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

Authors: Joni Koskinen; Erno Mustonen; Janne Harkonen; Harri Haapasalo

Addresses: Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, 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.

Keywords: product portfolio management; PPM; data-driven management; application-based PPM; fact-based analysis; digitalisation; performance management; product lifecycle management; PLM.

DOI: 10.1504/IJPLM.2020.109793

International Journal of Product Lifecycle Management, 2020 Vol.12 No.3, pp.210 - 225

Received: 24 Oct 2019
Accepted: 09 Apr 2020

Published online: 24 Sep 2020 *

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