A recent survey by KPMG reveals that almost 50% of C-Suite executive believe that Blockchain will change the way companies do business in the next three years.
2018 was a disappointing year for Blockchain technology since experts had started losing their belief and trust in its RoI, hence adoption advantages. According to a Deloitte report, Blockchain had disappointed many CXOs, and they had planned to reduce their investments in the technology.
Companies had stopped taking initiatives in identifying Blockchain applications in financial services because the technology, they felt, was taking too long to bear fruition. Many even found it complicated. But, things seem to be taking a turn now, going by a recent report by KPMG that reports that 48% of C-Suite executive say Blockchain will change the way their companies will do business in the next three years.
The seventh edition of ‘KPMG Technology Industry Innovation Survey: Blockchain’ includes responses from 740 global leaders in the technology industry across twelve countries, with 76% of the respondents being C-level executives.
It has been accepted that there’s a long way to go before mass adoption, trust, and usage of the technology. According to experts, the limited understanding of how the Blockchain works and when a business can implement it is what has slowed the development of the technology.
Blockchain was being portrayed as the final panacea for all technology challenges, with expectations of overnight adoption, implementation, and express speed benefits. Experts say that many companies adopted Blockchain without a legitimate business need, which leads to failures and scuttled budgets. They ignored the fact that the mass adoption of Blockchain requires a realistic context. It is essential to define the parameters of when and how to leverage technology to solve a business challenge. Only then benefits like transformed processes, cost savings, operational efficiencies, and potential new revenue streams will accrue.
According to the KPMG survey, 22% of C-suite executives believe that the single biggest benefit of adopting Blockchain technology is improved business effectiveness. That is closely followed by product or service differentiation by 12%. Almost 10% of executives also believe that proper implementation of Blockchain can reduce costs too.
Before adopting the technology, experts suggest businesses think in the context of what they want to achieve by adopting Blockchain – trust, auditability, and transparency.
Blockchain has application in a broad range of industries including healthcare and life sciences, government, and consumer and retail; and even within business verticals, where the initial impact is seen in procurement and the supply chain. The digital-first businesses are leveraging Blockchain as a competitive advantage, especially for their supply chains.
Experts believe that like any emerging technology, it’s is not possible to predict how long will it take for large enterprises that have complex processes and multiple stakeholders to reach mass adoption, but 41% of executives say that they are likely to implement Blockchain in next three years.
According to the survey, 24 % of respondents said that the biggest challenge to adoption is an unproven business case, while only for 12%, the problem to adopt Blockchain is lack of funds.
For experts, since Blockchain has become ubiquitous, the adoption of the technology is expected to increase in the near term. Since it is now available, commercialized, made affordable, it will accelerate adoption.
As enterprises start proving their concepts and scaling Blockchain, the awareness of its benefits and applicability, will increase.
As almost 30% of executives believe that IoT is facing the most significant disruption from Blockchain, and 20% think that it can reduce cyber risks, these are indications adoption of Blockchain will only accelerate.
Blockchain will become similar to how we view cloud technologies today- as a driver of change.