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Why bigger isn't better - Tech Tonic

Thursday, March 28, 2013 - 03:56

The benefits of being the largest firm or a member of the biggest political dynasty are overstated. In fact, being big has become a detriment, says Nicco Mele, author of ''The End of Big.'' Mele says smaller, more nimble outfits are now the ones to watch.

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Scale what's all of this summoned to be aspire to that brought advantages of incumbency and anomaly. And I'm not sure how much that -- -- I'm here when he killed nearly the author of the end of big -- -- and it makes -- and you Goliath. He -- thanks for joining us my pleasure thanks him. It's about how. In insurgent players. And a very small scale can come in and take over big companies tells a little bit more about that. That's right -- art technology. Fundamentally empowers individuals. In 1969. Cray supercomputer. Would you feel the auditorium. Cost five million box and was -- accessible and affordable to most to most Americans. About two thirds of Americans walk around with a Smartphone in their pocket. As that is generally more powerful than act Cray supercomputer. So over the last 35 years there's been this enormous transfer of power really from big institutional expensive computing. To everybody in that had dramatic implications. For all of the institutions of our life from government in newspapers and political parties to universities -- manufacturing company. Now you say that there are certain companies that today are the new establishment. Facebook's one on the Apple's another. What are some of the other its establishment companies and why are they going to exist longer than the companies in the past were being -- kind of crumbled. Sure there's six even bigger I'd call them the company is the institute in new institutions the future's being built on. FaceBook Google apple Amazon Microsoft and -- But even among them there's a lot of they're they're they're much more fragile than they appear most of the companies I named -- in that hole. You most of them are heavily in profitability margins or otherwise are considered under a lot of competitive threat. The possibilities unleashed by this dramatic explosion of computing power and connectivity the nature of the Internet. Really level the playing field for pretty much any large organization. Creates creates a lot of challenges for competitiveness. You saying it tastes these small. Certain players. They don't need to get bigger or they can get to the same scale as he's -- but it's more that in the past -- scale almost all of us something to be aspire to. That brought advantages of incumbency a monopoly. And I'm not sure how much that holds true anymore the future big box retailing in a major on the man fabrication in 3-D printing. It's pretty it's pretty challenging to imagine. I I I printed my iPhone case and 3-D program. Right just to see I'm I'm trying to -- -- improve my I have two little boys who like improve their shoes are a 3-D burner. And so. Gut that collapses the advantages of scale to history. The economy in the last 1520 years. Is about a move to more more -- operators or fairly small companies being very competitive and nimble and frequently lucrative. Almost every audience I speak to -- some how significant portion audience has been a solo consultant at some point in their career. And many of them stay that way is it a future of mostly a free society if it's there it's a future to -- -- water small pieces loosely joined. That's that's the future work that's probably the future government. That's probably the you know we have to rethink national security in that vein we will hole we have to -- news in that vein is a whole bunch of stuff. We have to reconfigure away from. Large hierarchical centralized distribution of power and and and economic activity. Two dispersed. Network approach.

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Why bigger isn't better - Tech Tonic

Thursday, March 28, 2013 - 03:56

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