The success of digital initiatives remains challenging for most organizations, with only 48 percent achieving or surpassing their business outcome goals, Gartner report said.

Here are some key reasons why the majority of these initiatives fall short:
Many organizations operate under traditional IT delivery models, where CIOs manage digital projects alone, while business leaders serve as sponsors rather than active participants. In contrast, successful organizations — referred to as the “Digital Vanguard” — achieve higher success by fostering a partnership where CIOs and CxOs share responsibility and accountability for digital outcomes. This co-leadership is essential but often missing.
“CIOs and CxOs are equally responsible, accountable and involved in delivering the digital solutions their enterprises need. This is a radical departure from the traditional paradigm of IT delivery and business ‘project sponsorship’ that predominates in most enterprises,” Raf Gelders, VP, Research at Gartner, said.
While Digital Vanguard CIOs prioritize making new technologies accessible to all employees, many others focus solely on IT staff. With only 26 percent of non-IT business staff actively involved in digital work, organizations miss out on a broader pool of potential technologists who could contribute to digital transformation. This restricted access limits the scalability and impact of digital initiatives across departments.
A significant barrier to success is the limited focus on digital skill development across the entire enterprise. Only 14 percent of CIOs prioritize creating a technology-proficient workforce outside the IT department. This skill gap reduces the enterprise’s ability to leverage digital investments effectively and often leaves IT overloaded as the sole driver of innovation.
Just 19 percent of CIOs in EMEA emphasize shared technology leadership with other business units, a crucial component of becoming a Digital Vanguard. Organizations that do not nurture leadership skills in technology within business functions struggle to foster the cross-functional innovation and strategic alignment needed for digital initiatives to thrive.
Many organizations remain hesitant to reduce investments in legacy systems. While some are investing in modern, cloud-based solutions, a substantial percentage continue to allocate resources to legacy infrastructure, limiting the agility and scalability of their digital transformation efforts.
These factors highlight the need for a cultural shift in digital transformation. Digital initiatives require shared leadership, accessible technology, cross-functional digital skills, and a commitment to modern infrastructure for sustained success.
WalkMe has listed some leading brands that have failed in their digital transformation efforts.
The average spending on digital transformation by an enterprise is around $27.5 million, but the amount varies based on the organization’s needs. The cost of digital transformation can be much higher if planning is poor and tools are not adopted properly.
The latest IDC report said spending on digital transformation is forecast to reach almost $4 trillion in 2027. Digital transformation spending represents a bigger market compared to the non-DX portion of ICT spend.
Baburajan Kizhakedath