...by Daniel Szego
"On a long enough timeline we will all become Satoshi Nakamoto.."
Daniel Szego

Monday, December 12, 2016

Business Model for Decentralised Business Process Management

Decentralised Business process management or simply DBPM is intended to be a strong infrastructure oriented solution, business model is based on an intensive partner network. The platform is not planned to be sold directly to the end-customer, instead partner companies having the industry specific know-how set up solutions on the top of DBPM [Figure 1]. A more detailed description of the ten types of innovation is covered in chapter plan as general operation model.
Figure 1. Business Model with Ten types of innovation
As DBPM is based on a Blockchain protocol, both cost drivers and profit should be based on transactions. It is certainly a question which digital consensus is applied, at Poof of Work model each transaction or block validation cost directly a certain amount of energy and money called the mining. At Proof of Stake or at general consensus mechanism like voting at Ripple rather a general hosting and participation cost is manifested. In any case profit model should be based on charging the customers after usage for individual or branch of transactions.          
From the network perspective DBPM solution would not be offered directly to the end-customers, instead the service would be sold with the help of strong B2B cooperation via partner companies. Examples can be:
-   consulting companies for setting up cross-company contracts and processes
-   IoT solution providers for setting up decentralised processes between hardware devices, for example for smart-homes.
Structure and process of the DBPM company would be pretty much similar to the classical enterprise software vendors. The core solution is continuously developed; based on the core solution industry specific features are developed. Instead of internal development, a possible way is to work with a strong open source community and develop the framework either with freelancers or with partner companies, just as at Ethereum Foundation. Another aspect that must be taken into consideration is the Network of hosters or miners who actually run the whole system. Depending on the Blockchain solution miners and hosters are paid in either by an internal cryptocurrency system or directly based on revenue.
In the middle of the product performance the core platform can be found: A decentralised P2P process management platform, in which each workflow state transition is validated by a consensus of the whole network. Apart from the core, the product system will contain industry and branch specific solutions and features.
One of the most important feature from a customer point of view is that DBPM is a no-code solution. It means that business processes can be ‘clicked’ together; in most of the cases no software developer is required. It makes a strong impact both on the service and on the customer engagement side. As a consequence of no-code development, distributed business processes can be directly built and modified by the knowledge workers of a specific industry. In this way rapid solution development and continues process improvement can be realised, instead of having long-running development life cycles. 
As a consequence of no-code development, sales channels are the best to realise in cooperation with local consulting companies. As an example on of the Big Four or Big Three companies can be an excellent candidate to use DBPM with local consultants realising indirectly common sales channels as well.
Branding must suggest the core business idea in a way and must suggest a strong and stability. From a technology point of view, name of the core technology can remain DBPM however it is adequate only for strong technical audiences.