The Potential of Blockchain and What MBA Students Can Do To Prepare Themselves For It

Just as Class of 2020 gears up for their job hunt, the novel coronavirus (COVID-19) sweeps the world with disruption. All around us, we hear news of some industries struggling to make ends meet, while some unexpectedly thrive. No matter the industry, a core resounding message was clear — pivot or face the consequences.

This message is timely for MBA graduates too. As much as many of us have entered business schools with our career aspirations in mind, we find ourselves at a crossroad — to pivot or to stay true to their path.

To support Class of 2020 and soon-to-graduate Class of 2021 to think about their way forward, the Career Development Office at the Asia School of Business (ASB) launched a ‘Rejuvenation & Reimagination Series,’ a series of panels that explore industries that have evolved during the COVID-19 pandemic and the new opportunities that opened up with that change.

The first installment of this series, ‘The Role of Blockchain in the COVID19 Crisis and Recovery’, presents two experts — Shi Khai Wei, COO of LongHash Ventures, and Sharad Malhautra, an Independent Consultant of EY with 15+ years of experience in the blockchain domain — who shared about their perspectives on the evolution of the industry and what opportunities lie ahead for MBA students. It was also moderated by our very own blockchain explorer and expert, Varun Singhi (MBA Class of 2020).

The Case of Blockchain Supporting Global Supply Chains

The general lack of connectivity and data exchange built into our global supply chains has become painfully clear[1] during this pandemic. In this panel, Malhautra shared that companies are challenged to provide greater “visibility and resilience for the global supply chain” and that is where digital technologies like blockchain will help.

He further broke down this situation by explaining: “When it comes to supply chain, the two aspects of blockchain is Visibility and Reconciliation. Even before COVID-19, the majority of companies, both large and small, have struggled with moving assets across cities. That’s predominantly so because companies are moving products across different functional, business, or system silos.”

Any silo in the supply chain will cause a lack of transparency and with it, inefficiencies. With inefficiencies, companies would have more inventory in some places than others, which then demands for higher working capital. MBA graduates, who understand how supply chain works and how technology can play a part in breaking down silos can improve planning and increase visibility.

“Ask any logistics manager or supply chain planning manager, ‘Do you have 100% confidence in your inventory and supply data in your system today?’ and he will say, ‘I still have to do a lot of physical counting and verification.’ I think that’s what blockchain helps to alleviate by giving more visibility and real-time accuracy to your data and products. When you have that, you can make better planning decisions,” Malhautra explained.

COO of LongHash Ventures, Shi Khai, chimed in by explaining the kind of start-ups that are drawing the attention of VCs during this pandemic. “When we were facing this pandemic, we wanted to see how blockchain can help address some of the most immediate pain points. We brought together enterprises from China and Singapore. We even had McKinsey as one of our partners, technology arm MDA, and OneConnect to identify solutions and score them. The solutions that came through are really practical and along the same vein that Sharad had shared. It’s really about the Transparency and Reconciliation or Settlement. The top winner was actually a supply chain solution [for vaccine], and they are now part of our accelerator program.”

This bears good news for us, MBA students, who want to add value to global supply chains or even start their own business. How then, can Class of 2020 and 2021 make ourselves relevant?

The Skill of Digital Transformation

Sharad Malhautra proposed that Digital Transformation is the future for MBA students. It is less tech-specific and equips graduates with the ability to understand how different technologies like Blockchain, Machine Learning and AI, work separately and together; figure out how new technologies can create accelerated value creation; and then translate them into business impact.

“[As MBA students,] you understand supply chain and operations, but do you really understand blockchain enough to know exactly how to use it to generate value? It’s more about understanding digital from a solution standpoint. What would a blockchain solution, an AI solution, a process automation look like in a large organization?” Malhautra said.

IDC predicts that “over 50% of all IT spending will be directly for digital transformation and innovation (up from 31% in 2018)” by 2024. In addition, DXC Technology, an American multinational corporation that provides B2B IT services, adds that “digital transformation initiatives will take large traditional enterprises, on average, twice as long and cost twice as much as anticipated.” [2] This is the opportunity presented to MBA students.

“I don’t think Digital Transformation in enterprises is going anywhere in another 10 years. It is going to give a majority of graduating MBA students careers, so make sure you have the right skills. We see it again and again that most entry-level MBA students going into the workforce are dealing with a lot of new technologies and are responsible for harnessing these technologies in organizations.”

Conclusion

Where there is crisis, there is opportunity. The unprecedented COVID-19 pandemic has exposed the gaps in many industries. This presents us new opportunities, as long as we are able to see and seize them.

As MBA graduates, we have been trained to look for the next opportunity and to position ourselves such that we could catch the megatrend of the next few decades.

According to both experts, blockchain is one of them. Shi Khai added, “There is a lot of room to recreate a better version of the financial infrastructure than what we see in the world today. There’s also a lot of room to make the fundamental blockchain infrastructure mature. There’s so much more work to be done to make sure that security is waterproof because once it’s on one chain, it’s gets exploited.

“When I came across blockchain, I thought it was something different, as it is the only technology that comes with a movement and a philosophy. The start-up industry for blockchain is [also consistently] different from the start-up industry of other technologies. There’s a lot to talk about decentralization and Web 3.0. Now, what do these mean?

“They represent a future where you no longer need the middleman. But you could truly have peer to peer interactions. And with the open-source nature, you’re potentially a more inclusive and innovative ecosystem where anybody can come in and build on this technology, just like open APIs by default. So fundamentally, it encourages open and inclusive innovation where everybody can collaborate on blockchain protocols that you can literally go ahead today and like write up an interim proposal, and say hey, I think it’s a good idea, and it may actually be accepted and then is forever part of the blockchain.”

If you would like to find out more about blockchain and have a conversation about it, please feel free to drop our very own blockchain explorer, Varun, who would be more than happy to get connected and talk to you about the opportunities available in this industry.

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[1] AlMuhairi, 2020, Why COVID-19 makes a compelling case for the wider integration of blockchain, https://www.weforum.org/agenda/2020/05/why-covid-19-makes-a-compelling-case-for-wider-integration-of-blockchain/

[2] IDG Communications (2020) Key to sustained digital transformation in 2020: People, https://www.cio.com/article/3519273/key-to-sustained-digital-transformation-in-2020-people.html

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About CDO Rejuvenation & Reimagination Series

Held every alternate Wednesday, the Career Development Office of Asia School of Business brings you the CDO Rejuvenation & Reimagination Series to inform you of industries that have evolved with new opportunities. The team brings in passionate, thought leaders who would share their perspective of the industry and what MBA graduates can do to prepare themselves for the ‘new normal’ as we move forward. Additionally, it is also a platform for any ASB Class 2020 or Class 2021 students who might want to sharpen their networking, moderating and conversational skills — smart skills that would set you apart from the rest as you move forward.

About Panelist of this Episode : Shi Khai Wei

Wei Shi Khai is Chief Operating Officer at LongHash Ventures, where he is responsible for the operational excellence and management of the company’s blockchain incubation and investment outreach. Shi Khai spearheads the development and rollout of LongHash Hatch Program, having raised over $16 million in funding to date. Shi Khai was previously a management consultant at McKinsey, with a focus on digital transformation and analytics across the financial and telecommunications sector across Southeast Asia. Shi Khai holds a Bachelor of Science from Imperial College London.

About Panelist of this Episode : Sharad Malhautra

Sharad is currently an Independent Consultant for EY. He has 15+ years of global leadership and digital experience across United States, Europe and Asia. Sharad was the Global Product Leader for EY’s OpsChain (blockchain) platform and brings an in-depth knowledge in Emerging and Digital technologies including Machine Learning, RPA, Intelligent Automation and distributed ledger. Prior to working at EY, Sharad was a Principle Consultant at Honeywell for almost 5 years. He has an MBA with a concentration in Finance and Entrepreneurship from the Jones Graduate School of Business at Rice University.

About Moderator of this Episode : Varun Singhi

Varun is a seasoned technology professional with over 12 years of experience in delivering customized Oracle solutions for various Fortune 100 companies in the USA. He has leveraged his management skills outside his professional life to fulfill his social entrepreneurship passion, having founded an award-winning non-profit that has so far successfully funded education for thirty underprivileged children in rural India. Through ASB, he aims to further enhance his general management capabilities and add value to global organizations through technology consulting. Outside work, he enjoys unwinding over a game of ping-pong or a movie night with his family.