Product-level profitability analysis and decision-making : opportunities of IT application-based approach
Koskinen, Joni; Mustonen, Erno; Härkönen, Janne; Haapasalo, Harri (2020-09-17)
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. https://doi.org/10.1504/ijplm.2020.109793
© 2020 Inderscience Publishers. The final authenticated version is available online at https://doi.org/10.1504/ijplm.2020.109793
https://rightsstatements.org/vocab/InC/1.0/
https://urn.fi/URN:NBN:fi-fe2020110288983
Tiivistelmä
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.
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