1. Good to Great Ch. 6 Technology Accelerators
Presented by Bunny, Bri, Mason & Dezavier 1

2. Introduction Drugstore.com- first online pharmacy
Internet began to revolutionize online business
Walgreens (small local drug store) was challenged by internet
Walgreens took steps of crawl, walk, run to compete with other good companies
Crawl- Experimenting with websites to match their business ethic
Walk- Online prescriptions, using the internet to increase business
Run- easy access, easy web site use 2

3. Technology and the Hedgehog Concept
Great companies adapt to all changes
Great companies do not adapt technology in fear of falling behind others, but as a tool to accelerate momentum after hitting breakthrough.
Tie technology directly to Hedgehog concept
It’s not all about the technology used but how it’s carefully applied and selected for each company
Example: Kroger’s early application of bar code scanners helped it accelerate past good companies by managing inventory through technology. 3

4. Technology Accelerators in the Good-to-Great Companies
Technology accelerators linked to Hedgehog concept:
Gillette: Application of sophisticated manufacturing technology to make high quality products at low costs.
Kroger: application of computer and information technology to modernize stores.
Walgreens: Application of satellite communication and computer network technology, leading to the convenience of drugstores.
Wells Fargo: Application of internet and electronic banking to distribute profit for employees and convenience users. 4

5. Technology as an Accelerator, Not a Creator, of Momentum
Following principle of “who”, meaning getting the right people on board to update technology
Good companies never begin their transition to great companies with technology because you cannot make good use of technology until you know what’s relevant to that company.
If technology directly fits your hedgehog concept then you need to get involved in the application of that technology.
Technology alone cannot sustain great results.
Technology without a clear hedgehog concept, and without the discipline to stay within the company’s concept, cannot make a great company. 5

6. The Technology Trap
80 percent of good-to-great companies didn’t list technology as one of the top factors in the transition of good to great.
As a counter argument Collins lists more important factors in making a good company great
“Twenty percent of our success is the new that we embrace… but eighty percent of our success is in the culture of our company.”
It is about getting the right people for important management positions and following the Hedgehog concept 6

7. Technology and the Fear of Being Left Behind
Idea that technology alone doesn’t make a company go from good to great
Separated by response with technology of HOW to use it
No technology can turn the wrong people to right
Main idea: stress the point of great technology but how it is not the only factor in shaping a business
Companies that stay true to their fundamentals and keep their balance, even with changes reach their breakthrough 7

8. Summary Good to great companies think different about technology
Good to great companies avoid unnecessary technology, only applying carefully selected technologies.
Have the technology fit with the hedgehog concept
Use technology as an accelerator to success, not a creator of it. 8