« Back to Glossary Index

Scalability in business means an organization can perform well as its workload expands. In other words, it’s the ability of a system to grow and meet company’s needs under an increased scope. A system that perfectly scales can be able to maintain, and even increase, its top level of performance or efficiency. Even as it is tested by larger and larger operational demands. Being able to scale well can mean a company may maintain/boost its performance level, no matter what demands are ahead. It should be a company’s strategy to ensure growth and adaptation by developing new systems for better and efficient operations. Scalability is important because expansion in business means the company is working with more customers, resources and data.

However, scalability is a broad concept with different definitions depending on the industry. For example, in economics, the term usually refers to a company’s underlying business model which offers the potential for growth within the company. It also may be about a plant’s ability to produce more without incurring disproportionately extra costs or a loss of functionality. Moreover, in information technology, it refers to scaling a system by adding extra hardware or upgrading existing hardware without having to change much of the application. Lastly, In the world of banking and finance, scalability refers to how well a financial institution handles increased demands.

Scalability Benefits

There are many benefits to scalability in business. However, the top ones are:

  • To meet market demands: meeting the changing demands of our customer base is very important as people constantly change their opinion. A scalable business must always fill their needs and wants without having to change its operations.
  • To ensure growth: Being scalable means your company can handle increases, and maintain its product quality and service efficiency, resulting in the attraction of new customers.
  • To save money: Scalable businesses must have the best equipment, people and technology in place to manage increases. Having the best equipment and employees helps to save money in the long run by not having to replace them.

Join EC to learn our advice for great scalability or check our glossary to learn new words.

« Back to Glossary Index