The Business Value of Decentralized Identity
Decentralized identity and self-sovereign identity (SSI) are some of the most promising solutions using blockchain technology. The value for individual users is clear, bringing them privacy and control over their information. However, it is sometimes less clear where the business value for organizations is. This Leadership Brief lays out where the business value is for decentralized identity.
1 Executive Summary
Business value can be defined as "the net benefit that will be realized by the customer"[^1]. While measuring KPIs and following various frameworks can indicate approximate values of projects, these valuations typically focus on the delivery phase of a project, with limited ability to measure the ongoing value of a product or service in operation. Measuring IT projects that are sometimes viewed as only indirectly able to achieve business goals become even more difficult to evaluate. But by focusing in part on these intangible, less easily measured impacts can the potential of decentralized and self-sovereign identity (SSI) solutions be seen.
The most critical delivery of business value is the ability of decentralized identity solutions to outperform traditional identity management solutions by enabling a network of trusted identity exchange between organizations and industries. This has yet to be validated on a large scale, but will ultimately determine if decentralized and SSI solutions will see mass adoption. Other aspects that deliver significant business value include deconstructing the user journey, improving user experience, incorporating identity verification into onboarding for non-regulated industries, and privacy-enhancing technology.