Early stage companies often lack a clear digital strategy and focus more on technology improvements than organizational transformation. Digitally mature companies use technology strategically to drive innovation and decision making. A successful digital transformation requires rethinking business models to capitalize on new capabilities, and fostering a collaborative culture open to innovation and risk taking. Leadership plays a key role in supporting digital teams and highlighting their relevance to the company's mission.

1. Digital Business
Transformation
Drivers for early stage companies

2. 1 DRIVERS FOR EARLY STAGE COMPANIES
Copyright © Marwan Mousfi . StandOUT 2015. All rights reserved.
Drivers for early stage companies
by
Marwan Mousfi

3. 2 DRIVERS FOR EARLY STAGE COMPANIES
Copyright © Marwan Mousfi . StandOUT 2015. All rights reserved.
What drives digital
business transformation
for early stage
companies ?
When I ask companies to assess their digital maturity by imagining how their
organisation might be transformed by digital technologies and capabilities, I
came to understand to what extent their level of digital maturity impacts the
success of the transformation they envisage. The key differentiators are really
about the business organisation and not the desired technologies. Those
deemed to be digitally mature are more likely to have a clear vision and a
clear strategy for process improvement and how to drive new value-
generating business models.
There are numerous examples of companies focusing on technologies
without investing in organizational capabilities that ensure their impact. Many
failed enterprise resource planning (ERP) are classic examples of expectations
falling short because organisations didn’t change mindsets and processes or
built cultures that fostered change.
Driving a Digital Business Transformation is no different. It is essential to
foster collaborative cultures that encourage innovations and, inevitably,
taking risks.

4. 3 DRIVERS FOR EARLY STAGE COMPANIES
Copyright © Marwan Mousfi . StandOUT 2015. All rights reserved.
MATURITY LEVELS
Invariably, early stage companies miss a clear digital strategy, their focus being the
improvement of customer experience, operational aspects of their business and
efficiencies. These are very viable objectives for any business, but their main focus
is more skewed towards technology rather than strategy. The essence of
transforming their business does not seem to be the main goal.
Digitally mature companies are more clearly using digital technologies to achieve
strategic ends. They aspire to better decision making and to drive innovation.
A STRATEGY THAT TRANSFORMS
By looking at technologies that existed some 10 years ago, we couldn’t have
possibly predicted the social phenomenon and increasingly improved analytics
that we are now witnessing. It is the rethinking of business and commerce that
drove those new capabilities forward, and as such, demand for new solutions have
stimulated those very same new capabilities.
There are certainly many challenges facing companies at the early stages of digital
transformation. The availability of the skills that are needed to help capitalise on
digital trends in addition to the ability to conceptualise the impact of what digital
technologies will have on the organisation as a whole.
Both the culture and leadership of a company are critical for strategies to succeed.

5. 4 DRIVERS FOR EARLY STAGE COMPANIES
Copyright © Marwan Mousfi . StandOUT 2015. All rights reserved.
TAKING RISKS
Risk takers like Amazon.com continue to have an outstanding business
transformation. In a meeting with members of the Amazon business development
team in 1999 in London, their focus was mainly the online bookstore and its
expansion. They are now the largest ecommerce site and providers of cloud
infrastructure services.
Today the cost of inaction far outweighs the cost of action. We need to bear in
mind that failure is a valid outcome, for instance, a too early introduction of a
technology could have been a valid cause for its failure.
LEADING THE DIGITAL TRANSFORMATION
A new role that I haven’t heard of until recently is that of Chief Listening Officer
(CLO). This is someone who listens to employees, identifies talent and is on the
lookout for new ideas within the organisation. So much knowledge that could
benefit the organisation escapes us, knowing “who knows what” and
acknowledging their existence is critical to our success.
Having a workforce that is digitally fluent is essential, however, executives don’t
have to be technically savvy. One can lead by example by supporting their digital
teams and get them involved in the company’s business plan highlighting their
relevance to its mission and its objectives.

6. 5 DRIVERS FOR EARLY STAGE COMPANIES
Copyright © Marwan Mousfi . StandOUT 2015. All rights reserved.
CONCLUDING NOTE
Many companies would have to change their cultural mindsets to be able to cross
that bridge by promoting collaboration and risk taking within their organisation.
They will have to eventually transform how their business works by having a
strategy, culture and leadership for change.