Remove Assets Remove Operations Remove Variable Costs
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It’s Time for Companies to Be Strategic About Energy

Harvard Business Review

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! Insight Center.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

Investors, therefore, look not just for reported revenues but for drivers behind the revenues, especially because digital companies’ operating activities often differ from their revenue-generating activities. The first category should describe the amount spent on supporting current operations.

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How Industry Giants Can Create Corporate Breakthroughs

Harvard Business Review

For example, a decade ago, it''s unlikely that small-business owners would have told you that they needed a flexible way to host data and applications, one that preferably turned the fixed cost of computer hardware into a variable cost of renting capacity.

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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

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. Given the shift in immediate U.S.