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Innovation: Deep versus Shallow Technology
Technology innovation at enterprise companies comes in two varieties: “deep tech” and “shallow tech”. Companies doing “deep tech” are adopting advanced new technologies like AI and robotics, while companies doing “shallow tech” are much more risk-averse and approach technology innovation via small incremental changes.
Shallow tech innovations are things that are easy to do, and either competitors are already doing those things or they are things that competitors can easily copy. Deep tech investment innovations are things that are new, hard to do, and have the potential to be disruptive in the marketplace. Deep technology has significantly more risk but also comes with significant potential upside.
Joshua Siegel, assistant professor at Michigan State University, and, François Candelon, senior partner at BCG, said that “deep technology was impossible yesterday, hardly feasible today, and may soon become so pervasive and influential that life without it will be hard to remember. The future likely belongs to companies that not only follow Deep Tech but invest in its development and drive adoption by engaging in ecosystems, forcing competitors to play a losing catch-up strategy.”
