Digital Scalability and Growth Options of Intangible Assets
34 Pages Posted: 7 Mar 2020
Date Written: February 28, 2019
Scalability indicates the ability of a process, network, or system to handle a growing amount of work. Scalability fosters economic marginality, especially in intangible-driven businesses where variable costs are typically negligible. Massive volumes may offset low margins, producing economic gains. Digitalization is defined as the concept of “going paperless”, the technical process of transforming analog information or physical products into digital form. Digital scalability operates in a web context, where networked agents interact to generate co-created value. Economic and financial margins that represent a primary parameter for valuation are boosted by cost savings and scalable increases of expected revenues. Digitalized intangibles synergistically interact through networked platforms that reshape traditional supply chains.
Keywords: eCommerce, eProcurement, Externalities, On-demand Economy, Learning Curves, Outsourcing, Tracking, Geolocalization, CAPEX, OPEX, Fixed Costs, Variable Costs, Break-even Point, Liquidity, EBITDA, EBIT, Blitzscaling, Digital Supply Chain, Real Options, Networks
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