University of Oulu

Koskinen, J., Mustonen, E., Harkonen, J., & Haapasalo, H. (2020). Product-level profitability analysis and decision-making: opportunities of IT application-based approach. International Journal of Product Lifecycle Management, 12(3), 210-225.

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

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Author: Koskinen, Joni1; Mustonen, Erno1; Härkönen, Janne1;
Organizations: 1Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.4 MB)
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Language: English
Published: Inderscience, 2020
Publish Date: 2021-09-17


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.

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Series: International journal of product lifecycle management
ISSN: 1743-5110
ISSN-E: 1743-5129
ISSN-L: 1743-5110
Volume: 12
Issue: 3
Pages: 210 - 225
DOI: 10.1504/IJPLM.2020.109793
Type of Publication: A1 Journal article – refereed
Field of Science: 222 Other engineering and technologies
Copyright information: © 2020 Inderscience Publishers. The final authenticated version is available online at