IT transformation: the catalyst for global business growth

C-suite executives are confident in their business growth prospects this year and I share in their optimism. To realise this growth, however, organisations and their leaders must ensure the cohesion of their transformation strategies and adopt a forward-thinking mindset towards IT.

In the relentless pursuit of evolution and improvement, the priorities highlighted in this year's C-suite barometer are deeply interconnected. Achieving transformation through technology needs a new approach to talent strategy, often focused on international growth and evolving global opportunities. These elements are inseparable. To achieve the transformation businesses need to thrive and sustain success in today's competitive marketplace, they must be integrated seamlessly.

The evolution of tech investment

Over time, the boundary between business and IT has faded, resulting in their cohesive integration within large organisations. While our teams have always worked closely together, the current landscape positions IT transformation as a core component of business transformation, driven by a culture of innovation. At Vanguard, innovation is not confined to a centralised group; it is championed by our hundreds of product teams who co-lead and co-own this transformative journey.

In the past, transformation efforts were primarily aimed at evolving business models to drive growth. Today, a comprehensive approach to IT is crucial, and securing and retaining talented individuals who can implement meaningful improvements is essential. This shift recognises that technology is not just a support function but a strategic driver of business success. By integrating IT with business objectives, organisations can achieve sustainable growth and maintain a competitive edge.

As we look to the future, generative AI and other forms of artificial intelligence have become the 'go-to' investments, with many companies developing production-ready use cases. This trend will continue, with creativity in use cases flourishing in 2025. Although 49% of leaders anticipating AI to have a "major impact" may appear moderate, it is indeed significant. From my experience, implementing innovations usually requires 18 to 24 months, and many AI use cases are just entering into initial production. Leaders should manage their expectations realistically, while still recognising that the broader impact of AI will likely become increasingly evident over the next 24 to 36 months.

AI: the next electricity

We are at the dawn of the AI "S curve," a period where the potential of artificial intelligence is just beginning to unfold. Much like the industrial revolution, transformational technologies drive profound changes that seem obvious in hindsight. Businesses that resist or fail to embrace AI risk seeing their underlying business models become antiquated in a relatively short period.

The rapid pace of AI development means that staying ahead requires proactive adaptation and integration of these technologies. Companies that leverage AI effectively will be better positioned to meet evolving demands, enhance operational efficiency, and maintain a competitive edge in the marketplace.

Avoiding the traps of tech transformation

In today's rapidly evolving landscape, it's crucial for companies to avoid the pitfall of adopting technology for its own sake. Simply keeping pace with competitors, whether they are established giants or agile startups, is not enough. Leaders must adopt a strategic perspective when evaluating emerging technologies. It's not just about generative AI, digital assets, tokenisation, or even the future of quantum computing.

True strategic business transformation should be centred on enhancing the investor, client and consumer experience. This focus must transcend generational differences, aiming to set up all generations for success, regardless of where they are in their journey. The future experience of someone nearing the end of their career will naturally differ from that of someone just starting out. The challenge lies in meeting these diverse demands while creating a core experience that benefits everyone, yet remains flexible enough to allow for customisation.

Like us, many businesses and their executives have an opportunity to lead the way in revolutionising client experiences globally through the innovative use of technology and the dedication of their people. This commitment to enhancing client interactions is contributing to the heightened levels of competition we observe today. As a result, leaders are feeling the impact of this competitive landscape more acutely.

In this environment, distinguishing oneself has become increasingly challenging. However, by focusing on strategic innovation and leveraging the strengths of both technology and human talent, organisations can create unique value propositions that resonate with clients. This approach not only helps in standing out but also ensures long-term success and growth in a rapidly evolving market.

Embedding the transformation strategy with a transformative mindset

Every groundbreaking invention, including AI, began with a problem that needed solving. At Vanguard and Forvis Mazars, our leadership is dedicated to fostering innovation by encouraging our teams to develop new solutions for clients—solutions that anticipate needs even before they arise.

It's one thing to declare IT as a top strategic priority and to have a strategy in place; it's another to embed this priority throughout your organisation and prioritise client needs over hyped solutions. Both your employees and clients seek meaningful improvements through IT and emerging technologies. These advancements should not only enhance your ways of working but also scale your operations globally.

Jon Cambras is Head of Emerging Technology Research at Vanguard – one of the world’s most respected investment management companies.