March 26, 2020 2 Comments
How blockchain can improve asset lifecycle management
Blockchains has been around for years now to mine and store cryptocurrencies. Why is that exciting for equipment rental and leasing? Because blockchain technologies are becoming feasible innovation for all areas of business. Both the public and private sector industries see blockchains as bringing a new level of accuracy, trust, and ease to the ways government and businesses deal with data transactions and storage. The advertising industry plans to use it to track its ads all over the internet. Banks and mortgage companies want to use it to track the deeds of homes and the complicated process of tracking all the documentation. Shipping companies are investing in blockchain technology to track bills of lading. In addition, the pharmaceutical industry wants to use the technology to verify the drug supply chain. Government sectors around the globe are catching the wave as well.
Asset lifecycle management
The blockchains we’re discussing might or might not involve cryptocurrency. What’s most important is that they are a reliable way to store and manipulate vast amounts of data. For our discussion, which is about using blockchain to manage asset lifecycles for equipment rental and leasing, think of a blockchain as a virtual database that is shared and maintained by a group of people and institutions. This is different than a centralized database, mind you—no one person or entity “owns” the blockchain. Data exists in a matrix of nodes, entered, accessed, and modified by users with appropriate rights. While there isn’t a central database, there is a trusted, traceable record of all changes. It’s a new age of the “single version of the truth.”
Let’s focus on asset lifecycle management for equipment rental leasing. If you’re using a solution such as DynaRent or DynaLease with Microsoft Dynamics 365, you’re already working with a streamlined flow for rental and lease management. Information transfer is mediated via interfaces with entities spanning government, banks, manufacturers, dealerships, service providers, customers, etc. There are workflows, smart contracts and leases, mobility, automated document packaging and versioning, role-based security, and more.