TECH / BLOCKCHAIN SPECIAL Blockchain beyond the hype: What is the strategic business value? PART II

Blockchain beyond the hype: What is the strategic business value? PART II

Feasibility at scale is likely to be three to five years away

The strategic value of blockchain will only be realized if commercially viable solutions can be deployed at scale. Our analysis evaluated each of the more than 90 potential use cases against the four key factors that determine a use case’s feasibility in a given industry: standards and regulations, technology, asset, and ecosystem. While many companies are already experimenting, meaningful scale remains three to five years away for several key reasons.

Common standards are essential

The lack of common standards and clear regulations is a major limitation on blockchain applications’ ability to scale. However, where there is strong demand and commitment, work is already under way to resolve this issue. Standards can be established with relative ease if there is a single dominant player or a government agency that can mandate the legal standing. For example, governments could make blockchain land registries legal records.

When cooperation between multiple players is necessary, establishing such standards becomes more complex but also more essential. Strong headway has already been made by industry consortiums, as seen with the R3 consortium of more than 70 global banks that collaborated to develop the financial-grade open-source Corda blockchain platform. Such platforms could establish the common standards needed for blockchain systems.

Globally, regulators have taken varying positions, but most are engaged rather than opposed. For example, the US Securities and Exchange Commission’s recognition of ICOs as securities brought ICOs under the agency’s regulation and into the mainstream.⁷In 2017, Standards Australia took a leadership position in developing a road map of priorities on behalf on the International Organization for Standardization and helping establish common terminology as a key first step. So far, many governments are following a technologically neutral regulatory approach—not promoting or banning specific technologies like blockchain.

Technology must advance

The relative immaturity of blockchain technology is a limitation to its current viability. The misconception that blockchain is not viable at scale due to its energy consumption and transaction speed is a conflation of Bitcoin with blockchain. In reality, the technical configurations are a series of design choices in which the levers on speed (size of block), security (consensus protocol), and storage (number of notaries) can be selected to make most use cases commercially viable. As an example, health records in Estonia are still in databases “off chain” (meaning not stored on blockchain), but blockchain is used to identify, connect, and monitor these health records as well as who can access and alter them. These trade-offs mean blockchain performance might be suboptimal to traditional databases at this stage, but the constraints are diminishing as the technology rapidly develops.

The immaturity of blockchain technology also increases the switching costs, which are considerable given all the other system components. Organizations need a trusted enterprise solution, particularly because most cost benefits will not be realized until old systems are decommissioned. Currently, few start-ups have sufficient credibility and technology stability for government or industry deployment at scale. Major technology players are strongly positioning themselves to address this gap with their own blockchain as a service (BaaS) offerings in a model similar to cloud-based storage.

Assets must be able to be digitized

Asset type determines the feasibility of improving record keeping or transacting via blockchain and whether end-to-end solutions require the integration of other technologies. The key factor here is the digitization potential of the asset; assets like equities, which are digitally recorded and transacted, can be simply managed end to end on a blockchain system or integrated through application programming interfaces (APIs) with existing systems.

However, connecting and securing physical goods to a blockchain requires enabling technologies like IoT and biometrics. This connection can be a vulnerability in the security of a blockchain ledger because while the blockchain record might be immutable, the physical item or IoT sensor can still be tampered with. For example, certifying the chain of custody of commodities like grain or milk would require a tagging system like radio-frequency identification that would increase the assurance being provided but not deliver absolute provenance.

The coopetition paradox must be resolved

The nature of the ecosystem is the fourth key factor because it defines the critical mass required for a use case to be feasible. Blockchain’s major advantage is the network effect, but while the potential benefits increase with the size of the network, so does the coordination complexity. For example, a blockchain solution for digital media, licenses, and royalty payments would require a massive amount of coordination across the various producers and consumers of digital content.

Natural competitors need to cooperate, and it is resolving this coopetition paradox that is proving the hardest element to solve in the path to adoption at scale. The issue is not identifying the network—or even getting initial buy-in—but agreeing on the governance decisions around how the system, data, and investment will be led and managed. Overcoming this issue often requires a sponsor, such as a regulator or industry body, to take the lead. Furthermore, it is essential that the strategic incentives of the players are aligned, a task that can be particularly difficult in highly fragmented markets. Critical mass is much lower in some industries and applications than in others, while in some cases, networks need to be established across industries to achieve material benefits.

What strategic approach should companies take?

Our research and emerging insights suggests following a structured approach to answer the classic questions of blockchain business strategy.

Where to compete: Focus on specific, promising use cases

There is a plethora of use cases for blockchain; companies face a difficult task when deciding which opportunities to pursue. However, they can narrow their options by taking a structured approach through a lens of pragmatic skepticism. The first step involves determining whether there is sufficient accessible value at stake for a given use case. Companies can only avoid the trap of developing a solution without a problem by rigorously investigating true pain points—the frictions for customers that blockchain could eliminate.

Identification of specific pain points enables granular analysis of the potential commercial value within the constraints of the overall feasibility of the blockchain solution. Overall industry characteristics as well as a company’s expertise and capabilities will further influence this decision, as companies need to understand the nuances of all these components to decide which use case will generate a solid return on investment. If a use case does not meet a minimum level of feasibility and potential return, then companies do not even have to consider the second step of which blockchain strategy to adopt.

How to compete: Optimize blockchain strategy based on market position

Once companies have identified promising use cases, they must develop their strategies based on consideration of their market positions relative to their target use cases. Many of the feasibility factors already discussed are within a business’s sphere of influence; even technology and asset constraints can be managed through trade-offs and a series of design choices to shape a viable solution. Therefore, a company’s optimal strategic approach to blockchain will fundamentally be defined by the following two market factors, which are those they can least affect:

·         market dominance—the ability of a player to influence the key parties of a use case

·         standardization and regulatory barriers—the requirement for regulatory approvals or coordination on standards

These two factors are critical in determining a company’s optimal strategic approach because they are integral to achieving the coordination required .Blockchain’s value comes from its network effects and interoperability, and all parties need to agree on a common standard to realize this value—multiple siloed blockchains provide little advantage over multiple siloed databases. As the technology develops, a market standard will emerge, and investments into the nondominant standard will be wasted.

This consideration of a company’s market position will inform which of four distinct strategic approaches to blockchain should be deployed and, in fact, further refine which type of use cases to focus on first.

Leaders

Leaders should act now to maintain their market positions and take advantage of the opportunity to set industry standards. As dominant players pursuing use cases with fewer requirements for coordination and regulatory approval, they can establish market solutions.

The greatest risk for these companies is inaction, which would cause them to lose the opportunity to strengthen their competitive advantages compared to competitors. An example of a leader following this strategy is Change Healthcare, one of the largest independent healthcare IT companies in the United States, when it launched an enterprise-scale healthcare blockchain for claims processing and payment.

Conveners

Conveners need to be driving the conversations and consortiums that are shaping the new standards that will disrupt their current businesses. Despite being dominant players, they cannot single handedly direct blockchain adoption as they face greater regulatory and standardization barriers. Instead, they can position themselves to shape and capture the value of new blockchain standards.

Convening tactics should be deployed for high-value use cases—like trade finance—that cannot be realized without a broadly shared set of standards. An example of a convener following this strategy is Toyota, whose Research Institute set up the Blockchain Mobility Consortium with four global partners to focus on blockchain solutions for critical accelerators of autonomous vehicles: data sharing, peer-to-peer transaction, and usage-based insurance.

Followers

Followers should also carefully consider and implement an appropriate blockchain strategy. Most companies do not have the capability to influence all necessary parties, especially when applications of blockchain require high standardization or regulatory approval. Such companies cannot be unaware of market innovations—they should keep a watching brief on blockchain developments and be prepared to move fast to adopt emerging standards. Just as businesses have developed risk and legal frameworks for adopting cloud-based services, they should focus on developing a strategy for how they will implement and deploy blockchain technology.

Followership is a particularly risky strategy for blockchain, given the likelihood of select players in an industry establishing private-permissioned networks, as in freight, for example. A follower, no matter how fast, might already be locked out of the exclusive club that established the initial proof of concept. Companies can mitigate this risk by joining select existing and emerging consortia early, when the short-term investment costs of membership are outweighed by the long-term costs of getting left behind.

Attackers

Attackers are often new market entrants without an existing market share to protect, so they need to seek disruptive or transformative business models and blockchain solutions. Attacker approaches are suited to use cases with the highest disruptive potential through offering a service to the market that would disintermediate existing players. Most peer-to-peer applications, from finance to insurance to property, fall into this category. An example of an attacker following this strategy is Australian start-up PowerLedger, a peer-to-peer marketplace for renewable energy that raised 34 million Australian dollars through its ICO.

Incumbents should deploy an attacker blockchain strategy in a separate noncore digital business. Blockchain as a service (BaaS) providers often adopt an attack strategy because they are selling the services into—and disrupting—industries in which they are not currently participants. Companies pursuing an attacker strategy often seek partnership with a dominant company in the market to leverage their leadership influence.

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The insights from our analysis suggest that, beyond the hype, blockchain has strategic value for companies by enabling both cost reduction without disintermediation as well as, in the longer term, the creation of new business models. Existing digital infrastructure and the growth of blockchain as a service (BaaS) offerings have lowered the costs of experimentation, and many companies are testing the waters. However, fundamental feasibility factors delimit what can be scaled and when as well as the realistic time scales for return on investment on proof of concepts.

Assessing these factors with pragmatic skepticism about the scale of impact and speed to market will reveal the correct strategic approach on where and how to compete to enable companies to start extracting value in the short term. Indeed, those dominant players who can establish their blockchain as the market solution should be making the moves—and making them now.

By Brant Carson, Giulio Romanelli, Patricia Walsh, and Askhat Zhumaev

https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/blockchain-beyond-the-hype-what-is-the-strategic-business-value?cid=other-eml-alt-mip-mck-oth-1806&hlkid=41226b87a0a142bda4d948118260f933&hctky=1627601&hdpid=6a0817ff-c71d-4a97-be68-b9b733f3d39f

INCOME TAX INDIA SPECIAL..... Take the stress out of filing your tax return

Take the stress out of filing your tax return

Dreading the annual ritual of filing tax returns? Being familiar with the changes in tax rules can ease the process for salaried taxpayers

For many taxpayers, return filing is a dreaded activity which they put off until the last minuteeven beyond the due date.

But this year, such procrastination will mean paying a huge price. The penalty for late filing is ₹5,000, making it imperative to meet the 31 July deadline. If the delay is beyond 31 December, the fine is higher at ₹10,000. Therefore, it’s best to kick off the process right away. Read on to find out more.

Changes in tax rules

Before you embark on the process to file the return for the assessment year 2018-19 (financial year 2017-18), you need to be aware of some fundamental rules and key changes in the income tax return (ITR) forms this year. Knowledge of slab rates, for instance, can help you compute your tax liability correctly. The slab rate applicable to an individual drawing taxable income between ₹2.5 lakh and ₹5 lakh has been reduced from 10% to 5%. This is also the year when taxpayers who own more than one property and claim tax benefits on the home loan interest paid will feel the pinch. Till the financial year 2016-17, you could avail of tax break on the entire interest paid – considered ‘loss’ – on home loan for let-out properties. “The entire loss was allowed to be set off against other income without any limit,” adds Agarwal. But from this year, the tax rules have been changed. “The government has restricted the benefit of set-off loss from house property to a maximum ₹2 lakh per financial year and the balance loss can be carried forward to next eight years,” explains Chetan Chandak, Head of tax research, H&R Block.

While this has hurt taxpayers who had invested in property, another change in rule has made them smile. This pertains to capital gains/losses on investments and immovable properties. “Holding period for capital gains to be considered on immovable property has been reduced from three years to two years; also, year 2001 will now be the base year for calculating the capital gains,” says Chandak. The new cost inflation index, too, has been released.

Changes in tax forms

This apart, the ITR forms too have undergone several changes this year. “Till last year, only net taxable figures of salary and house property income were required to be disclosed. This year, detailed calculations in respect of salary and house property income are required in ITR-1 and ITR-4. Address of property would also be required for house property income,” says Sandeep Sehgal, Director, Tax and Regulatory, Ashok Maheshwary & Associates.

Till last year, if an individual or Hindu Undivided Family (HUF) was a partner in a firm, ITR-2 could be used if they didn’t have any other business income. “Now, such individual or HUF shall be required to file its return in ITR-3 only irrespective of it has any other business income or not,” adds Sehgal. The forms this time provide a separate column for claiming capital gain exemptions under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F.

Which ITR form is for you

The next step is to identify the form that you need to use to file returns. “If you are using a private tax filing portal to file your return, it will automatically choose the correct form based on your income and assets,” says Sudhir Kaushik, Cofounder, Taxspanner.com. However, if you are using the tax department’s portal, you will have to choose the form yourself. The I-T department has released seven forms this year – for salaried professionals or pensioners, the most relevant forms are ITR-1 and ITR-2. If you are a self-employed professional or run a small business, you should use ITR-4. Ensure that you mention your name in the manner it appears on your PAN card. “The return will not be processed in case there is a PAN name mismatch,” he adds. Do not forget to update your e-mail ID and mobile number so as to receive timely communication related to return and refund processing. Quoting Aadhaar is a must for resident taxpayers.

Verify TDS details in Form 26AS

To start with, access your Form 26AS – or tax credit statement – available on the e-filing portal and check whether the tax deducted by your employer and other deductors tallies with your Form 16 and TDS certificates. “All the tax credits for salaries and other income should be verified with 26AS. If there is any mismatch, it should be addressed to the employer or payer of such income,” says Sehgal. You can also access your Form 26AS through your netbanking account.

When you sit down to file your return, keep certain key documents at hand, including the Form 16 issued by your employer, bank statements to know the interest income, records of investments and donations made and a copy of returns filed last year. This will reduce the time consumed to file returns as also the scope for errors.

What to watch out for

Remember that only interest earned on savings bank account is exempt under Section 80TTA. Interest earned from fixed deposits and recurring deposits is fully taxable at the rate applicable to the individual. Also, TDS is only 10% of the interest earned on deposits. If the individual falls in a higher tax bracket, he will have to pay additional tax.

Many taxpayers may be tempted to ignore reporting the interest income. This can be a problem. If your Form 26AS shows TDS on interest income, the tax department will send you a demand for additional tax on the income.

Likewise, you must also ensure that you claim all tax benefits you are entitled for – even the ones you might have missed mentioning in the investment declaration submitted to your employer. Chief among these is donations made to charitable institutions, as employers usually do not account for deductions under section 80G.

Finally, do not delay e-verifying your return or dispatching the printed and signed ITR-V to the CPC in Bengaluru only by regular or speed post within 120 days of filing the return online.

Preeti Kulkarni

TOI  2JUL18

MANAGER SPECIAL ....Seven Tips for Managing Procrastinators

Seven Tips for Managing Procrastinators

Studying procrastination used to be a terrific way to avoid doing things I was supposed to be doing. It hasn’t been as much fun for me since one of the things I supposed to be doing was writing this column on how to manage procrastinators. Rats!

One thing I learned before I was distracted from my studies is that about 20 percent of adults identify themselves as chronic procrastinators. That is, they are habitually unable to perform tasks on time, even when there are serious consequences involved. Moreover, reports DePaul University psychology professor Joseph Ferrari, author of Still Procrastinating? The No-Regrets Guide to Getting It Done, the incidence of procrastination is pretty consistent across age cohorts, gender, and nationalities. As yet, procrastination researchers have not identified any “blue zones” — Shangri-las in which people not only live longer, but also never miss a deadline.

What the researchers have identified is two kinds of procrastination: avoidance and arousal. Avoidance procrastination is fear-based; it is driven by the desire to duck a task. Arousal procrastination is thrill-based; it is driven by the desire to play chicken with deadlines. Although it’s easy to joke about procrastination, neither kind is a laughing matter for executives.

Managing procrastinators can be an extremely frustrating experience. If one in five employees isn’t doing what they are supposed to be doing, or can’t be relied upon to meet a deadline, it can wreak havoc on planning, productivity, team performance, and anything else that depends on synchronized activity or keeping to a schedule. If employees are avoiding tasks altogether, work never gets done unless someone else does it. If they are thrill seekers, the work ends up getting short shrift and, often, does not get done on time.

So what’s a leader to do? One option is to get in the procrastinator’s face. But the only bosses who have time to listen to countless and increasingly belligerent and rococo versions of “the dog ate my homework” are probably procrastinators themselves.

Another option is to go for the TKO by firing procrastinators. But aside from the HR complications created by such a scorched-earth strategy, pursuing this path may cost the company people who are highly talented, even if they are not always reliable. In Soon, author Andrew Santella outed an impressive group of procrastinators, among them Charles Darwin, Edgar Allan Poe, Frank Lloyd Wright, and Leonardo da Vinci. Does anyone want to be the leader who will look back and remember the day he kicked Frank Lloyd Wright off the project because the plans were 10 days late?

Alternatively, I’d like to offer a few tips for managing procrastinators that are more akin to judo (“the gentle way”) than boxing. These tips have no basis in science as far as I know. Rather, they are based on purely anecdotal evidence: They have worked to keep my own strong inclination to procrastinate in check.

Know your procrastinators. 

If your team is booting deadlines, it’s probably not likely that everyone is at fault. Identify the member who acts as a kind of perpetual brake.

Keep deadlines short and hard. 

Nothing enables procrastination more effectively than a distant or a nebulous deadline. As Mark Twain said, “Do not put off until tomorrow what can be put off till the day-after-tomorrow just as well.” So, once you’ve identified us procrastinators, give us hard deadlines for our work. If the task ahead is a long-term one, break the work down into small, manageable pieces and assign deadlines for each one.

Don’t pile on the work. 

It sounds counterintuitive, but procrastinators can, in fact, handle lots of work. Just give it to us sequentially, with one assignment or task following another. Because if you dump several on us all at once and expect us to manage them all rationally, we are likely to find a lot of other really interesting stuff to do.

Remove distractions. 

Distractions, in their myriad forms, are the fuel of procrastination. Isolate procrastinators from distraction — shut off the office television, cancel the 2:00 pm ice cream break — and we’ll get our work done. If only because getting the work done allows us to get back to all the distractions we’re missing.

Impose structure and accountability. 

Procrastinators are always looking for camouflage, as well as excuses for not doing whatever we’re supposed to be doing. So, take away the hidey holes by making sure it’s clear who is supposed to be doing what, and by tracking accountability in the most public way possible.

Play to strength. 

Often, a challenge is the last thing that procrastinators want. So, when you can, assign us jobs that we know we can do. And when you can’t, explain why you’re confident that we can get the job done.

Ask for help. 

Procrastinators are human, too, and like most humans, we like to help other people. When you’ve got a job that absolutely, positively has to be done, ask for our help. Sometimes that’s all we’ll need to muster enough motivation to overcome our natural inertia.

In the end, the key to remember is that procrastination is a psychological glitch. Managers can’t cure it through intimidation or punishment, or make it go away through bribes and rewards. But with a judo-like approach, powered by an understanding of our counterproductive inclinations, you should be able to easily manage most of us.

Theodore Kinni

https://www.strategy-business.com/blog/Seven-Tips-for-Managing-Procrastinators?gko=4f0df&utm_source=itw&utm_medium=20180621&utm_campaign=resp

APPS /TIME MANAGEMENT SPECIAL... Top 15 Time Management Apps and Tools

Top 15 Time Management Apps and Tools

No one can dispute the countless benefits technology has brought us. It’s undoubtedly allowed us to connect, perform, improve and leverage our resources beyond what was once imaginable.

However, despite the wide variety of different tools and devices to make life easier and more comfortable – how many tools and apps are you currently using to optimize your time?

If you’re not taking advantage of one of the hundreds of time management apps and tools out there, you’re definitely missing a trick. But with so many apps to choose from, how do you know which ones to use? Well, this will depend on your needs, but we’ve put together a list of 20 of the very best apps that can help you with the most common time management challenges.

Let’s dive straight into the list…

Are you using your time wisely?

Rescue Time

If you have doubts that you’re using your time sensibly, this app will send you weekly reports to indicate what things are stealing your time. You may be shocked to discover how much time you’re actually wasting.

Keep on top of all your tasks (wherever they may be)

Remember The Milk

If you’re struggling to manage everything you have to do, and you work with many different devices, then this is the app for you. It’s a great free tool which is compatible with your mobile, computer, Gmail, Outlook, etc. It helps you to manage your tasks easily, and reminds you of them – wherever you are.

Need extra motivation to complete tasks?

Focus booster

This app is based on the principles of the Pomodoro Technique, and is aimed at individuals who procrastinate and feel overwhelmed by tasks. It’s designed to enhance your focus and remove any anxiety you might have with time pressures.

Keep track of the amount of time spent on projects

Toggl

This is a great alternative to time-sheets, if you need to track how much time you spend on different projects. Effective time management starts with being clear on exactly how much time you actually spend on your projects and tasks, and then through analysis, working out how you can manage them more effectively.

Struggling to send large files?

Dropbox

There are many apps that allow you to transfer content from your computer to other devices – but Dropbox is free and easier to use than the others. With the Dropbox app, you can even access and share important files on the go.

One online home for all your notes

Evernote

Evernote is a free productivity tool that allows you to capture all your ideas, thoughts and images in many different ways (e.g., with voice, notes or images).  You can even record your meetings, interviews, speeches and ideas, create lists, add voice or text attachments, and share your files with friends. You can also sync Remember The Milk with Evernote to really optimize your time.

Use mind mapping to focus on the tasks at hand

Mind42

Mind mapping is a great productivity technique, and Mind42 is the best free mind mapping app currently available. It helps you to become more organized by focusing your thoughts – thereby gaining clarity on what needs to be done.

Back up and sync your files effortlessly

SyncBackFree

This free software allows you to back up, restore and synchronize your files easily. It not only saves you time now – but also in the future. If you have never backed up your files before, you should definitely take a look at this pivotal tool.

Manage your to-do lists effectively

MyLifeOrganized (MLO)

Check this out if you find it difficult to manage all your tasks, to work with your to-do lists, and to organize your goals. This task management system helps you to target what you should be focusing on to reach your objectives. It automatically generates to-do lists, with priority actions for your immediate attention so that you can track your progress methodically.

Are you wasting time trying to remember your passwords?

Universal Password Manager

This app allows you to keep all your passwords in one encrypted database, protected by one password. This saves you time when you forget your passwords and need to retrieve them. It also allows you to use various passwords so you don’t compromise on security.

Keep your eye on the ball

Pocket

When you’re surfing the web, it’s easy to get distracted by enticing and fascinating websites. Use this tool to save your ‘finds’ to access and read later on at a convenient time which will not impact on your immediate work.

Does your attention span need a boost?

Focus@Will

This amazing app combines neuroscience and music to boost your productivity. According to the developers, it’s possible to increase your attention span by up to 400%! Ideal for those who find it difficult to focus while studying, working or reading.

Interact in a smarter way with your computer

Launchy

This small and simple tool allows you to launch your documents, project files, folders, and bookmarks with just a few keystrokes. This makes life so much easier as you don’t need to go through the start menu to access what you want.

Boost your focus by growing a forest!

Forest

This unique and fun app helps you stay focused and on-track. The concept is simple: whenever you want to focus, plant a virtual tree. If you stay focused, the tree will grow. If you lose focus, the tree will die. As the app’s name implies, you can grow multiple trees to create a virtual forest!

Searching for a highly-visual way of tracking your tasks?

Trello

This is a hugely popular app that you may already be familiar with. It works by allowing you to create cards for tasks that you need to complete. Each card moves across the Trello board (which is typically broken into columns such as To Do, In Progress, and Completed) as your start, work on and complete the associated task.

Digital to-do lists offer much more than their paper equivalents

Wunderlist

Purchased by Microsoft in 2015, Wunderlist is an easy to use, feature-packed to-do list app. From planning a holiday, to sharing a shopping list with a partner, or managing multiple work projects, Wunderlist will keep you on top of all your tasks.

Wouldn’t it be great if your family had a shared calendar?

TimeTree

This app allows families or teams to share multiple calendars and appointments. So, whether you’re planning a party, or run a local sports team, Time Tree can keep everyone up-to-date with all current and upcoming activities and events.

Easily capture and order all your tasks and activities

Todoist

Todoist is close to being the ultimate digital to-do list. It’s available via browsers and apps, and lets you schedule all your tasks and activities. Each item can be flagged for priority as well as given a due date. There is also a neat option to add notes to any of your tasks.

The above list covers what we consider to be the very best time management apps and tools. And the good news is – that many of them are completely free of charge! So, what are you waiting for? Select the ones that will be the most valuable to you – and begin boosting your productivity now!

Kirstin O´Donovan

https://www.lifehack.org/articles/technology/top-15-time-management-apps-and-tools.html