Blockchain in Business
We have viewed how Blockchain has made a significant impact on businesses and industries. Select one industry and highlight the advancements Blockchain has had on that single industry.
Your paper should meet these requirements:
Be approximately four to six pages in length, not including the required cover page and reference page.
Follow APA 7 guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.
Support your answers with the readings from the course and at least two scholarly journal articles to support your positions, claims, and observations, in addition to your textbook. The UC Library is a great place to find resources.
Be clearly and well-written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.
The Blockchain Technology in Horizontal and Vertical System Integration in Manufacturing Industry
Swift developments in industrialization techniques and Information Technology have accelerated the advent of the Fourth Industrial Revolution (industry 4.0). According to Uygun (2021), this innovation is about making business entities more automated and innovative. Blockchain is part of industry 4.0 development. Yahouni et al. (2021) referred to blockchain technology as a clever system capable of recording complex data in various ways that render it difficult to hack, change, or cheat such systems. Similarly, Al-Jaroodi and Mohamed (2019) suggested that although the mechanics behind blockchain technology are enormously complicated, the basic idea with blockchain is to decentralize data storage so that such information cannot be manipulated, controlled or owned, by any central actor. This paper will explore the impact of blockchain technology in the manufacturing industry by examining its value creation in horizontal and vertical chains.
The Impact of Blockchain Technology on Horizontal and Vertical System Integration in the Manufacturing Industry
The Industrial Revolution II concentrated on shifting from analog and mechanical processes towards digital advancements. Industrial 4.0 aims to deepen the digital technologies’ impact on the current world by developing more autonomous machines capable of communicating with each other (Al-Jaroodi & Mohamed, 2019). Also, Fourth Industrial Revolution focuses on considering massive amounts of data through complex means that human beings simply can’t. Integrated industry smart manufacturing involves innovations with imminent digital technologies, and blockchain is one of such developments (Bigliardi et al., 2020). Thus, the primary goal of Industrial 4.0 development is to enhance technological growth and data efficiency.
According to Satpathy (2018), blockchain technologies have widely been incorporated into various components of small and large business enterprises to improve privacy and enhance establishment efficiency, security, and data transparency. In this line, Bigliardi et al. (2020) support that integrated industry smart manufacturing, through horizontal and vertical system integration, can be associated with a synthesis of the new-fangled production techniques allowing the manufacturers to attain their targets more swiftly. Besides, Al-Jaroodi and Mohamed (2019) maintain that blockchain technology has gained much recognition in horizontal and vertical system integration. It is currently employed to boost the swift manufacturing process and manage supply chain settings. Therefore, in this day and age, several manufacturing industries have fascinating intuitions into the rewards behind applying blockchain technology in their production processes.
Satpathy (2018) suggested that applying blockchain technologies in the Fourth Industrial Revolution had widespread repercussions in the manufacturing industry. For manufacturers, the scholar maintains that industrial internet technologies support in bridging the gap amid what were previously discrete courses into a clearer and a transparent view across the whole production firm, with sufficiently actionable intuitions. According to Berg et al. (2019), blockchain technology is used in the manufacturing industry to refine demand prediction, break down data silos, help in engaging analytical maintenance, and leverage operational efficacy in the firm. The scholar maintains that applying blockchain technology in manufacturing also aids in virtual training and offers workforces boosts to safety and personal health protection.
With horizontal and vertical system integration, Industry 4.0 plays a vital role in manufacturing (Pérez-Lara et al., 2018). According to the scholar, blockchain technology in this industry forms part of the widespread perception of digital transformation. Satpathy (2018) supported that blockchain application spans the manufacturing industry from scheduling to goods and service delivery in the same line. Specifically, blockchain technology offers solutions for simulated changes, deeper manufacturing process analytics, tracking the products and assets, smart warehouses, and installation of shop floor data sensors.
Additionally, Berg et al. (2019) suggested that in manufacturing firms with various production facilities, the application of blockchain technology through horizontal integration could guarantee all-in-one data sharing around prevailing issues, including delays and inventory levels. On the other hand, the scholar suggests that blockchain technology enables manufacturers to break down interdepartmental silos through vertical integration. As a result, the whole manufacturing process seems to function as a single unit – from the procurement department to the research and development, manufacturing, and sales unit. Therefore, vertical integration through blockchain technology benefits because every employee or manager in the firm shares data, benefits from the process, and everybody can operate dynamically in the manufacturing process.
Satpathy (2018) showed that applying blockchain technologies in horizontal and vertical system integration offers numerous advantages to enhance industrial flexibility, production quality, cost-effectiveness, reliability, and automated productivity of different industrial departments and sectors. The scholar maintains that the fourth industrial revolution aims to enhance diverse industrial sectors by integrating the manufacturing processes with potential paybacks. In the same line, Yoon (2020) supported that the primary principle behind smart manufacturing technology through blockchain in Industry 4.0 framework is that by permitting connectivity within numerous manufacturing departments or supply chains, the companies form a treasured integrated industry smart manufacturing network throughout the whole production value chain. In a similar observation, Berg et al. (2019) supported that horizontal and vertical system integration help manufacturing industries autonomic, automate, and optimize their operations. As a result, the integration through blockchain technology helps increase industrial productivity and flexibility, leading to reduced operational costs while increasing their viability.
Additionally, Yalcinkaya et al. (2021) suggested that Fourth Industrial Revolution leans towards changing the industrial business models enabling the interactions across the entire unit and throughout the value chain. For this reason, the manufacturers become more flexible and competitive through vertical and horizontal integration systems while producing new-fangled and technologically-improved products. Additionally, the application of blockchain technology facilitates the application of customizable industrial facilities to gain the most agile product development process and market introduction.