Blockchain and Cyber Security: What’s the big deal?

Blockchain and Cyber Security: What’s the big deal?

An opportunity for procurement professionals to leverage cyber security and blockchain to build trust.

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Blockchain and Cyber Security: What’s the big deal?

An increased emphasis on transparency, traceability and authentication of sources has sparked interest in blockchain applications amongst procurement organizations.

The second session of KPMG’s Procurement igNite series centered on the impact of blockchain technology on procurement, and how procurement professionals can leverage cyber security and blockchain to build trust.

Chia Tek Yew, head of Financial Services Advisory, KPMG in Singapore, opened the session by sharing how industries are currently disrupted by blockchain. For example, some insurance companies are currently harnessing smart contracts hosted on blockchain platforms to automate claims for flight delays. With the advent of blockchain platforms, major changes in the way businesses are being conducted can be expected.

Mark Crouch, Global Head of Procurement in a technology company, spoke about the future of procurement built around blockchain. He opined that the adoption of blockchain application will strengthen the operational aspects of procurement process but the technology lacks the personal aspects of supply chain.

Pintu Lund, SEA Procurement Business Partner, Microsoft, concurred with Mark and noted that blockchain allows procurement officers to focus on strategic activities through the removal of mundane operational tasks. Another way that blockchain improves efficiency is by eliminating the middlemen.

Cheong Yuk Wai, Co-Founder and CEO, Mybiz, shared that blockchain is the next big wave of change in how we do business online after the advent of the internet. Blockchain fundamentally changes who, when and how we trust - when trust can be established between suppliers over a public ledger maintained by a decentralized network of third parties. As a futurist, he is excited about the possibilities and changes which blockchain can bring to procurement and our daily lives. This resonated with Luke Forsyth, Principal, Cyber Security, KPMG in Singapore, as he shared that privacy and security issues such as maintenance of commercial confidentiality could potentially be a trade-off of the technology. For example, price confidentiality between suppliers are at risk with the high level of transparency and transaction visibility.

The floor was then opened to the audience. CPOs and other financial professionals took the opportunity to raise a good number of key observations about blockchain and cyber security.

All in all, blockchain is one of the most exciting disruptive technologies to be embraced since internet emerged. In the context of P2P sphere, organizations are adopting blockchain technology to eliminate third party reconciliation for invoice processing purposes, improving efficiency in overall payment process. It allows individuals who may not have trust in each other to collaborate without a neutral central authority. Forward looking companies should unlock blockchain’s potential to leverage trust and efficiency in supply chain management today.
 

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