tions.

lending (Legally lending mon-

The critical question is how does Blockchain help in resolving traditional banking issues?

Blockchain technology allows proper flow of information due to uniform time stamping, information consensus across stakeholders of a transaction, authenticity, and resilience and most importantly, secure encryption. Now, we have a rough idea of why Blockchain may impact the banking industry.

But how does it influence us?

ey to your neighbour/friend etc. without an intermediary), authentication of identity cards, smart contracts to register land and minimise risk of frauds (Honduras has already applied it ), centralised KYC removing redundancy in authentication processes ( many banks in India are in process

to create a consortium for its members to share KYC and reduce redundancy), etc.

On paper, the application and

perceived benefits look like a fairy tale but for this to come to any reality we have a long road ahead of ourselves. Many steps need to be taken for smooth integration that it benefits end users most with least disturbance to the existing systems (Core Banking solution, etc.).

The combination may lead to joint investment of the bank’s vast customer base and fintech firms’ cutting edge technology which would allow entities to venture into other businesses.

The consumers will have access to a more extensive range of product and services along with safe and secure transactions. To implement all of these we may need our traditional institutes to reskill the workforce with the latest technologies to serve the new customers.

6 STRATEGIST

Blockchain Disrupting Customer Engagement Industry Siddhant Singh, IIM Shillong What would you say if I asked

Thus, there is a need to re-

you how many loyalty programs

form and transition towards a

you are a part of? What would

better and improved system.

you say if I asked you how many points you have in these programs?

And

more

im-

portantly, what would you say if I asked you whether you know the monetary value of these points? Given the present scenario, the chances are that most people won’t be able to answer any of the above questions.

The

customer

engagement

schemes employed by businesses in recent times have become obsolete with customers today wanting more personalization, better quality benefits, and fast service.

money is a big opportunity loss

Bond Brand Loyalty in collaboration with Visa published the Bond Loyalty Report 2017, North America’s largest loyalty study, in which they conducted a survey of about 28,000

for businesses running these loyalty programs.

North Americans and found

Businesses across the globe in-

out that, “57% of Members

vest and spend billions of dol-

don’t know their points bal-

lars in establishing and running

ance and 38% are unaware of

their loyalty programs, but

their points value”. Also, that,

when they don’t work out as

“Each Member is enrolled in

desired, it causes a lot of prob-

14.3 programs but is active in

lems for them. Firstly, these un-

only 6.7 programs”, which is

redeemed points end up adding

less than 50% active participa-

liabilities

tion.

sheets because they aren’t con-

But amongst all these facts

on

their

balance

verted into sales.

and figures the most alarming

Secondly, they risk losing their

is that, “$100 Billion in points

customers to competitors as

are left unredeemed by Mem-

these loyalty programs don’t

bers”. Such a huge amount of

meet their intended purpose,

STRATEGIST 7 i.e., customer engagement. The

cause most of the loyalty pro-

for the customers regarding the

situation becomes much worse

grams work in silos, i.e., they

offers provided to them and the

when you also consider the fact

offer

manner in which they can re-

that many businesses don’t pos-

amongst the programs of dif-

sess the required expertise and

ferent businesses.

technological

know-how

of

no

interoperability

deem their accrued points.

All these problems amounted

Thus, when you are a part of

together have plagued the cus-

the loyalty program of a par-

tomer engagement industry and

ticular brand/merchant, then

have made the entire scheme of

you can use the accumulated

employing

points of this program only at

complicated, inefficient and un-

this particular brand/merchant

profitable.

or else at a very minimal num-

have been looking for innova-

The situation is also no better

ber of

partnered brands/

tive and disruptive ideas to reju-

on the customers’ end. Cus-

merchants. Consequently, busi-

venate and invigorate their cus-

tomers, who are the end users

nesses aren’t able to offer a

tomer engagement front by em-

of these loyalty programs, also

large brand/merchant pool to

powering

face a lot of problems.

their customers and in this way

their loyalty programs and thus,

running these loyalty programs and therefore have to outsource the technology as well as skilled personnel from external parties adding to more costs for running these programs.

The biggest problem that customers face is that they don’t

customers’ choice for redeeming points gets restricted.

loyalty Ergo,

and

programs businesses

strengthening

Blockchain has immerged as the conclusive solution to re-

have a single platform where

There is also unfamiliarity for

structure and reorganize the

they can view, store or track

the customers in using these

loyalty programs ecosystem.

their points of various loyalty

programs because of the pres-

programs

ence of innumerous loyalty

that

they

have

onboard. This is majorly be-

programs

in

the

industry

which are non-uniform. Many loyalty programs offer cumbersome redemption processes

with lack of personalization

The Blockchain is a decentralized P2P (Peer-to-Peer) network system consisting of

8 STRATEGIST is shared to all the nodes.

platform, customers needn’t

Blockchain facilitates secure

onboard the various loyalty

and safe transactions while at

programs using different IDs.

the same time offering utmost

They can easily onboard pro-

transparency.

grams using a unique custom-

Blockchain can help businesses improve and amend their loyalty programs in the followmany nodes (computer servers) wherein the transactions re-

ing manner:  Businesses

er ID which can be used to recognize and verify a particular customer in any of the programs

he/she

has

onboard. This will immensely (merchants/

help the

businesses to easily

quested are verified and authen-

brands) can agree to run their

identify their customers, track

ticated by consensus decision

loyalty programs. They can

their purchase transaction his-

making by the nodes and not

set up their individual pro-

tory to provide them individu-

via a central trust or third par-

grams i.e. Single Brand Pro-

ally personalized offers. Also,

ties using escrow contracts.

grams (points of the brand/

businesses can avoid the ardu-

merchant have to be utilized

ous effort of storing large

at that brand/merchant) or

amounts

form coalitions with other

about their users’ credentials

businesses to run unified loy-

and profiles.

The data regarding the transactions are time-stamped and encrypted using requisite proof-of -work, which is then hashed into blocks of data and added to the chain of blocks on the common distributed ledger that

alty

programs

i.e.

Multi

 The

of

information

unique customer ID also

Brand Programs (points of a

benefits customers as they

brand/merchant can be uti-

don’t have to go through the

lized at different brands/ merchants of the coalition) using a Blockchain platform.  Now

since the businesses are

operating on a common net-

work, i.e., the Blockchain

STRATEGIST 9 hassle of remembering what

the brands/merchants from

accessed at any location where

credentials they gave to which

where they have received

that brand/merchant is situat-

brands/merchants

while

these points whereas spend-

ed. There will be no need for

onboarding their loyalty pro-

ing these points at other

customers to onboard loyalty

grams, one unique ID will do.

brands/merchants

programs of the same brand/

would

fetch them lesser value. The Blockchain platform can preserve customer profiles and their transaction history seCustomers can also easily

curely which can be easily

view, store, track and know

verified at any point of time,

the monetary value of all their

thus enabling businesses to

points using their unique cus-

allow customers to transfer

merchant multiple times if

tomer IDs. Thus, their points

and exchange points and gift

they’re visiting these brands/

would never be lost, and they

cards amongst themselves.

merchants at different loca-

would be able to easily utilize

Moreover, they can convert

tions.

them.

their accrued points into gift

Therefore,

businesses are operating

cards of brands/merchants

Blockchain would enable busi-

their loyalty programs on a

of their choice. While at the

nesses to achieve positive ROI

common Blockchain platform,

same time transfer and ex-

on their loyalty programs. Their

they can offer their customers

change gift cards of a partic-

customers would be content,

interoperability for their accu-

ular brand/merchant with

and this would lead to less cus-

mulated points, i.e., points of

that of others on the net-

tomer attrition.

a brand/merchant can be used

work.

 If

at others. Businesses can safe-

 Blockchain

will enable busi-

guard themselves by using a

nesses to run global pro-

discounting model wherein

grams because information

their customers would receive

regarding customers of a

more value for their points at

brand/merchant

could

be

in

this

manner

The below mentioned is an ideal scenario showcasing two major use cases viz interoperability and personalization, that would exist in an ecosystem in which businesses

incorporated

a

10 STRATEGIST Blockchain platform to run

taurant provides him with of-

erate under a coalition program

their loyalty programs:

fers on Thai cuisine in the

because of which the airline

range of spends of $100. Af-

points can be clubbed with the

ter the payment, Mike gets

hotel points and can be used

points of the restaurant pro-

either at the restaurant R or the

gram.

airline A.

erate their programs using a

Mike travels by airline A and

In this manner, Mike can utilize

Blockchain platform.

gains flyer miles. The airline

all of his points and the busi-

has information that Mike on-

nesses retain Mike, a loyal cus-

ly travels by business class, and

tomer and achieve positive ROI

so they provide him more of-

on their loyalty programs.

Let us assume Mike is a customer who is part of multiple loyalty programs of the following brands/merchants who op-

 Airline  Hotel

A

H

 Restaurant

R

Mike goes to the restaurant R

to have lunch. The restaurant looks up Mike’s profile from the network’s virtual cloud to gain information that he usually has Thai cuisine and spends around $100 for lunch. Thus, the res-

fers for business class seats.

Mike’s spending pattern shows that every time he travels by flight he checks in the hotel H. Therefore, they provide Mike combined offers of business class seats and stay at the hotel H. The airline A and hotel H op-

Businesses all over the world are already striving towards

building their loyalty program ecosystem on Blockchain platforms with companies like ZAGG Network, Giftz, BitRewards, LoyalCoin already in the final development phase of their

Blockchain

platforms.

There may be some delay encountered along the way, but there is no denying that Blockchain is the future of this industry.

STRATEGIST 11

Blockchain : Opportunities and Challenges Vivek Kumar , IIM Shillong INTRODUCTION

ket size of around $7.69 Bil-

In a layman’s term, a blockchain

Blockchain is one the most rev-

lion by 2020, which is huge.

is just another type of database

olutionary concepts that has

Scope of applicability, feasibil-

for recording transactions, one

emerged in the recent times and

ity to execute, ways to attain

that is copied to all of the com-

holds the potential to complete-

economy of scale, risks it

puters in a participating net-

ly change the way things are

brings with it, and the rewards

work.

done.

it would hence generate are

A blockchain is thus sometimes

William Mougayar, venture cap-

some of the open-ended ques-

referred to as a ‘distributed

italist and author of "The Busi-

tions that are being currently

ledger’. Data in blockchain are

ness Blockchain," once said,

scrutinized by industry ex-

stored in something called as

“The blockchain cannot be de-

perts. But in order to really an-

“blocks”. The important parts

scribed just as a revolution. It is

swer these questions or at least

of a block are its header, which

a tsunami-like phenomenon,

be really able to ponder on

holds a unique reference num-

slowly advancing and gradually

these, we need to start from

ber, the time the block was cre-

enveloping everything along its

the start and the first question

ated and a link back to the pre-

way by the force of its progres-

that really needs to answered is

vious block; and its content.

sion.”

“What really is blockchain?”

As per an estimate by Deloitte, the blockchain market size as of 2016 stood at around $0.242 Billion but what is more interesting is its expected growth rate. It is expected that it will grow by a massive CAGR of

79.60% to reach the global mar-

12 STRATEGIST ledger, irreversibility, and immutability.

The figure shown below is what we call “Gartner Hype Cycle”.

What we are really interested in, is

Plateau

of

Productivity,

which essentially is the phase In the figure above, we have

smart contracts are nothing

when mainstream adoption of

something called “Current Par-

but self-executing codes on

any technology starts to take

adigm” which host a central au-

the blockchain framework that

off, criteria for assessing pro-

thority and multiple intermedi-

facilitates processing that too

vider viability are more clearly

aries

under

without manual involvements.

defined, and technology’s broad

“Blockchain Paradigm” we see

It’s characterised by the prop-

market applicability and rele-

it has distributed nodes con-

erties such as near real time

vance starts paying off and it is

taining shared source of infor-

settlement of transactions, no

expected that blockchain would

mation encrypted by a cryptic

intermediary, elimination of

reach Plateau of Productivity in

algorithm.

third party trust, distributed

5 to 10 years of time.

whereas

Blockchain primarily falls into two broad categories:  Permission-less

[allow

any

party without being a need to

participate in the chain] and  Permission-ed

[participation

of an entity or party is evaluated by a consortium or an administrator] chains.

The key part of blockchains are smart contracts and hence are

the most vulnerable pieces. The

STRATEGIST 13 Domain

Financial Services

Education

Healthcare

Agriculture & Allied Activities

Smart living Water Supply & Sanitation

Others

Indicative use cases Peer to peer payments eliminating payment gateways Cross Border Payments Supply chain financing Crowdfunding Prediction market Anti-money laundering e-KYC Post trading clearance settlement Storing Permanent Records Identity Verification & Information Security Student Ownership of Learning Interactive Learning & Analytics Copyright for Educational Content Corporate learning Sharing exam scores with colleges Drug traceability Clinical trials Patient Data Management Billing management - excessive billing or billing for services that never occurred Disbursements of subsidies Land registration and record keeping Authenticity of the Agri-inputs Food supply chain Better finance Minimising human error Energy regulation Water distribution grids Waste management Governance- Organizational decision-making Supply chain auditing Protection of IP Digital identity management User's private data management Vehicle registry Employee Loyalty/Rewards Land title registration

14 STRATEGIST USE CASES

title registration on blockchain

and streamlining vehicle regis-

Blockchain finds its biggest ap-

aimed at reducing property

tration. It has also partnered

plicability as of in Financial

registration fees, enabling safe

with many private companies to

Services but slowly gaining its

transactions, and bringing flex-

test some to the use cases. For

momentum in other areas too.

ibility and transparency. As on

example, that state has so far

Tabulated above are some of

outcome, service delivery time

brought more than 100,000

the potential indicative uses

was reduced from 1-3 business

land records under blockchain

that are either in progress or

days to few seconds, and oper-

with the help of an Indian start

holds the potential to be imple-

ational costs were down by

-up called Zebi Data.

mented.

90% for the specific services.

This start-up is also working

Globally, some of the countries

If globally blockchain is seeing

with other states including Ma-

are already in road to realise its

its uses, then India is also not

harashtra and Telangana. Simi-

full potential. Dubai(UAE) for

too far to catch up. Andhra

larly, a Swedish blockchain start

example, has partnered with

Pradesh has become the first

-up called ChromaWay has also

IBM and Consensys to roll out

state in India to adopt block-

partnered with Andhra Pradesh

a plan that would enable all

chain for governance.

to provide solutions related to

government transactions on the

The state has piloted two pro-

land registry, leveraging experi-

blockchain as part of

jects – managing land records

ences gained from executing

the

“Smart Dubai” initiative which in turn is expected to save 100 million pages of documents

every year, 25.1 million hours of productivity every year, and reduction in 441 million kilometres of travel every year by its citizens. Massive, isn’t it?

Republic of Georgia similarly, has conducted a pilot project

with Bitfury in 2006 for land

STRATEGIST 15 projects abroad. These includes

platform, etc.

with legacy systems in imple-

Lantmäteriet,

land

Information security, repu-

mentation

registry authority and Kairos

tational, and business conti-

Contractual and Supplier:

Future, a consulting firm. Arun

nuity risk:

Key SLAs, compliance, third-

Jaitley was quoted saying that

Value stored in any account is

party outsourcing risks

“The government will explore

still susceptible for account

Value Transfer Risks

use of blockchain technology

takeover (information securi-

Consensus protocol:

proactively for ushering in the

ty). Blockchains maybe vulner-

Consensus for updating the

digital economy”

able to technology and opera-

blockchain among participant

RISKS

tional failures as well as

nodes for updating the block-

No technology is full proof

cyberattacks (business conti-

chain ledger

and so is blockchain. The over-

nuity risk). Failure to seamless

Key management:

all risks can broadly be classi-

implementation might result in

Risk associated with private key

fied into three categories:

client

theft or takeover of assets with

 Standard

(reputational risk)

public addresses

Sweden’s

risks

dis-satisfaction

 Value

transfer risks, and

Regulatory:

Data confidentiality:

 Smart

contract risks.

Regulatory requirements spe-

This essentially means that the

Standard Risks

cific to each use case, type of

metadata itself can reveal sever-

Strategic:

participants,

al information such as type of

Decision point to wait till tech-

border transactions, etc.

activity and the volume associ-

nology matures further or im-

Operational and IT:

ated with the activity of any

plement, right network to par-

Technology concerns such as

public address on the block-

ticipate, choice of underlying

speed, scalability, and interface

chain framework to any partici-

domestic/cross-

Standard Risks

Value Transfer Risks

Smart Contract Risks

Strategic, Information security, reputational, and business continuity; Regulatory, Operational and IT, Contractual and Supplier

Consensus protocol, Data confidentiality, Key management, Liquidity

Business and regulatory, Legal liability, Enforcement of contract, Information security

16 STRATEGIST pant node

Information security:

what is required from all the

Liquidity:

This risk talks about and asso-

stakeholders. If Andhra Pra-

The risk associated with need

ciated with security breaches

desh can do it, then so do other

to liquidate the digital assets

and improper administration.

states too can.

Smart Contract Risks

The data being fed to the

It’s also evident that blockchain

Business and regulatory:

blockchain could cause a cata-

technology will transform busi-

It involves risk of smart con-

strophic domino effect across

ness models from a human-

tracts

the entire chain

based trust model to an algo-

commercial, economic, and le-

CONCLUSION

rithm-based trust model, which

gal provisions that are defined

Blockchain has the potential to

might expose firms to risks that

between parties in the frame-

transform the human lives and

they have not encountered be-

work

the way things are being done.

fore. In order to prevent such

Contract enforcement:

There is no denying that the

risks from occurrence, firms

As there are no legal model

road to achieve so won’t be

should consider establishing a

around the administration of a

easy. But a collaborative effort

robust risk management strate-

smart contract in lieu of a

from government, technology

gy, governance, and controls

physical contract, no regula-

companies,

framework.

tions governing smart con-

most importantly passion is

precisely

representing

tracts, no statutory legal limits for a transaction which forms the risk associated with contract

enforcement Legal liability: It is still unclear regarding what will happen for an improper, erroneous, or a malicious administration of a smart contract causing assets to leave the net-

work

investors,

and

STRATEGIST 17

Blockchain : How It Works?

Ashish Kumar Bastia , IFMR Chennai “It will take years to transform

First work of cryptographical-

occurs directly between the

business, but the journey begins

ly secured chain of blocks was

peers instead of a central node.

now”. These are the words of

described in 1991 by Stuart

Every node stores the previous

Macro Iansiti and Karim R

Haber and W Scott Stornetta.

and forward node’s address like

Lakhani.

The

pioneers

in

Blockchain Technology.

There are Five basic principles

a Linked list.

underlying the functioning of

Transactions with associated

As we proceed it would be wise

Blockchain technology. Dis-

values and details are visible to

on our part to understand what

tributed

Peer-to-

anyone with access to the sys-

Blockchain is and how it works.

peer transmission, Transparen-

tem. Each node, or user , on a

Blockchain was invented by

cy with pseudonymity, Irre-

blockchain has a unique 30-plus

Satoshi Nakamoto of Japan in

versabilty of

character alphanumeric address

2008 to serve as the public

Computational Logic.

transaction ledger of the cryptocurrency ‘Bitcoin’. The invention of the blockchain for the bitcoin solved the problem of ‘Double Spending’ . Double spending is a condition where the same set of digital coins could be used twice for two different transactions at the same time as in the case of counterfeit money for fraudulent activities.

Database,

Records and

Distributed Database gives each party the power to access each and everyone’s database and its history. It also ensures

that identifies it. Users can remain to choose anonymous or provide their identity proof to others. This is called as Transparency with Pseudonymity.

that no single party controls or

Irreversabilty of Records en-

dictates the data or the infor-

sures that once the transaction

mation. All parties can verify

is entered in the database and

the records of all transactions

the accounts are updated , the

directly without the need of a

records cannot be altered be-

third party.

cause they are linked to every

Peer-to-peer

transmission

ensures that communication

transaction record that came

before them.

18 STRATEGIST puter, the physical aspects of

List’ which has two references

computer can be ruled out.

in its nodes, one for storing the

The digital information is di-

address of the previous block

vided into different blocks and

and another for storing the ad-

linked together. We can under-

dress of the next block.

stand this better with the help Every transaction in the block-

of an example. Let us consider

chain is digital in nature and

there are three blocks each

can be provided with a compu-

representing students of three

tational logic. We can write

different schools S1, S2, S3.

codes for every transaction thus

Each of them contain the

eliminating the need of keeping

names of students of their re-

physical records or agreements.

spective schools(A1,B1,C1 and

This adds teeth to the already

A2,B2,C2). In addition to the

strong network of Blockchain

above details we have more.

and is known as Computation-

Every one of the above blocks

al Logic.

has

As of now we have discussed as to what are the principles of functionality of Blockchain. It

something

called

“HASH”. It is derived from the information contained in the block. A ‘hash’ looks

Every successive block will contain the previous block’s hash. This is what binds them together. If someone tampers the first block to add some different student D1, the new hash becomes “A1B1C1D1”.

However, the successive block of school2 has already stored the hash “A1B1C1”. This mismatch will break the chain.

Therefore

the

purpose

of

‘HASH’ is to make sure the system is ‘TAMPER PROOF’.

like

There could be a case that

(2epo12341234). The block of

someone changes the contents

School 1 has students A1, B1,

of a block and updates all other

Basically in a blockchain there

C1. So the hash would be

successive blocks. This could be

are two things. A block and a

“A1B1C1”.It is technically in-

possible but the chance of this

chain. At complex levels of un-

accurate but is sufficient to

event happening is small as the

derstanding it is just a chain of

give an overview of how ad-

data of the blockchain do not

blocks. Since, they function

dresses are stored. It basically

lie in one computer. It is repli-

within the premises of a com-

functions as a ‘Doubly Linked

cated in the computers of every

is now imperative as to HOW blockchain actually works.

something

STRATEGIST 19 user in the network. If some-

computer to host the program

Blockchain apps don’t just need

one joins a blockchain network,

which implies that if every

to be about cryptocurrencies,

their computer will download

computer on the blockchain

they could be utilised for other

these blocks. If someone tam-

network

network based applications like

pers my blocks then the net-

would die.

work will consider what majority say is correct.

fails,

the

system

education

There could be two networks of Blockchain- Public and Private. In the case of Public Blockchain, the networks have more than one functionalities.

Bitcoin operates on the premises of one such functionalities. Bitcoin is a digital curren-

apps

LiveEdu, Social

such

as

Networking

etc. Bitcoin, Ethereum, etc are some

examples

of

Public

Blockchain. Anyone can be a part of it. What about a private blockchain

network?

Why

would someone need a private blockchain?

One thing in Blockchain net-

cy and a payment system. Its

Let’s say there are two persons-

work is not only the data but

tamper proof

blocks hold

Tom and Jerry. Tom has not

also the entire program gets

ledger for all transactions. The

paid the rent for five months

replicated. Computers collec-

people who sacrifice their

and every time Jerry asks Tom

tively execute the program. To

computers

called

to pay the rent, Tom asks for

better explain this, I would like

“MINERS”. They get reward-

extension. Jerry is helpless and

to take the help of centralised

ed in Bitcoins.

he can’t afford to take Tom to

apps on the internet like Facebook. Its data and program lies on its own servers. Our computer

requests

information

from Facebook’s server on a “need to know” basis. In the case of Blockchain there is no concept of “centralised server”.

It relies on the user’s current

are

Ethereum like bitcoin has an additional

functionality

of

court as it is a tedious process.

What can Jerry do?

hosting our code. Developing

Now let’s take the case of Ram

a blockchain from scratch and

who is a businessman. He does

hosting a network could be

business with different corpo-

tedious.

Ethereum

rates on a regular basis. Few

comes into play as it takes care

months ago he signed a deal

of the heavy lifting.

with a retailer. Even though the

Here,

20 STRATEGIST conditions of the deal were

order to help Jerry, we need to

is content that he doesn’t have

met, the retailer refused to pay.

convert the agreements of the

to go to court to get his pay-

These people took advantage

deal into a code, a SMART

ments. Instead he can spend

of the loopholes in the legal

CODE.

those efforts in expanding the

system and persuaded Ram to

business.

settle for less pay. What should

Therefore, with blockchain, we

Ram do in such cases?

can imagine a world in which

Have we encountered such cas-

contracts are embedded in digi-

es earlier? In Jerry’s case, we

tal code and stored in transpar-

need to make Tom pay the rent

But where do we use these

ent shared databases, where

at the end of each month and

codes? It should be deployed

they are protected from dele-

in the case of Ram we need to

on computers of all parties

tion, tampering, and revision.

ensure that he receives payment

involved. Jerry and Ram will

In this world every agreement,

as per the deal. “A time based

be a part of private block-

process, task, payment would

trigger” is what we need for

chain. Tom and Jerry will sign

have a digital record and signa-

Jerry. Calendar based apps uses

a smart contract. Then it’s de-

ture that could be identified,

such trigger to give us notifica-

ployed on the network. Both

validated, stored, and shared.

tions of predefined events. “A

Tom and Jerry’s bank will have

Middlemen like lawyers, bro-

condition based trigger” is

a copy of the same. When the

kers, and bankers might no

what we need for Ram. Ama-

clock ticks 12, money would

longer be necessary. Individuals,

zon is an example of this. It

be automatically transferred to

organisations, machines, algo-

doesn’t deliver a product unless

Jerry’s account. Similarly Ram

rithms would freely transact

it has received the payment.

started using smart-contracts

and interact with one another

to enforce his clients to pay

with little friction. This is the

the agreed amount.

immense potential of Block-

The point of speaking is computer programs execute programs consistently. It did when

Jerry is happy because he does

you clicked on this article,

not have to trust on Tom’s

scrolled down and read it. In

consent to transfer rent. Ram

chain of empowering the business of tomorrow.

STRATEGIST 21

Blockchain in Logistics Rajesh Ranjan & Vikas Kr. Yadav , IIM Calcutta Today, blockchain is a big buzz

solves this problem by using

or enforce the negotiation or

in business corridors. In 2009,

consensus protocol i.e. proof

performance of the contract.

the advent of bitcoin brought

of work and proof of stake.

In short, it specifies what func-

the Blockchain technology.

Due to paucity of space as-

tions to be performed once the

Now 9 years after, even though

signed to this article, we will

transaction is initiated. For e.g.,

the future of bitcoin is not

not explore how consensus

if the contract is made that

sure, the technology behind it is

protocol maintains the integri-

consumer should receive the

gaining prominence. The block-

ty of the system. However,

product in 5 days after the pay-

chain is a distributed ledger

you can explore working of

ment and if the consumer does

technology, which solves the

consensus protocol in detail at

not receive the product in 5

problem of achieving consen-

– https://

days, refund will be initiated

sus among multiple nodes with-

www.investinblockchain.com/

digitally without any manual in-

out the use of the central sys-

proof-of-work-explained/

tervention. This avoids conflict

tem. It removes the dependencies on a central system by sharing the data with all nodes in the system. In a central sys-

tem, there is a leader, which decides what is correct or incorrect, thus deciding authenticity

Data in blockchain is added in form of a block. Once a block

and enforces performance of the contract.

is added to the network, it can-

BLOCKCHAIN ACROSS IN-

not be updated. Thus, it makes

DUSTRIES

the historical data secure and trustworthy.

Let’s look at how different businesses across industries are ex-

of data but in the blockchain,

Another critical part of block-

ploring options to capture new

there is no central leader. It is

chain technology is Smart

opportunities using blockchain.

interesting to see how block-

Contracts. Smart Contract is

chain maintains the authenticity

nothing but a piece of code. It

of the system. Blockchain

is designed to facilitate, verify

 Financial

sector – In 2017, we

have seen plenty of financial

applications using Blockchain

22 STRATEGIST such as internal payments,

be used in counterfeit drug

several industries. You think

trade finance, and raising fi-

prevention and detection.

of any industry, which in-

nances. Almost all of the major banks are actively investing in the blockchain technology.  Real

estate – Because of the

 Manufacturing

sector –

Blockchain technologies could help manufacturers in streamlining their processes

immutability of data, block-

and could improve their effi-

chain has prominent applica-

ciency in managing the rela-

tion in real estate. Implement-

tionship with different part-

ed properly, blockchain can

ners.

volves multiple stakeholders – third parties and complex process, owners of which are spread across geographies – effective implementation of blockchain can make it easy for them to improve efficiencies.

provide a massive blow to

We will further analyze logistics

fraud in real estate. As per

industry and try to understand

Reuters, in 2016 Sweden start-

what is the complexity with the

ed investing in the use of

sector and how will blockchain

blockchain in real estate. Now there are many blockchain real estate companies that facilitate a transaction via blockchain –

 Cyber

Security – As Block-

chain resolves the ‘lack of trusts’ issues, several organi-

increase sectorial efficiencies and can enable sector to explore new business models.

zations are looking at block-

Supply chain is the backbone

chain to help enhance securi-

of the industry and any market

ty and prevent fraudulent ac-

leader in any industry say auto-

tivities. The West Bengal gov-

mobiles involves 100s of tier

chain can be used to track

ernment is also planning to

one vendors across different

complete patient medical

introduce blockchain tech-

countries (external party) and

lifecycle. Blockchain can also

nology to protect its docu-

1000s of tier 2,3 & 4 vendors,

ments from cyber-attacks.

forget about logistics partners

(propy, propify, rentberry, and shelterzoom).  Healthcare

sector – Block-

 As

we have seen, blockchain

imbibes in itself solution to

several problems existing in

STRATEGIST 23 doesn’t come free - efficiencies

comes error free, trust is in-

of the sector are bound to be

stilled in the system without in-

compromised.

termediaries and cost of opera-

Distributed ledger system – Blockchain can revolutionize that also includes thousands of drivers.

the entire industry. All the stakeholder’s data is captured in distributed system and is

tion will come down. This will further ensure seamless information flow among different stakeholders– customs, local government, vendors, and end user.

There are lakhs of products

authenticated which enables

that moves from one unit to

data access to all stakeholders

There have been several initia-

other and product changes

and ensures authenticity of

tives taken in this space. Before

ownership. However, despite

information.

we see the breakthrough

the fact that supply chain of automotive industry has been digitized, there have been manual intervention, bureaucracy and paper work.

Blockchain connects the ven-

dors, logistics partners and Original Equipment Manufacturer with real time updates to all the stake holders. This will

Further, the complexity of sec-

not only automate the entire

tor increases as large portion of

value chain but will also re-

logistics in India is still unor-

move inefficiencies in system

ganized and there are various

present due to manual inter-

means of shipment (air, train,

ventions and complexity of

road and ocean) with little inte-

processes.

gration within systems for seamless information flow.

Such transformation will improve visibility of the process

These invite the role of inter-

across value chain and will re-

mediaries that can coordinate

sult in predictability of the

with several stakeholders, but it

shipments. Thus, process be-

achievements in this space let’s try to understand how big the industry is. Globally $4 trillion in goods are shipped annually and $160 billion in India which is likely to reach $215 billion in 2020 as reported by Financial Express. So, value addition through blockchain in this sec-

24 STRATEGIST tor can add significant profit to

ferent distribution channel in

sector is transacting and will

the firms.

logistics through blockchain

automate the operations, im-

could be visualized through

proving efficiency to contribute

below diagram.

to bottom line.

tracking across value chain with

This will bring down the

Conclusions –

completely digitized system

frauds in the industry and will

through blockchain technology.

contribute to accrual of prof-

Through this system all the par-

its.

Maersk and IBM have taken a lead in to develop shipment

ticipants in the value chain have access to the information through which they can see customs documents, bills, actual location of the product and other necessary information to take effective decision.

eradicate the inefficiencies in the logistics space by empower-

this space and has been devel-

ing seamless transaction among

oping a blockchain-based lo-

different business partners.

gistic system, which aims to

However, blockchain is in a

act as a single source of infor-

nascent stage currently and its

mation for all transactions

acceptability across industries is

across value chain. Implemen-

low.

tation of such system will

will be authenticated using con-

bring transparency and will en-

sensus protocol and thus

hance predictability.

becomes nil. Integration of dif-

chain has immense potential to

Accenture has also forayed in

Each updates in the blockchain

chances of manipulation also

It is clearly visible that block-

Nowadays, a number of companies have started experimenting with blockchain technology

Thus, this decentralized sys-

to explore new opportunities.

tem will transform the way

Although there has been some traction in the adoption of technology, path-breaking results in the logistic space are yet to emerge.

STRATEGIST 25

A New Entrant in Pharmaceutical Industry Akash Gupta, RGIPT An age old industry which is

It enables us to create a or-

patient health data, personal

famous for its conservativeness,

dered blocks of

the data

information (confidential to the

resistance to change and its

equipped, which will be linked

hospital staff) in a permanent

slow speed – The Pharmaceuti-

and secured using the latest

and incorruptible way.

cal Industry, is facing several

Cryptography technology as-

different challenges these days.

sociated with it. The job of

Globally people related to this

validating and maintaining the

sector are finding solutions to

ledger is distributed across dif-

make the industry more com-

ferent ‘nodes’ that each hold a

The distribution and manage-

patible and more apt with the

copy of the overall ledger,

ment of the piles of various

fast moving society and side-

making it more or less impos-

products across the world and

effects that the latter have on

sible to corrupt or hack part

following different jurisdic-

the pharma sector. On one

of the system. For the data in-

tions for safety, security and

hand there fast moving world

volving the financial transac-

data protection is very im-

and technologies causing and

tions the processing is made

portant and often possess

creating problems for the in-

through the Distributed Ledg-

some challenges which is ut-

dustry and on the other hand is

er

(DLT).

most important. The comput-

this “Blockchain Technology”

In the coming years it will be

er systems providing virtually

which silently sweeping its way

seen that these Blockchain, or

no

in in today’s world and is find-

DLTS, are used as a powerful

consumer sales for manufac-

ing its place in each and every

tool for various different sec-

turers could easily be resolved

industry.

tors and most prominently for

with the use of the Blockchain

the

and

or Digital ledgers that are be-

Healthcare sector to record

ing developed to track all

sensitive information such a

types of stages involved in the

Blockchain, is a software that provides a digital ledger system for records and log transaction.

Technology

Pharmaceutical

The challenges faced by the Pharma industry includes:  Supply

Chain Management-

visibility

into

end-

26 STRATEGIST supply chain whether it be a

smaller operators involved in

portant role and thereby con-

individual drug or a product as

the supply chain management

tributing in enhancing the in-

a whole, thereby enabling

majorly in the developing

dustry.

manufacturers

eliminate

countries. The larger compa-

counterfeiting other illegal ac-

nies controls the primary

tivities.

wholesale market and smaller

 Drug

to

Safety- One of the main

challenge is the drug safety in pharna sector as the traceability of active ingredients during the manufacturing process is very essential to monitor in a way to protect the patent rights and the safety of the users.

nature whether be it in developing countries (usually) or be it in the developed countries, tends to take the smaller share of the market. And these could be assessed by the DLT.  Clinical

 Consumer

Awareness- Block-

chain could answer various public safety issues by improving the efficiency of delivering a safe and effective medicine

to the patients. The real-time data with the retailers and the pharmacies could improve the inventory system and the track with the help of the DLT.  Smaller

firms being fragmented in

supply chain players-

Various sorts of

“Blockchain can fundamentally transform businesses by eliminating inefficiencies, speeding up transactions and enabling innovative new business models,” said IBM Research China director Dr Xiaowei Shen. Similarly different views are being expressed in the relation of the Blockchain Technology and related persons are gazing to-

Trial Management-

wards the future where the

DLT could be used for num-

newer techniques enable the

ber of applications in this,

pharma sector with its ever de-

thus making its challenge a

manding secure, fast and more

powerful tool for the pharma

reliable network of the pharma

sector. The supply chain of

industry.

the large molecule medicines from various point of origins creating a digital ledger to identify

and

validate

the

product till it reaches the end user/ market. Requirement of the proper clinical trial kit

financial

is very essential in which the

challenges are there with the

DLT can play a very im-

Developers are creating newer applications for the various sectors and a brighter future is on the verge of being developed with the advent and major usage of the Blockchain Technlogy, say from the Industry’s per-

spective:

STRATEGIST 27  Drug

developers running clin-

ical trials might be able to share clinical data and medical samples more securely.  In

icine upto certain percentage.  Better

logistics would enable

the consumers to avail better offers

from

the

dealers

healthcare, vaccine regis-

(retailers), being in the midst

tries could be more easily set

of competition to sell more

up and relied upon.

and deliver more better dis-

 Technology

could also play a

role in securing sensitive industry data from malicious attack.

perspective:  Better

supply chain system,

enables the faster reach of the medicines to the market and to the end users, thereby better (faster) recovery of the patients.  Newer

approach could be de-

veloped to place the demand for the medicine to the retailer with the use of the technology and its various applications that would eliminate the middleman and thereby could also

decrease the cost for the med-

time and money rectifying inaccurate payments. Thereby more seamless transactions and rise in the overall business prospects for the pharmaceutical sector.

counts or various sorts of

The world is growing with the

lures could be made available

piles of newer technologies and

to the end-users.

the development is moving

The technology could also be

And say from the Consumers

care as player would spend less

used for the so-called Smart Contracts. By these the reduc-

tion in the inefficiency of overall pharma sector could be achieved.

with faster speed than ever imagined, in the midst of this every industry is finding their way to move and excel, but the introduction of these newer technologies take time to get accustomed among the companies

Smart contract, that allow mul-

and the users. With some ifs

tiple parties to enter into an

and buts that blockchain could

agreement where there is a po-

show noticeable impacts in the

tential for miscommunication

pharma industry, we are looking

and mistrust, thus more confi-

forward for the better future

dence could be achieved.

ahead all of us.

The DLT would create a distributed and instantly upgradable agreement comprising a complex set of rules for the same. These would facilitate the transition to value-based

28 STRATEGIST

How can Blockchain Affect Different Industries in Future ?

Subhrajyoti Saha , IIM Shillong What is Blockchain? A

new technology

 Permitting

transactions to be

gathered into blocks and recorded  Allows

the resulting ledger to

be accessed by different servers  Chains

blocks into the crypto-

graphic manner

Applications of Blockchain in Various Industries and how can the technology revolutionize them: Blockchain in Travel Industry

 Storing

Information:

The travel industry relies upon different companies passing information between one another. For example, travel agents need to pass customer details on to flight companies and hotels, while the personal belongings of travelers are often passed between companies and tracked too. Blockchain

work.  Tracking

Luggage:

This technology can be helpful in travel in tracking luggage.

There are innumerable cases of luggage getting lost during travel mainly during international travel. The decentralized network can help in tracking them

so that it doesn't get lost.

can make accessing and stor-

 Identification

Services:

ing important information eas-

Validating identification of the

ier and more reliable because

passengers takes a lot of time

responsibility for storing it is

during flight travels. Blockchain

shared across the whole net-

can bring down the time by replacing documents with a single fingerprint scanner or retina scanner with the decentralized database.

Blockchain in Retail Industry  Supply

chain and inventory

management:

STRATEGIST 29 Unlike current systems, which

ments, specifically those for

ing smart-contract based learn-

rely on each constituent to

which the current financial in-

ing platform where the students

maintain its own distinct and

frastructure is either too ineffi-

and the teachers will be in-

database —

cient or expensive to facilitate

volved. The duration, fees will

meaning limited and often de-

effectively. For example, cryp-

be agreed upon beforehand.

layed insight into the status of

tocurrencies offer real ad-

This platform will be very in-

goods elsewhere in the system

vantages for both cross-border

clusive and thus eliminate the

— blockchain facilitates real-

payments and micro-payments.

involvement of external parties.

time and trusted data sharing

Blockchain in Education

Traditionally these processes

among constituents and can of-

Industry

are very time-taking and costly.

fer consensus about the true

Education is one domain or

Smart contracting will help to

state of the system to all par-

industry which needs Block-

make it hassle-free and also

ties. That is especially trans-

chain hugely but is one of the

fast. It will be very helpful for

formative for categories that

slowest in adopting it. Other

both the parties.

deal with counterfeiting or

industries like retail, banking

 Token

questions about social responsi-

can adopt the technology very

bility in sourcing and manufac-

fast. Blockchain in education

Academic curriculum could be

turing. Layering on other tech-

can make the process smooth

vastly improved by creating a

nologies such as the Internet of

and also decrease corruption.

gamified version of the existing

Things can further supercharge

It will also help in the admis-

teaching style. Students, right

these impacts.

sion process. It is one of the

from their lower grades, could

important industries as it helps

be rewarded digital tokens or

in creating the future genera-

badges for their achievements.

tion.

These tokens could be stored

disconnected

 Payments

and accounting:

Blockchain enables the use of cryptocurrencies — sometimes also called tokens — as of a

Below are the possibilities of

means of exchanging value or

the blockchain in education:

data. The most natural and

 On-demand

widely adopted initial use case of these tokens today is for pay-

learning plat-

forms: Blockchain can help in creat-

system of rewards

for learning:

on blockchains and can be redeemed as credits for students in their higher education programs across universities and

schools. Same would be the

30 STRATEGIST case of achievements made by students in the fields of arts,

 Globalized

verification of

academic credentials:

sports, innovations and science

Today verification of student

symposiums during their school

degrees is a cumbersome pro-

days.

achievements

cess. People demanding verifi-

would serve as credits in their

cation are usually employers,

future educational aspirations

higher study organizations, im-

rather than just remain on

migration or visa processing

shelves as certificates and tro-

authorities and so on. This

phies.

problem can be solved by set-

These

 Student

financing:

ting up blockchain based na-

Traditionally student loans are

tional or global level digital

sanctioned with hopes of re-

certificate banks.

payment tied solely on how stu-

Blockchain in Banking In-

dents handle their finance post-

dustry

employment. Instead, block-

 Clearing

chains could be used to tag loans to employment contracts; employers can finance learning programs of students, and the wages paid can be automatically

adjusted to repay loans attached to the student. This would greatly bring down threats of non-performing assets; and students from all walks of the society can gain flexible access to study credits.

ficiency of clearing and settlement.  Payments:

Central banks across the world are exploring the potential for shifting parts of their payments

systems on to blockchain technology or even using it to launch digital currencies. This is partly a response to the challenge that standalone cryptocurrencies such as bitcoin could pose to their control of mone-

tary policy. and Settlement:

 Trade

finance:

The tangled web that records

Trade finance is still mostly

loans and securities costs in-

based on paper, such as bills of

vestment banks billions of

lading or letters of credit, being

dollars to run.

Accenture

sent by fax or post around the

has estimated that the biggest

world, and seems to many

investment banks could save

bankers to be crying out for

$10bn by using blockchain

modernisation.

technology to improve the ef-

that blockchain is the obvious

Many believe

solution especially as numerous parties need access to the same information.

STRATEGIST 31  Identity:

 Food

Verification of customers and

Consumers have grown suspi-

counterparties is a vital for

cious of the food they are

banking. Without it, lenders

consuming. Food fraud costs

would quickly lose their roles as

the global food industry an es-

trusted guardians of people's

timated $30-40 Bn annually.

money. Regulators hold banks

Food

responsible

checking

relatedness are much more

that customers are not crimi-

common now than 25 years

nals or illicit actors, and fine

ago and consumers are begin-

them if they get it wrong.

ning to demand the infor-

Blockchain in Agriculture

mation related to the food

Industry

they are consuming. As this

for

One of the most logical applications of blockchain is in agriculture

industry

which

is

plagued with several opportunities. With the rising consumer consciousness

towards

food

safety, blockchain application

can play a very important and vital role in solving many agriculture-related problems.

Safety:

allergies

do not receive their due share,

and

food-

trend continues to rise, big food chains will have no choice but to use blockchain for

ensuring

accountability,

traceability and quality of the food. Blockchain will in fact become competitive edge for brands competing in the competitive FMCG space.  Food

Supply Chain:

even though they are the most important part of the chain (the food producers). With blockchain the food supply chain gets simplified as the data management across a complex network that includes farmers, brokers, distributors, processors, retailers, regulators, and consumers gets simplified and transparent.

Disbursement of Subsidies:

Across the globe, farm sector is heavily dependent on government subsidies. For example, in India 2017-18 budget, $4.9 Bn (INR 32,000 Cr) were allocated for agriculture-related subsidies to farmers. How much of this

amount actually reaches the farmers is always in question.

However, with blockchain the

Food supply chains in most

distribution and delivery of

developing nations are ineffi-

subsidies can become more

cient due to information asym-

transparent resulting in targeted

metry. This directly results in

disbursement of subsidies plug-

low farmer income as farmers

ging pilferages in the existing

32 STRATEGIST system. Even though the pro-

can

cess to establish this network

blockchain,

will be very complexed as mul-

tient, ambulatory and wearable

tiple stakeholders would need

data- assisting providers in

to come together, it is no long-

coming up with better ways of

er impossible.

delivering care.

Blockchain in Healthcare In-

be

achieved

 Master

including

inpa-

patient indices:

With blockchain, the entire data

healthcare data, records get

set is hashed to a ledger, and

mismatched or duplicated. Al-

not just the primary key. The

so, different EHRs have a dif-

user would look for the address

Longitudinal patient records-

ferent schema for every single

- there can be multiple address-

compiling episodes, disease reg-

field- coming up with different

es and multiple keys, but they

istries, lab results, treatments-

ways of entering and manipu-

will all yield to a single patient

 Single,

longitudinal patient

records:

when

dealing

lating the simplest of data sets. with

dustry

Often

through

identification.  Claims

adjudication:

Since blockchain works on a validation-based exchange, the claims can be automatically verified where the network agrees upon the way a contract is executed. Also, since there is no central authority, there would be fewer errors or frauds.

Thus, blockchain technology is the disruptive technology which can revolutionize the businesses in future with its huge potential.

STRATEGIST 33

Alum Speaks Team ConQuest nology on the various industries and what MBA students need to focus on to get the most out of IIM Shillong.

Conquest: How would be summarize your professional experience after IIM Shillong?

In an ever-changing business world, the best way to gather industry insights is through conversations with industry experts. As the 11th batch of IIM Shillong starts their journey, we connected with Krishnan Ravindran, who passed out as the second batch of IIM Shillong and is currently a manager at Deloitte India. Mr. Ravindran, who has more than seven years of post- MBA experience, shares his take on consulting and its various aspects.

Team ConQuest brings to you his exclusive interview regarding his experiences in the consulting domain, the impact of blockchain tech-

Mr. Ravindran: A consultant should be well equipped with an entrepreneurial outlook and mind-set. For instance, consultants are expected to go out there and get business for their firm. It is not a quality which is natural and will have to be cultivated. I passed out as the second batch of IIM Shillong.

At the time, it was more about telling people that we exist.

Now, I am proud to say that I am backed by two brandsDeloitte and IIM Shillong.

Conquest: How would you summarize a typical day of a consultant?

Mr. Ravindran: The cornerstone to being a good consultant is identifying and under-

standing your value proposition. Services are getting commoditized as we speak. For each offering, there are direct competitors. We need to try hard to articulate and package the value that you can add to a client, that which differentiates you from your competitors.

Additionally, we are going through a time when offerings are getting more and more templatized. So, the challenge is to position it as a business solution rather than a traditional service.

Conquest: Is there a considerable gap in what happens in the industry and what we are taught in a B-school? If yes, how can we bridge that gap?

Mr. Ravindran: As a recruiter, Deloitte never hires you for what you know. We hire you for what you can be, which means we are more concerned about your thought process and application mind-set than your memory power. I strongly believe that a logical thought pro-

34 STRATEGIST cess is an acquired skill. Students will need to apply what they learn in the classroom to practical business problems.

credibility in the marketplace.

My take is that they would want the support of advertising firms to do that.

I think that if they practise a holistic approach in the business problems that they are presented with in a B school, it would get imbibed in their thought process and would make them industry-ready.

Conquest: All of us at IIM Shillong will start our corporate careers in a year or two. Some of us are thinking about a career in consulting whereas some of us want to get into a specific industry. What would you suggest?

I would call the skillset “Aggregate and segregate�. Aggregate as in having a bird’s eye view of the scenario and segregate means dissecting it to identify the core business problems involved. We would need to polish both skill sets.

Conquest: Recent grapevine is that a lot of consultancy firms are foraying into advertising. What are your thoughts? Is it a one-off case or do you see a pattern?

Mr. Ravindran: To give you a broad overview, there are certain services which any consultancy firm cannot advertise. So, on one end, their hands are tied, but on the other end, the potential of negative press to destroy market reputation and stock prices is so huge.

It is in such a scenario that every firm would want to develop

Mr. Ravindran: Both has its own pros and cons and it really depends on individual perspectives. A specific industry teaches you specific skills whereas consulting teaches you to be a jack of all trades.

In an industry, you can grow to be a CEO whereas in consulting, you can grow to be a partner. I have also seen peo-

ple shift from a consulting role to an industry role, or otherwise.

So, there is no right answer here. I can tell you this though.

More often than not, your work in an industry is templatized, as in you know to do when you get to work every day. Consulting however, will throw surprises at you. For instance, you will be asked to make a presentation in 15 minutes. I would suggest consulting to those who like that sort of unpredictability.

Conquest: We totally agree with you. In fact, many consultants would start off focusing on one industry and one particular service, say M&A, but later diversify as that is expected out of them.

STRATEGIST 35 Mr. Ravindran: Absolutely.

But I see a lot of diversity in talent. For example, some people have a knack for general management and problem solving, whereas some others are good in, say finance or operations. So it’s really a personal journey but I would say you need to be open to everything.

Conquest: Absolutely. Our upcoming magazine has blockchain as the theme. As someone from the industry, how would you say blockchain technology is disrupting traditional business models all over the world?

Mr. Ravindran: Blockchain or distributed ledger technology, as its name suggests, is a technology. It is important to look at businesses holistically and not just from a technology standpoint. You would agree that we are in the middle of a data wave. I feel that blockchain would really complement how we validate and use this data.

For instance, land records can be stored in a distributed ledger. Any transactions would be so transparent that it would be impossible to falsify records.

Other industries can also use it for similar applications. In that sense, yes, blockchain technolo-

gy can disrupt business models.

But, one point is that it needs to be standardized. For instance, when the internet was a nascent technology, countries and companies worldwide did not adopt it until there was a global standard. A similar parallel can be drawn with the CD and DVD market. In the beginning, every company made its own CD player. But then, DVDs were introduced and that became the standard for disks worldwide. Such standardization will happen first, followed by mass adoption and disruption.

Several pilot projects are already happening. For example, Mahindra is testing it for supply chain finance. So, it’s only a matter of time.

Conquest: Finally, what advice do you have for first year students who are beginning their journey in IIM Shillong?

Mr. Ravindran: Be attentive.

Have an idea of what is going on around you. Make it a point to take an interest in that. It will help you a lot irrespective of the role and the industry you will go to.

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