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Need for Scale in mTransactions: Even McDonalds and NYC MTA Have Challenges My Research Items

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Status: Available for download
Publish date: 11 Apr, 2016
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The faith in the technology, as in it will perform exactly the way it is touted, every single time and under all circumstances. The faith in its availability, as in it will perform exactly the way it is touted, once lots of people start using it, under all circumstances, and at the same time. The faith in its redundancy, as in it will perform exactly the way it is touted, once lots of people start using it, under all circumstances, at the same time, when something beyond its control goes wrong, and its backup kicks in seamlessly, without making the switch obvious to the end user in any way.

The issues related to scaling new technology, specifically in terms of stress testing its availability and redundancy, are very well known to entities that successfully operate such products and services at scale. While this is a tried and tested field, and hence has proven tools and methodologies that can be leveraged, the factors that typically trip up most providers can eventually be traced back to user behavior. What the inventor would classify as an outlier or erratic behavior in a lighthouse customer may turn out to be its Achilles heel.

For every new idea that holds up on the technology front as it is systematically scaled, just a fraction successfully figure out the business model test, and an even smaller fraction survive the arduous journey of commercial sustainability. For the very select few that are still standing at the end of these two rounds, given their mass­market appeal they now qualify to face a very different opponent.

The Strategic Insight on Challenges of Scale gives an overview of issues related to scaling new technology and talk about various challenges with real life examples.


This strategic insight is authored by Mehul Desai. His latest book, August of Money – The Quest for Cashless Society, is being published by LTP and is the source for this insight.


Note: Strategic Insights are long form articles written by MEDICI analysts about a specific FinTech topic, trend, region, and news category or industry segment. Insights are collected via direct interaction and dialogue with industry players and thought leaders. Strategic insights can be integrated with the related Segment Snapshot, Research Report or Infographic for a more detailed analysis.