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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