Blockchain is at 'Peak of Inflated Expectations,' Gartner says
Only 1 percent of chief information officers indicated any kind of blockchain adoption within their organizations, and only 8 percent were in short-term planning or active experimentation with blockchain, according to a newly published survey by Gartner.
Furthermore, the Gartner 2018 CIO survey found, 77 percent of CIOs said their organization had no interest in the technology and had taken no action to investigate or develop it.
"This year’s Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment," Gartner Fellow and Vice President David Furlonger said in a press release.
"It is critical to understand what blockchain is and what it is capable of today, compared to how it will transform companies, industries and society tomorrow."
Furlonger said that rushing into blockchain deployments could lead organizations to significant problems of failed innovation, wasted investment, rash decisions and even rejection of a game-changing technology.
Among the 293 CIOs whose organizations are in short-term planning for or have invested in blockchain initiatives, 23 percent said that blockchain requires more new skills to implement than any technology area, and 18 percent said that blockchain skills are the most difficult to find.
A further 14 percent said that blockchain requires the greatest change in the culture of the IT department, and 13 percent said that the structure of the IT department had to change in order to implement blockchain.
"The challenge for CIOs is not just finding and retaining qualified engineers, but finding enough to accommodate growth in resources as blockchain developments grow," Furlonger said. "Qualified engineers may be cautious due to the historically libertarian and maverick nature of the blockchain developer community.
"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."
From an industry perspective, CIOs from telecom, insurance and financial services reported being more actively involved in blockchain planning and experimentation than those from other industries.
While financial services and insurance companies are at the forefront of this activity, the transportation, government and utilities sectors are now becoming more engaged due to the heavy focus on process efficiency, supply chain and logistics opportunities.
"Blockchain continues its journey on the Gartner Hype Cycle at the Peak of Inflated Expectations," Furlonger said. "How quickly different industry players navigate the Trough of Disillusionment will be as much about the psychological acceptance of the innovations that blockchain brings as the technology itself."