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Don’t Compare Virtual Reality to the Smartphone

Harvard Business Review

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. VR is insular.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

To escape this quandary, a number of companies are considering alternative asset ownership and operation models, whose objective is to reduce capital outlays, investment risk, or both. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

It is critical to ensure cultural compatibility between the insiders and the new hires, and to bind them together into a cohesive group with fully aligned objectives. The outsiders provide new blood in support functions such as finance, legal, or administration.

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Aligning Your Organization with an Agile Workforce

Harvard Business Review

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. objectives and timelines?

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When M&A Is Not the Best Option for Hospitals

Harvard Business Review

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., And does the proposed model complement the system’s strengths, weaknesses, and objectives?

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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

Working under a fixed-cost ceiling was, of course, difficult. We had little or no revenue-raising ability, and we had to meet a clear, challenging, and publicly reported set of quality objectives. The Parliament would vote on an expenditure limit and the NHS had to live within that limit.

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Tackling the “Hotspotter” Patient Challenge

Harvard Business Review

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.