This article discusses the challenges that arise when a company scales up its operations. One of the main points made is that rare events become common at scale. For example, even with an average of one fatal server failure every three years, a company with 1,000 servers will experience a fatal error on a daily basis. Along with server failures, other incidents such as degraded performance or DDoS attacks also increase in frequency. Managing these problems becomes more complex as the number of customers and employees grows. While automation can help in some areas, there are still aspects that require human intervention, such as customer support and social media management. Ultimately, high-scale companies must constantly improve on all fronts to avoid being overtaken by the challenges that come with growth.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Scale causes rare events to become common | Increase in frequency of rare events | Increased automation and improved processes | Scaling up of operations and customer base |
| Handling problems with customers and downstream consequences becomes more challenging | Increased customer support workload and negative customer experiences | Improved automation and customer support processes | Increased customer base and rare event occurrences |
| Need for constant improvement on all fronts at high-scale companies | Continuous improvement and staying ahead of scale | Streamlined processes and advanced technologies | Growth and competition in the market |
| Underestimating the costs and resources required for growth | Misalignment between projected growth and necessary resources | Ugly surprises and difficulties in scaling operations | Lack of foresight and planning for growth |