What makes an enterprise?
It depends on the kind of enterprise. If an enterprise accepts outside contributions it must publish its financial and operating condition. I have an intimate knowledge of today’s enterprise and a clear vision of what will make the enterprise of the future. I caught a glimpse of the future enterprise when the DAO was launched. Although it didn’t end well, we will fix what led to its end. Business occurs in real time, decisions are made in real time and therefore transparency should occur in real time. Tomorrow’s enterprise must move a lot closer to being programmatic. To the extent that an enterprise can be programmatic is the extent it can be transparent in real time and truly communicate financially.
Can today’s enterprise endure?
What you read about in press regarding firms like Carillion; and for instance, Enron, which is a little closer to my experience as a former Arthur Andersen executive; is the result of the unperfected, non-programmatic enterprises of today. No enterprise can endure without moving toward pre-programming its business execution. And that means lots of cooperation also with customers and vendors. An enterprise must LEAD innovation, and that means partnerships. When you look at the DAO, it wasn’t a company. It was decentralized, living, breathing organism designed to programmatically execute a set of commands. As bad as it ended, it was a glimpse of the future enterprise. For lots of folks, its difficult to envision a “programmed” enterprise. And I know what some people are thinking; “How do you deal with unpredictability”? Right? But when you observe what’s happening in machine learning and AI, you begin to see how these tools will play a critical role in the preprogrammed enterprise. The work that Auditchain is doing lays the foundation for the future of the programmatic enterprise. Without 100% transactional, operational and financial communication, machines can’t learn and there can’t be credible and actionable intelligence. And that means real-time disclosure
What do you think enterprise gets right about Blockchain and what do they get wrong?
To this day, very few enterprises actually get what “Blockchain” is and therefore; what it can achieve. When you hear terms like “private ledger” or “permissioned ledger” being used by enterprises and you understand what they are doing with them, assuming one understands the difference, it actually defeats the purpose of decentralization; which is what a “blockchain” achieves. One of many reasons is that there are only about 150 people in the world that truly understand not only the data structure and how data is used, but the unlimited dimensions that blockchain is capable of unlocking for a business. To some it really sounds like science fiction and that because they are used to living in the first dimension, so to speak. So it’s difficult for them to understand in the same way it’s difficult to imagine what it’s like to breathe water. Most enterprises are deficient in the talent that can truly transform an enterprise into being future proof. The work we are doing at DCARPE Alliance anticipates this transformation and we are taking a huge risk by leading innovation by gathering members of the entire accounting, audit and financial reporting supply chain and communicating this impending transformation to them in the hopes that they see the future and adopt the foundational aspects of the genesis of the programmatic enterprise.
What types of communities will Blockchain create and how will they rival the enterprise?
See that’s the thing; a blockchain isn’t an enterprise. Its an autonomous network. It is programmatic; a virtual machine, if you will. If one is able to look 10, 20 or 30 years into the future, they might see constellations of interoperable blockchain ecosystems, rather than an array of corporate partnerships. When you consider that vision, it moves the mindset into a whole different dimension, where corporate law and contract law must cooperate with network code; and vice versa; when accounting, audit and reporting standards and network communication protocol must cooperate and assimilate. This is the community we are trying to build at DCARPE Alliance. From that activity, there will be many more communities that spring up to deal with related and ancillary topics.
Where would you want your children to work and how?
That’s an incredible question and I think about it all the time I am dealing with that issue now. My kids are interviewing for internships at major banks and bulge bracket firms. I urge them to intern at blockchain incubators and digital investment banks because having that on your resume now is worth considerably more to a large enterprise who is trying to become future proof”.
To the extent that decentralized enterprises and crypto firms can “out-recruit” traditional enterprises is the extent that the enterprise world will transform.
In any event, it’s how our kids are able to think and therefore work that will determine the speed with which the world’s enterprises can adapt and rocket into the next dimension.