Business Models and Architecture

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The cutting out the middleman model

Cutting out the middleman is a business model that involves reducing costs by removing layers from a distribution network. Cutting out the middleman may become possible as a result of better technology or economies of scale. This is sometimes referred to as 'disintermediation'. It reduces transaction costs, processing time and brings the producer or manufacturer of the product/service that much 'closer' to the customer, arguably making them more responsive to the customers' needs both by delivering the products/services faster and more accurately to meet the customers' tastes and preferences.
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