Page 2 of 2

Today, blockchain has many tanglible applications. Best known is bitcoin. Yet it would be a big mistake to consider that blockchain is only bitcoin. Several central banks are already innovating in the field of crypto-currencies (England, Sweden, Estonia). There are applications of blockchain in the field of virtual registry of properties (several countries in Africa), or in smart contracting (Switzerland). At the minimum, blockchain is the safest and cheapest alternative to any company’s intranet.

«Business models will be drastically modified and cost structures will become more efficient»

So let us say that you are in the consumer goods industry, or in the automotive industry, or in the consulting services industry. Why should you care? Within companies, blockchain will also disrupt any job that intermediates transactions and/or centralizes information. For example: accounting, compliance, information systems, procurement. But also the way how companies will interact with companies – because now customers will have direct information about companies’ products and services.

Investors will be able to finance companies without the need for financial markets; within companies, any information can flow without any friction and both decisions and behaviors will be completely transparent. Business models will be drastically modified and improved; cost structures will become way more efficient; contracting will be seamless.

The impact of blockchain is not confined to the corporate sector. In turn, the new technology is currently most applied in the public sector. Central Banks are already embracing the disruption, and the most digitally innovative governments (Singapore, Estonia, Sweden) use blockchain to disintermediate the relationship between the regulator and the citizens. Property registry, public contracting, legal enforcement, public records will be all be automated and facilitated through blockchain in a very short time.

«Be the pioneer in your industry to gain a first-mover advantage»

To conclude, if you either do not know what blockchain is, or you think it is not relevant for you, this is my advice. First, be aware of this technology. Read, do research, ask around, get information about blockchain, how it works, what advances are currently being made in your industry.

Second, prepare yourself to transform the way your company operates and the way you interact with the rest of the world. Third, be the pioneer in your industry to gain a first-mover advantage. The blockchain revolution is already here.

Arturo Bris is Professor of Finance at IMD in Lausanne. Since January 2014 he is also leading the world-renowned IMD World Competitiveness Center. His research and consulting activities focus on the international aspects of financial regulation, and in particular on the effects of bankruptcy, short sales, insider trading, and merger laws. He is passionate about global competitiveness, financial development and macroeconomics. His latest research identifies the relationship between income inequality, social mobility and competitiveness.

He ranks among the top one hundred most-read finance academics in the world. He graduated in Law and Economics from Universidad Autónoma de Madrid, and received an MSc from CEMFI (Foundation of the Bank of Spain). He holds a PhD in Management from Insead. He enjoys road- and mountain-biking, and playing bass guitar.

Previous contributions: Rudi Bogni, Peter Kurer, Oliver Berger, Rolf Banz, Dieter Ruloff, Samuel Gerber, Werner Vogt, Walter Wittmann, Alfred Mettler, Peter Hody, Robert Holzach, Craig Murray, David Zollinger, Arthur Bolliger, Beat Kappeler, Chris Rowe, Stefan Gerlach, Marc Lussy, Nuno Fernandes, Richard Egger, Maurice Pedergnana, Marco Bargel, Steve Hanke, Andreas Britt, Urs Schoettli, Ursula Finsterwald, Stefan Kreuzkamp, Oliver Bussmann, Michael Benz, Peter Hody, Albert Steck, Andreas Britt, Martin Dahinden, Thomas Fedier, Alfred Mettler, Brigitte Strebel, Peter Hody, Mirjam Staub-Bisang, Nicolas Roth, Thorsten Polleit, Kim Iskyan, Stephen Dover, Denise Kenyon-Rouvinez, Christian Dreyer, Kinan Khadam-Al-Jame, Robert Hemmi, Claude Baumann, Anton Affentranger, Yves Mirabaud, Katharina Bart, Frédéric Papp, Hans-Martin Kraus, Gerard Guerdat, Didier Saint-Georges, Mario Bassi, Stephen Thariyan, Dan Steinbock, Rino Borini, Bert Flossbach, Michael Hasenstab, Guido Schilling, Werner E. Rutsch, Dorte Bech Vizard, Adriano B. Lucatelli, Katharina Bart, Maya Bhandari, Jean Tirole, Hans Jakob Roth, Marco Martinelli, Beat Wittmann, Thomas Sutter, Tom King, Werner Peyer, Thomas Kupfer and Peter Kurer.