Title: BOOT business model in industrial solution business

Authors: Olli Pekkarinen; Markus Piironen; Risto T. Salminen

Addresses: Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta 53851, Finland. ' Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta 53851, Finland. ' Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta 53851, Finland

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.

Keywords: customer solutions; solution business; PPPs; public-private partnerships; BOOT; build own operate transfer; business models; modelling; business innovation; service business; industrial marketing; industrial services; manufacturing industry.

DOI: 10.1504/IJBIR.2012.049490

International Journal of Business Innovation and Research, 2012 Vol.6 No.6, pp.653 - 673

Published online: 12 Dec 2014 *

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