publication . Article . 2020

Product-level profitability analysis and decision-making:opportunities of IT application-based approach

Koskinen, J. (Joni); Mustonen, E. (Erno); Härkönen, J. (Janne); Haapasalo, H. (Harri);
Open Access English
  • Published: 01 Jan 2020
  • Publisher: Inderscience
  • Country: Finland
Abstract Product portfolio management (PPM) is vital for companies to succeed. It aims to constitute a profitable entity for company products in the long-term. The extant literature on PPM is, however, lacking in IT application-based discussion, which links to the potential of IT system independent analysis and reporting. One potential application is producing accurate product-level profitability calculations. This study aims to conceptualise application-based PPM analysis and identify the related data needs. Additionally, the opportunities and risks related to the implementation of the concept are studied. The study combines a literature review with qualitative company analyses. The results aid in understanding application-based PPM analysis and clarify the related opportunities for its use. Our research appears to indicate that application-based PPM analysis has the potential to improve product portfolio-related decision-making while reducing the manual work needed for profitability reporting.
free text keywords: PLM, PPM, application-based PPM, data-driven management, digitalisation, fact-based analysis, performance management, product lifecycle management, product portfolio management
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