How Does Blockchain Enhance Traditional Project Management?
What is project management?
Project management has to do with the process of planning, forecasting, setting up strategies to achieve a predetermined objective, and the execution of those strategies within the allowed timeframe, to achieve success.
Project management is not a new concept; according to Project Management Institute, it has been in existence since the time of the pyramids, the only thing that has changed about it, is how we relate to and manage it. Customarily, projects were just predictable workflows used to generate predictable outcomes, but today projects are more of a short term, highly customized, and flexible process.
Project management is a quite complex and complicated field requiring a lot of knowledge, experience, and practice, which is why not just anyone can be a project manager. The focus of this article is on the applications of blockchain technology in the field of project management, with a focus on bringing ease and less complexity to the field.
Applications of blockchain technology in project management
Here are some areas where blockchain technology could be applied:
Blockchain technology will come handy in project management because of the kind of speed at which it processes transactions. Speed is one thing very crucial to project management, according to statistics from HBR of all projects that are processed, one in every seven of them, has a schedule that has been outrun by 70%.
Blockchain technology functions in real-time and transactions initiated on it are documented 24/7, which means whichever project is managed using blockchain technology will reach a faster completion than one which is not.
Project management is a private transaction done between the project manager(s) and the stakeholders, their transactions are kept in a public record for security purposes, which even though might be secure, it still bears the risk of being breached. Using the blockchain ledger as a store of information will not just make such a record impenetrable, but it will also make it free from manipulation from either party.
This will provide clarity in cases where there is a discrepancy or a dispute.
Optimization of workflow (using smart contracts)
To optimize the transactions between the project managers, employees, and stakeholders, smart contracts could be employed.
Smart contracts are very useful during the initiation of complex projects, which involve many intermediaries, for example, the construction of a building that will require different entities to supply materials like concrete, steel, and stones. Agreements and negotiations between these different entities could be digitized.
Set the criteria of the project, specify the objectives to be met, once the criteria and objectives are met, the contracts will execute automatically, without any need for human input.
Image via Shutterstock