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Why Scaling Up Is No Longer the Only Strategy - Ideas for Leaders

Why Scaling Up Is No Longer the Only Strategy

Idea #107

Why Scaling Up Is No Longer the Only Strategy

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KEY CONCEPT

Traditionally, industrial production has moved in only one direction: from small to large. ‘Scaling up’ was the best way to maximize productivity and lower per-unit costs. A fleet of 100 ten-ton dump trucks requires more drivers than a fleet of 10 hundred-ton dump trucks. But automation and communication technology has evolved to the point where a large number of small units may be cheaper, better and more efficient than a small number of large units.


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Idea conceived

October 1, 2012

Idea posted

Mar 2013
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