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Scalability is the property of a system to handle a growing amount of work. One definition for software systems specifies that this may be done by adding resources to the system. [1] In an economic context, a scalable business model implies that a company can increase sales given increased resources. For example, a package delivery system is ...
The economic concept dates back to Adam Smith and the idea of obtaining larger production returns through the use of division of labor. [2] Diseconomies of scale are the opposite. Economies of scale often have limits, such as passing the optimum design point where costs per additional unit begin to increase.
In economics, the concept of returns to scale arises in the context of a firm's production function.It explains the long-run linkage of increase in output (production) relative to associated increases in the inputs (factors of production).
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
The potential of a production system to undergo this process is called its "scalability". Scaling is regarded the last step after the discovery, proof of concept and piloting of an innovation. In business it is often used as maximizing operational scale of the product. [ 1 ]
A scaleup company or just scaleup is a company that already has a profitable and scalable business model and grows above 20% in either turnover or number of employees over a three-year period. [1] A scaleup can be identified as being in the "growth phase" life-cycle in the Millers and Friesen life cycle theorem , [ 2 ] or the "Direction phase ...
Economies of scope is an economic theory stating that average total cost (ATC) of production decrease as a result of increasing the number of different goods produced. [2] For example, a gas station primarily sells gasoline, but can sell soda, milk, baked goods, etc. and thus achieve economies of scope since with the same facility, each new ...
Database scalability is the ability of a database to handle changing demands by adding/removing resources. Databases use a host of techniques to cope. [ 1 ] According to Marc Brooker: "a system is scalable in the range where marginal cost of additional workload is nearly constant."