Determination of Cost Benefits from Implementing a Blockchain Solution
This ARP provides insights on how to perform a cost benefit analysis (CBA) to determine the return on investment that would result from implementing a blockchain solution to a new and existing business process. The word ?blockchain? refers a method of transacting data using a distributed ledger with desired immutable qualities. The document describes the complexity of features that can be considered in the analysis, the different tools and approaches for conducting a CBA and differentiates between public and private applications. This document is intended to help those who do not have a deep technical understanding or familiarity with blockchain solutions but want to either quantify or understand the economic benefits (i.e., the value proposition) that a blockchain solution could provide.
Rationale: Electronic transactions are not new, but they are being recorded in new ways. Blockchain specifically is one means of recording electronic transactions that is not well understood outside of specific communities and is hindered by its complicated CBA or ROI. The Aerospace industry is rife with legacy processes, and this ARP allows an organization to qualify the benefits of replacing or augmenting a legacy process with a blockchain solution.