Matthew Tawfiq, Jacqueline Henderson, Richard Alven, Paul Bresino Strategic Management 4380- 092

Chapter 7: Technology Accelerators

vs. 1999 Drugstore.com becomes one of the first internet pharmacies and sold shares to the public Idea was “ It’s the great internet landgrab: Be there, be there fast, build market share- no matter how expensive-and you win.

vs. As Drugstore.com’s stocks multiplied, Walgreens stock price dropped Walgreens was not shaken because they have been able to adapt before The company did not just react to the technology but stopped to think about how they can apply this technology.

Walgreen’s Formula to Launching a Website Crawl- Experimentation with a website Walk- Began to look for ways to tie the internet to inventory and distribution model Run- Full launch of website

vs. As Walgreens went from crawl to walk to run, drugstore.com went from run to walk to crawl. Companies do not become great because of great technology, but rather it becomes great when the company figures out how to apply technology to a coherent concept.

Technology and the Hedgehog Concept Great companies have adapted and endured. The best ones will adapt again. Technologay-induced change is nothing new. It is not about what the role of technology but rather how do good to great companies think differently about technology.

Tech as an Accelerator of Momentum When used correctly technology becomes an accelerator of momentum. The company should ask the question, does the technology fit directly with our Hedgehog Concept? If yes, then the company should be a pioneer of the technology, and if not, then ask if the they need the technology at all? Momentum

The Technology Trap Great companies gain a deep understanding of the technology before it is applied. The good companies have used technology as an easy solution. Nucor

The Technology Trap cont. Without an understanding of how it links to coherent concept, technology can accelerate self-created demise (Bethlehem Steel) Technology cannot turn a good enterprise into a great one, nor by itself prevent disaster Technology + Understanding = Disaster

Fear of Being Left Behind Those who build and perpetuate mediocrity are motivated more by the fear of being left behind The good to great companies by deep creative urge and compulsion for excellence

Fear of Being Left Behind No amount of technology can turn the wrong people into the right ones, or supplant the need for a deep understanding of the three circles and the Hedgehog Concept. The great companies stays true to their fundamentals and maintain their balance even during times of disruption

The End You look like you’re trying to use technology for your business would you like some help?