How will enterprises adopt Cryptotechnologies (Web3) and become a DAO? A maturity model to path the way for corporations and enterprises.
The relevance of Distributed Autonomous Organizations just became more relevant. Recently ConstitutionDAO made it to the news with the goal of “crowdfunding” a copy of the US constitution. And this worked in a completely decentralized and trustless manner.
This event sparked the question for me: How will enterprises and corporations adopt and embrace crypto technologies? What could a potential journey look like for an enterprise becoming a DAO? Even more boldly how will they embrace Web 3, which includes per my definition not only cryptocurrencies, but NFTs, DeFi, and the DAO as company structure?
With this blog, I tried to collect my thoughts how this could look like. First I mention the questions each enterprise needs to figure out, the second I present a maturity model as a framework to understand a potential path to becoming a DAO.
Questions each enterprise will go threw
To make it clear how such an adoption curve could look like for enterprises, I picked two areas each organization has to think about: Finance and Human Resources. Sure there are other corporate functions as well like Procurement, Sales, Marketing, R&D, Supply-Chain. But for the following areas, it became very tangible what needs to change, to adopt Web 3.
For those two areas, each enterprise will need to go through the following questions and stages. Only if the previous question was answered and the foundation established, then the enterprise can move on to the next question. Each question will peal of an additional layer and make the department more mature with crypto.
The caveat, those are not all questions and are by no means exhaustive. Just a collection that might become just the starting point.
Finance
- Why and how should enterprises accept cryptocurrencies?
- Why and how should enterprises hold cryptocurrencies?
- Why and how should enterprises use cryptocurrencies?
- Why and how should enterprises stake/mine cryptocurrencies?
- Why and how should enterprises leverage Decentralized Finance?
- Why and how should enterprises leverage enterprise use cases e.g. material tracability?
- Why and how should “normal” enterprises become a DAO?
Human Ressources
- Why and how should we give our employees a cryptocurrency wallet?
- Why and how should they be paid in cryptocurrencies?
- Why and how should they receive stock options as tokens?
- Why and how should be their degrees, certificates be a crypto token e.g. NFT?
- Why and how should the employment contract be a smart contract?
- Why and how should we give tokens to our employees for finished tasks?
- Why and how should our organization become a DAO?
Web3 Maturity Model for Enterprises
The maturity model is based on the SAMR Ladder. Clustering the 7 stages into the large building blocks enhancement and transformation. This is really some kind of new model. I’m quite confident in Stage 4 as this has already been seen, but everything beyond that is still uncertain.
The only quite certain element would be, the most extreme last stage of any enterprise currently working, is transforming itself into a DAO. Therefore, at the current place in time, it is the last stage of Web 3 adoption.
Substitution: Technology acts as a direct tool substitute, with no functional change. Mapps to Stage 1 and 2.
Augmentation: Technology acts as a direct tool substitute, with functional improvement. Mapps to Stage 3 and 4.
Modification: Technology allows for significant task redesign. Maps to Stage 5 and 6.
Redefinition: Technology allows for the creation of new tasks, previously inconceivable Maps to Stage 7
Stage 1 — Accept Crypto tokens
This stage opens new payment options for merchants and enterprises. It is the very basic first step. Skipping that stage would mean,
Stage 2 — Hold Crypto tokens
This stage will help enterprises to hold Crypto and do the accounting on it. It also allows the enterprise to invest in certain tokens, as they would do with Stocks or other investments.
Stage 3 — Use Crypto tokens
This stage will help enterprises to use Crypto. They can spend it, pay employees, stake it to gain returns. It’s still just an enhancement of things that are already done anyway in an enterprise.
Stage 4 — Leverage Crypto and projects
The enterprise is now building and using crypto/Web3 native use cases and tools. An example could be supply chain collaboration and traceability of materials.
Stage 5 — Participate in Crypto and projects
The enterprise has made experience in using crypto in enterprises processes and how it can adapt to it. Now it’s taking part in the projects and protocols themselves to modify it more to their needs.
Stage 6 — Offer Crypto and projects
This is the stage where enterprises get the idea of using their own tokens to incentivize employees, customers, suppliers to join their network. It’s the modularisation of an enterprise. It can become also the point where the company is building its own crypto project.
Stage 7 — Transform Organization into a DAO
This is the most mature stage any enterprise can have. It decided to break free from the old world and become a DAO with all advantages and disadvantages.
