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Why Spotify Will Kill iTunes

Harvard Business Review

It was in your home, had no shelf space limiting its inventory, and could beat Tower on price because of its lower fixed costs. With a basic grasp of technology innovation trends, Tower should have known as much and immediately begun running around with its hair on fire. It's business model innovation.

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Revenge of the HourlyNerds

Harvard Business Review

These businesses have powerful disruptive potential because they can provide consulting at a fraction of the cost of traditional models, largely because they do not need to carry expensive fixed costs like recruiting, training, consultant “beach” time, and expensive real estate. Consulting Disruptive innovation'

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How Drucker Thought About Complexity

Harvard Business Review

The need to decentralize organizations around employees — viewing them as assets capable of expanding growth rather than as fixed costs to be eliminated — and to move away from standardized and tightly-specified process flows. Business education Disruptive innovation Managing uncertainty'

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Don’t Compare Virtual Reality to the Smartphone

Harvard Business Review

Disruption is an explanation of how small nimble companies unseat industry giants – but it is simultaneously a story of market expansion and the provision of ever cheaper and more accessible goods and services. Disruptive innovation Technology'

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3D Printing Will Revive Conglomerates

Harvard Business Review

That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product. Before, a big conglomerate like GE diversified its risks by mixing pro-cyclical and counter-cyclical businesses.

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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay.

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