Every morning, it seems like I wake up to a fresh spam request on LinkedIn. Usually, it’s accompanied by a message like, “I’m just trying to grow my network.” Upon acceptance, however, it quickly turns into a barrage of copied and pasted paragraphs explaining their product—the “real” reason behind the connection request.
Whether you’ve been in business for seven minutes or seventeen years, chances are you’ll feel the innate human fear of being “left behind” by emerging technologies. Consider these examples: the internet, websites, text capabilities, artificial intelligence, NFTs, virtual reality, friend adder applications, CRMs, and more.
The allure of new technology often tempts organizations to chase the latest trends, hoping for a magical transformation in their teams, efficiency, work, and results. Yet, history and research suggest that a more measured approach to emerging tech is the winning strategy. As Jim Collins insightfully points out in his bestselling book “Good to Great,” “No technology, no matter how amazing—not computers, not telecommunications, not robotics, not the internet—can by itself ignite a shift from good to great.”
The Case of Walgreens vs. Drugstore.com
A compelling example of this principle is the story of Walgreens and Drugstore.com. During the dot-com boom, Drugstore.com soared past Walgreens in market valuation by a significant margin, driven by the frenzy of online retail. Walgreens, in contrast, maintained a slow and steady approach, integrating the internet into their company’s methodical and focused core values.
Collins studied this case and documented his findings in 2001. At that time, Walgreens had just released its website (two years after the dot-com scare), and it was quickly recognized as reliable and well-thought-out as Amazon.com (the reigning champion of e-commerce at that time – not much has changed, right?).
A decade after his writings, in 2011, Walgreens acquired Drugstore.com, and by 2016 they had shut it down, directing customers to Walgreens’ online platform. Their slow and measured strategic move highlights that a disciplined approach can ultimately prevail.
Technology is an Accelerator, Not a Creator
The role of technology in business transformation is not about being the catalyst for greatness, but rather serving as an accelerator for existing momentum. The crucial question is not simply what technology can do for you, but how your organization can think differently about emerging technology. Great companies use technology to enhance their core strengths, not to define them.
When technology aligns with your strategic plan, pioneering its application can be beneficial. However, if it does not fit, the necessity of adopting new tech should be questioned. You do not need the most advanced or newest application, software, or system to excel in business. Mediocrity in business stems primarily from the failure of management, not the failure of tech.
A Balanced Perspective on Technology
The best companies maintain a balanced perspective on technology, avoiding the reactionary behavior often seen in business today. Whether it’s the internet, NFTs, your company’s Instagram, LinkedIn, the metaverse, or ChatGPT, top-performing companies resist the urge to jump on every new trend in fear of being left behind.
Here are a few things to consider about the limitations of technology:
- No technology by itself can magically make you a market leader.
- No technology by itself can magically turn the wrong staff into the right ones.
- No technology by itself can magically fix your company culture.
- No technology by itself can magically turn you into a better leader.
The fear of being left behind often motivates companies to over-invest in technology. Technology is an enabler, not a driver, of success. If you don’t have a plan for it or think you can just wing it and let the system do its thing, you are mistaken.
When you receive those email messages promising insane results because they’ve tapped into the best algorithm on YouTube or TikTok…
When you receive those phone calls from sales representatives telling you their new widget will increase your bottom line or that you have to invest with them for a year before you’ll see any results…
When you receive those LinkedIn messages promising to increase revenue without wasting your precious resources, simply by using their new application…
No technology can replace the fundamentals of good business strategy, strong leadership, and a well-defined plan.