Title: Corporate asset management - a semi-quantitative business-driven approach to support the evaluation of improvement options

Authors: Helena Kortelainen; Minna Räikkönen; Kari Komonen

Addresses: VTT Technical Research Centre of Finland, P.O. Box 1300, FIN-33101 Tampere, Finland ' VTT Technical Research Centre of Finland, P.O. Box 1300, FIN-33101 Tampere, Finland ' Promaintry, Messuaukio 1, FI-00520 Helsinki, Finland

Abstract: The corporate asset strategy determines whether assets should be enhanced by capital investment, maintained to maintain their position or disposed of. Thus, the corporate asset strategy connects corporate objectives to the available production technology, and consequently, the production asset base has to be developed so as to support the company's objectives. Even though it is evident that physical assets are key elements in bringing the corporate strategy into action, many asset owners still do not connect asset management with corporate strategy. This paper examines the influence of the market demand and competitive situation to asset management decisions, especially operative investment decisions in the capital-intensive manufacturing industry. It proposes a practical semi-quantitative approach to support business-driven asset strategy decisions. The empirical research was carried out in cooperation between researchers and companies. The results indicate that a systematic strategy-oriented analysis can be successfully combined with the corporate asset management decisions.

Keywords: asset management; investment options; corporate asset strategy; market demand; competitive situation; risk; uncertainty; corporate strategy; decision making; investment decisions; manufacturing industry.

DOI: 10.1504/IJSEAM.2015.070626

International Journal of Strategic Engineering Asset Management, 2015 Vol.2 No.2, pp.208 - 222

Available online: 14 Jul 2015 *

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