|Same, But Different:
Bloomberg referenced a Forrester research report that discussed a slow down in enterprise blockchain solutions, and now we can’t stop scratching our heads.
You know what they say: you are what you eat. So after learning that Forrester expects 90% of all blockchain experiments to never become operational, our minds immediately jumped to past articles that mentioned a similar 90% failure rate for startups.
Sure, the numbers could be a coincidence, but a light bulb went off nonetheless. How are startups and enterprises related, and in what ways are they different?
We boiled it down to nine syllables:
- (+) Both involve ideas
- (-) Different structures
Next, picture a filter
The metaphor is simple. Ideas enter through the top of the filter and are either converted into final products or caught within. However, given that startups are typically flexible where enterprises are rigid, each has different parameters for moving ideas through the system.
Looping back to Forrester’s report, let’s pour 100 enterprise blockchain proposals into this proverbial funnel. There are a number of ways that ideas can hit dead ends:
- Half-baked proposals flop
- Minimal executive interest/education
- Pushback from existing infrastructure
- Agreement on what blockchain to use
- Shortage of developers/engineers
- Fear of failure
Most importantly, this stuff takes time. Too many companies were attracted to the blockchain hype cycle with the classical expectation that the technology would revolutionize their business overnight. Firms are discovering that the shoes they’re using for the Blockchain 5K are encased in cement and the race is actually 25 kilometers.
The bottom line: Expect less – for now. Companies such as IBM, Microsoft, and Accenture are still pushing ahead with blockchain spending, though their R&D will likely remain under wraps for several more years. After all – most growth reports plug 2023 as the year that industry activity will liven up.