New Tepper research highlights the power of distributed ledger technology (DLT) for managing organizational change and structuring internet platform data
By Dr. Emily Barrow DeJeu
Distributed ledgers, which are decentralized databases shared, replicated, and synchronized among blockchain members, stem from decades-old distributed computing research. They have grown in popularity since the rise of blockchain-based cryptocurrencies in the mid-2000s, and many business leaders now see their potential for solving business problems.
Professors Sunkee Lee and Aniko Öry, along with Tepper PhD student Genrao Basulto, recently wrote new research papers highlighting ways DLT can help solve two common business challenges: managing organizational change and structuring internet platformdata.
Managing Organizational Change
In “Potential Applications of Distributed Ledgers in Organizational Change Management,” Professor Lee notes that change management often faces hurdles like inertia, territoriality, and cognitive bias. DLT can address these issues because it is transparent, decentralized, and allows anonymity, which can encourage honest communication and broader participation. It also provides an immutable, transparent record of communications and decisions. However, Lee acknowledges risks: DLTs can inadvertently concentrate power among a few key participants, and technological complexity can lead to low engagement. He advises using simple user interfaces, offering training to employees, and building frameworks for equitable use and ongoing evaluation to ensure fairness.
Structuring Internet Platform Data
In “Data on Internet Platforms,” Professor Öry and Basulto explain that internet data is valuable to both consumers (seeking preferred products) and businesses (seeking customer preferences), but platforms reliant on this data find it hard to determine its social value and allocate it fairly. They identify three challenges in today’s platform economy:
- Data intermediaries capture most of the data surplus, limiting benefits for consumers and advertisers.
- Consumers lack control over personal information, creating privacy concerns and potential data breaches.
- Small and medium-sized companies struggle to leverage fragmented consumer data from multiple intermediaries.
Öry and Basulto argue that DLTs could address these challenges by giving consumers greater control over their information—potentially earning fair compensation—and by enhancing anonymity to reduce privacy risks. A distributed ledger could also help smaller companies access a centralized, verifiable data source.
Ultimately, these studies demonstrate how DLTs can be applied to solve several common business problems and suggest avenues for future research.
For more on the Center for Intelligent Business’s work on Distributed Ledger Technology, please visit https://www.cmu.edu/intelligentbusiness/expertise/distributed_ledgers.html.