Blockchain smart contracts users will increase data quality 50% by 2023

A Gartner report predicts a reduction of data availability by 30%, but with enhanced transparency, speed and decision making.

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A new report from Gartner predicts companies using blockchain smart contracts will increase overall data quality by 50% by 2023, but reduce data availability by 30% during the same time period. This will conversely create positive data and analytics ROI.

A smart contract is a computer program or protocol which typically runs on a blockchain which facilitates, verifies, or executes business processes triggered by events, on-chain transactions or interactions with other smart contracts, according to the report.

Despite the reduction of data availability, the predictions—culled from Gartner's reports "Predicts 2020: Data and Analytics Strategies—Invest, Influence and Impact" and "Data and Analytics Leaders Need to Focus on Blockchain Smart Contracts Now"—concludes the net impact of blockchain smart contracts adoption on analytical decision is positive for data and analytics (D&A) return of investment (ROI). 

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Blockchain contracts adoption enhances transparency, speed, and granularity of decision making. It also improves the quality of decision making, as its continuous verification makes the data more accurate, reliable, and trustworthy.

Organizations which avail of blockchain smart contracts benefit from the associated increase in data quality.

D&A investments become increasingly critical, as domain data and analytic strategies mature. The report strongly recommends D&A leaders adopt disciplines and technologies that optimize costs, solve data challenges, and drive business value if they hope to influence enterprise-level strategy for a global impact. 

Key findings

  • Due to the rapid increase in data sources, data types and data consumers, organizations face significant challenges when identifying and inventorying distributed data assets. 

  • Data quality is a success factor for accelerating business innovation with trusted data, while also mandating to fulfill regulatory requirements to reduce operational risk and increase efficiency. 

  • Client inquiries report that too many mobile-device management (MDM) programs have failed to yield the desired business benefit, most often due to the scope being incorrectly defined. 

  • Blockchain and smart contract technology are still immature, yet deployment by D&A leaders continues to outpace IT leaders, positively impacting data value and analytical decision making. 

  • Organizations are eager to elevate their data-driven decision making to the next level. Graph technology is a key enabler of decision intelligence as a rising strategic discipline.

Gartner analysts suggest D&A leaders pilot blockchain smart contracts now and companies should start deploying to automate a simple process, such as non-sensitive data distribution or a simple contract formation for contract performance or management purposes. D&A leaders must immediately respond to data challenges by using cost-benefit analysis or programs won't mature enough to influence enterprise-level business strategy.

D&A leaders would apply master data management (MDM) disciplines, and data-quality metrics to improve process efficiency, and driver overall higher ROI from D&A strategies.

Adopt emerging tech, i.e. machine learning (ML), blockchain, smart contracts, and graph tech as a cost-effective means to increase data value and drive efficient decision-making.

The report warns that if D&A management doesn't move to increase data challenges with a net positive business value proposition, or influence stagnates, then neither the company or enterprise-level D&A strategies can succeed.

The availability of the data generated from the smart contract transaction, from none, to limited, to unlimited, is determined by governance frameworks for blockchain participation, or the terms and conditions within the smart contract. Organizations should then engage with affiliates and partners to pilot blockchain smart contracts to automate multi-party contracts, within a well-defined ecosystem, such as banking and finance, real estate, insurance, utilities, and entertainment.

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For data and analytics leaders seeking a strategy to drive enterprise-level business value, the report recommends: 

  • Leverage a machine learning (ML) augmented data catalog to simplify the process of discovering, inventorying, profiling and tagging siloed data assets. 
  • Identify concrete and measurable data quality metrics based on a commonly accepted agreement with stakeholders and link them to enterprise-level D&A outcomes. 
  • Resize your D&A governance efforts using model best practices to identify the least amount of data that impacts your most critical business outcomes. 
  • Collaborate with executives to use blockchain smart contracts to share data assets and improve the quality of analytical decision making.

  • Apply graph technologies to enrich multiple datasets with semantics and to automate or augment their unification across silos. This allows richer context provisioning and real-time situation awareness for continuous intelligence, all for better decision making.  

Based on the research conducted, Gartner offers "strategic planning assumptions" (predictions):

  • By 2021, organizations that provision an augmented data catalog to data consumers will realize three times faster ROI from their data and analytics investments.  

  • By 2022, 70% of organizations will rigorously track data quality levels via metrics, increasing data quality by 60% to significantly reduce operational risks and costs.  

  • By 2023, 30% of organizations will exceed data and analytics ROI by governing the least amount of data that matters most to their strategic goals.  

  • By 2023, organizations using blockchain smart contracts will increase overall data quality by 50% but reduce data availability by 30%, conversely creating positive data and analytics ROI. 

  • By 2023, graph technologies will facilitate rapid contextualization for decision making in 30% of organizations worldwide. 

Also see

Diagonal chain, a blockchain concept, gray closeup

 

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