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

doi:10.1007/978-3-319-09507-3_93

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

Elcon Solutions Oy

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-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 language	English
Title of host publication	Engineering Asset Management
Subtitle of host publication	Systems, Professional Practices and Certification
Publisher	Springer
Pages	1095 - 1107
ISBN (Electronic)	978-3-319-09507-3
ISBN (Print)	978-3-319-09506-6
DOIs	https://doi.org/10.1007/978-3-319-09507-3_93
Publication status	Published - 30 Nov 2014
MoE publication type	A4 Article in a conference publication
Event	8th 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 2013 → 1 Nov 2013 Conference number: 8

Conference

Conference	8th World Congress on Engineering Asset Management, WCEAM 2013 and the 3rd International Conference on Utility Management and Safety, ICUMAS
Abbreviated title	WCEAM 2013
Country/Territory	China
City	Hong Kong
Period	30/10/13 → 1/11/13

Keywords

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

Access to Document

10.1007/978-3-319-09507-3_93

Cite this

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title = "Executing sustainable business in practice: A case study on how to support sustainable investment decisions",

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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author = "Susanna Kunttu and Markku Reunanen and Juha Raukola and Kari Frankenhaeuser and Jaana Frankenhaeuser",

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doi = "10.1007/978-3-319-09507-3_93",

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

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

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T2 - 8th World Congress on Engineering Asset Management, WCEAM 2013 and the 3rd International Conference on Utility Management and Safety, ICUMAS

AU - Kunttu, Susanna

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AU - Frankenhaeuser, Kari

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N2 - 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.

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

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Conference

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