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Considerations on Investment and Business Models

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14th WCEAM Proceedings (WCEAM 2019)

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

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Abstract

Business models are evolving from selling products towards delivering outcome that may be measured as system performance, capacity, and availability. Novel business models may also include elements of sharing value. Machinery manufacturers and suppliers face a rapidly changing business environment and look for major growth in digital solutions, automation and services. The implementation of advanced technologies and business models call also for novel models of sharing risks and benefits. The literature review on advantages and disadvantages of various business models underlines the investment risk. Modelling of the cash flows of different business models provide examples for leveraging initial investments in assets when applying emerging technologies. The business partners also have to consider how their risk landscape changes and what are the preventable, strategy and external risks of the planned business model. The chosen business model poses requirements to the risk management process and highlights the importance of the collaboration and transparency. This paper focuses in the automation options in the transport sector and uses major port terminal as a case example, but the developed methods are applicable also in other capital intensive industries.

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Acknowledgements

The research group have received funding from Business Finland that is the Finnish government organization for innovation funding and trade, travel and investment promotion. VTT Technical Research Center of Finland and the companies participating in the AUTOPORT project have been co-funding the study. The authors wish to thank all these organisations for their support.

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Authors and Affiliations

  1. VTT Technical Research Center of Finland, 33101, Tampere, Finland

    Helena Kortelainen, Antti Rantala & Risto Tiusanen

Authors
  1. Helena Kortelainen
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  2. Antti Rantala
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  3. Risto Tiusanen
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Corresponding author

Correspondence to Helena Kortelainen .

Editor information

Editors and Affiliations

  1. Department of Industrial Management, University of Seville, Seville, Spain

    Adolfo Crespo Márquez

  2. Hydro-Quebec, Varennes, QC, Canada

    Dragan Komljenovic

  3. Graduate School of Technology Management, University of Pretoria, Pretoria, South Africa

    Joe Amadi-Echendu

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Kortelainen, H., Rantala, A., Tiusanen, R. (2021). Considerations on Investment and Business Models. In: Crespo Márquez, A., Komljenovic, D., Amadi-Echendu, J. (eds) 14th WCEAM Proceedings. WCEAM 2019. Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-64228-0_2

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  • DOI: https://doi.org/10.1007/978-3-030-64228-0_2

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-64227-3

  • Online ISBN: 978-3-030-64228-0

  • eBook Packages: EngineeringEngineering (R0)

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