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Why Scalability Matters In Service Business?

Apr 5, 2016 2:24:11 PM

What is Scalability?

Scalability. It is one of the key buzzwords of our times. You want to make an impression in a business model strategy meeting? Ask the magic question “is this scalable”?

But did you truly consider what it means?

I see scalability being:
  • Ability to rapidly grow your business – in current or new market areas
  • Ability to do things more profitably - every new Euro you sell leaves you more profit than the previous one did
  • Ability to cope with changes in sales volume – also in downturns
  • These things are common challenges in every manufacturing organization. What is the right investment strategy, what is my capacity, how can I streamline my supply chain?

Scalability in Action

What if we take the concept of scalability to service business? Many service businesses are dealing with immaterial deliveries, produced by automated infrastructures. The deliveries – and especially tailored combinations of deliverables – have created a new type of back-office operation. This service management function is challenged with matching the unique combinations of deliverables – customer specific pricing and contract conditions.

This challenge is tackled by clever and organized service managers and assistants who collect and interpret data and perform functions like billing with high attention to detail.

Building such teams – in my opinion – is not scalable. It does not correlate positively to any of the three areas of scalability. In this service economy you need new type of automation and information systems.

If we take billing as an example – harness automation and you do not have to build teams after teams when your business grows. You may enter a new market area concentrating on sales. And in case of a failed entry, or downturn – you did not accumulate fixed costs, leading the need to downscale.

How can this be achieved? Good Sign provides you with ultimate automation.

With Good Sign you can automate a vast variety of functions without the need to build additional capacity. And our business model is such that You do not need to invest into technology. We offer our software with a model tied to the business volumes. This means that with us you exploit automation at cost that follows your business volumes. It scales.

 

Want to learn more? Contact us, and have a chat with our experts on how to improve your business!

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Janne Kivilaakso
Written by Janne Kivilaakso

VP of Solution Consulting Janne writes about business monetization, process automation, service business, industrial Internet, digitalization and business IT.

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