Executing sustainable business in practice: A case study on how to support sustainable investment decisions

Susanna Kunttu, Markku Reunanen, Juha Raukola, Kari Frankenhaeuser, Jaana Frankenhaeuser

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

    3 Citations (Scopus)

    Abstract

    Too often, B2B negotiations only look at the purchasing cost and do not take the costs and effects on the environment of the whole life cycle of the product into account. Products that have less impact on the environment often have a higher purchasing price. It is generally believed that when a customer can see the estimates of the use period costs, he can accept the higher purchasing price more easily. This paper describes a practical LCC tool developed for life cycle cost calculations and how this kind of tool can be used by manufacturers in developing their own product portfolios and selling their products. For manufacturers, LCC calculations can reveal weak points of their solutions. In negotiations with customers, the LCC calculation indicates the kind of value they will obtain in the long run and guides them to choose products that cause less harm to the environment and have financial benefits.
    Original languageEnglish
    Title of host publicationEngineering Asset Management
    Subtitle of host publicationSystems, Professional Practices and Certification
    PublisherSpringer
    Pages1095 - 1107
    ISBN (Electronic)978-3-319-09507-3
    ISBN (Print)978-3-319-09506-6
    DOIs
    Publication statusPublished - 30 Nov 2014
    MoE publication typeA4 Article in a conference publication
    Event8th World Congress on Engineering Asset Management, WCEAM 2013 and the 3rd International Conference on Utility Management and Safety, ICUMAS - Hong Kong, China
    Duration: 30 Oct 20131 Nov 2013
    Conference number: 8

    Conference

    Conference8th World Congress on Engineering Asset Management, WCEAM 2013 and the 3rd International Conference on Utility Management and Safety, ICUMAS
    Abbreviated titleWCEAM 2013
    CountryChina
    CityHong Kong
    Period30/10/131/11/13

    Fingerprint

    Investment decision
    Sustainable business
    Sustainable investment
    Purchasing
    Costs
    Life cycle cost
    Product portfolio
    Life cycle

    Keywords

    • life cycle cost
    • power supply system
    • case company
    • product portfolio
    • cost element

    Cite this

    Kunttu, S., Reunanen, M., Raukola, J., Frankenhaeuser, K., & Frankenhaeuser, J. (2014). Executing sustainable business in practice: A case study on how to support sustainable investment decisions. In Engineering Asset Management: Systems, Professional Practices and Certification (pp. 1095 - 1107). Springer. https://doi.org/10.1007/978-3-319-09507-3_93
    Kunttu, Susanna ; Reunanen, Markku ; Raukola, Juha ; Frankenhaeuser, Kari ; Frankenhaeuser, Jaana. / Executing sustainable business in practice : A case study on how to support sustainable investment decisions. Engineering Asset Management: Systems, Professional Practices and Certification. Springer, 2014. pp. 1095 - 1107
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    abstract = "Too often, B2B negotiations only look at the purchasing cost and do not take the costs and effects on the environment of the whole life cycle of the product into account. Products that have less impact on the environment often have a higher purchasing price. It is generally believed that when a customer can see the estimates of the use period costs, he can accept the higher purchasing price more easily. This paper describes a practical LCC tool developed for life cycle cost calculations and how this kind of tool can be used by manufacturers in developing their own product portfolios and selling their products. For manufacturers, LCC calculations can reveal weak points of their solutions. In negotiations with customers, the LCC calculation indicates the kind of value they will obtain in the long run and guides them to choose products that cause less harm to the environment and have financial benefits.",
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    Kunttu, S, Reunanen, M, Raukola, J, Frankenhaeuser, K & Frankenhaeuser, J 2014, Executing sustainable business in practice: A case study on how to support sustainable investment decisions. in Engineering Asset Management: Systems, Professional Practices and Certification. Springer, pp. 1095 - 1107, 8th World Congress on Engineering Asset Management, WCEAM 2013 and the 3rd International Conference on Utility Management and Safety, ICUMAS, Hong Kong, China, 30/10/13. https://doi.org/10.1007/978-3-319-09507-3_93

    Executing sustainable business in practice : A case study on how to support sustainable investment decisions. / Kunttu, Susanna; Reunanen, Markku; Raukola, Juha; Frankenhaeuser, Kari; Frankenhaeuser, Jaana.

    Engineering Asset Management: Systems, Professional Practices and Certification. Springer, 2014. p. 1095 - 1107.

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

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    Kunttu S, Reunanen M, Raukola J, Frankenhaeuser K, Frankenhaeuser J. Executing sustainable business in practice: A case study on how to support sustainable investment decisions. In Engineering Asset Management: Systems, Professional Practices and Certification. Springer. 2014. p. 1095 - 1107 https://doi.org/10.1007/978-3-319-09507-3_93