Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Friday, March 11, 2005

Distributed Economies of Scale

Just occurred to me that a measure of distributedness would be an extremely useful analytical tool. By that I mean we quantify, for example, capital intensity to refer the level of capital necessary to produce a given unit of output. This lets us classify and analyse industries and firms with different economics nicely.

A similar measure of distributedness - capital distributedness - would also be very useful, because it would measure the relative power of the distributed scale economy an open access business model has. This is not the same as simple network size, because it's a ratio of distribution to output - there are two variables involved.

-- umair // 2:10 PM // 0 comments


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