UNBUNDLING THE FINTECH GROWTH STORY
By Dr.Deepa Venugopal Last week, I was reading through innovations & rapid growth happening in Fintech and accidentally hit upon the Article in HBR written way back in 1999 by John Hager and Marc Singer – it was titled “Unbundling the Corporation”. This article throws light on the fact why many traditional (powerful) companies could not sustain their growth trajectory by doing all the jobs in the value chain themselves, and how small companies in highly specialized business thrived and unlocked the business potential and became game-changers. So, what is it that slows the pace of behemoth growth as the years pass by? Hager and Singer explain that Interaction cost is the villain. Interaction cost refers to the money and time expended whenever people exchange goods, services, and Ideas (Hager& Singer1999). Keeping the interaction cost small will make organizations nimble. This helps in better organizing the business and maintaining a strong relationship with customers. The a...