Digital transformation has long been a critical focus for businesses worldwide, but only a small cohort of leaders is truly excelling. According to Gartner’s 2025 CIO and Technology Executive Survey, a mere 48% of enterprise-wide digital initiatives meet or exceed business outcome targets. However, among the “Digital Vanguard”—a select group of CIOs and CxOs—an impressive 71% of their digital initiatives succeed.
What Sets the Digital Vanguard Apart?
The key differentiator for the Digital Vanguard is the collaborative relationship between CIOs and CxOs. Unlike the traditional IT delivery model where CIOs lead and CxOs act as sponsors, digital vanguard executives co-own digital delivery from end to end. As Raf Gelders, VP of Research at Gartner, explained, “CIOs and CxOs are equally responsible, accountable, and involved in delivering the digital solutions their enterprises need.”
This represents a shift in corporate culture, where technology is no longer siloed within IT departments. Instead, CxOs in the vanguard dedicate 35% of their business area staff to technology work, compared to just 21% for their counterparts outside the vanguard. This greater involvement is coupled with more frequent collaboration between CxOs and CIOs, who meet four times more often than the average executive pair in other organizations.
- Vanguard CIOs and CxOs Commit:
- Co-ownership of digital delivery
- 35% of business staff allocated to tech work
- Frequent collaboration between CIOs and CxOs
Investment Priorities for 2025: AI, Cybersecurity, and Data Analytics
As businesses shift into the next phase of digital transformation, Digital Vanguard CIOs are increasing their investments in key foundational technologies. Over 80% of CIOs surveyed plan to boost their spending on cybersecurity, artificial intelligence (AI), generative AI (GenAI), business intelligence, and data analytics in 2025.
These areas are critical not just for IT departments but for empowering business teams as well. The goal is to make these advanced technologies more accessible across the organization, helping non-technical staff become “citizen technologists” who can co-lead digital projects alongside IT.
- Top Investment Areas for 2025:
- Cybersecurity
- AI and GenAI
- Business intelligence and data analytics
- Integration technologies/APIs
“Digital vanguard CIOs do not invest in these technologies to be used by their IT staff only,” said Gelders. “They also make them easy to use for potential or actual technologists outside of IT.” This approach accelerates time-to-market, enhances accountability among CxOs, and eases the burden on IT teams.
The Decline of Legacy Infrastructure Investments
While investments in cutting-edge technologies are on the rise, the survey also revealed that 43% of CIOs plan to decrease their spending on legacy infrastructure and data center technologies. This decline reflects the growing trend of migrating to cloud-based solutions, which offer greater flexibility, scalability, and cost-efficiency.
Interestingly, 33% of CIOs indicated that they would increase investments in on-premise infrastructure, driven largely by organizations experimenting with or producing GenAI solutions. These businesses are recognizing the need for specialized infrastructure to support the complex computing requirements of generative AI models.
- Investment Trends:
- 43% reducing legacy infrastructure spend
- 33% increasing spend in specialized on-premise infrastructure for AI
This mixed approach to infrastructure investment highlights the importance of aligning technology decisions with strategic business goals, ensuring that companies remain agile and innovative while balancing operational costs.
Building Digital Skills Beyond IT
One of the most critical success factors for Digital Vanguard companies is the emphasis on developing digital skills throughout the organization, not just within IT. According to the survey, two-thirds of digital vanguard CIOs actively help business areas forecast their digital skill needs, compared to just 22% of other CIOs.
These forward-thinking CIOs understand that the success of digital initiatives hinges on equipping business staff with the right tools and knowledge to participate in technology-driven projects. By fostering a culture of continuous learning and co-building, Digital Vanguard companies are better positioned to meet the challenges of an increasingly digital economy.
- Digital Skill Development:
- Two-thirds of Digital Vanguard CIOs help forecast digital skill needs
- Focus on upskilling business staff to co-build digital solutions
By expanding digital capabilities across departments, businesses can break down the barriers between IT and other functions, enabling more agile and innovative responses to market demands.
