I'm Nadia Hewitt I'm with the World
Economic Forum's Center for the 4th
Industrial Revolution I'm based in San
Francisco where headquarters is and we
also have offices in other countries
around the world and we partner very
closely with with governments in
different regions the World Economic
Forum just to give a bit of context the
World Economic Forum is the intersection
for public-private cooperation we've
been around for about 50 years and we
work on global systemic issues we have a
global impartial platform to bring
together global leaders from public and
private sectors so global systemic
issues that particularly needs
collective action to convene and for
parties to come together on that
impartial platform a few years ago the
founder and executive chairman of the
World Economic Forum professor Klaus
Schwab started talking about the fourth
Industrial Revolution so the fourth
Industrial Revolution we talked about
those technologies blockchain
distributed later artificial
intelligence Internet of Things and he
started talking about the fact that
these technologies will not only
influence industries but it will
fundamentally change what it means to be
human and the world is not prepared
these technologies blockchain is moving
very fast governments can't keep up with
regulation so there's a big gap and how
we govern today these technologies so
with that we opened the Centre for the
fourth Industrial Revolution will be
focused on these technologies to really
help close that governance gap how do we
make sure that blockchain and
distributed ledger technology is
accelerated globally in a way that is
inclusive and that you still have
responsible deployment we can't rely on
regulation to help govern distributed
later technologies we need to find new
agile ways to together
private sector leaning in together with
the public sector govern these
technologies give you a bit of context
so I'm with the blockchain and
distributed ledger team
I lead a number of projects globally we
tackle governance
blockchain issue we focus very narrowly
and will actually go and do deployments
will co.design with organizations and
governments globally the frameworks that
goes with that deployment and then we
will use our global platform to scale
and the learnings embed best practices
of those frameworks to give you an
example in Colombia we working with the
general inspectors office on tasting
public permissionless
etherium to deal with corruption to deal
with public rfp's so what we do is we
focus on Colombia we bring in experts
from around the world to then taste the
technology develop frameworks policies
protocols that could help of the
successful deployment of that technology
in that particular field and then we
make it available we open source those
frameworks globally so we use that
global platform so I'm gonna speak today
about enterprise and how we support
Enterprise development in a number of
the projects that I work in we helping
to accelerate blockchain and distributed
later deployment in enterprises so we
use our impartial platform to help many
industries start blockchain consortiums
and then develop the governance around
how they can scale those consortiums in
the long run over the last couple of
years I've worked in many different
industries on helping enterprises on
helping industry consortiums and through
that we've really come to known and
understand what are some of the key
barriers for enterprise
adoption now with now that you have
enterprise aetherium if cerium can
conquer the enterprise Walt as well
however what are those barriers nothing
new to you the barriers are
collaboration and sharing right I'm
being here this week at Def Con we can
see again that a lot of the technology
issues will get solved performance
scalability those things a lot of people
are committed a lot of smart people are
committed to work on that the issue in
enterprise adoption is collaboration in
sharing today I will within that share
three very specific barriers that we've
seen time and time again across all
industries that hampers the lay
blockchain consortium adoption all that
prevents the full potential of of what
the technology has to offer
just a quick just to level set I'll just
quickly touch on some basics of
blockchain consortium so in the 2019
Deloitte global annual blockchain survey
they share that 92% of organizations say
that they either belong to a blockchain
consortia or they plan to join a
blockchain consortia in the next two
months so blood-suckin sources in the
enterprise world is the most typical way
for these competitors and organizations
to collaborate the reasons why they
choose the consortium way they see cost
savings according to the survey it helps
them to accelerate learning they can
share risks share R&D so this is a lot
how we see these industries within the
enterprise world organize themselves to
adopt blockchain we have so for the
first year in the halls we've seen a lot
of CEOs focus on proof-of-concept they
were doing blockchain proof-of-concept
and they come away seeing value in certs
areas but then many of them realized
they actually can't do it alone
they actually need to collaborate with
their competitor so many CEOs
organizations are starting to really
realize that but then that is where
things starts to get really difficult
and that's where we see a lot of the
industry F is falling over its in in
those competitors coming together you
know many of them have never built a
system together to then try and build
something that's sustainable and
scalable they really struggling with
that you all know why they need to cook
we need to collaborate with distributed
latest technology blockchain is the
ultimate Network technology it's the
peer-to-peer nature around shared
distributed nature's you need to
collaborate again organizations are
starting to realize that you need to
work together on standards you need to
work together for interoperability a lot
of these enterprises we see are doing it
because they want to share research and
development they continue doing their
own research and development in-house
but they also then share cost joint
resources to do further research and
development as part of these blockchain
consortiums it also helped them to
reduce time to market gain intelligence
and other things so in working with
these consortiums in the last viewers
what does the World Economic Forum's
scene is the three biggest barriers I'm
gonna give you three very practical
things that we need to work on if we
want to see enterprise development if we
want to see the potential truly being
unlocked of what this technology has to
offer these are things that needs deeper
collaboration across all parties the
three things the first one is and again
I just wanna some of this was not new I
could have told you this maybe a year
and a half two years ago but actually
having lived through it all the way from
fine
and so consortiums through to provenance
of agriculture coffee mining and metals
through to insurance through to move
oolitic consortiums that we were
involved with and that we got very deep
insights these three things comes up
time and time again its stalls hampers
delay stole delay and actually many
times don't allow the consortium the
enterprise efforts to move forward so
these are things that that needs to get
worked on the first one and I'll go
through each of them the first one
ecosystem white the fact that this is
distributed network technology thinking
about your return on investment thinking
about value from an enterprise ecosystem
level is necessary the second one the
focus on immediate proof-of-concept
and long-term value the tension that
exists between that and in lost sleep
how to get to fair inclusive and
well-designed governance of that block
chain consortium okay I'll go into the
first one ecosystem wide return on
invested versus the individual
organization to deploy distributed Lea
to technology in a way where you truly
gonna get the benefit businesses need to
change their mindset the traditional way
for of organizations thinking about
maximum maximizing profit within their
own boundaries does not work within the
consortium set up if you want to truly
unlock the potential of the technology
organizations do not know that they're
not familiar with that it's a big
mindset change so going through these
consortium formations we've observed
decisions made in building the
technology in setting up the governance
that has led to sub optimal optimal
results because each organization are
only thinking about their
value drivers their own return of
investment but if you are building a
solution for an ecosystem if you´d
building a solution that's distributed
it doesn't make sense you can't think
about your own ROI you need to think
about the ecosystems value in the
traditional world these enterprises had
to think about three things they're to
think about customer desirability
technical feasibility and the viability
the business viability with the
distributed nature technology
implementation these organizations also
need to understand and strive for ikan
ecosystem achievability so managers need
to think beyond company boundaries and
think about that ecosystem viability of
achievability if they make decisions
based on just thinking of their own
value the solution and the potential and
value they can unlock is just not going
to be there the second barrier that we
again observe time and time again this
one actually hosted last week with an
industry gone mentioned in who the
industry is but that actually took more
than a year in making a decision on the
first proof-of-concept a year between
and this is a number of competitors to
do a first proof-of-concept because they
had this barrier when a business late
consortium is being formed you need to
reach consensus on the long term vision
the long-term value levers but also
short term value levers in an enterprise
world many of these organizations are
you know have to report to Wall Street
they need to see quick results we've
seen in many clotting consortium
organisations leave because the results
didn't come in quick enough the thing is
there's attention many times between the
value liver
in the short run during this first few
proof of concepts and what they
sometimes have to achieve long term
imagine as few of the organizations in
the consortium driving and aiming for
the long term objective but a few other
organizations are just focused on what
is the value I can get from this first
proof-of-concept
many times to reach your long-term
objective you need to pursue proof of
concepts at first that a stand alone
might not make sense because you
sometimes have to get initial data
sources and then build upon that to
reach the eventual long-term goal now
you have these organizations trying to
agree on pursuing that first second
third proof-of-concept what does their
pipeline of development looks like but
they can't see eye and eye because some
of them are purely focused on this one
standard and proof of concept and what
they can show and deliver to their
organization who needs short-term quick
results versus pursuing the long-term
objective we need to find a way project
managers need to have education they
need experience in ecosystem trust
mechanisms asymmetry information sharing
competitive games and so much more in
order to actually be able to understand
how to best navigate the tensions that
exist between this two so you don't
delay these enterprise efforts another
tricky piece with the short term versus
long term is in the short term we have
many business led consortia they
typically opt for a technology like a
blockchain technology stack but then
serves the purposes of the short term
value lever
however the technical dependencies that
you then need to think of of what does
that technology stack needs to look like
to achieve the long term results many
times that is not then considered in the
beginning because many of those
organizations are self focused is on the
short term lever so
there's also the technical complexities
of choosing your you know blockchain
technology stack that can cater for both
and that brings me into the last barrier
that we see hamper enterprise adoption
within consortiums and that goes back to
governance again it's not the technical
pieces that's difficult you have
competitors who have never worked
together many of them have never sat in
the same room now building a system
together having to decide about who owns
the system who pays for it who's liable
who gets to see what data these are
difficult things these traditional the
these enterprises have been involved in
good sources before but blockchain
there's a lot of unique aspects here
that is very new actually a lot of the
issues around governance that the open
software open source software have been
looking into a lot of it applies here as
well so within the distributed ledger
consortium world it will serve them well
to go and look at some of these open
source software governance and how
they've mitigated and navigated through
through this challenge a particular
piece that the World Economic Forum is
very concerned with here is small and
medium-sized enterprises we see within
all these industries and as they come
together as blockchain consortium those
who can afford consultants and who can
afford big legal teams are the ones that
ends up having a lot of leverage when it
comes down to governance decision so
while blockchain governance is very new
Wow we will while we are all still
learning while going through lessons
while we are still embedding based
practices and designing policies or at
helping consortiums to succeed and
conclude on governance that's scalable
sustainable and inclusive the the small
medium sized enterprises has a real risk
here of being left out and if you do
actually do
look at value change and ecosystems of
many consortium a lot of the volume and
value still comes from that small and
medium-sized enterprises so how to make
sure you set up well-designed
governments and how do you make sure
that the way that value is allocated who
captures the value is fair in something
that sustainable long term so these
three things are what we see there's a
real urgent need for everybody
technologists economists consultants
public sector private sector to lean in
and work on helping to solve these
issues it's today these three things are
hampering the ability of enterprises to
adapt and drive for the acceleration of
block 10 we need to work on this and
just to end I find this kind of powerful
why when we want me to get collaboration
right the power of getting collaboration
right I don't know if any of you
remember the gut Moke campaign this is a
campaign in the 80s the milk industry
was really suffering and then they
collaborated competitors set up ways to
collaborate through this campaign they
completely changed the way the world I
mean I'm from South Africa at the time
that the ways we were feeling from this
campaign was felt all the way down in
the south of Africa the way that mug is
perceived the way that it was regulator
school house everybody was looking
around the value of look at the time has
completely changed through collaboration
of these organizations and for me that
again just shows that in the power of
collaboration to get this right for us
to really accelerate this and unlock the
potential of the distributed piece of
this technology we need to to get and
help project
organizations navigate through these
challenges so with that I have I'm also
pretty much out of time so that's my
contact details if any of you have any
more questions around the consortium
work that we do across different
industries across different enterprises
or you want to help in this effort we
are looking to design an frameworks to
help with what constitutes fair
inclusive and well designed governance
and will continue to be quite active in
the space for the for the coming years
and then I believe there's a QR code if
any of you needed that thank you very
much for your time
[Applause]