Remove Company Remove Development Remove Fixed Costs Remove Technology
article thumbnail

How Companies Can Use Investors to Their Advantage

Harvard Business Review

Most companies see investor relations as a one-way street. Yet investors can be a powerful strategic resource, providing not only capital but also less-biased insight into the threats and opportunities that a company encounters. Heini Wehrle/BIA/Minden Pictures/Getty Images. What he heard was uncomfortable.

article thumbnail

Why HR Really Does Add Value

Harvard Business Review

Adding legitimacy to this skepticism are new technologies that enable automation of routine transactions, offshoring and shared service organizations that specialize in managing many tactical elements of HR. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Industry Giants Can Create Corporate Breakthroughs

Harvard Business Review

But in reality most companies, particularly those that manage to last for any reasonable period of time, do day-to-day innovation extremely well. Where companies struggle is with the breakthroughs that reinvent existing categories or create entirely new ones. It''s not like large companies never manage to do it.

article thumbnail

The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

Higher carbon taxes would have a direct effect on encouraging households and firms to consume less fossil fuels and would accelerate directed research in green technologies such as electric vehicles, solar panels, and other forms of renewable power. The small market size would lead the company to not invest in baldness medication.

article thumbnail

What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

At the time, BMW had no dedicated, company-spanning unit to leverage the creative power of startups. Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. And the fixed cost from “touchpoint-to-pilot” are immense.

article thumbnail

Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.

article thumbnail

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.

Energy 8