This article is an excerpt from the Shortform summary of "Good to Great" by Jim Collins. Shortform has the world's best summaries of books you should be reading.
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Should the role of technology in business be large or minimal? Good-to-great companies engage with groundbreaking technologies in a very specific way: Rather than bet the house on the technology itself, they think deeply about how the use of technology in business can serve the company’s Hedgehog Concept.
We’ll cover the surprising statistics that say that the best businesses don’t list technology as a key factor in their success. Learn the best role of technology in business, from Jim Collins’s Good to Great.
Originally Published: December 28, 2019
Last Updated: January 20, 2026
Top-Line Takeaways: Role of Technology in Business
- Good–to-great companies don’t use technology to create growth but to accelerate it. Their breakthroughs are born of the yeoman’s work of developing a Hedgehog Concept, not diving headlong into the latest fad technology.
- Mediocre companies fear being left behind, driving them to adopt new technology as a reflex without methodical thought. But research suggests the use of technology in business is usually not the root cause of rise or decline – it’s merely an accelerant on what the company is already doing.
- A good rule of thumb is “crawl, walk, run”—slow down and think about how the use of technology in business can help you realize your Hedgehog Concept, then move carefully toward a strategy. Once the strategy is in place and chugging along, however, don’t be afraid to step on the gas.
Using Technology Tactically
The sixth principle behind good-to-great companies is that they engage with groundbreaking technologies in a very specific way. Rather than betting the house on the technology itself, they think deeply about how the technology can serve the company’s Hedgehog Concept. In other words, good-to-great companies don’t use technology to create growth but to accelerate it. In contrast, other companies fear being left behind, so they adopt new technology as a reflex without methodical thought.
(Shortform note: This principle is even more relevant in the age of artificial intelligence (AI). Many companies are rushing to adopt it, but research shows that 95% of AI projects don’t deliver real results. The problem isn’t the technology itself—it’s how it’s used. Affirming Collins’s ideas, experts say that AI only works when it’s woven into everyday workflows, when different departments are on the same page, and when the company culture supports it. The companies that succeed are those that understand the real problem before picking a tool to use. AI—and other new technologies—can boost what’s already working, but if a company hasn’t laid the groundwork to properly use the tool, AI only amplifies dysfunction.)
How to Achieve It
Collins says that when evaluating a new technology, the key question to ask is: Does this technology impact my Hedgehog Concept? If it doesn’t, you can safely ignore it and/or adopt it just enough to keep pace. If it does support your Hedgehog Concept, you must figure out how you can lead in the application of that technology.
(Shortform note: Collins advises you to evaluate how technology will impact your Hedgehog Concept, but it can be difficult to get a full picture because new technology comes with many unknowns—mainly whether its benefits will outweigh the costs. Experts thus advise gathering information and experimenting incrementally, so you can learn about a technology’s value before fully committing while also staying flexible enough to adjust your approach as uncertainty resolves. Collins and Hansen recommend a similar approach in Great by Choice: Fire “bullets” before “cannonballs”—conduct experiments that don’t cost much and that have minimal consequences, then only pursue the projects that show the greatest potential.)
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Here's what you'll find in our full Good to Great summary :
- The 3 key attributes of Great companies
- Why it's better to focus on your one core strength than get spread thin
- How to build a virtuous cycle, or flywheel effect, in your business
