It was much easier to benefit from economies of scale in the past than it is the fast-changing digital world that we live in now. It looks cheaper to mass-produce in one country, but often only in a spreadsheet. In reality, that is not working anymore.
And why is that you ask?
In the past, being big was an advantage in terms of costs. But today, smaller and agile companies are at a better place to succeed because of the accelerated speed of change. But also because, the access to new technologies is so much easier.
When you are large organization, try to segment your organization into small independent units and to reduce as much interdependencies as possible. This will often mean moving away from a functional organizational structure and embracing cross-functional teams.
No, you can still choose that strategy in these cases:
Do not try to build big corporations anymore to avoid diseconomies of scale. But if you have a big company, build mini corporations within it!
You cannot miss this exciting episode. Here’s the preview of what awaits you:
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