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Hemant Taneja, managing director for a venture capital firm, and Kevin Maney, a Newsweek journalist, sound the death knell for economies of scale. To survive in the AI-powered marketplace, large firms must learn to “unscale,” they explain. This article – adapted from their book, Unscaled – provides a brief overview of three ways corporations can do so. Find out also how some big companies have unscaled well.

Take-Aways

  • Traditionally, investing in scale decreased your firm’s fixed costs and made it harder for competitors to follow you, but today’s companies save effort and cost by merely “renting scale” as needed. 
  • AI can learn about consumers and customize offerings, so mass production and mass marketing are fading.
  • Your large company can stay competitive by “unscaling” in three ways. First, consider transforming your company or aspects of it into a platform.

About the Authors

Hemant Taneja, with Kevin Maney, wrote Unscaled: How AI and a New Generation of Upstarts Are Creating the Economy of the Future.


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