Blockchain Stretches Beyond Financial Services

Blockchain Stretches Beyond Financial Services

Blockchain technology is emerging as a key business focus for US companies in many industries like manufacturing, media and technology, according to Deloitte.

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Blockchain technology is emerging as a key business focus for US companies in many industries like manufacturing, media and technology, according to Deloitte`s blockchain survey 2017.

The survey was commissioned by Deloitte, a company specializing in audit, assurance, consulting and financial advising. It polled a sample of 308 senior executives in the US at companies with $500 million or more in annual revenue. Conducted online between November 14 and December 1, 2016, the survey aimed to understand whether these companies are familiar with blockchain and if they plan to invest in the technology.

“Most financial services companies have been involved in blockchain via their labs, investments, and pilots for a while now. Other industries are now starting to realize the potential for disruption, as well as the new opportunities that blockchain creates.”, according to Eric Piscini, principal, Deloitte Consulting LLP.

However, the results from the survey showed that understanding of the technology is uneven. About 40% of respondents still have little or no knowledge about blockchain, while another part of executives say blockchain is one of their highest priorities for 2017.

More precisely, among surveyed executives knowledgeable of blockchain, more than a quarter claim it is a top-five priority for 2017.

Blockchain: The new hype or an industry disruptor

Nearly two in five (39%) of senior executives at large US companies surveyed said they had little or no knowledge of blockchain technology. The majority (61%), however, made a point that they have blockchain knowledge ranging from broad to expert.

Deloitte systemized these results and drew the following conclusions based on the answers of the 61% who have broad to expert knowledge of blockchain technology:

  • Many of the executives see the technology as crucial for their company and their industry. Fifty-five percent of this group said their company would be at a competitive disadvantage if it failed to adopt the technology
  • Forty-two percent of those surveyed who claimed some knowledge of blockchain believe it will disrupt their industry

Investing in Blockchain

It seems that the progress around blockchain production can be attributed to investments that have already been made by many companies. 28% of the respondents surveyed said that their companies have already invested $5 million or more in blockchain technology, whereas 10% claimed an investment accounting to $10 million or more. Meanwhile, 25% of respondents expect to invest more than $5 million in blockchain technology till the end of this calendar year.

Expanding beyond financial services

Deloitte concluded that adaptation patterns vary by industry. The financial industry was among the first to turn to blockchain technology. It is indeed true that they have made huge investments in implementing the technology into their services. Nevertheless, other industries may be even more aggressive in pursuing blockchain strategies, according to the survey.

As the results made clear:

  • Forty-two percent of executives surveyed in the consumer products and manufacturing industry are planning an investment of $5 million or more in the coming calendar year
  • Technology, media and telecoms execs follow at 27 percent, and financial services at 23 percent

Judging by the results of Deloitte`s blockchain Survey 2017, it is fair to say that blockchain technology holds promise for various industries, stretching beyond the financial sector. There is no shortage of funding in that direction, so we may soon expect to see various products and services based on the blockchain technology.

For the time being, it appears that blokchain tech is more than a hype. Anyway, only time can show whether it will become a major industry disruptor that is impacting areas like financial services, media, communications and technology, among others.