cognizant—global blockchain adoption analysis · 2020-05-05 · • banking and financial...

© 2017 Cognizant

© 2017 Cognizant

August 2017

Blockchain Global Analysis

© 2017 Cognizant 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.

© 2017 Cognizant 3

Executive Summary

• 60% of C – Suite executives believe Blockchain will fundamentally transform the industry.

• 57% of respondents from the Healthcare industry believe Blockchain is very important.

• 68% of Managers said they are in the process and 52% of C-suite executives said their organizations have already defined a Blockchain strategy.

• In Europe, 47% respondents think enablement of new or extended business models based on blockchain platforms make up their strategy.

• In an industry wise analysis 47% of BFS respondents indicate competition as the major factor for pursuing Blockchain.

• 36% of C-suite respondents have said they are pursuing blockchain by investing in a startup/established company.

© 2017 Cognizant 4

Executive Summary

• 39% of Vice Presidents estimate the Blockchain team size to be 11-15 people while 41% of Managers think it to be 6-10 people.

• 51% of respondents from Healthcare estimate the Blockchain team size to be 11-15people while 41% of respondents from Manufacturing and Logistics estimate 6-10 people.

• 44% of Vice Presidents and 35% of C-suite executives estimate the annual budget for Blockchain in 2016 to be 2.6% – 5% of the overall organizational budget.

• 49% of respondents from BFS are addressing the skillset gap in Blockchain by providing innovation labs.

• 48% of respondents from the BFS industry think scalability/latency to be an external roadblock for Blockchain adoption.

© 2017 Cognizant 5

Approach and Methodology

• This primary research study was conducted across U.S., Europe, Canada and APAC.

• Online survey methodology was employed to collect data.

• 3200+ respondents were surveyed.

• The respondents included C-Suite executives, Vice Presidents, Directors, Senior Managers and Managers.

• Banking and Financial Services, Manufacturing and Logistics, Retail, Healthcareand Insurance 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.

© 2017 Cognizant 6

How important is blockchain for the future of your industry

37%

39%

32%

30%

41%

38%

44%

36%

33%

35%

31%

50%

44%

34%

1%

1%

0%

2%

1%

0%

1%

1%

0%

1%

1%

1%

0%

1%

15%

4%

14%

23%

12%

10%

13%

18%

7%

4%

22%

15%

14%

12%

48%

57%

54%

44%

46%

51%

43%

45%

60%

60%

47%

34%

42%

54%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance

Manufacturing and logistics

Retail

APAC and the Middle East

Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Important. (Will have considerable impact) Not important. (Do not believe it will change anything)

Somewhat important. (Looks promising, but can’t say how or why) 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, 57% of respondents from Healthcare industry believe it is very important

© 2017 Cognizant 7

Has your organization defined a blockchain strategy?

• Respondents all over have already defined a blockchain strategy or are in the process of defining it• 68% of Managers said they are in the process and 52% of C-suite executives said their organizations have already defined a strategy• 96% of respondents from USA have said that their organizations have either defined it or are in the process of defining.• 99% of respondents from the healthcare industry have said that their organizations have either defined it or are in the process of defining.

3%

1%

1%

4%

8%

6%

4%

2%

3%

4%

3%

3%

5%

1%

0%

1%

0%

0%

0%

0%

0%

1%

0%

0%

0%

0%

1%

0%

2%

2%

1%

1%

2%

3%

0%

2%

3%

2%

3%

2%

2%

2%

48%

41%

47%

54%

49%

55%

47%

41%

48%

42%

49%

68%

51%

44%

46%

55%

52%

40%

40%

37%

49%

54%

46%

52%

45%

27%

43%

53%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail

Canada

U.S.A.

APAC and Middle East

Europe

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Blanks Don't know No We are in the process Yes

© 2017 Cognizant 8

Identify the components that make up your blockchain strategy

40%

31%

15%

5%

9%

19%

5%

45%

31%

30%

16%

1%

17%

36%

48%

19%

16%

6%

10%

20%

5%

48%

26%

27%

19%

3%

20%

32%

39%

31%

17%

4%

9%

23%

4%

45%

28%

27%

14%

2%

20%

37%

46%

23%

16%

7%

7%

20%

6%

44%

31%

24%

19%

3%

19%

34%

44%

26%

15%

6%

9%

22%

5%

44%

30%

23%

17%

2%

20%

38%

46%

28%

14%

5%

7%

24%

5%

42%

29%

22%

15%

2%

20%

40%

42%

28%

16%

5%

8%

21%

4%

47%

28%

20%

17%

2%

18%

43%

35%

27%

21%

7%

10%

28%

3%

44%

25%

26%

16%

1%

23%

34%

48%

20%

20%

5%

7%

20%

6%

39%

35%

15%

31%

2%

24%

28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

.

Dedicated teams to identify use cases and opportunities for innovationAssessing the impact of blockchain alongside emerging technologies such as the IoT, advanced analytics, and roboticsInternal implementation to assess benefits and implications of blockchain for existing systemsUnderstanding regulatory implications of moving processes to blockchainIdentifying processes that can be improved through the use of smart contractsWorking with industry partners/consortiums to identify areas to focus on and those to avoidEnablement of new or extended business models based on blockchain platformsReplacing current systems with blockchain solutionsAll of the above

• Among the options, all choices are more or less equally distributed across all respondents, Vice Presidents(36%) have said dedicated teams to identify use cases and opportunities for innovation.

• In Europe, 47% respondents think Enablement of new or extended business models based on blockchain platforms make up their strategy.

© 2017 Cognizant 9

Indicate the major factors for pursuing blockchain

45%

20%

18%

9%

9%

20%

5%

47%

27%

20%

25%

2%

21%

32%

47%

16%

18%

9%

10%

20%

6%

50%

24%

18%

27%

3%

24%

28%

43%

21%

18%

10%

8%

21%

5%

47%

27%

18%

25%

3%

23%

32%

47%

19%

16%

9%

9%

21%

6%

46%

27%

16%

25%

3%

22%

34%

42%

20%

23%

8%

7%

29%

4%

42%

25%

16%

27%

3%

25%

28%

100%

100%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Perceived benefits of blockchainTo use blockchain as differentiator/to gain competitive advantageWe usually test new technologiesCompetitionBecause other players can disrupt our business model using blockchain-based modelsAny 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 Europe indicate that major factor is to use blockchain as a differentiator to gain competitive advantage• In an industry wise analysis 47% of BFS respondents indicate the major factor as competition

© 2017 Cognizant 10

Who do you think will govern the blockchain network in your industry?

47%

52%

37%

41%

47%

48%

57%

43%

45%

44%

48%

27%

26%

25%

21%

19%

21%

15%

26%

29%

20%

30%

19%

15%

27%

28%

26%

23%

23%

21%

19%

26%

16%

1%

8%

6%

10%

10%

8%

8%

7%

9%

6%

10%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

Middle level

Senior Level

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

A consortium will form and successfully govern the networkA third-party (e.g., a start-up) will emerge to govern the network and participants will joinAn organization within my industry will develop the platform that everyone will joinAny other, please specifyIt will likely be established around a public network like Ethereum or bitcoin network


How long until a permissioned blockchain takes prominence in your industry?

44%

42%

51%

58%

43%

46%

42%

46%

47%

51%

41%

36%

37%

38%

27%

44%

38%

47%

35%

35%

33%

40%

14%

17%

7%

7%

8%

14%

7%

11%

15%

9%

15%

5.99%

3.91%

4.37%

7.83%

5.30%

2.78%

5.00%

7.77%

3.18%

6.85%

4.00%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

Middle level

Senior Level

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

1 - 3 years 3 - 5 years 5 - 10 years Not Sure


What is the estimated size of the blockchain team?

6%

2%

1%

5%

10%

4%

8%

5%

4%

5%

5%

4%

6%

3%

15%

7%

18%

32%

14%

9%

15%

23%

8%

9%

27%

14%

15%

11%

26%

51%

27%

11%

28%

34%

19%

23%

42%

38%

18%

21%

25%

39%

8%

13%

13%

6%

12%

14%

8%

8%

11%

14%

6%

14%

13%

7%

34%

18%

30%

41%

32%

25%

45%

33%

28%

24%

36%

41%

30%

31%

10%

9%

10%

5%

5%

14%

6%

8%

7%

10%

7%

7%

10%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Blanks 1- 5 people 11-15 people 15-20 people 6-10 people More than 20 people

• Majority of respondents globally have estimated the size of blockchain teams to be in the 11-15 people and 6-10 people ranges• 39% of Vice Presidents estimate the size to be 11-15 people while 41% of Managers think it to be 6-10 people• 42% of respondents from USA estimate the size to be 11-15 people while 45% of respondents from Canada think it to be 6-10 people• 51% of respondents from Healthcare estimate the size to be 11-15 people while 41% of respondents from ManLog estimates 6-10 people


Indicate the estimated annual budget for blockchain initiatives in 2016 as percentage of overall organizational budget

3%

1%

1%

4%

8%

2%

6%

3%

4%

4%

3%

3%

5%

1%

34%

19%

38%

52%

29%

28%

38%

39%

23%

27%

49%

26%

30%

28%

4%

4%

3%

1%

2%

5%

4%

3%

4%

5%

2%

4%

4%

3%

1%

2%

2%

0%

2%

1%

0%

1%

3%

4%

1%

1%

2%

1%

34%

45%

33%

27%

32%

39%

30%

32%

39%

35%

25%

34%

34%

44%

13%

22%

15%

7%

17%

16%

15%

12%

21%

17%

12%

10%

15%

17%

9%

6%

8%

8%

9%

8%

8%

10%

5%

8%

7%

20%

11%

6%

1%

1%

1%

1%

0%

0%

1%

1%

1%

1%

0%

2%

1%

0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Blanks 1.1%-2.5% 10.1%-15% 15.1%-20% 2.6%-5% 5.1%-10% Less than 1% More than 20%

• 44% of Vice Presidents and 35% of C-suite executives estimate the annual budget in 2016 to be 2.6% – 5%• 39% of respondents from USA estimate the annual budget in 2016 to be 2.6% – 5% while 39% of respondents from Europe think it to be

1.1%-2.5%• 52% of respondents from ManLog estimate the annual budget in 2016 to be 1.1%-2.5% while 45% of respondents from Healthcare

estimate the annual budget in 2017 to be 2.6% – 5%


Indicate the estimated annual budget for blockchain initiatives in 2017 as percentage of overall organizational budget

3%

1%

1%

4%

8%

2%

6%

3%

4%

4%

3%

3%

5%

1%

10%

5%

8%

12%

13%

7%

12%

12%

6%

7%

10%

18%

12%

7%

14%

27%

17%

5%

15%

18%

12%

13%

22%

20%

12%

13%

15%

18%

4%

6%

5%

4%

5%

7%

3%

3%

6%

8%

3%

3%

6%

3%

30%

19%

33%

47%

21%

27%

28%

34%

21%

21%

41%

26%

28%

26%

34%

37%

33%

25%

34%

34%

37%

31%

36%

34%

27%

29%

30%

42%

2%

1%

1%

2%

2%

2%

3%

2%

1%

2%

2%

4%

2%

1%

3%

3%

2%

1%

2%

2%

2%

2%

4%

4%

2%

4%

3%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Blanks 1.1%-2.5% 10.1%-15% 15.1%-20% 2.6%-5% 5.1%-10% Less than 1% More than 20%

• 42% of Vice Presidents and 34% of C-suite executives estimate the annual budget in 2017 to be 5.1% – 10% • 36% of respondents from USA estimate the annual budget in 2017 to be 5.1% – 10% while 28% of respondents from Canada think it to be

2.6% – 5%• 47% of respondents from ManLog estimate the annual budget in 2017 to be 2.6% – 5% while 37% of respondents from Healthcare

estimate the annual budget in 2017 to be 5.1% – 10%


Which of the following business opportunities will be created?

45%

19%

18%

10%

8%

21%

5%

48%

26%

19%

26%

3%

23%

29%

46%

16%

18%

10%

10%

20%

6%

50%

25%

20%

26%

3%

24%

28%

43%

20%

18%

10%

9%

20%

6%

47%

27%

19%

25%

3%

23%

30%

47%

20%

17%

7%

8%

23%

6%

42%

28%

17%

24%

2%

24%

33%

44%

20%

19%

10%

8%

22%

5%

46%

27%

16%

25%

3%

23%

34%

46%

20%

20%

7%

6%

26%

4%

44%

26%

19%

27%

3%

23%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

New markets New services linesNew customer segments Enable the sharing economy for your businessEnable open participation/use of your company’s assets New services lines driven by micro-transactions

• 34% of Vice Presidents and 25% of Directors think Enabling open participation/use of their company’s assets will create businessopportunities

• 50% of respondents from Europe think new service lines will create business opportunities• 45% of respondents from BFS think new markets will create business opportunities


How is your organization addressing the potential skillset gap created by blockchain?

44%

20%

18%

10%

8%

21%

5%

48%

27%

19%

26%

3%

21%

31%

49%

18%

17%

8%

9%

21%

6%

47%

26%

19%

26%

2%

23%

30%

43%

18%

19%

10%

9%

20%

5%

52%

24%

19%

26%

3%

21%

32%

46%

20%

17%

8%

8%

24%

5%

45%

26%

19%

25%

3%

23%

30%

45%

20%

17%

9%

9%

22%

5%

46%

27%

18%

25%

3%

23%

31%

49%

19%

17%

7%

8%

23%

6%

46%

26%

17%

25%

3%

24%

32%

45%

20%

20%

8%

7%

24%

4%

46%

26%

17%

26%

3%

23%

32%

100%

0%

0%

0%

0%

0%

0%

100%

0%

0%

0%

100%

0%

64%

4%

11%

12%

10%

8%

14%

69%

8%

10%

43%

2%

20%

24%

56%

6%

14%

10%

14%

8%

10%

49%

32%

11%

28%

1%

37%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Training Innovation labs HiringPartnering with blockchain technology companies Targeted acquisitions Investing in startups (incubation)Offering incentives to retain key employees Any other No plans as of nowWe are not facing such issues

• 37% of Senior Managers and 23% of Vice presidents think they are not facing any issues of skillset gap• 32% of respondents from USA and 49% of respondents from Europe think they are not facing any issues of skillset gap• 52% of respondents from Europe are addressing skillset gap by hiring• 49% of respondents from BFS addressing skillset gap by providing innovation labs


Which of the following is/are part of your organization’s change management strategy?

43%

21%

19%

8%

10%

24%

4%

48%

24%

20%

25%

3%

22%

30%

44%

19%

18%

9%

9%

21%

6%

50%

24%

22%

24%

3%

22%

29%

41%

21%

19%

9%

10%

24%

4%

48%

24%

20%

23%

3%

24%

29%

44%

19%

18%

8%

10%

25%

5%

45%

25%

21%

24%

4%

25%

27%

44%

23%

16%

8%

10%

23%

4%

47%

25%

19%

25%

2%

25%

28%

43%

22%

17%

8%

9%

25%

6%

43%

26%

18%

25%

3%

27%

27%

43%

20%

21%

8%

8%

26%

3%

51%

20%

17%

24%

4%

24%

30%

51%

17%

24%

6%

2%

17%

7%

42%

34%

7%

34%

1%

30%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Engaging all key stakeholders within the organizationCreated informal peer networks and change agentsFrequent communication from top leadership and managers about possible changes, and seeking employee feedbackDeveloping training programs to help employees work in a new environmentEngage traditional change management consultantsFollow existing corporate structure to propagate changeHire blockchain specialist and let them facilitate changeAll of the above

• 24% of Senior Managers and 30% of Vice presidents have hired blockchain specialist and let them facilitate change• 45% of respondents from Europe and 57% of respondents from Canada are developing training programs to help employees work in a

new environment• 43% of respondents from BFS are following existing corporate structure to propagate change


Which of the following best describes your plans for integrating blockchain technology with legacy systems?

3%

1%

1%

4%

8%

2%

6%

3%

4%

4%

3%

3%

5%

1%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

22%

17%

22%

19%

19%

22%

19%

22%

17%

14%

25%

21%

25%

18%

25%

33%

24%

19%

18%

30%

24%

20%

31%

31%

21%

12%

19%

31%

3%

1%

5%

5%

2%

3%

2%

3%

2%

1%

3%

5%

2%

4%

7%

5%

9%

12%

8%

7%

6%

10%

5%

5%

11%

10%

8%

6%

39%

42%

40%

41%

45%

35%

44%

42%

42%

45%

37%

50%

40%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

BlanksAny other, please specifyWe are looking for a hybrid solution that allows us to keep the legacy system as is, but also deploy blockchainWe have identified core legacy solutions that can be enabled or even replaced by blockchain solutionsWe have identified new solutions for unaddressed problems or opportunities to apply blockchain solutionsWe plan to keep our blockchain solutions isolated from other applicationsWe plan to replace some parts of the legacy system to enable blockchain adoption

• 40% of Senior Managers and 50% of Managers plan to replace some parts of legacy system to enable blockchain adoption• 42% of respondents from Europe and 44% of respondents from Canada plan to replace some parts of legacy system to enable

blockchain adoption• 45% of respondents from Retail plan to replace some parts of legacy system to enable blockchain adoption


What are the top five external roadblocks to blockchain adoption?

48%

19%

16%

8%

9%

19%

6%

49%

26%

20%

25%

2%

22%

31%

47%

19%

16%

8%

9%

20%

6%

49%

25%

22%

23%

3%

22%

30%

47%

18%

17%

8%

11%

20%

6%

48%

26%

21%

22%

4%

25%

28%

46%

17%

17%

9%

10%

19%

6%

50%

25%

21%

23%

3%

23%

30%

47%

19%

16%

8%

11%

20%

6%

48%

26%

21%

22%

3%

23%

30%

46%

19%

15%

8%

11%

21%

6%

46%

27%

21%

22%

3%

25%

30%

50%

18%

14%

8%

10%

20%

7%

49%

25%

19%

24%

3%

24%

30%

48%

18%

16%

9%

9%

21%

7%

48%

24%

17%

25%

3%

25%

30%

43%

15%

21%

13%

8%

23%

5%

52%

20%

13%

29%

4%

26%

28%

33%

33%

33%

67%

33%

33%

33%

33%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banking and Finance

Healthcare

Insurance


Retail


Canada

Europe

U.S.A.

C-Suite

Director

Manager

Senior Manager

Vice president

Indu

stry

Cou

ntry

/Reg

ion

Des

igna

tions

Scalability/latencyInteroperability between various blockchainsPrivacy and securityCreating standardsWorking with partners/ecosystem membersLegal and regulatory issuesToken volatilityMonopolistic 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

• 48% of respondents from Europe think, working with partners/ecosystem members is an external roadblock to blockchain adoption• 48% of respondents from BFS industry think, scalability/latency to be an external roadblock

cognizant—global blockchain adoption analysis · 2020-05-05 · • banking and financial...

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