Considerations on Investment and Business Models

Helena Kortelainen (Corresponding author), Antti Rantala, Risto Tiusanen

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

Business models are evolving from selling products towards delivering outcome that may be measured as system performance, capacity, and availability. Novel business models may also include elements of sharing value. Machinery manufacturers and suppliers face a rapidly changing business environment and look for major growth in digital solutions, automation and services. The implementation of advanced technologies and business models call also for novel models of sharing risks and benefits. The literature review on advantages and disadvantages of various business models underlines the investment risk. Modelling of the cash flows of different business models provide examples for leveraging initial investments in assets when applying emerging technologies. The business partners also have to consider how their risk landscape changes and what are the preventable, strategy and external risks of the planned business model. The chosen business model poses requirements to the risk management process and highlights the importance of the collaboration and transparency. This paper focuses in the automation options in the transport sector and uses major port terminal as a case example, but the developed methods are applicable also in other capital intensive industries.
Original languageEnglish
Title of host publication14th WCEAM Proceedings
Subtitle of host publicationWorld Congress on Engineering Asset Management, WSEAM 2019
EditorsAdolfo Crespo Márquez, Dragan Komljenovic, Joe Amadi-Echendu
PublisherSpringer
Pages10-21
Number of pages12
ISBN (Electronic)978-3-030-64228-0
ISBN (Print)978-3-030-64227-3
DOIs
Publication statusPublished - 2021
MoE publication typeA4 Article in a conference publication
Event14th World Congress on Engineering Asset Management, WCEAM 2019 - Singapore, Singapore
Duration: 28 Jul 201931 Jul 2019

Publication series

SeriesLecture Notes in Mechanical Engineering
ISSN2195-4356

Conference

Conference14th World Congress on Engineering Asset Management, WCEAM 2019
CountrySingapore
CitySingapore
Period28/07/1931/07/19

Keywords

  • investment
  • business models
  • input-based
  • outcome-based
  • value sharing
  • cash flow
  • risk
  • port terminal

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