A research by Gartner indicated that 293 CIOs of different companies are in the short-term planning of implementing the technology. Many of these are experiencing difficult challenges including the need to overhaul current systems, lack of blockchain skills, regulation, and the fact that new skills are needed.
Gartner, which is a research and advisory firm estimates that only one percent of CIOs have indicated any kind of blockchain adoption. And only eight percent are in short-term planning or in active experimentation with the technology. To make matters worse, a Gartner 2018 CIO survey said 77 percent of CIOs said their companies has no interest in the technology and/or no action plan to investigate or develop it.
The research revealed that 293 CIOs are in the short-term planning for the technology or already invested in it. The industry’s leading in planning and experimentation of the technology include telecom, insurance and financial services. Telecos are more interested in need to “own the infrastructure wires” and grasp consumer payment opportunity. However, transportation, government and utilities are also more engaged due to the heavy focus on process efficiency, supply chain and logistics opportunities.
However, those implementing the tech have myriad of challenges. For instance, 23 percent of CIOs said the technology requires the newest skills to implement of any technology area. 18 per cent said skills in blockchain or for blockchain tech are the most difficult to find. 14 percent said adoption of blockchain required the greatest change in the IT departmental culture while 13 said IT department structure had to change in order to implement the technology.
David Furlonger, vice president and Gartner Fellow said about the issue,
“The challenge for CIOs is not just finding and retaining qualified engineers. But finding enough to accommodate growth in resources as blockchain developments grow. Qualified engineers may be cautious due to the historically libertarian and maverick nature of the blockchain developer community”.
He said that the technology is continuing the journey on the Gartner Hype Cycle at the Peak of Inflated Expectations. He added that the psychological acceptance of the innovations brought about by blockchain. It will determine how quickly the carious players navigate the Trough of investment.
CIOs also said implementing of the blockchain will change operating and business model of the organizations. They may thus encounter challenge in being ready and able to accommodate the requirement.
“Blockchain technology requires understanding of, at a fundamental level, aspects of security, law, value exchange, decentralized governance, process and commercial architectures. It therefore implies that traditional lines of business and organization silos can no longer operate under their historical structures”.
Furlonger indicated that there is need for companies to adopt a wait and see approach given the technology was still young and unpopular among companies. He said that companies that rush into adopting the technology could meet failed innovation, wasted investment, rash decisions and rejection of a game-changing technology.