Enterprises engage with many ecosystem members. These members include business partners, distributors, channels, vendors, and customers. The combined contribution of all members in the ecosystem creates value and rewards far greater than what would be attainable going to market alone.
Therefore, enterprises need to be able to collaborate with their partners to maximize success. The problem is, the current systems used for business network interactions and data sharing has the potential to cause them harm. It’s a double-edged sword.
However, one company today is looking to address this problem and transform how enterprises interact with their partners. To make this happen, they are utilizing the power of blockchain.
The challenges business networks face
First, let’s look at a business ecosystem in action to give us an example of how it can work: You have a manufacturing company that makes a series of electronic gadgets; to help make the end product, they source a set of components from a discrete manufacturer, a logistics company manages shipment of the products to various destinations, and distributors take the end product to market. Each business is a significant part of the ecosystem and contributes to the overall value chain.
When it comes to enterprises, their networks are usually decentralized and globally distributed. The typical applications they would use to manage their global interactions include email, ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), SCM (Supply Chain Management) and other enterprise software. This has left them vulnerable to data leaks, IP theft, contract disputes, limited governance and inefficient processes. There are billions of interactions happening every day via these archaic systems.
Not only that, there are costs involved with setting up these systems that do not address the problems. Research by Statista shows the amount of operational disruption caused to enterprises when implementing ERP projects during 2015/16.
The damage caused by data leaks
There have been many high-profile and damaging cases of data leaks in recent years, proving to be a big problem for both organizations and individuals. Zdnet estimates that data breaches will cost the global economy $2 trillion by 2019. Research by Ponemon Institute estimates that the average cost of a data breach in 2017 was $3.6 million and that U.S. companies have a 27% probability of experiencing a breach within the next 24 months.
Spending on information security has increased consecutively year after year for the last 7 years and is forecast to continue. Projected revenues in 2018 for the information security products and services market stand at $96.3 billion!
When data leaks occur, they can be costly to businesses in numerous ways including remediation costs, loss of customers, business disruption, regulatory fines, legal costs, public relations, breached client records, direct financial loss, notification costs, credit card reissues and identity theft repair. The compounding effect of these problems can be devastating.
These statistics show an increasing demand for solutions and a large market opportunity. Many businesses were unaware of the risks in the past, but that appears to have changed, particularly among large enterprises. While interactions within business networks are not the only way enterprises can leave themselves vulnerable, a solution here is still eliminating a massive weak point.
Transforming business network interactions with blockchain
Blockchain has the potential to eliminate many of the problems associated with business network interactions and deliver significant improvements over the current archaic systems, here’s how:
- Data reconciliation: Information recorded on blockchain is tamperproof and secure. This makes it easy to solve challenges involving data inconsistencies, reconciliation, and duplication.
- Secure data exchange: Data and digital assets can be sent to partners in a way that’s cryptographically secure. This includes digital assets such as PDF’s, video and audio files which could contain sensitive information on customers, deals or intellectual property. This improves collaboration by creating trust.
- Contract Disputes: Easy verification of data and the immutability of smart contracts help reduce or eliminate the potential for disputes with partners or customers.
- Efficient processes: The combination of access to trusted, accurate data, automated smart contracts and the removal of intermediaries create a more efficient and cost-effective business network.
- Governance and compliance: The attributes and structure of blockchain create a reliable and auditable trail of processes. This accuracy combined with automatic smart contract execution helps drive improved compliance and regulatory reporting.
The world’s first decentralized business networks platform
Loyakk Ltd is a unique company in that they have a top-tier team comprising experts from both the corporate enterprise world and in blockchain technology. With this combined skill set, they have created a patent-pending blockchain platform for enterprise business networks. They call this platform the Vega Enterprise Relationship Platform.
They aim to prevent billions of dollars being lost in IP thefts, data leaks, and contract disputes by transforming how companies collaborate and share data with partners, suppliers, channel and distributors across the world.
Loyakk is based in Silicon Valley, and they have backing from the venture capital firm, AI8 ventures. Their platform already has some top brands as clients including SAP, Novartis, Abbot Labs, Infosys, and Mphasis.
Anthony Thomas, Global CIO, Nissan Motors and advisor to Loyakk states:
“Blockchain-powered business networks is a very compelling notion when you consider the needs of business to streamline & secure interactions across the business partner network. Loyakk’s vision and platform to create decentralized Value Webs holds much potential.”
They have a token sale that starts on 15th June 2018. While they could raise capital via other means as they have already proved, they decided to do an ICO to increase their awareness in the blockchain space and therefore further increase their access to top talent. The Loyakk token will be used by all parties on the Loyakk Vega Platform and enable permissioning, partitioning, and propagation of data amongst participants.
Gartner forecast that “the business value-add of Blockchain will grow to more than $176 billion by 2025” and Loyakk’s market opportunity will be 5% of this which is $9.2 billion.
Loyakk’s CEO and co-founder, Salim Ali, is a former vice president of SAP. I reached out to him to for a quote on how the platform works, here’s his response:
“All interactions that are now happening across email and archaic systems will be auditable across company boundaries. Every interaction within the Loyakk Vega Platform is considered a micro-service and each invocation requires a token. So, our expectation is that as more and more enterprises start using the platform, and as the volume of interactions go up, a significant volume of tokens will be essential as the Vega token is a data container that – both – encapsulates data and triggers the interaction.”