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NFT technology has the potential to enable process automation and extend customer relationships and business models. Recently, there has been a big hype around this topic, which led to a total NFT market value of $41 billion in 2021, an amount that is close to the value of the global fine art market. Beyond the hype, it is critical to explore the spectrum of impact this young technology will have on the corporate world. Already today enterprises from various industries are participating in the NFT economy.
An NFT is a digital asset on the blockchain that can represent a verifiable ownership certificate for digital or physical assets, like art, licenses, in-game items, luxury watches, and many more. They are traded online and live on the Blockchain, which is also the foundation for cryptocurrencies. Blockchain creates digital scarcity, purposefully limiting the supply of NFTs, which allows demand and supply to set prices. You can learn more about NFTs in general in Christian’s Blog Post “Demystifying NFTs”.
Read below how SAP BTP Blockchain Business Integration (pilot) helps to leverage NFTs to reinvent business models and create new opportunities beyond organizational and system boundaries.
SAP BTP Blockchain Business Integration (pilot) is a new development by SAP Innovation Center Network, which enables SAP applications to leverage NFTs and other public blockchain capabilities on a no-code basis, e.g. minting and transferring NFTs. At the same time, it allows tracking and reacting to any public blockchain event, so the journey of an NFT remains visible on Business Technology Platform and in connected applications throughout its entire lifetime. This allows for analytics and the triggering of internal processes based on blockchain events. Below are a few use cases where it is beneficial to integrate NFTs and business systems.
Analytics: After issuing an NFT – it could be a branded collectible – to a consumer, the new owner can do whatever he/she wants to: hold it, sell it, trade it, or use it to claim certain perks. For the issuer to gain insights, there must be a consolidated view of all activities across the life cycle of NFTs. How much revenue have I earned with this NFT? How many initial owners are still holding their NFT? How much does their NFT sell for? How popular is it, i.e., how many transfers are made on marketplaces? Do users make use of their benefits? While public blockchains alone offer no aggregated data, an integration with SAP Analytics Cloud enables powerful dashboards and valuable insights, also because it is connected with other relevant business data.
Finance: Even though NFTs live in the metaverse, the issuer is still a regulated company that must do its finances, like creating balance sheets, calculating profit, and paying taxes. By connecting the metaverse world and SAP business software, SAP BTP Blockchain Business Integration serves as the necessary building block for any company that is serious with Web3 and NFT business models.
Production Planning: An NFT can offer perks like the creation of a personalized physical product in the future (e.g., a personalized sneaker). The most seamless way to prepare the production for such an item is to trigger a workflow from a specific event on the blockchain, like an NFT reaching an agreed holding period. Therefore, for these kinds of processes, the blockchain and production systems need to be integrated.
Customer Relationships: As brands thrive to increase brand loyalty and customer engagement, they are looking for new ways to interact with their customers. NFTs open up new opportunities to create personal brand experiences. However, to provide end-to-end experiences and monitor the success of campaigns, the blockchain world again needs to be integrated with business systems.
We are looking forward to uncovering even more potential scenarios and putting them to the test together with you as an SAP Customer or Partner. Don’t miss out to participate in this emerging economy and get early access to our innovation to guide your transformation: sign up for our Customer Engagement Initiative here.
Also, please feel free to post any questions regarding this topic in the community or approach us directly:
Benjamin Stoeckhert (Innovation Manager, SAP Innovation Center Network)