Operational Advantages Of Blockchain For International Car Manufacturing Essay.

Blockchain Technology and its Features

Blockchain technology refers to the decentralized ledger which contains all the transactions across peer-peer network. In the current society, blockchain has been utilised significantly by different market facilities for the purpose of having smart contracts opportunity which also add value towards the operation management. In this report, the objective is to discuss about the advantages which are offered with the introduction of blockchain in international car manufacturing company. As a management consultant, the objective is to highlight the operational advantages which will be obtained with the utilisation of blockchain technology.

Technology utilizes the concept of distributed database for the purpose of sharing information among the nodes within a computer network. Blockchain is considered as a trusted network which allows open and neutral opportunity. The key features which are offered with the blockchain technology are discussed below:

• Decentralized technology:Blockchain technology offers managing the transaction in a strong approach for handling decentralized technology. Data are further communicated with one another (Dujak and Sajter 2019). The focus is on managing the single governing authority and focuses on group of nodes for maintaining the information. This allows easy way to communicate by avoiding the need for third party.
• Data immutability: Blockchain offers one of the most efficient features which is known as a data immutability. This feature ensures that the nodes cannot be accessed for the purpose of modifying the data. Hence, it can be stated that use of blockchain will help in avoiding inefficiencies.  
• Transparency: Use of blockchain technology within operation management ensures that better transparency is being achieved (Fraga-Lamas and Fernández-Caramés 2019). International car company will be capable of handling their history, time transactions and decentralization much easily with the introduction of blockchain.
• Enhanced security:Encryption for the purpose of storing data in form of blogs. Additional layer of security and ensure that existing technologies are available within market (Gerger 2021). Blockchain is stored in the form of cryptographic hash.
• Faster settlement: Blockchain ensures that fastest settlement is being carried out efficiently. Increases capacity and blockchain utilisation focuses on increasing the capacity of whole network (Gerger 2021). Computing power associated with the distributed devices is capable of providing better outcome.

Blockchain technology offers different features in different types. Blockchain technology for the international car company needs to be implemented after identifying and understanding the different types of blockchain. The common blockchain technology include private blockchain, hybrid and public blockchain.

• Private blockchain:Use of private blockchain in an organisation in the network will only provide access towards the authorised entities. This blockchain technology is responsible for granting specific rights and restriction towards the key participants (Hackius and Petersen 2017). For example, Ripple and Hyperledger.
• Public blockchain: Public blockchain does not operate with any access restriction. Working with internet connection will have the authority to share transaction for getting validated (Kamble et al. 2021). Commonly used public blockchain are Bitcoin and ethereum.
• Hybrid blockchain: Hybrid blockchain is a fusion of privacy and security. All the benefit of private blockchain and public blockchain has been merged together for the purpose of obtaining better efficiency. Hybrid blockchain offers better flexibility in determining the way data flow takes place. For example, XinFin and Dragonchain (Narbayeva et al. 2020).

Blockchain technology has emerged as one of the promising innovations which helps not only disrupting the operational processes but also provides with the ability to risk management. The section focuses to identify the impact of a blockchain implementation over the operational activities (Demir, Turetken and Ferworn 2019). Operational activities which are carried out within international car manufacturing company included designing the manufacturing process quality control and raw materials the procurement. The use of Blockchain technology has a significant growth in the business. It has been observed that a proper implementation of the technology will contribute towards the consecutive growth of the business (Petersen, Hackius and von See 2018). Henceforth, the need to consider proper implementation and design of Blockchain technology for the international car manufacturing industry is a very important in the current situation. With the proper utilisation of blockchain technology high efficiency can be obtained. The impacts are discussed below:

• Automatic supply chain: Blockchain offers complete transparency over the processes within activities of a manufacturing company. Automatic supply chain will be capable of shipping all the necessary vehicles with better optimised feature (Casey and Wong 2017). It can be stated that automatic supply chain has the potential to offer seamless integration with shared inventory contact information, logistic pricing and payment.
• Manufacturing: In the manufacturing department for the purpose of obtaining better transparency. Blockchain focuses on assigning ID number towards each single part of vehicle which helps in easy recall (Reddy et al. 2021).
• Secure payment: Blockchain technology will offer secure payment facilities with the introduction of a bitcoin. It is expected that use of Blockchain technology for paying the electricity to charge electric cars will help in enhancing the operations. As a result, the use of Blockchain technologies is considered to be very much efficient.
• Autonomous Vehicle:Blockchain Technology is considered to play a pivotal role in development of autonomous vehicle. The help of digital computer, the card can be instructed for the purpose of performing numerous tasks with the help of voice (Supranee and Rotchanakitumnuai 2017). Blockchain technology has helped in achieving the autonomous operations much efficiently.
• Finance: Blockchain technology is connected with the laws in different countries. It is impossible to make payments with the help of a cryptocurrencies (Business Insider. 2022). The introduction of digital coins for the purpose of buying cars is the next big thing which is going to be implemented within the automotive finance industry.
• Security: The most important component of utilising Blockchain technology within international car manufacturing company is the security feature. Vehicles are considered to be more autonomous and more digital with the implementation of Blockchain technology (Upadhyay et al. 2020). The strong utilisation of cryptography helps in keeping the information secure and safe. The data storage is also facilitated with the use of a Blockchain technology.

Blockchain technology utilises the most efficient elements for the purpose of carrying out interaction. In order to successfully introduced Blockchain technology within the international car manufacturing company, the following steps needs to be carried out with a sequential manner.

Blockchain technology helps in offering better verification and traceability towards the multistep transaction. International car manufacturing organisation will be capable of achieving efficiency with the successful implementation of Blockchain technology. As this help in managing contracts and products associated with the origin. The utilisation of Blockchain technology helps in securing the transaction and also offers intermediate opportunities. Before introducing Blockchain technology within the business, the need to consider certain set of recommendations it is a very crucial (Banker 2022). The recommendations which are needed to be kept in mind while implementing Blockchain technology within the firm are discussed below:

1. Considering goals:every business must understand their objective behind introducing Blockchain technology. Blockchain technology will be capable of solving the problems which are faced with the current system. It is expected that international car manufacturing industry will be able to automate their operational functionality and will also have the opportunity to manage department with the proper implementation of Blockchain technology. As a result, the need to critically assess a distributed ledger is very crucial.
2. Engaging with stakeholders: the need to engage with the internal stakeholders is very important while introducing the Blockchain technology. International car manufacturing industry needs to ensure that each stakeholder is made aware regarding the implementation of Blockchain technology. Before introducing blockchain technology the implemented successfully, then it will become easy to meet the regulatory requirements.
3. Seeking approval from executive:the introduction of Blockchain technology needs a proper strategy. Once this strategy is designed efficiently, then the focus should be on seeking approval form the key executives. As a management consultant, it is very important to discuss the major advantages which will be offered with the implementation of Blockchain technology within the business. Engaging with various stakeholders in the business is very important as these help in designing the necessary requirement. The need to deal with technical gaps within the distributed ledger is important as this helps in achieving the business perspective.
4. Identification of appropriate market: the need to identify the market which needs to be engaged with the implementation of Blockchain technology is necessary. These will help in identifying the way technology is going to affect the customers. As international car manufacturing company deals with a wide range of customers, therefore the need to evaluate competitors and opportunities is very significant. Hence, it can be stated that with the help of appropriate market analyses it becomes easy to introduce Blockchain technology within the firm.
5. Assessing cost: The need to assess the cost versus benefit with the implementation of Blockchain technology form is very important. If a technology is implemented and not capable of providing expected amount of benefit, then it will become very difficult to manage the incurred cost. Henceforth, the need to analyse the cost is very crucial in terms of benefits.

Conclusion 

With the introduction of innovative technologies, every industry is adopting with the new changes. The use of Blockchain technology for obtaining operational advantages is one of the significant changes which has offered with a remarking growth in the market. As a result, it can be stated that the international car manufacturing company will be capable of managing different departments of the property implementation of Blockchain technology. The paper has discussed the different elements associated with Blockchain technology so that proper implementation and adoption can be obtained. The paper has discussed the importance of Blockchain technology and the way Blockchain technology needs to be implemented. With the proposed timeline, it is expected that implementation of Blockchain technology will be easier. Hence, it can be stated that in order to achieve the target within the business the recommendations must be kept in mind.

References 

Banker, S., 2022. Blockchain In The Supply Chain: Too Much Hype. [online] Forbes. Available at: https://www.forbes.com/sites/stevebanker/2017/09/01/blockchain-in-the-supply-chain-too-much-hype/

Business Insider. 2022. The growing list of applications and use cases of blockchain technology in business and life. [online] Available at: https://www.businessinsider.com/blockchain-technology-applications-use-cases-2017-9

Casey, M. and Wong, P., 2017. Global Supply Chains Are About to Get Better, Thanks to Blockchain. [online] Harvard Business Review. Available at: https://hbr.org/2017/03/global-supply-chains-are-about-to-get-better-thanks-to-blockchain

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Kamble, N., Gala, R., Vijayaraghavan, R., Shukla, E. and Patel, D., 2021. Using Blockchain in Autonomous Vehicles. In Artificial Intelligence and Blockchain for Future Cybersecurity Applications (pp. 285-305). Springer, Cham.

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