Trust but Verify: The Oracle Paradox of Blockchain Smart Contracts

2021 ◽  
Author(s):  
Abdullah Albizri ◽  
Deniz Appelbaum
Keyword(s):  
Internal Control ◽  
Process Management ◽  
Weak Link ◽  
Design Science ◽  
Science Research ◽  
Third Party ◽  
Smart Contracts ◽  
Independent Verification ◽  
Smart Contract ◽  
Control Application

Although research shows that blockchain provides fairly immutable virtual provenance workflows, proof that the Blockchain accurately represents physical events lacks truly independent verification. This dilemma, the Oracle Paradox, challenges blockchain architecture and is perhaps one reason why businesses have hesitated to adopt smart contracts. Blockchain proponents claim that people can serve as trusted Oracles in a smart contract. However, auditing research shows that people are the weak link in almost every internal control application, including those pertaining to blockchain. People are susceptible to collusion, bribery, error, and fraud and these tendencies are not entirely mitigated by blockchain technologies (Balagurusamy et al. 2019; Nakamoto 2008). This research proposes a framework to mitigate the paradox of the Oracle: A Business Process Management (BPM) model of a Blockchain Smart Contract-enabled Supply Chain with IoT as the sole "third-party" Oracle participant, utilizing Design Science research.

Dynamic product line for Business Process Management

2015 ◽  
Vol 21 (6) ◽  
pp. 1224-1256 ◽  
Author(s):  
Roberto dos Santos Rocha ◽  
Marcelo Fantinato ◽  
Lucinéia Heloisa Thom ◽  
Marcelo Medeiros Eler
Keyword(s):  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Design Science ◽  
Science Research ◽  
Integrated Approach ◽  
Product Line ◽  
Content Type ◽  
Dynamic Techniques

Purpose – The purpose of this paper is to present the proposal of a Product Line (PL)-based approach for Business Process Management (BPM) projects that cover the entire BPM lifecycle and proposes integrating it with dynamic techniques still not used together. Design/methodology/approach – The authors carried out this work using the design science research methodology. The authors assessed the proposed approach using a classification procedure created through a series of specific attributes, which enables a comparison of the proposed integrated approach with related works selected from a systematic literature review. Findings – The comparative assessment has shown that the proposed approach presents the most comprehensive solution than any other similar one suggested for the same purpose, mainly in terms of the coverage of the entire BPM lifecycle and dynamic techniques. Research limitations/implications – Due to the high-level conceptual nature of the proposed approach, the authors could not evaluate it also in terms of some controlled experiment or a case study. Originality/value – The proposed approach aims at improving the management of business processes in organizations in a systematic way using concepts and techniques that exist in other areas, but not widely used together yet, such as BPM, service-oriented computing, and Software PL.

scholarly journals Evaluation Blockchain Using COSO

2020 ◽  
Author(s):  
Nishani Edirisinghe Vincent ◽  
Reza Barkhi
Keyword(s):  
Internal Control ◽  
Internal Controls ◽  
Smart Contracts ◽  
Collaborative Environment ◽  
Distributed Ledger ◽  
Smart Contract ◽  
Enterprise Risk ◽  
Trading Partners ◽  
Develop Technology ◽  
The Impact

As companies begin to explore and develop technology solutions based on blockchain and smart contracts, there is a need to understand the impact of blockchain and smart contracts on the assessment of internal controls and enterprise risk. Especially, since the distributed ledger and smart contracts blur the system boundaries between trading partners, there is a need to understand whether internal control assessments based on a single company approach is adequate in an integrated and collaborative environment. We provide an overview of smart contracts for practitioners and describe the associated risks of engaging in a blockchain consortium. We also list potential questions related to internal controls that may be considered when either engaging in a consortium or executing a smart contract. We then discuss whether current frameworks, specifically the Committee of Sponsoring Organization (COSO) integrated and COSO Enterprise Risk Management (ERM) frameworks, adequately address a collaborative supply chain ecosystem.

scholarly journals Advantages and disadvantages of smart-contracts as the basis for the emergence of ownership

2021 ◽  
pp. 101-105
Author(s):  
K. Nekit
Keyword(s):  
Property Rights ◽  
Legal Aspect ◽  
Legal Regulation ◽  
Third Party ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Technical Errors ◽  
Smart Contract ◽  
Legal Nature ◽  
Definition Of

The article examines the concepts, legal nature of smart contracts, as well as the advantages and disadvantages of smart contracts as a basis for ownership. The technical and legal aspect of the concept of smart contract is considered. Models of using smart contracts are described. Approaches to determining the legal nature of smart contracts are presented. It is concluded that two models must be considered when using smart contracts. The first model is external, when the program code does not replace the agreement, but only automates its execution. The second model is internal, when the code completely or partially replaces the terms of the agreement. Among the advantages of smart contracts as grounds for the emergence of property rights can be identified, first of all, the inability to change the terms of the contract and interference in its work. However, at the same time, this feature is a disadvantage of the smart contract, as it does not allow to take into account the objective circumstances that may affect the implementation of the agreement. The problem of oracles when using smart contracts is also considered. It is noted that the use of oracles actually means the involvement of a third party in the transaction with all the risks that arise from it. The problem of involving notaries and state registrars in transactions on acquisition of property rights on the basis of a smart contract is analyzed. The problems of lack of legal regulation of smart contracts, in particular, related to its transnational nature, is investigated. The problem of protection of the rights of the parties to the smart contract is analyzed, in particular, related to technical errors and outside interference. Temporary solutions regarding the use of smart contracts and general recommendations on the legislative definition of smart contracts are proposed.

scholarly journals R-BPM: Uma Metodologia para Gerenciamento de Processos de Negócios Consciente dos Riscos

2016 ◽  
Vol 9 (4) ◽  
pp. 05-37
Author(s):  
Fábio Da Silva Ferreira ◽  
Carina Frota Alves ◽  
Rosa Candida Cavalcanti
Keyword(s):  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Design Science ◽  
Science Research ◽  
Design Science Research

Na busca por agilidade, economia e qualidade em seus processos, um número crescente de empresas tem adotado técnicas de Gerenciamento de Processos de Negócios (Business Process Management – BPM). No entanto, mesmo gerenciados, os processos podem enfrentar riscos que podem causar forte impacto sobre os objetivos da organização caso estes riscos não sejam gerenciados de forma apropriada. Este artigo tem como objetivo construir e avaliar uma metodologia para realizar o gerenciamento de riscos em processos de negócios de forma integrada com o ciclo de vida BPM. A metodologia, chamada de R-BPM, é composta de um modelo de fases e de uma ferramenta de apoio. Ela é inspirada na estrutura de gerenciamento de riscos do COSO e foi construída através da estratégia de Design Science Research. Para realizar a avaliação da metodologia, ela foi aplicada em uma organização experiente em BPM e avaliada através de um survey com pesquisadores e especialistas na área. Os resultados mostram que a metodologia permite que as atividades relacionadas à gestão de riscos sejam executadas em conjunto com o ciclo de vida BPM. A integração entre atividades de riscos e processos de negócios otimiza recursos e fornece uma visão holística dos processos de negócios e seus riscos associados.

Analisis Dan Design Manajemen Control Produksi Menggunakan Business Process Improvement Dan Unified Modelling Language (STUDI KASUS: PT. MULTISTRADA)

2021 ◽  
Vol 16 (1) ◽  
pp. 27-37
Author(s):  
Lila Setiyani ◽  
Benny Setiawan
Keyword(s):  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Design Science ◽  
Unified Modeling Language ◽  
Science Research ◽  
Management Control ◽  
Modelling Language ◽  
Unified Modeling ◽  
Unified Modelling Language

Di era industri 4.0 kecepatan dan ketepatan sebuah sistem informasi sangat dibutuhkan di dalam sebuah manufaktur seperti di dalam proses produksi. Dimana sebuah laporan sangat diperlukan kecepatan dan ketepatannya dalam penyajian data yang dibutuhkan terhadap user yang berhubungan didalam proses produksi tersebut. PT Multistrada adalah salah satu perusahaan multinasional yang bergerak di bidang ban kendaraan bermotor yang mengaplikasikan sistem informasi untuk mempermudah kontrol dan sebagai dasar acuan pengembangan dan perbaikan berkelanjutan. Permasalahan yang terjadi pada sistem yang sedang berjalan yaitu tidak adanya sistem yang mengakomodir data inventory produksi yang menghambat proses monitoring terhadap keluar masuk barang atau size tyre yang sedang di produksi sebagai acuan pengiriman ban ke gudang logistik. Penelitian ini bertujuan untuk membangun sebuah Aplikasi Management Control Produksi yang dibangun mengadopsi teori dari (business process management notation) BPMN, PHP sebagai bahasa pemograman dan permodelan sistem Unified Modeling Language (UML). Penelitian ini termasuk pada design science research(DSR) dengan prosedur penyusunan instrumen penelitian, pengumpulan data menggunakan wawancara dan observasi, pemodelan menggunakan BPMN dan UML, development system menggunakan PHP dan MySQL. Hasil penelitian ini berupa aplikasi managemeny control produksi yang dapat mengakomodir kebutuhan inventory produksi pada PT. Multistrada Arah Sarana

Supporting business processes through human and IT factors: a maturity model

2018 ◽  
Vol 24 (4) ◽  
pp. 985-1006 ◽  
Author(s):  
Sarra Mamoghli ◽  
Luc Cassivi ◽  
Sylvie Trudel
Keyword(s):  
Human Factors ◽  
Process Management ◽  
Business Processes ◽  
Design Science ◽  
Model Development ◽  
Science Research ◽  
Main Process ◽  
Maturity Model ◽  
Content Type ◽  
Iterative Model

Purpose The purpose of this paper is to assist organizations in the assessment of both information technology (IT) and human factors required to support their business processes (BPs) by taking into account the interdependence and alignment of these factors, rather than considering them independently. Design/methodology/approach A design science research methodology was followed to build a maturity model (MM) enabling this assessment. The proposed design process is composed of four steps: problem identification, comparison of 19 existing MMs in business process management (BPM), iterative model development, and model evaluation. The last two steps were specifically based on three research methods: literature analysis, case studies, and expert panels. Findings This paper presents a MM that assigns a maturity level to an organization’s BPs in two assessment steps. The first step evaluates the level of sophistication and integration of the IT systems supporting each BP, while the second step assesses the alignment of human factors with the technological efforts. Research limitations/implications The research was conducted with SMEs, leading to results that may be specific to this type of organization. Practical implications Practitioners can use the proposed model throughout their journey toward process excellence. The application of this model leads to two main process improvement scenarios: upgrading the sophistication and integration of the software technologies in support of the processes, and improving the cohesion of the resources the organization already owns (human and IT resources). Originality/value The proposed MM constitutes a first step in the assessment of the interdependence between the factors influencing BPM.

scholarly journals Case study for the development of an analysis structure for the collaborative environment on project companies

2020 ◽  
Vol 27 (4) ◽  
Author(s):  
Patrícia da Silva Fiuza Pina ◽  
Raquel Naves Blumenschein
Keyword(s):  
Dynamic Capabilities ◽  
Process Management ◽  
Design Science ◽  
Methodological Approach ◽  
Science Research ◽  
Collaborative Management ◽  
Self Assessment ◽  
Support Tool ◽  
Collaborative Environment ◽  
Knowledge Absorption

Abstract: This research presents an analysis of the paradigm that involves the collaborative management in technological environments of architectural and urban planning companies, in the Brazilian scenario. It associates Administration, Architecture, Engineering and Construction (AEC), and Behavioural Analysis perspectives. It is based on a review about the influencing factors inserted in BIM domain as learning process boosters, associating concepts of collaborative networks, project management, dynamic capabilities and meta-contingencies to discuss a class of problems arising from the lack of knowledge absorption, which was systematized in the study of management bottlenecks. The methodological approach, based on Design Science Research, synthesizes procedures compatible with the general typology of an artefact –a support tool – associated to a functional analysis. The obtained results highlight seven variables that represent categories of analysis of the collaborative environment: activities, self-assessment, BIM, decision-making, information, resources, and values. The main contribution of this research was to develop a methodological way to complement a partial diagnosis of project process management. It is the first step to develop an analysis structure that represents the dynamics of a collaborative network and not just isolated variables.

Managing BPM life cycle transition risks in a small educational company to support change management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Larissa Ane Hora de Souza ◽  
Victor Diogho Heuer de Carvalho ◽  
Roberio José Rogério dos Santos ◽  
Jonhatan Magno Norte da Silva
Keyword(s):  
Life Cycle ◽  
Process Management ◽  
Programming Model ◽  
Design Science ◽  
Science Research ◽  
Research Process ◽  
Comfort Level ◽  
Content Type ◽  
Organizational Stability ◽  
New Perspective

PurposeThis article aims to present a methodology applied to the transition between the “as-is” and “to-be” stages of the Business Process Management (BPM) life cycle, supporting its implementation and maintenance for the organizational stability, using techniques from Operations Research and Information and Decision Theories, applied by a gamified system.Design/methodology/approachThe study used Design Science Research, considering the following methodological elements: (1) artifact model, after initial analysis of the organization; (2) problem relevance, incorporating components to the Markov transition matrix and the integer programming model for resource optimization; (3) model evaluation, establishing mechanisms to validate the methodology created; (4) research contributions, showing benefits found; (5) systematic approach, detailing methods used; (6) model's research process, revealing the means for execution; and (7) final presentation of results.FindingsAfter planning three scenarios for the company, containing zero, one or two implemented processes, the matrix of states in the Markov chain effectively identified the states of greater and lesser transition uncertainty. At the same time, the optimization model guided the organization toward a stable change in its operational and financial areas.Practical implicationsThe company's planning capacity has increased, as its managers now have a methodology to promote rational decisions about the development of plans. Before, managers believed that the methodology used was only for large companies. However, this view changed with the results, showing a structured view of the ability to absorb new customers, relocate established ones, increase the comfort level for employees and increase profitability for the company's business.Originality/valueThe study showed that the combination of techniques opens a new perspective to the incorporation of BPM in organizations, allows a smooth change between the current and future state, making it possible to predict the evolution of transition scenarios.

Analisis Dan Design Manajemen Control Produksi Menggunakan Business Process Improvement Dan Unified Modelling Language (STUDI KASUS: PT. MULTISTRADA)

2021 ◽  
Vol 16 (1) ◽  
pp. 27-37
Author(s):  
Lila Setiyani ◽  
Benny Setiawan
Keyword(s):  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Design Science ◽  
Unified Modeling Language ◽  
Science Research ◽  
Management Control ◽  
Modelling Language ◽  
Unified Modeling ◽  
Unified Modelling Language

Di era industri 4.0 kecepatan dan ketepatan sebuah sistem informasi sangat dibutuhkan di dalam sebuah manufaktur seperti di dalam proses produksi. Dimana sebuah laporan sangat diperlukan kecepatan dan ketepatannya dalam penyajian data yang dibutuhkan terhadap user yang berhubungan didalam proses produksi tersebut. PT Multistrada adalah salah satu perusahaan multinasional yang bergerak di bidang ban kendaraan bermotor yang mengaplikasikan sistem informasi untuk mempermudah kontrol dan sebagai dasar acuan pengembangan dan perbaikan berkelanjutan. Permasalahan yang terjadi pada sistem yang sedang berjalan yaitu tidak adanya sistem yang mengakomodir data inventory produksi yang menghambat proses monitoring terhadap keluar masuk barang atau size tyre yang sedang di produksi sebagai acuan pengiriman ban ke gudang logistik. Penelitian ini bertujuan untuk membangun sebuah Aplikasi Management Control Produksi yang dibangun mengadopsi teori dari (business process management notation) BPMN, PHP sebagai bahasa pemograman dan permodelan sistem Unified Modeling Language (UML). Penelitian ini termasuk pada design science research(DSR) dengan prosedur penyusunan instrumen penelitian, pengumpulan data menggunakan wawancara dan observasi, pemodelan menggunakan BPMN dan UML, development system menggunakan PHP dan MySQL. Hasil penelitian ini berupa aplikasi managemeny control produksi yang dapat mengakomodir kebutuhan inventory produksi pada PT. Multistrada Arah Sarana

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