Blockchain Global Analysis

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Jane Hall
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1 August 2017 Blockchain Global Analysis

Objectives To understand the perspectives

the adoption of Blockchain To understand

2 Objectives To understand the perspectives of senior executives on the Blockchain strategy. To understand the major factors affecting the adoption of Blockchain strategy. To understand the external and internal roadblocks in adopting the Blockchain strategy. 2

3 Executive Summary 60% of C Suite executives believe Blockchain will fundamentally transform the industry. 5 of respondents from the industry believe Blockchain is very important. 6 of s said they are in the process and 5 of C-suite executives said their organizations have already defined a Blockchain strategy. In, 4 respondents think enablement of new or extended business models based on blockchain platforms make up their strategy. In an industry wise analysis 4 of BFS respondents indicate competition as the major factor for pursuing Blockchain. 3 of C-suite respondents have said they are pursuing blockchain by investing in a startup/established company. 3

4 Executive Summary 3 of Vice Presidents estimate the Blockchain team size to be people while 4 of s think it to be 6-10 people. 5 of respondents from estimate the Blockchain team size to be people while 4 of respondents from Manufacturing and Logistics estimate 6-10 people. 4 of Vice Presidents and 3 of C-suite executives estimate the annual budget for Blockchain in 2016 to be 2. of the overall organizational budget. 4 of respondents from BFS are addressing the skillset gap in Blockchain by providing innovation labs. 4 of respondents from the BFS industry think scalability/latency to be an external roadblock for Blockchain adoption. 4

5 Approach and Methodology This primary research study was conducted across U.S.,, and APAC. Online survey methodology was employed to collect data respondents were surveyed. The respondents included executives, Vice Presidents, s, Senior s and s. Banking and Financial Services, Manufacturing and Logistics,, and industries were included in this study. Data was collected by a third party service provider. The data was tabulated, analyzed and presented by Cognizant Research Center. 5

6 How important is blockchain for the future of your industry 1 5 Senior APAC and the Middle East 4 50% % 1 0% 1 1 0% 1 2 0% % 60% % 40% 50% 60% 70% 80% 90% 100% Important. (Will have considerable impact) Somewhat important. (Looks promising, but can t say how or why) Not important. (Do not believe it will change anything) Very important. (Will fundamentally transform the industry) Respondents of all designations believe it is important or very important, 60% of C Suite executives believe it will fundamentally transform the industry Maximum respondents from USA (60%) believe blockchain is very important. In an industry wise analysis, 5 of respondents from industry believe it is very important 6

7 Has your organization defined a blockchain strategy? 0% 4 5 Senior 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% % 40% 5 5 0% 4 4 0% 40% 50% 60% 70% 80% 90% 100% Blanks Don't know No We are in the process Yes Respondents all over have already defined a blockchain strategy or are in the process of defining it 6 of s said they are in the process and 5 of C-suite executives said their organizations have already defined a strategy 9 of respondents from USA have said that their organizations have either defined it or are in the process of defining. 9 of respondents from the healthcare industry have said that their organizations have either defined it or are in the process of defining. 7

8 Identify the components that make up your blockchain strategy % 4 2 Senior % % 40% 50% 60% 70% 80% 90% 100% Dedicated teams to identify use cases and opportunities for innovation Assessing the impact of blockchain alongside emerging technologies such as the IoT, advanced analytics, and robotics Internal implementation to assess benefits and implications of blockchain for existing systems Understanding regulatory implications of moving processes to blockchain Identifying processes that can be improved through the use of smart contracts Working with industry partners/consortiums to identify areas to focus on and those to avoid Enablement of new or extended business models based on blockchain platforms Replacing current systems with blockchain solutions All of the above Among the options, all choices are more or less equally distributed across all respondents, Vice Presidents(3) have said dedicated teams to identify use cases and opportunities for innovation. In, 4 respondents think Enablement of new or extended business models based on blockchain platforms make up their strategy. 8

9 Indicate the major factors for pursuing blockchain 2 2 Senior % % 100% 4 100% % 40% 50% 60% 70% 80% 90% 100% Perceived benefits of blockchain To use blockchain as differentiator/to gain competitive advantage We usually test new technologies Competition Because other players can disrupt our business model using blockchain-based models Any other Respondents of mostly all designations think the major factor for pursuing blockchain is other players can disrupt their business models using blockchain based models 50% of respondents from indicate that major factor is to use blockchain as a differentiator to gain competitive advantage In an industry wise analysis 4 of BFS respondents indicate the major factor as competition 9

10 Who do you think will govern the blockchain network in your industry? Senior Level Middle level % 40% 50% 60% 70% 80% 90% 100% A consortium will form and successfully govern the network A third-party (e.g., a start-up) will emerge to govern the network and participants will join An organization within my industry will develop the platform that everyone will join Any other, please specify It will likely be established around a public network like Ethereum or bitcoin network 10

11 How long until a permissioned blockchain takes prominence in your industry? Senior Level Middle level % % % % 40% 50% 60% 70% 80% 90% 100% 1-3 years 3-5 years 5-10 years Not Sure 11

12 What is the estimated size of the blockchain team? Senior % 40% 50% 60% 70% 80% 90% 100% Blanks 1-5 people people people 6-10 people More than 20 people Majority of respondents globally have estimated the size of blockchain teams to be in the people and 6-10 people ranges 3 of Vice Presidents estimate the size to be people while 4 of s think it to be 6-10 people of respondents from USA estimate the size to be people while 4 of respondents from think it to be 6-10 people 5 of respondents from estimate the size to be people while 4 of respondents from ManLog estimates 6-10 people 12

13 Indicate the estimated annual budget for blockchain initiatives in 2016 as percentage of overall organizational budget % Senior % % % 0% 0% 1 0% 40% 50% 60% 70% 80% 90% 100% Blanks Less than More than 4 of Vice Presidents and 3 of C-suite executives estimate the annual budget in 2016 to be 2. 3 of respondents from USA estimate the annual budget in 2016 to be 2. while 3 of respondents from think it to be of respondents from ManLog estimate the annual budget in 2016 to be while 4 of respondents from estimate the annual budget in 2017 to be 2. 13

14 Indicate the estimated annual budget for blockchain initiatives in 2017 as percentage of overall organizational budget 1 2 Senior % 40% 50% 60% 70% 80% 90% 100% Blanks Less than More than of Vice Presidents and of C-suite executives estimate the annual budget in 2017 to be 5. 3 of respondents from USA estimate the annual budget in 2017 to be 5. while 2 of respondents from think it to be 2. 4 of respondents from ManLog estimate the annual budget in 2017 to be 2. while 3 of respondents from estimate the annual budget in 2017 to be 5. 14

15 Which of the following business opportunities will be created? Senior % % 40% 50% 60% 70% 80% 90% 100% New markets New services lines New customer segments Enable the sharing economy for your business Enable open participation/use of your company s assets New services lines driven by micro-transactions of Vice Presidents and 2 of s think Enabling open participation/use of their company s assets will create business opportunities 50% of respondents from think new service lines will create business opportunities 4 of respondents from BFS think new markets will create business opportunities 15

16 How is your organization addressing the potential skillset gap created by blockchain? 3 3 0% 2 Senior % % 3 0% 2 0% % 4 0% 6 1 0% % 0% 1 0% 1 1 0% % 6 5 0% 40% 50% 60% 70% 80% 90% 100% Training Innovation labs Hiring Partnering with blockchain technology companies Targeted acquisitions Investing in startups (incubation) Offering incentives to retain key employees Any other No plans as of now We are not facing such issues 3 of Senior s and 2 of s think they are not facing any issues of skillset gap of respondents from USA and 4 of respondents from think they are not facing any issues of skillset gap 5 of respondents from are addressing skillset gap by hiring 4 of respondents from BFS addressing skillset gap by providing innovation labs 16

17 Which of the following is/are part of your organization s change management strategy? Senior % % 40% 50% 60% 70% 80% 90% 100% Engaging all key stakeholders within the organization Created informal peer networks and change agents Frequent communication from top leadership and managers about possible changes, and seeking employee feedback Developing training programs to help employees work in a new environment Engage traditional change management consultants Follow existing corporate structure to propagate change Hire blockchain specialist and let them facilitate change All of the above of Senior s and of s have hired blockchain specialist and let them facilitate change 4 of respondents from and 5 of respondents from are developing training programs to help employees work in a new environment 4 of respondents from BFS are following existing corporate structure to propagate change 17

18 Which of the following best describes your plans for integrating blockchain technology with legacy systems? 0% % Senior 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% % 50% % 0% 2 3 0% 40% 50% 60% 70% 80% 90% 100% Blanks Any other, please specify We are looking for a hybrid solution that allows us to keep the legacy system as is, but also deploy blockchain We have identified core legacy solutions that can be enabled or even replaced by blockchain solutions We have identified new solutions for unaddressed problems or opportunities to apply blockchain solutions We plan to keep our blockchain solutions isolated from other applications We plan to replace some parts of the legacy system to enable blockchain adoption 40% of Senior s and 50% of s plan to replace some parts of legacy system to enable blockchain adoption of respondents from and 4 of respondents from plan to replace some parts of legacy system to enable blockchain adoption 4 of respondents from plan to replace some parts of legacy system to enable blockchain adoption 18

19 What are the top five external roadblocks to blockchain adoption? Senior % % % 40% 50% 60% 70% 80% 90% 100% Scalability/latency Interoperability between various blockchains Privacy and security Creating standards Working with partners/ecosystem members Legal and regulatory issues Token volatility Monopolistic and anti-trust activities (which can arise as consortia build private blockchain) Lack of legal ecosystem to support smart contracts (Checking legal validity, safety of smart contracts, managing changes, etc.) Any other 4 of respondents from think, working with partners/ecosystem members is an external roadblock to blockchain adoption 4 of respondents from BFS industry think, scalability/latency to be an external roadblock 19

20 Thank you Analyst Information Sukanya Das

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