Gartner study: Old structures stand in the way of blockchain adaptation

The blockchain made it up and down all the news channels. But very few industries and companies rely on the technology. A new study by the market research institute Gartner shows how few there are actually.

A classic line of argument at various conferences is the focus on the Bitcoin revolution

Often in such lectures Bitcoin revolution is seen as a necessary first attempt, but real innovation can only be found in the Bitcoin revolution (or distributed ledger) technology for companies. While Bitcoin and other crypto currencies are used worldwide, the question is how far the development of use cases for the blockchain has progressed in companies.

The analysts surveyed over 3,100 CIOs (Chief Information Officers) of large companies in almost 100 countries. Only around one percent of the CIOs surveyed stated that they already use blockchain technology in their companies. After all, around 22 percent plan to use the technology in the short or long term. Although the largest portion (43 percent) is roughly familiar with the advantages, they have not yet planned to use the blockchain in their own company. A surprisingly large proportion of 34 percent of the CIOs surveyed said they were “not interested” in the topic. Overall, around 77 percent of the companies themselves see no need in the longer term.

Only in the financial, telecommunications and insurance sectors do decision-makers see the benefits of the blockchain much more positively. They are actively driving this development forward. The blockchain supports these companies in streamlining outdated business models and making them more efficient. Other companies are still very sceptical about the recent digital change. The decentralized idea behind the blockchain is a hitherto unfamiliar and drastic change for classic companies.

Companies cannot simply remain stuck in their old structures. “Blockchain technology requires a deep understanding of security aspects, legislation, exchange values, decentralized management, procedural and commercial architecture,” explains David Furlonger. He notes that today’s silo structures are no longer compatible with tomorrow’s technology.

Some industries are slowly realizing the potential of the Bitcoin revolution

Other industries such as logistics or supply chain management are slowly recognizing the potential of the Bitcoin revolution: Some time ago, SAP developed such use cases. Logistics companies can digitize freight documents and handle the entire process digitally and paperless. In conjunction with the Internet of Things (IoT), shipments can be tracked conveniently across the globe in real time. Consumers know the benefits of their parcel services. In the business-to-business context, however, customers are still waiting for such digitized processes. These efficiency gains have a positive effect on quality and delivery times in the supply chain.

Psychology will play an important role in the coming months. Many companies do not want to take the first step and remain in a waiting position: How does competition behave and which industries rely on the blockchain? As David Furlonger explains, the restrained mode does not have to be to the detriment of the companies. If companies were to desperately try to integrate blockchain applications into their companies, this could do more harm than good.

The technology is young and experience is limited. Those who burn their hands now with a larger investment could be critical of an otherwise very sensible technology in the future. In addition, there is another problem: The popularity of the blockchain has increased explosively in recent months. The supply of developers could not keep up with the growing demand. The study proves that companies will have to recruit employees with know-how in this field in the future. At the latest when the blockchain will one day increasingly find its way into the corporate world.