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America's Cities Need to Get Smarter

Harvard Business Review

There is a vitally important national and state-level discussion taking place about how to address the government's frighteningly large deficits while limiting disruptions for all Americans. Meanwhile, declines in revenue and escalating fixed costs for things like public employee pensions and health care are crippling our cities budgets.

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Solving the Internet's Congestion Problem

Harvard Business Review

However, the model separates subscriber revenue from the cost of the network. The same person can use more internet bandwidth without increasing revenue gains for the network. Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset.

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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. It reached a peak on June 12 and then proceeded to lose over 40% of its value by the end of August despite efforts by the Chinese government to prop up the market.

Sales 15
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Solving the Internet's Congestion Problem

Harvard Business Review

However, the model separates subscriber revenue from the cost of the network. The same person can use more internet bandwidth without increasing revenue gains for the network. Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset.

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When Cost-Plus Pricing Is a Good Idea

Harvard Business Review

The seller calculates all costs, fixed and variable, that have been or will be incurred in manufacturing the product, and then applies a markup percentage to these costs to estimate the asking price. The markup is stipulated by the buyer, as is often the case with government contracts, or it can be chosen by the manager. (I

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Bringing the Power of Platforms to Health Care

Harvard Business Review

AirBnB, now used by 50,000 renters each night, is considered to be directly responsible for an estimated $450 million of lost hotel revenue each year. On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system. Administrative automation. Or take medical appointments.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business.