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. This story of disruption should feel familiar.

Energy 15

Energy Transportation Real Estate Software 15

Harvard Business Review

APRIL 6, 2016

In many industries, the capital required to build an asset of minimum efficient scale is growing. 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. Model 2: Asset capacity pooling.

Assets 12

Assets Operations Insurance Telecommunications 12

Harvard Business Review

JUNE 25, 2013

Evidence of this pressure is starkly captured in the return on assets (ROA) for all public companies in the US since 1965. If we are to successfully adapt to the escalating complexity of our environment, we need to invest more time and energy in exploring institutional innovation.

Fixed Costs 13

Fixed Costs Assets Scaling Education 13

Harvard Business Review

FEBRUARY 24, 2015

For example, a divested business may inherit assets and capabilities that have been starved of investment by its former parent. The diverging fortunes of two recent spin-offs in the energy industry illustrate how financial markets value autonomy from the parent. Does the business have a complete, balanced, and cohesive management team?

Assets 11

Assets Revenue Energy Fixed Costs 11