In today's business world, selling products and services is being replaced with creating a complete experience for consumers. Rather than look toward traditional methods of getting ideas from concept to creation, innovative methods are being used, such as crowdfunding, crowdsourcing and online communities. These new methods are being used to do everything from funding new concepts to promoting them. With the extended use of cloud computing, business growth strategies will have to change to take advantage of network based options. Transformative scale, also known as scaling, is a concept that may be the future of business growth and strategy.
Transformative scaling is a method that allows businesses to close the gap between what they have already achieved and what must still be accomplished to continue growing the business. It allows businesses to grow without requiring the addition of significant resources. In other words, it allows a company to reach twice the customers without adding double the resources necessary to reach achieve those goals.
Distribution Through Existing Platforms
One way that scaling strategies work is by distributing products and services through existing platforms. An existing network or platform may be able to replicate a product or service. This is especially helpful for non-profit programs who are already limited in regard to resources, but want to reach as many of those who would benefit from the program as possible. A small non-profit may be able to piggyback on an existing network, especially with the availability of cloud computing to get their message to a wider audience than they could otherwise.
Scaling Portions with Greatest Impact
Another factor that may gain more usage in the future is scaling portions of a program, product or service that will create the greatest impact. In some cases, businesses can identify essential components that provide the best results but require only a fraction of the cost to replicate than the entire product or service. It is important, however, to be sure that the partial program, product or service, which may be offered at lower cost, actually works and will create an impact similar to what the complete package may offer.
Technology and Scaling
Technology is a critical to the future of scaling and strategy. Cloud computing allows for shared programs and files so that consumers are able to access information from anywhere in the world. The explosion of mobile technology also opens up possibilities for scaling. Apps can be created for mobile phones and tablets so that information can be accessed while people are on the go, further expanding the reach of businesses who wish to grow their business but are unable to add additional resources immediately.
Non-Profits and For-Profits Working Together
Non-profits are often looking for businesses that operate for-profit as part of their scaling strategy. This is beneficial to both types of businesses as for-profit businesses are able to give back to the community by allowing non-profits to tap into their infrastructure and resources in order to get an important message delivered, while the non-profits benefit from the additional resources provided to them by the for-profit company. Market-based approaches to social problems have proven successful over the years. Non-profits must carefully choose the for-profit business they want to partner with just as the for-profit company must be careful in what cause they choose to support as well.
It is sometimes difficult for many business owners to understand that they can grow their business without expending the money for additional resources as scaling goes against most business teachings. If a product becomes immensely popular, the natural reaction is to increase production, which means additional expenses. However, it is possible to increase production and actually lower the cost to produce that item by using a transformative scaling strategy.
Scaling and strategy will change over the next few years as technology continues to improve and more companies realize the benefits of cloud computing, crowdsourcing, crowd funding and online communities. As companies begin to leverage these innovative methods for growing their business, changes will be necessary to capitalize on better ways to increase profits but not increase resources significantly. This will allow the growth of business in ways that had never been considered before.