Research Paper on Modern Orgs: Navigating Complex Comm & Trans Needs in Global Env

Introduction

Modern organizations, like those that serve the oil and gas industry, operate within a globalized environment that is characterized by complex communication and transaction needs. There has been widespread adoption of technology to address efficiency and sustainability needs as well as the challenges that arise out of them. Information management systems are installed based on the unique needs of the organization and involve multiple components (Diordiiev, 2018). One of the significant challenges that come with the adoption of technologies for the streamlining of services is that they operate within a traditional setup, which makes it hard to realize proper IT governance. Blockchain technology presents a framework with which IT governance can be achieved. It promises to integrate operations, ensure transparency, security, and auditability of transactions.

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Project Aim and Objectives

This study establishes the applicability of blockchain technology in IT governance in key organizations within Dubai. The objectives of the study are:

• To determine the effectiveness of blockchain in ensuring IT governance.
• To evaluate how IT governance derived from the adoption of blockchain technology would improve data security.
• To provide recommendations for the proper implementation of blockchain technology for IT governance.

The aims of the study are:

• To list the implications of blockchain technology on IT governance as regards the security of personal information within the platform.
• To provide the threats associated with the application of blockchain technology in IT governance as regards the management of personal information.
• To provide recommendations for the improvement of the security of personal information and transactions for the proper application of blockchain technology for IT governance.

Literature Review

Blockchain technology has gained prominence from its unique capability to enable transaction security and efficiency on a global scale (Jun, 2018). Block encryption or hashing, the technique used in blockchain technology, enables the secure transfer of data from one node to another (Nowinski & Kozma, 2017). This security is enhanced by the requirement of a unique digital signature to decrypt data. Presently, blockchain technology remains synonymous with financial transactions, and its application in this regard focuses on three aspects; the speed of transactions, cost reduction, and security (Tayeb and Lago, 2018). More development can, however, see its application in other areas that require data transfers that are traceable and secure due to its unique single ledger. According to Matt, Hess, and Benlian (2015), digital transformation, essential for modern organizations, require the adoption of technologies that enhance product and services and ensure sustainability. Nakamoto (2008) proposed blockchain technology as a means to validating digital currency transfers. Such application provides hope for applicability in other areas. Graham, Rowley, and Lowe (2018) identify reduced transaction costs, improved speeds, and auditability of transactions as positioning blockchain technology for IT governance. Concerns, however, arise regarding the efficiency of the technology. Karajovic, Kim, and Laskowski (2017) raise concern over the management of the platform and the avenues for dispute resolution, considering the minimal regulation of blockchain technology. Berryhill, Bourgery, and Hanson (2018) also fault its decentralized nature as being a hindrance to traditional organizational setups with centralized management structures. Zhu and Badr (2018) also note that on top of the transparency of information within the system, there is a high level of anonymity, which would hinder external auditing that is required of organizations.

Research Methodology

The qualitative research part involves the meta-analysis of concepts about IT governance and blockchain technology and how the latter can be better designed to enable the former. A review of studies in these areas helps to identify the opportunities, challenges and possible approaches on the integration of the two perspectives.

Findings and Analysis

IT governance occurs at different levels. Network governance must address the internal operations of a network that enables for secure information transfers, recognition of priorities, identification of initiators and recipient of data, and the proper management of transaction logs. Blockchain technology excels with regards to network governance. Project governance regards the scalability of such transactions beyond single areas like financial transactions. Blockchain technology is applicable due to its globalized outlook. Finally, financial governance espouses all the accounting transactions relating to an organization. Blockchain technology is suitable due to the single ledger that records all transactions and the security, which requires approval for transactions.

Proposal and Validation

Organizations should consider establishing their IT governance through the systemized application of blockchain technology in a way that addresses security and allows for transparency. However, a proper mechanism must be set to retain the organizational structure due to the need for regulation. Presently, blockchain technology exists parallel to the traditional financial setups but need to be integrated into the broader economy.

Limitations n Conclusion

Discussions on blockchain technology focus on financial transactions, hence providing little information on its application in other areas. The security of blockchains does not allow for their useful review, hence the overdependence on theoretical knowledge. However, based on the findings, blockchain technology can be of great use in the realization of IT governance due to the dependability on security, efficiency, and cost reduction.

References

Atzori, M. (2015). Blockchain technology and decentralized governance: Is the state still necessary? Available at SSRN 2709713. Retrieved from http://www.academia.edu/download/46346655/MAtzori_Blockchain_Technology_and_Decentralized_Governance.pdf

Berryhill, J., Bourgery, T., & Hanson, A. (2018). Blockchains Unchained: Blockchain Technology and its Use in the Public Sector. OECD Working Papers on Public Governance, (28), 1-53. Retrieved from https://oecd-opsi.org/wp-content/uploads/2018/06/Blockchains-Unchained-Guide.pdf

Diordiiev, V. (2018). Blockchain technology and its impact on financial and shipping services. Ekonomika. Ekologiia. Socium, 2(1), 51-63. Retrieved from https://ees-journal.com/index.php/journal/article/download/48/21

Hughes, E., Graham, L., Rowley, L., & Lowe, R. (2018). Unlocking Blockchain: Embracing New Technologies to drive Efficiency and Empower the Citizen. The JBBA, 1(2), 3741. Retrieved from https://jbba.scholasticahq.com/article/3741.pdf

Jun, M. (2018). Blockchain government-a next form of infrastructure for the twenty-first century. Journal of Open Innovation: Technology, Market, and Complexity, 4(1), 7. Retrieved from https://www.mdpi.com/2199-8531/4/1/7/pdf

Karajovic, M., Kim, H. M., & Laskowski, M. (2017). Thinking outside the block: Projected phases of blockchain integration in the accounting industry. Australian Accounting Review. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/auar.12280

Lemieux, V. L. (2016). Trusting records: is Blockchain technology the answer? Records Management Journal, 26(2), 110-139. Retrieved from https://doi.org/10.1108/RMJ-12-2015-0042

Mainelli, M., & Smith, M. (2015). Sharing ledgers for sharing economies: an exploration of mutual distributed ledgers (aka blockchain technology). Journal of Financial Perspectives, 3(3). Retrieved from https://www.zyen.com/media/documents/Journal_of_Financial_Perspectives_-_Sharing_Ledgers_for_Sharing_Economie....pdf

Mani, V. (2017). A view of blockchain technology from the information security radar. Information Systems Audit and Control Association (ISACA) Journal, 5(2017), 1-8. Retrieved from https://www.isaca.org/Journal/archives/2017/Volume-4/Documents/A-View-of-Blockchain-Technology-From-the-Information-Security-Radar_joa_Eng_0817.pdf

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343. Retrieved from https://pdfs.semanticscholar.org/7217/40d91cf716a179ec716ea241c48c8796f7f1.pdf

Meng, W., Tischhauser, E. W., Wang, Q., Wang, Y., & Han, J. (2018). When intrusion detection meets blockchain technology: a review. Ieee Access, 6, 10179-10188. Retrieved from https://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=8274922

Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. Retrieved from https://s3.amazonaws.com/academia.edu.documents/54517945/Bitcoin_paper_Original_2.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1557140722&Signature=tlr503DCC958%2B653BTi4jhw619c%3D&response-content-disposition=inline%3B%20filename%3DBitcoin_A_Peer-to-Peer_Electronic_Cash_S.pdf

Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business & Information Systems Engineering, 59(3), 183-187. DOI 10.1007/s12599-017-0467-3

Nowinski, W., & Kozma, M. (2017). How can blockchain technology disrupt the existing business models? Entrepreneurial Business and Economics Review, 5(3), 173-188. Retrieved from https://eber.uek.krakow.pl/index.php/eber/article/view/270/pdf

Sharma, T. K. (2018, August 31). Is Dubai the primary hub for blockchain technology. Retrieved April 03, 2019, from https://www.blockchain-council.org/blockchain/is-dubai-the-primary-hub-for-blockchain-technology/

Tayeb, S., & Lago, F. (2018). Blockchain technology: between high hopes and challenging implications. The Mena Business Law Review, First Quarter, 34-43. Retrieved from t: https://works.bepress.com/felipe_lago/11/

Zhu, X., & Badr, Y. (2018). Identity Management Systems for the Internet of Things: A Survey Towards Blockchain Solutions. Sensors, 18(12), 4215. Retrieved from https://www.mdpi.com/1424-8220/18/12/4215/pdf