Harvard Business Review

JUNE 14, 2016

These more “ intelligent assets ” read performance data, giving Cisco a detailed view of energy consumption — one that had not been available before. As Kern put it, “We always manage costs so closely, but we weren’t really measuring energy — we didn’t know how much we spent!

Energy 13

Energy Variable Costs Operations Metrics 13

Harvard Business Review

AUGUST 3, 2018

For example, ostensibly, Facebook’s customers are its daily users (call them “asset units” for argument’s sake). Those outlays could be on soft avenues, such as customer acquisition, data breach and safety, regulatory fines, and product enhancement, or on hard assets, such as hardware, servers, and cellphone towers.

Variable Costs 8

Variable Costs Revenue Assets Cash Flow 8

Harvard Business Review

SEPTEMBER 4, 2013

But in reality most companies, particularly those that manage to last for any reasonable period of time, do day-to-day innovation extremely well. It''s not like large companies never manage to do it. Most large corporations will admit to struggling with innovation. Your television picture quality is significantly better.

Fixed Costs 8

Fixed Costs Variable Costs Assets Banking 8

Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral. These questions that doesn’t get asked enough.

Fixed Costs 14

Fixed Costs Assets Cash Flow Variable Costs 14