Manage GRANULARITYReduce customer access costs (travel, waiting time) by placing outlets closer to people.De-risk: Use cell phones to reduce set-up cost per outlet. Make ongoing costs variable by paying agent commissions per transaction.Drive minimum agent profitability in the face of small local customer bases by meeting the broader payments needs of the community.Manage NETWORK SCALE EFFECTSSupply side: Exploit large fixed/low variable cost structure by driving volume. Volume reduces unit cost per transaction.Demand side: The value for an individual of being part of the network increases as the number of network end-points increases. Number of users drives customer’s willingness to pay per transaction.Manage COMPLEXITYThere is constant tension between the need to maximize:Economies of scale: exploiting fixed-cost nature of software platformsEconomies of scope: offering multiple & evolving products to maximize customer relevance & valueSimple cost allocation rules can make lower value customers appear unprofitable.Exception handling is costly.
Manage GRANULARITYReduce customer access costs (travel, waiting time) by placing outlets closer to people.De-risk: Use cell phones to reduce set-up cost per outlet. Make ongoing costs variable by paying agent commissions per transaction.Drive minimum agent profitability in the face of small local customer bases by meeting the broader payments needs of the community.Manage NETWORK SCALE EFFECTSSupply side: Exploit large fixed/low variable cost structure by driving volume. Volume reduces unit cost per transaction.Demand side: The value for an individual of being part of the network increases as the number of network end-points increases. Number of users drives customer’s willingness to pay per transaction.Manage COMPLEXITYThere is constant tension between the need to maximize:Economies of scale: exploiting fixed-cost nature of software platformsEconomies of scope: offering multiple & evolving products to maximize customer relevance & valueSimple cost allocation rules can make lower value customers appear unprofitable.Exception handling is costly.
Manage GRANULARITYReduce customer access costs (travel, waiting time) by placing outlets closer to people.De-risk: Use cell phones to reduce set-up cost per outlet. Make ongoing costs variable by paying agent commissions per transaction.Drive minimum agent profitability in the face of small local customer bases by meeting the broader payments needs of the community.Manage NETWORK SCALE EFFECTSSupply side: Exploit large fixed/low variable cost structure by driving volume. Volume reduces unit cost per transaction.Demand side: The value for an individual of being part of the network increases as the number of network end-points increases. Number of users drives customer’s willingness to pay per transaction.Manage COMPLEXITYThere is constant tension between the need to maximize:Economies of scale: exploiting fixed-cost nature of software platformsEconomies of scope: offering multiple & evolving products to maximize customer relevance & valueSimple cost allocation rules can make lower value customers appear unprofitable.Exception handling is costly.
Manage GRANULARITYReduce customer access costs (travel, waiting time) by placing outlets closer to people.De-risk: Use cell phones to reduce set-up cost per outlet. Make ongoing costs variable by paying agent commissions per transaction.Drive minimum agent profitability in the face of small local customer bases by meeting the broader payments needs of the community.Manage NETWORK SCALE EFFECTSSupply side: Exploit large fixed/low variable cost structure by driving volume. Volume reduces unit cost per transaction.Demand side: The value for an individual of being part of the network increases as the number of network end-points increases. Number of users drives customer’s willingness to pay per transaction.Manage COMPLEXITYThere is constant tension between the need to maximize:Economies of scale: exploiting fixed-cost nature of software platformsEconomies of scope: offering multiple & evolving products to maximize customer relevance & valueSimple cost allocation rules can make lower value customers appear unprofitable.Exception handling is costly.