Few CIOs adopting or planning blockchain use in the business: Gartner
- 06 April, 2018 07:46
Blockchain may be immature but this does not absolve enterprises from the responsibility to identify how it will disrupt their industry in the future.
The 2018 Gartner CIO Survey finds only 1 per cent of respondents have any kind of blockchain adoption, with only 8 per cent of respondents in short-term planning and executing pilot projects.
Seventy-seven percent of respondents, meanwhile, say their enterprise has no interest in the technology or have no plans to investigate or develop it.
The findings show enterprise executives need more help in understanding what blockchain is and how it can be applied in the business and technology context, according to Gartner analysts David Furlonger and Rajesh Kandaswamy.
Their report, Blockchain Status 2018: Market Adoption Reality, is based on the results of an online survey in April to June last year of more than 3000 CIOs across the globe, from both public and private sectors.
The report points out the value proposition for blockchain remains poorly articulated and not clearly visible to the business, especially when compared to existing similar technologies.
It recommends CIOs to prepare a single slide briefing note for the executive committee that will make a case for development of use cases for blockchain, even though these will have short-term business value.
“Blockchain may be immature,” the report states, “but this does not absolve enterprises from the responsibility to identify how it will disrupt their industry in the future.”
The Gartner report finds the hype around blockchain is global, and cuts across industries.
At some point in the next two years, Gartner notes the regulatory landscape will start to influence the speed and depth of activity around blockchain.
The report notes CIOs from telecommunications, insurance and financial services are more active in blockchain planning and experimentation than those from other industries.
CIOs from transportation, government and utility sectors are also becoming more engaged with the technology, says Gartner.
“This is likely due to the heavy focus on process efficiency, supply chain and logistics opportunities. For telecom, the interest is in a desire to ‘own the infrastructure wires’ and grasp the consumer payment opportunity,” reports Gartner.
The CIOs in the survey noted the shortage of blockchain skills as a major challenge.
They cite the lack of qualified blockchain engineers, as well as the cost of hiring them.
Meanwhile, for the 293 CIOs from enterprises that are into short-term planning or have invested in blockchain, over a quarter say the technology requires the most new skills to implement. Eighteen per cent say that blockchain skills are the hardest to find.
Fourteen per cent indicate blockchain requires the greatest change in the culture of the IT department, while 13 per cent indicate that the structure of the IT department had to change in order to implement blockchain.