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by marcosdumay
192 days ago
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As a rule, organizations are created to avoid the transaction costs on those detail tasks. If you externalize every single supporting task into a market, you will be slowed down to a drag, won't be able to use most competitive advantages, and will pay way more than doing them in house. But removing the market competition is a breeding ground for inefficiency. So there's a balance there, and huge conglomerates tying their divisions together serves only to make the competitive ones die by the need to use the services of the inefficient ones. |
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Don’t spend energy on undifferentiated heavy lifting. If you are Dropbox it makes sense to move away from S3 for instance.