At Ghyston’s recent Tech Leaders’ Roundtable, we heard from industry leaders on how innovation shaped their businesses in 2024 and what challenges lie ahead in 2025. The discussion highlighted a mix of optimism, execution struggles, and the ever-present balancing act between stability and progress.
2024: A Year of Innovation and AI Adoption
On average, attendees rated their company’s innovation efforts a solid 7 out of 10 in 2024, with more than half scoring themselves an 8 or above. Key themes that emerged included:
- AI and Product Development – Many businesses successfully integrated AI into their workflows, optimising operations and enhancing customer experiences.
- Customer-First Innovation – While companies delivered cutting-edge solutions externally, internal innovation often took a back seat due to capacity constraints.
2025: A Year of Execution?
Despite a strong year, the outlook for 2025 is more cautious, with the average innovation score dipping to 6. This suggests a shift towards executing the ambitious ideas generated last year rather than focusing on new explorations. But what are the key barriers that CTOs and tech leaders need to overcome?
Key Challenges Facing CTOs in 2025
1. Remote Working: Communication and Training Gaps
The rise of hybrid and remote work models has reduced spontaneous knowledge sharing, such as ‘watercooler moments’ and informal whiteboarding sessions. Additionally, junior employees are missing out on vital hands-on learning opportunities as AI increasingly takes on tasks that would have traditionally built their experience. Leaders need to be more intentional about mentorship and in-person collaboration to bridge this gap.
2. Recruitment, Retention, and Changing Role Expectations
- Evolving job responsibilities, particularly in areas like Business Analysis vs Product Management, are making retention more challenging.
- Candidates often have differing expectations about their roles, leading to misalignment and hiring difficulties.
- Knowledge drain, driven by higher turnover, continues to be a major blocker for innovation.
3. Internal Knowledge Gaps and Adoption of Emerging Tech
- While AI and other emerging technologies are more accessible, many employees still struggle to understand their practical applications.
- A structured approach to innovation—where employees define a problem and present solutions rather than simply requesting new tools—can improve adoption and effectiveness.
- Training initiatives must be prioritised to ensure teams understand and leverage new technology effectively.
4. Regulation and Compliance Complexity
Frequent changes in industry regulations can hinder innovation, particularly in highly regulated sectors like finance and aviation. Navigating compliance while driving technological change remains a key challenge.
5. Legacy Systems and Technical Debt
Many businesses face a difficult question: is updating a legacy system truly innovation, or just a necessity? While modernising tech stacks can enable future innovation, it can also feel like a resource drain when weighed against more exciting advancements.
6. Competing Priorities and Team Misalignment
- Different teams often have conflicting motivations—whether it’s solving problems for long-term business success or chasing recognition and promotion.
- Without clear communication, duplicated efforts across teams can waste valuable resources that could be used for genuine innovation.
7. Innovation as a Marketing Buzzword
Some businesses leverage partnerships and flashy tech initiatives to project an innovative culture without true depth. Others fall into the trap of adopting technology for its novelty rather than its strategic value. Ensuring innovation is purposeful rather than performative is crucial.
8. Balancing Stability with Innovation
Innovation is exciting, but it should not come at the cost of business-as-usual operations. Leaders must ensure that stability and customer delivery remain a priority while carving out dedicated time and resources for innovation—whether through quarterly goals or structured innovation days, like those at Ghyston.
Looking Ahead: The 2025 Playbook for CTOs
Despite these challenges, 2025 presents an opportunity for CTOs to focus on structured execution, ensuring that last year’s innovations translate into tangible business impact.
Key strategies for success:
- Invest in Internal Training – Close knowledge gaps and ensure teams fully understand new technologies.
- Create a Structured Innovation Framework – Encourage employees to define problems before proposing solutions.
- Reinforce Collaboration Across Teams – Prevent silos and duplicated efforts by fostering better communication and alignment.
- Balance Stability with Change – Maintain business continuity while setting aside dedicated time for innovation.
CTOs who navigate these challenges effectively will not only maintain momentum but position their organisations for sustainable innovation in the years to come.
How is your organisation approaching innovation in 2025? Let’s continue the conversation.
