The New Economics of Disaggregation and Scale
Traditional economics is based on accumulation, aggregation, and concentration to create scale and market power. The Ford Model-T business model is about demand aggregation by offering a single, mass produced car model at a very low cost. Today, the manufacturing industry is moving in the opposite direction—away from uniform standardization for low cost mass production and toward mass customization at a scale achieved through deep analytics for product personalization. Adidas has pioneered a new analytical craftsmanship that allows for the mass production of ergonomically personalized sneakers that we will discuss in Part II of this book.
The Hilton hotel chain is an example of growth through ...
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