Case | HBS Case Collection | October 2017 (Revised January 2018)
Bitfury: Blockchain for Government
Mitchell Weiss and Elena Corsi
In the Republic of Georgia, legend had it their land was a precious gift from God he had intended to keep for his mother. But over time, the land had been under intermittent threat from without and within. In 2017, the Bitfury Group, which Valery Vavilov had co-founded, had helped publish 300,000 Georgian land titles onto the blockchain, making them immutable and, many believed, unhackable. What came next, Vavilov’s team envisioned, were smart purchase and sale contracts via the blockchain; and from there, a full suite of property-related services and, eventually, blockchain as the foundation for a transformation in government services. Vavilov, who had co-founded Bitfury and expanded it substantially from its bitcoin mining roots, felt a blockchain-driven makeover of this sort would take place not just in Georgia's government but also around the world. It was not a matter of "if?" anymore; although that still left the question of "when?"
Keywords: Blockchain; Bitcoin; cryptocurrency; public entrepreneurship; public innovation; government innovation; property rights; property registry; entrepreneurship; Georgia; Tbilisi; technology strategy; distributed networks; Entrepreneurship; Innovation and Invention; Technology Adoption; Business and Government Relations; Technology Industry; Real Estate Industry; Public Administration Industry; Georgia (nation, Asia);
Innovation management emerged as a discipline in the 1890's with Edison's innovation factory. Edison changed the image of the sole inventor by converting innovation to a process with recognized steps practiced by a team of inventors working together– laying the basic design of the R&D department. These steps are streamlined to the major extent in all industries and include idea generation, concept development, feasibility studies, product development, market testing and launch. Innovation management is thus corresponds to the development of new products, processes and services. In cases where the organization does not make or offer products (goods or services), innovation lies in improving the way jobs are done to meet the organization's mission.
This study will outline the general terms related to innovation and how it is evolved through years based on the literature review. Since market demands differ during the time and awareness of the customer increases, companies increased the bar for competencies. This framework starts with the need or problem definition and outlines different techniques to evolve the ideas. In the real life case study, Generator Rewind process is investigated in detail and the core problem is defined. Innovation management process tools are simplified the complex problem and reveals the core problem and basic needs so team members just follow the innovation management process step by step which is determined and investigated before. After that, in order to develop all possible solutions, an engineering team gathered and performed idea generation and developing meetings to find the best solutions. By implementing TRIZ methodology, the team achieved single and lightweight pieces as an innovation for rotor field winding services.