In this podcast, members of ThoughtWorks Digital Scale-up Studio discuss managing cost efficiency at scale-ups. They explore operational cost efficiencies, managing cost efficiency when scaling, cultural changes for developers, and tying together cost and efficiency with platform thinking.
Cost optimization should be prioritized during different stages of a scale-up's growth.
Collaboration between finance, product, and architectural teams is crucial for informed cost optimization decisions.
Deep dives
The Creation of the Digital Scale-up Studio
The ThoughtWorks Technology podcast episode features a discussion about the creation of the Digital Scale-up Studio, a formalized unit focused on partnering with startups and scale-ups to help them grow. The studio aims to codify patterns and lessons learned to better support these organizations. The hosts share their experience in working with startups and how the studio aims to share these lessons with the community.
Exploring Cost Efficiency in Digital Scale-ups
In this episode, the hosts delve into the topic of cost efficiency in scale-ups. They discuss factors that indicate the need for cost optimization, such as rapid cost growth or discrepancies between forecasts and actual costs. The discussion also highlights the importance of timing and when cost efficiency should be prioritized during the different stages of a scale-up's growth.
Balancing Cost and Product Strategy
The hosts address the challenge of finding the right balance between cost optimization and product strategy. They emphasize the need to consider unit cost, which includes various factors such as customer usage and infrastructure costs, to ensure that cost increases align with revenue growth and product evolution. The importance of collaboration between finance, product, and architectural teams is highlighted in making informed decisions.
Sustaining Operational Efficiency in Scale-ups
The sustained phase of operational efficiency is explored, focusing on cultural changes and holistic strategies. The hosts discuss the importance of visibility and accountability in controlling costs and suggest implementing guardrail metrics to ensure cost control without hindering product development. They also highlight the significance of prioritizing cost optimization as part of a company's sustainable practices, while avoiding excessive frugality.
Many of the scale-ups we’ve partnered with over the years will hit road bumps along the way. One common bottleneck we’ve seen are unexpected and dramatic rises in costs. In this episode we talk to members of our Digital Scale-up Studio, to hear their experience of gaining better visibility, improving operational efficiency at scale-ups, while the business maintains growth and gains greater knowledge of customer requirements.