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Blockchain Is Gaining Trust In The Enterprise

Jun 13, 2020 | Blockchain Technology, Industry Trends

  •  86% of senior executives interviewed believe that blockchain  technology is broadly scalable and will eventually achieve mainstream  adoption.
  •  83% of senior executives say their enterprises are seeing compelling use cases for blockchain today.
  •  53% of senior executives say blockchain has become a critical  priority for their organization this year, 10% higher than last year.
  •  43% still see blockchain as overhyped, up from 39% last year.
  •  40% of enterprises are willing to invest $5M or more in new blockchain initiatives over the next 12 months.
  •  Financial services and financial technology (fintech) sectors are leading in blockchain development, according to Deloitte.
  •  Enterprises are looking for and finding valuable use cases for  blockchain completely independent of bitcoin and cryptocurrency,  including management of loyalty points, digitizing physical assets, and  creating virtual contracts and wallets for finance management &  reconciliation.

These and many other insights are from Deloitte’s 2019 Global Blockchain Survey: Blockchain gets down to business.  Based on interviews with 1,386 senior executives in twelve nations  (Brazil, Canada, China, Germany, Hong Kong, Israel, Luxembourg,  Singapore, Switzerland, United Arab Emirates, United Kingdom, and the  United States), 53% of whom say blockchain technology has become a  critical priority for their organizations in 2019.

Blockchain is gaining trust in the enterprise by succeeding at  pragmatic, well-defined pilots that show the potential to scale into  production. Deloitte found financial services leads blockchain adoption  today with adoption accelerating in technology, life sciences, media,  telecommunications, and government. Key insights from the survey include  the following:

  •  53% of senior executives say blockchain has become a  critical priority for their organization this year, 10% higher than last  year. Deloitte found that senior executives are gaining more  experience and insights into blockchain’s potential contributions and  pitfalls as more use cases are evaluated, piloted, and moved to  production. The following graphic compares blockchain’s relevance  between 2018 and 2019. 
  •  86% of senior executives interviewed believe that blockchain  technology is broadly scalable and will eventually achieve mainstream  adoption. The majority of senior executives (83%) believes  there is a compelling business case for blockchain. 81% are planning to  use blockchain to replace their system of record, which reflects a shift  in mindset away from relying entirely on legacy systems. A growing  number of senior executives also believe blockchain is overhyped (43% in  2019, up from 39% in 2018).
  •  Blockchain’s three greatest organizational barriers include  implementation (which includes replacing or adapting existing legacy  systems), regulatory issues, and potential security threats.  Additional barriers include lack of in-house capabilities, uncertain  Return on Investment (ROI), concerns over the sensitivity of the  information, and the lack of a compelling application of the technology.  The following are the respondents’ responses to the question, What are your organization or project’s barriers, if any, to increase adoption and scale in blockchain technology?

 

  •  73% of enterprise leaders in China are prioritizing blockchain  as one of their top five strategic priorities, the most in the ten  nations surveyed. The Chinese government’s Ministry of Industry  and Information Technology cited blockchain as a key driver of economic  development in a recent economic analysis. The Chinese government sees  product traceability, copyright protection, and smart contracts as  examples of blockchain’s potential to strengthen China’s global  technology direction. “China, more than anywhere else in the world, will use blockchain strategically instead of tactically,” says Paul Sin, consulting partner, Deloitte Advisory (Hong Kong) Ltd., and leader of Deloitte’s Asia-Pacific blockchain lab. “More projects are driven by top management who use blockchain as a strategic weapon rather than a productivity tool.” The following is a comparison of countries’ differing attitudes about blockchain along with several metrics.

 

  •  18% of enterprises are planning to spend $10M or more on  blockchain initiatives this year, and 23% will spend between $5M to  $10M. Senior executives based in each of the twelve nations  included in Deloitte’s survey are predicting wide variations in  blockchain investment levels. Luxembourg, Switzerland, and Germany are  the home nations of enterprises planning to invest $10M or more in  blockchain technologies in the next twelve months.

 

  •  Blockchain use cases are proliferating today, with data  validation (43%), data access/sharing (40%), and identity protection  (39%) being the most popular. Enterprises are piloting  blockchain to improve payments, achieve track and trace accuracy  throughout their supply chains, and evaluating the digital currency  aspects of the technology. It’s important to note that 87% of  enterprises first start evaluating blockchain due to its innate  strengths for enabling completely automated or touchless business  processes. 86% of enterprises are evaluating and piloting blockchain to  achieve the goals enabling new business models and revenue streams.  Please click on the graphic to expand for easier reading.

 

  •  For the majority of enterprises actively piloting and promoting  blockchain into production, success is defined by greater process  efficiency first. 55% of enterprises define blockchain success  by the process efficiencies they can accomplish first, followed by cost  saving (51%) and risk reduction (50%). Deloitte also found blockchain is  proving to be an effective platform for revenue generation, enabling  new business models and customer acquisition.

Original Article by Deloitte/ FORBES from Deloitte’s 2019 Global Blockchain Survey: Blockchain gets down to business. / Louis Columbus / 2019 

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