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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Application of Blockchain in the Wind Industry</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Kristo</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>r Holm</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Aarhus University, Department of Business Development and Technology, Centre for Energy Technologies</institution>
          ,
          <addr-line>Birk Centerpark 15, 7400 Herning</addr-line>
          ,
          <country country="DK">Denmark</country>
        </aff>
      </contrib-group>
      <abstract>
        <p>The PhD-project explores the value of blockchain for the wind industry and explores how it may improve its inter- and intra-organizational business processes. Specifically a supply chain-based use case is explored and intended to be developed through the UnWind-project. Topics considered include the technological maturity of blockchain, the characteristics of the wind industry's collaborative supply chain activities and how the blockchain may be adopted by the wind industry. The research will follow the development of a use case in the UnWind-project, in which both the architectural design of the blockchain solution and the implications on the business model of the implicated organizations' business models are considered. Finally, the UnWind use case is intended to be evaluated in relation to technology adoption theory, while contributing new empirical knowledge to elaborate on said theory.</p>
      </abstract>
      <kwd-group>
        <kwd>Blockchain</kwd>
        <kwd>wind industry</kwd>
        <kwd>business process management</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>Introduction and context of the project</title>
      <p>The purpose of the research is to uncover the potential blockchain technology may
have on the wind industry, focusing on upstream supply chain activities associated
with the wind turbine generator (WTG) including activities on manufacturing,
operation and service. The broad perspective is taken because it is the transactions,
transformation and information flow associated with WTG-components and their
associated business processes that is of interest in the context of blockchain technology. In
other words, the interest of the project is on the processes where there is a flow of
information, whether it is intra-organizational or inter-organizational.</p>
      <p>The term wind industry is used as a way to refer to the supply and value chains that
in unison make the WTG and ensures its continued operation. As such, the wind
industry include original equipment manufacturers (OEM), multiple tiers of suppliers,
maintenance and service organizations as well as non-profit organizations whose
focus is on improving the competitiveness of the general industry.</p>
      <p>
        Blockchain facilitates transactions and store the history of said transactions
digitally as a ledger, except the ledger stored on the blockchain is distributed and immutable
        <xref ref-type="bibr" rid="ref13 ref15 ref24 ref7 ref8">(Martinez et al., 2019)</xref>
        . Being distributed means that all members of the blockchain
has a copy of the it at all times, meaning no centralized authority is in charge of it
        <xref ref-type="bibr" rid="ref2 ref25 ref4 ref9">(Kamble, Gunasekaran and Arha, 2019)</xref>
        . Instead of trusting a third party, the members
of the blockchain ensure the validity of transactions through a consensus mechanism
in which members involved in a transaction agree to the updated ledger being valid
        <xref ref-type="bibr" rid="ref2 ref3 ref9">(Francisco and Swanson, 2018)</xref>
        . It is this consensus mechanism and the distributed
nature along with cryptography that makes blockchain immutable
        <xref ref-type="bibr" rid="ref14">(Min, 2019)</xref>
        .
      </p>
      <p>
        Aspects such as transparency, immutability, trust etc. in the wind supply chain will
be affected by and influence the path to implement blockchain in the industry’s
business processes
        <xref ref-type="bibr" rid="ref5">(van Hoek, 2019)</xref>
        . Affected aspects associated with introducing
blockchain are analyzed in a case study based on primary data from industry stakeholders
and secondary data from literature will provide insight from other industries’
experience on implementing supply chain-based blockchain solutions (Hughes et al., 2019)
      </p>
      <p>
        The PhD is tied to the UnWind-project, which is a project funded by the Danish
Industrial Foundation seeking to unveil the potential of blockchain in the Danish wind
industry
        <xref ref-type="bibr" rid="ref20">(The Danish Industry Foundation, 2020)</xref>
        . The project seeks to develop a use
case (henceforth UnWind use case) for the wind industry supply chain, including at
least three tiers, i.e. a focal company and one or more first and second tier suppliers.
1.1
      </p>
      <sec id="sec-1-1">
        <title>Relation to BPM</title>
        <p>
          As blockchain is still a new way
          <xref ref-type="bibr" rid="ref13 ref15 ref24 ref7 ref8">(Wang et al., 2019)</xref>
          of sharing transactional data
amongst organizations it is still unclear how the technology will impact business
process management (BPM) in organizations and this is what the PhD-research seeks to
uncover. Management of data in future organizations and industries, may well be
changed fundamentally where blockchain is implemented
          <xref ref-type="bibr" rid="ref2 ref25 ref4 ref9">(Kamble, Gunasekaran and
Arha, 2019)</xref>
          and as such the PhD-research contributes to the management
implications of BPM
          <xref ref-type="bibr" rid="ref22">(Treiblmaier, 2018)</xref>
          . The PhD-research will follow and help develop the
UnWind use case in the wind industry supply chain and as such, it will contribute to
BPM-research in regards to the engineering of new systems.
1.2
        </p>
      </sec>
      <sec id="sec-1-2">
        <title>Overall research design</title>
        <p>
          The PhD-research is based on developing a blockchain use case for the wind
industry and takes inspiration from design research
          <xref ref-type="bibr" rid="ref17">(Peffers et al., 2007)</xref>
          and can be
considered a developing case study
          <xref ref-type="bibr" rid="ref10">(Ketokivi and Choi, 2014)</xref>
          . The case study is explored
and developed with a mixed methods approach, primarily based on qualitative data
from interviews and workshops. Primary data is mostly obtained from the wind
industry, while secondary data acquired through literature reviews provides most of the
data on the blockchain. The research design is explained in further detail in the work
packages (WP) in the following section.
2
        </p>
      </sec>
    </sec>
    <sec id="sec-2">
      <title>Description of research, methods and research questions</title>
      <p>
        The PhD-research has the purpose of answering the research question: “What
value does blockchain have for the wind industry?” To answer the main research
question, a series of sub questions are answered. An ongoing task of the PhD is to follow
the blockchain technology through its development in terms of technological
capabilities and industry adoption in- and outside the wind industry in order to keep of with
best adoption practices. Furthermore, collaboration with the industry is a continuous
task as it provides the research with empirical data and is accomplished through the
association with the UnWind-project and the connections made possible by the
PhDcandidate’s association with the Centre for Energy Technologies
        <xref ref-type="bibr" rid="ref1">(Aarhus University,
2020)</xref>
        . The following sections explains the process in the PhD and the sub-questions
(SQ) intended to be answered along the way.
2.1
      </p>
      <sec id="sec-2-1">
        <title>SQ1: What is the maturity of existing blockchain use cases?</title>
        <p>
          Assessing the maturity of blockchain use cases is essential to understand the
current state of the technology
          <xref ref-type="bibr" rid="ref11">(Lacity, 2018)</xref>
          , so that the right approach is taken when
exploring the value in the wind industry. The technology readiness level (TRL) model
is used to assess the maturity of existing use cases described in literature
          <xref ref-type="bibr" rid="ref13 ref15 ref24 ref7 ref8">(Moni et al.,
2019)</xref>
          . The method used for finding the use cases in literature is a systematic literature
review
          <xref ref-type="bibr" rid="ref21">(Tranfield, Denyer and Smart, 2003)</xref>
          . The theoretical contribution of this is
theory testing of the TRL-model on blockchain technology and more significantly, a
proposed framework for dividing blockchain use cases in terms of the business
processes the technology supports. The latter is important, as the PhD-candidate has
found no framework covering this in current research. The lack of a framework
complicates dissemination of blockchain’s potential
          <xref ref-type="bibr" rid="ref2 ref25 ref4 ref9">(Angelis and Ribeiro da Silva, 2019)</xref>
          to those unfamiliar with it, slowing down industry adoption academic research.
2.2
        </p>
      </sec>
      <sec id="sec-2-2">
        <title>SQ2: What characterize the wind industry supply chain?</title>
        <p>
          SQ2 focus on the wind industry, in which the characteristics of the industry’s
supply chain are analyzed, specifically how supply chain innovation progress amongst
supply chain members and intends to add empirical findings to the current theory
          <xref ref-type="bibr" rid="ref13 ref15 ref24 ref7 ref8">(Jajja et al., 2019)</xref>
          . Specifically former technological innovations on the WTG
achieved through the collaborative efforts of supply chain partners are used as cases
to understand how the wind industry made these innovations
          <xref ref-type="bibr" rid="ref6">(Houman Andersen,
Drejer and Gjerding, 2017)</xref>
          . The concept of coopetition (i.e. collaboration between
competitors) is explored in terms of its potential for blockchain
          <xref ref-type="bibr" rid="ref10 ref18">(Raza-Ullah,
Bengtsson and Kock, 2014)</xref>
          . The findings of SQ2 intends to provide knowledge on
how to communicate the findings of SQ1. It also seeks to provide knowledge on how
supply chain collaboration have occurred in the past in the wind industry.
2.3
        </p>
      </sec>
      <sec id="sec-2-3">
        <title>SQ3: What is the present awareness of blockchain in the wind industry?</title>
        <p>
          SQ3 intends to be answered using the use cases identified in SQ1 as way to
communicate what blockchain can do and through that understand which of the
characteristics of the cases the wind industry knows and find valuable. Another aspect sought
to be understood in the context of SQ3 is how blockchain will affect trust and
governance in the wind supply chain. This is essential as blockchain promises to transform
these dimensions when implemented
          <xref ref-type="bibr" rid="ref19 ref2 ref25 ref4 ref9">(Seidel, 2018; Zachariadis, Hileman and Scott,
2019)</xref>
          . At the same time, trust and governance provide a bridge for communication, as
these terms are better known in the industry, while blockchain is assumed not to be.
        </p>
        <p>A mixed-methods approach is used for gathering data on the understanding and
interest in various aspects of blockchain in the wind industry. Qualitative, unstructured
and semi-structured interviews as well workshops are carried out to acquire insight on
the best direction to continue the blockchain research in. Following this, quantitative
data is gathered through a survey with the purpose of identifying patterns on the
findings in the qualitative part. The theoretical contribution is an elaboration on
blockchain’s impact on trust and governance in supply chain management, while the
practical contribution is the identification of industry partners for the UnWind use case.
2.4</p>
      </sec>
      <sec id="sec-2-4">
        <title>SQ4: What blockchain architecture is ideal for a wind industry use case?</title>
        <p>
          SQ4 explores architectural considerations on blockchain
          <xref ref-type="bibr" rid="ref12">(Lu, 2018)</xref>
          particularly for
the UnWind use case. Architectural considerations include determining the proper
blockchain platform, consensus and validation mechanisms, rules for joining and
governing the blockchain etc. The architectural choices will in large be influenced by
the UnWind use case partner organizations who will be interviewed and worked with
through café seminars and other interactive means. As the UnWind use case is
intended to be in operation by the end of the PhD an aspect explored is how the blockchain
will interact with other IT-systems (ERP etc.) in organizations involved. The
contribution of this will be empirical evidence, intended to elaborate on research focused
on general blockchain adoption models
          <xref ref-type="bibr" rid="ref16 ref2 ref25 ref4 ref9">(Pedersen, Risius and Beck, 2019)</xref>
          .
2.5
        </p>
      </sec>
      <sec id="sec-2-5">
        <title>SQ5: How does implementation of a supply chain-based blockchain solution affect the business model of the implicated organizations?</title>
        <p>
          SQ5 focus on the business aspects centered on the changes that will occur in the
business model. Particular focus will be on the added costs and value for supply
chain-based blockchain solutions including the effect on inter- and
intraorganizational business processes. The analysis will be based on the UnWind use case
providing empirical findings of the realized change in a business model transformed
by blockchain, expanding on research done on blockchain’s impact on business
models
          <xref ref-type="bibr" rid="ref2 ref25 ref4 ref9">(Hald and Kinra, 2019)</xref>
          . This will provide deeper understanding on both the
monetary and non-monetary value and cost of implementing blockchain.
2.6
        </p>
      </sec>
      <sec id="sec-2-6">
        <title>Current state of the PhD-project</title>
        <p>
          Once the above questions are answered it is expected the UnWind use case is in
operation and can be used as a specific example of the value blockchain can bring to the
wind industry. The UnWind use case can be used as a holistically insightful case
study from which it is intended best practices can be drawn with the intend of aiding
future blockchain adoption and expand upon technology adoption theory
          <xref ref-type="bibr" rid="ref23">(Venkatesh,
Thong and Xu, 2012)</xref>
          in a blockchain-specific context. The PhD-research has
currently completed SQ1, while SQ2 is finishing up and SQ3 has begun.
        </p>
      </sec>
    </sec>
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