Harvard Business Review

MARCH 16, 2017

But how does the presence of climate skeptics affect the market for climate-related innovation? A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. Consider the example of a new drug for curing baldness.

Entrepreneur 12

Entrepreneur Aggregate Demand Incentives Real Estate 12

Harvard Business Review

SEPTEMBER 4, 2013

Most large corporations will admit to struggling with innovation. But in reality most companies, particularly those that manage to last for any reasonable period of time, do day-to-day innovation extremely well. Corporations can''t hope to innovate faster than the hordes of start-ups that nip at their heels. Innovation'

Industry 8

Industry Fixed Costs Trends Health Care 8

Harvard Business Review

MAY 8, 2012

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.

Outsourcing 12

Outsourcing Wireless Telecommunications Core Competence 12

Harvard Business Review

OCTOBER 6, 2014

So with such a track record of strategic innovation, why has Tesco been blindsided by the hard discounters like Germany’s Aldi and Lidl? Hard discounters aim for twice the volume with the same fixed costs so they can make the same returns at half the gross margin. The answer is simple – selling more.

Retail 15

Retail Merchandising Discount Price 15

Harvard Business Review

MARCH 18, 2013

We didn't want to burden the organization with fixed costs. Almost everything had to be free, and the few things we paid for had to be scalable so that the unit costs would eventually approach zero. This removed the biggest bottleneck to innovation — us. Software development" and "hardware" are bad words.

Budgeting 12

Budgeting Software Entrepreneur Fixed Costs 12

Harvard Business Review

JUNE 24, 2013

When through our venture investment arm we seek to evaluate the profitability prospects of a young business, we look to see whether its team can credibly answer two questions: How will you charge enough for a transaction to cover the costs related to producing and delivering a good? There are wonderful exceptions to this rule.

Venture Capitalist 11

Venture Capitalist Supply Chain Long-term Christensen 11

Harvard Business Review

FEBRUARY 6, 2018

While Amazon’s collaboration with Berkshire Hathaway and JP Morgan Chase would obviously leverage the purchasing power of three massive employers and could lead to innovative insurance models, it seems that the bigger opportunity would be in improving how care is delivered to patients.

Health Care 14

Health Care Retail Operations Insurance 14

Harvard Business Review

JULY 27, 2017

Gimmy’s task was clear but highly demanding: to reimagine the way BMW innovates. To fill the void and build such a new BMW startup unit, Gimmy partnered with an experienced innovation manager from BMW, Matthias Meyer. Gregor and BMW faced a crucial question: “How can the BMW Group, as a company, co-innovate with startups?”

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

MARCH 28, 2014

The theory of disruption explains why incumbent businesses – with high fixed cost infrastructures and embedded beliefs about what the market wants – fail to adopt business models that lower the cost of their services and drive product accessibility to entirely new sets of users. Disruptive innovation Technology'

Disruptive Innovation 9

Disruptive Innovation Automotive Software Fixed Costs 9

Harvard Business Review

NOVEMBER 18, 2013

The advantages that hospital systems can derive from scale fall into four groups: Classic economies of scale focus on lowering the cost per unit of care delivered (e.g., This type of deal may involve the co-provision or outsourcing of shared services or the joint creation of knowledge and innovation. Leading Health Care Innovation.

Health Care 9

Health Care System Cost Price 9

Harvard Business Review

APRIL 19, 2011

Meanwhile, declines in revenue and escalating fixed costs for things like public employee pensions and health care are crippling our cities budgets. Our large metro areas now house two thirds of America's total population. They have become the dominant forces in our economy and society.

Short-term 14

Short-term Budgeting Health Care Long-term 14

Harvard Business Review

NOVEMBER 10, 2016

Innovating for Value in Health Care. Exploring cutting edge ways to lower costs and improve quality. In healthcare, the need for administrative automation is viscerally felt – and the potential for alleviating burden and draining cost from the system is significant. Insight Center. Sponsored by Medtronic.

Health Care 12

Health Care Power Hotels Transportation 12

Harvard Business Review

OCTOBER 5, 2017

They’re also more profitable, more innovative, and they pay better. It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it. But why are these companies doing so well?

Document 8

Document Industry Software Fixed Costs 8

Harvard Business Review

APRIL 5, 2017

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. I have worked on research that has found that a strong company culture is associated with lower levels of myopic decision making, better productivity, and innovation.

EPS 11

EPS Metrics Short-term Depreciation 11

Harvard Business Review

NOVEMBER 6, 2013

From my experience heading Scotland’s National Health Service from 2010 until last August (and before as its director of health care policy and strategy), I know that such constraints can unleash innovations that will lead to better care — and better health — for communities. Working under a fixed-cost ceiling was, of course, difficult.

Health Care 8

Health Care Constraint Budgeting Quality 8

Harvard Business Review

OCTOBER 13, 2015

Even if the United States implemented all the approaches whose effectiveness has been measured, only 40% of the estimated $1 trillion of wasteful spending would be addressed, leaving a significant opportunity for innovation in all areas of health care. Aggressive supply-side reforms.

Health Care 8

Health Care Insurance Price Cost 8

Harvard Business Review

MAY 21, 2015

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.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

MAY 19, 2015

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.

Engineering 8

Engineering Learning Curve Fixed Costs Finance 8

Harvard Business Review

FEBRUARY 11, 2016

This arrangement is often complicated by inconsistent decision criteria: purchasing wants the lowest price and a fixed cost, whereas the business or operation wants the best resource, a good cultural fit, and enough flexibility in the contract to allow for changes in scope or strategy.

Agility 8

Agility Organization Resources Fixed Costs 8

Harvard Business Review

MARCH 1, 2018

This problem is likely to get worse as personalized medicine becomes more common, more patients get to choose between competing private health plans, and employers shrink the coverage they offer employees in order to reduce their labor costs. Problems may get worse.

Cost 8

Cost Insurance Incentives Policies 8

The Horizons Tracker

MARCH 23, 2023

One would assume that if the engines of innovation are working as the hype suggests, Schumpeter’s famous creative destruction would be happening at a rate seldom seen before. The post If Innovation Is Happening, Where Is The Creative Destruction? “Corporate concentration (e.g., shares of the top 1% or top 0.1%

Creativity 123

Creativity Innovation Trends Information Technology 123

Harvard Business Review

MARCH 22, 2013

Our collective ability to equally access and innovate on internet platforms, from search and social networks, to content and commerce sites, is fundamental to continued growth. With internet innovation comes congestion. Innovation in content quality has surpassed innovation in internet delivery. It is not a given.

Fixed Costs 17

Fixed Costs Technology Efficiency Content 17

Harvard Business Review

MAY 9, 2013

The radical democratization of business over the last decade created by open innovation, crowdsourcing, and co-creation is transforming how advertising organizations work. Typically, outdoor companies use professional athletes as field testers to help them not only test their products but also help innovate.

Advertising 13

Advertising Brand Creativity Wireless 13

Harvard Business Review

MARCH 22, 2013

Our collective ability to equally access and innovate on internet platforms, from search and social networks, to content and commerce sites, is fundamental to continued growth. With internet innovation comes congestion. Innovation in content quality has surpassed innovation in internet delivery. It is not a given.

Fixed Costs 10

Fixed Costs Technology Efficiency Content 10

Harvard Business Review

SEPTEMBER 18, 2013

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'

McCallum 12

McCallum Consultative Real Estate Disruptive Innovation 12

Harvard Business Review

AUGUST 12, 2015

Placing ads next to content helps websites recover the sizeable fixed costs of creating content. But ad blockers cut off this revenue stream and make it difficult to offset even the running cost of storing and delivering content to visitors.

Advertising 8

Advertising Content Fixed Costs Software 8