BOOT business model in industrial solution business Online publication date: Fri, 12-Dec-2014
by Olli Pekkarinen; Markus Piironen; Risto T. Salminen
International Journal of Business Innovation and Research (IJBIR), Vol. 6, No. 6, 2012
Abstract: Many industrial manufacturers are transforming their business models towards long-term customer solutions. An extensive option to implement solution business is a build-own-operate-transfer (BOOT) business model, where a company is given the responsibility to design, finance, build, own, operate and maintain an entity, such as an industrial process. Usually, the arrangement is made for a specific time period of up to 30 years and between public and private actors. The purpose of the present study is to provide knowledge on utilising the BOOT business model in an industrial context. The methodologies used in the study were a literature review and a single case study. This paper introduces an industrial BOOT business model and determines the advantages, disadvantages and risks of an industrial BOOT solution. Furthermore, this paper proposes a description of the BOOT consortium. Based on the results, we suggest that the BOOT business model can be adapted for an industrial context.
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