Deloitte: Hard-dollar investment in blockchain technology
Blockchain technology is entering a new era of mainstream adoption from all industry sectors who now recognise its long-term potential. Deloitte’s 2019 Global Blockchain Survey highlights a new chapter where one size doesn’t fit all.
Years after bitcoin introduced the world to blockchain, the technology continues to change the financial services industry along with other industries from manufacturing to healthcare in ways quite distinct from its original crypto-driven applications.
The global survey shows industries are now “making hard-dollar investments in blockchain initiatives” and consider it a top five critical priority. Deloitte polled 1,386 senior executives to gain greater insights into attitudes and investments to blockchain technology and its potential for the future.
The report highlights blockchain appears to be entering a period of practical adoption as all sectors grasp the technology’s long-term potential. Organisations from technology, media, telecommunications (TMT), life sciences, health care (LS&HC) and government are expanding their blockchain initiatives.
“What all such data from our survey points to is a sorting-out process, as each industry pursues blockchain in a way that best serves its collective interests. Put another way, just as there is no single way that industries will develop blockchain applications, there is no universal approach to industrial blockchain adoption.”
How blockchain is shaping the future
Seven out of 10 of the companies are currently hiring blockchain talent, particularly in the TMT sector with 56% leading this trend which suggests it importance for the future. A total of 65% of the manufacturing sector considers blockchain technology a top five critical priority for their industry while 61% of IP&C agree it will enable new business functionalities and revenue streams.
Bookchain technology is being used for the following services:
• Data access/sharing
• Data validation
• Digital currency
• ID protection
• Records reconciliation
Will the technology work?
The survey shows the shared belief that blockchain is real and that it can serve as a pragmatic solution to business problems across all industries. The prevailing question among executives is no longer, “Will the technology work?” but rather, “How can we make technology work for us?”
The survey revealed 40% of respondents said their companies plan to invest US$5 million or more in blockchain initiatives in the next 12 months. The degree of commitment varies across industries, with (TMT leading the pack at 49%, followed by energy & resources (E&R) and manufacturing at 43% each.
Substantially more respondents say they plan to put blockchain into production in the next year than have already done so with 32% of TMT saying they have put the technology into production, while 44% of that industry say they will do so within the next year.
On the subject of consortiums, 90% of respondents from all sectors said they belonged to one (or plan to join one within a year) and were willing to work with competitors. In the Industrial Products & Construction (IP&C) sector cost savings (65%) and learning opportunities (58%) were the top reasons for working together.
“Such is the versatile character of blockchain that each industry - indeed, each organisation within each industry - explores what works for it,” concludes the report.