Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management

Susanna Kunttu, Minna Räikkönen, Helena Kortelainen, K Komonen

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

Abstract

In capital intensive industries and infrastructure sector strategic decisions often deal with maximizing the value of investment portfolio and aligning it with the strategy. Production assets typically have long life cycles and during the operating time numerous rebuilds, replacements and expansion investments take place. All of these decisions, together with the chosen maintenance strategy, affect not only the length of functional and technological life but also the length of economic life of assets. In order to optimize the investment decisions and the economic life of production assets, companies need to create an asset management strategy, which should be based on constructed and systematic decision-making at all the levels of the corporate hierarchy. In this paper we propose a practical techno-economic approach and evaluation application which aims at to fulfill the gap between theoretical approaches and companies' needs to make deliberated investment decisions in turbulent business environment
Original languageEnglish
Title of host publicationEuroMaintenance 2014 Congress Proceedings
Pages166-171
Publication statusPublished - 2014
MoE publication typeA4 Article in a conference publication
Event22nd European Congress and Expo on Maintenance and Asset Management: 6th World Congress & Global Forum on Maintenance and Asset Management - Helsinki, Finland
Duration: 5 May 20147 May 2014
Conference number: 22

Conference

Conference22nd European Congress and Expo on Maintenance and Asset Management
Abbreviated titleEuroMaintenance 2014
CountryFinland
CityHelsinki
Period5/05/147/05/14

Fingerprint

Assets
Economics
Investment portfolio
Asset management
Evaluation
Investment decision
Strategic decisions
Management strategy
Industry
Decision making
Business environment
Replacement
Maintenance strategy
Life cycle

Keywords

  • Investment portfolio
  • asset management
  • uncertainty
  • decision making

Cite this

Kunttu, S., Räikkönen, M., Kortelainen, H., & Komonen, K. (2014). Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management. In EuroMaintenance 2014 Congress Proceedings (pp. 166-171)
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Kunttu, S, Räikkönen, M, Kortelainen, H & Komonen, K 2014, Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management. in EuroMaintenance 2014 Congress Proceedings. pp. 166-171, 22nd European Congress and Expo on Maintenance and Asset Management, Helsinki, Finland, 5/05/14.

Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management. / Kunttu, Susanna; Räikkönen, Minna; Kortelainen, Helena; Komonen, K.

EuroMaintenance 2014 Congress Proceedings. 2014. p. 166-171.

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

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N2 - In capital intensive industries and infrastructure sector strategic decisions often deal with maximizing the value of investment portfolio and aligning it with the strategy. Production assets typically have long life cycles and during the operating time numerous rebuilds, replacements and expansion investments take place. All of these decisions, together with the chosen maintenance strategy, affect not only the length of functional and technological life but also the length of economic life of assets. In order to optimize the investment decisions and the economic life of production assets, companies need to create an asset management strategy, which should be based on constructed and systematic decision-making at all the levels of the corporate hierarchy. In this paper we propose a practical techno-economic approach and evaluation application which aims at to fulfill the gap between theoretical approaches and companies' needs to make deliberated investment decisions in turbulent business environment

AB - In capital intensive industries and infrastructure sector strategic decisions often deal with maximizing the value of investment portfolio and aligning it with the strategy. Production assets typically have long life cycles and during the operating time numerous rebuilds, replacements and expansion investments take place. All of these decisions, together with the chosen maintenance strategy, affect not only the length of functional and technological life but also the length of economic life of assets. In order to optimize the investment decisions and the economic life of production assets, companies need to create an asset management strategy, which should be based on constructed and systematic decision-making at all the levels of the corporate hierarchy. In this paper we propose a practical techno-economic approach and evaluation application which aims at to fulfill the gap between theoretical approaches and companies' needs to make deliberated investment decisions in turbulent business environment

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