Transformation Model of Smallholder Oil Palm Supply Chain Ecosystem using Blockchain-Smart Contract

Abstract

The development of new technology has the potential to disrupt and transform an existing system as well as information technology. This study aims to build a proposed model in order to transform an old system into a Blockchain-based system. The smallholder oil palm supply chain currently uses a traditional information system and technology, hence its integrity, transparency, and security are vulnerable. To solve this problem, frontier technology is needed, such as a blockchain, which has trust, transparency, and traceable characteristics to improve performance and quality. The method used in this study was digital transformation in the context of operational processes and technology. In addition, the As-Is To-Be model was used as a mechanism to develop a transformation model for the smallholder oil palm supply chain system. Specifically, the As-Is model was implemented in identifying and analyzing the information system and technology in an already existing system, while the To-Be was used to determine the blockchain potential and characteristics. This becomes the proposed model for the transformation of the old system into a Blockchain technology-based. Also, a prospective and mechanism for system transformation were produced in the aspect of transactions, data, and architecture, as well as the flow of change strategies needed in the transformation of the blockchain-based smallholder oil palm supply chain system.