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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. Disruptive innovation Technology'

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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. And SunPower, the second largest U.S. Meanwhile, utilities are not standing idle.

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

Harvard Business Review

This meant that the company was leaving out huge innovation potential — thousands of startups with billions of funding — that could help BMW innovate anything from core vehicle technology (batteries, sensors, artificial intelligence software) to manufacturing innovations (internet of things, cybersecurity, robotics).

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Deliver Big Impact on a Small Budget

Harvard Business Review

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. Here are the three principles that guided our efforts: People make the world go round.and technology makes it go faster.

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Does Your Startup Have a Spending Strategy?

Harvard Business Review

You have to consider salaries, marketing budget, office size, technology services, and on and on. So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. Do your colleagues understand that your spending is meant to benefit everyone?

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Bringing the Power of Platforms to Health Care

Harvard Business Review

.” There, in the shadow of Google’s global headquarters, the audience laughed on cue, quickly grokking the embarrassing point: it’s 2016 and this $3 trillion industry that our lives depend upon still relies on faxes, clipboards, and isolated instances of legacy software locked away in hospital basements.

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The Real Reason Superstar Firms Are Pulling Ahead

Harvard Business Review

One answer to that first question shows up in study after study: superstar firms are succeeding in large part due to information technology. 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.