How can Blockchain technology be used to improve customer data management processes?
Jakob Nielsen and Omar Hamidi
MSc Economics & Business Administration – Information Management (Cand. Merc. IT). Aarhus University
The “single source of truth” discipline is pursued by many multinational conglomerates from various markets. High quality data specific to their field is the holy grail of the modern world as it can be applied within Big Data analytics for the use of predictive analytics, user behaviour analytics, or other advanced data analytics methods that extract value from data.
The biggest issue with MDM involves integrating the data and ensuring data quality. This means implementing a rigorous data governance model, which means changing data in source systems is not applicable. All MDM systems use cross-referencing back to the source of the data and therefore changes in any source system quickly and automatically flow to the master hub. The Data Governance practice determines whether these changes are moved to the “single source of truth” or remain in the cross references. This means that a high level of quality check, trust and compliance to the system is needed.
The solution to some of the MDM issues can perhaps be solved with Blockchain, which is a technology with a set of pre-defined rules that act as gatekeepers of data quality, regulating the way in which data is mapped to existing records, and governing the conditions that allow creation of new records. It can be defined as a new dimension to MDM, as Blockchain is Distributed Systems with several copies. Even though logically they can be seen as one central database, implementation is distributed. This combined with cryptography and consensus mechanisms facilitates building trust within a network without a 'centralized hub'.
Starting with Blockchain and MDM Omar and Jakob want to focus on customer data, as understanding your customer in full perspective is very valuable and thus a priority for most companies.
Proposed research question:
How can Blockchain technology be used
to improve customer data management processes?
We will follow an exploratory case study as the topic is relatively new and there is not enough research on the field. Firstly, initial research and background material on the topic will be included.
Afterwards, we will conduct expert interviews and use focus groups to get an extensive amount of data from different perspectives with the help of Stibo’s client network. Based on this data, an analysis will be conducted and a strategy will be established followed by a discussion that ultimately leads to an answer to the research question.
Lunch 'n' learn session at Stibo July 3rd 2017:
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