What is The Law Of Diminishing Firms?
According to the so-called ‘Law of Diminishing Firms’, described in the management bestseller ‘Unleashing the Killer App. Digital strategies for market dominance’ by Larry Downes & Chunka Mui, publisd in 1998, the Law of Moore and the Law of Metcalfe have rapidly increased each other’s enforcement.
With an important impact on for instance how corporates have to be deorganized to survive the Covid-19 and how people with a company of one can start, grow and scale without becoming a large ‘fat’ and slow bureaucratic organization.
What is the Law Of Diminishing Firms?
The Law Of Diminishing Firms states that traditional large bureaucratic companies can become and should become smaller and smaller by using ICT and transform themselves with the right change strategy from a traditional large hierarchical organization into a virtual organization.
More: Breaking Down Bureaucracy What is the AI-model canvas? &
Large traditional companies have often high organizational costs including ageing and expensive technology infrastructure that keeps them from implementing new hardware, new software and new standards at the required speed of the developments across all elements of their new AI-powered organizational model.
As a first step, one of the best ways to reduce those unnecessary costs in their bottom-line is to design and implement hybrid working, online working at home, remote working and remote managing as a first step towards the virtual organization as organizational structure. Learn how to do that with this toolbox:
You can also implement AI-driven productivity hacks:
Contact me today.
If you want to learn how to define and implement the best change strategy and digitally transform and change your large traditional bureaucratic organization fast and just-in-time with the networked organization and the virtual organization as organizational structure using ICT including AI as part of your new AI-powered business model using the AI-model canvas, please do not hesitate to contact us for a video consultation or email us including the link to your company website and/or LinkedIn-page or profile:
