Capability framework implementing pay-per-outcome business model in equipment manufacturing companies

The primary objective of this paper is to enhance our understanding of the capabilities necessary for implementing a pay-per-outcome business model and how equipment manufacturing companies can successfully implement such a business model. Based on systematic literature research, we analysed 12 research publications that discussed pay-per-outcome capabilities in the equipment manufacturing industry. We identified 36 capabilities and formulated a capability framework for pay-per-outcome business models in the equipment manufacturing industry. We also identified that pay-per-outcome business models require specific capabilities related to customer relationship and contracting, compared with other service-based business models (such as pay-per-use business models). Since earlier studies have failed to distinguish the capabilities necessary for pay-per-outcome business models from those for other types of product–service system business models or focused on some specific required capabilities for the former business models, we contribute to current business model literature by uncovering the unique characteristics of pay-per-outcome business models in the equipment manufacturing industry.publishedVersionPeer reviewe

Data Analytics Capability Roadmap for PPO Business Models in Equipment Manufacturing Companies

The objective of this paper is to extend the knowledge of data analytics capabilities and the development process required to implement pay-per-output/-outcome (PPO) business models. To achieve this objective, we conducted qualitative research to study two equipment manufacturing companies in their business model transformation, with a special interest in their data analytics capability development path. The findings were threefold; first we validated the data analytics capabilities necessary for PPO business models synthesised from literature with the selected case companies. Second, two additional data analytics capabilities, namely capability to influence how performance is measured and analysed, and capability to simulate the solution’s financial performance) were identified. Finally, this study presents two different roadmaps on how data analytics capabilities have been developed. The study findings suggest that remote monitoring capability is among the most critical data analytics capability to initiate a PPO business model in the equipment manufacturing industry. This study contributes to business model literature, and information systems literature.Peer reviewe

Review of PPX Business Models : Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry

The overall purpose of this study is to understand how manufacturing companies have so far made use of and can make use of pay-per-x (PPX) business models (BMs) largely in capital product markets, and which mechanisms have helped them in the implementation. Through systematic literature approach this study analysed 14 research publications which exclusively focused on PPX business models. The differences between PPX business model patterns were studied from three perspective, namely criticality of product, need of process knowledge and complexity of the process and its output. We find out that the pay-per-outcome business model, is more prevalent for products which are critical, needs extensive process knowledge and are rather complex. In contrarily, pay-per-output business model is more prevalent when these conditions are not met. However, none of these three factors prevents implementing other type of PPX business model but rather specific business model is more feasible when specific conditions are met. This paper contributes a much more in-depth qualitative view on the patterns and related qualitative arguments for the useful application of PPX models in equipment manufacturing industries and helps to understand the differences between PPX business model types.acceptedVersionPeer reviewe

Yksilön osaamisen kehittyminen teknologiaprojektissa

Tutkimukseni tavoitteena oli hakea vastausta kysymykseen, miten teknologiaprojektin aikana projektihenkilöt kehittävät ja hyödyntävät oppimistaan ja hyödyntävät osaamistaan seuraavissa projekteissa, miten strategiat voidaan suunnata organisaation päämäärien saavuttamiseksi ja miten samalla voidaan ylläpitää sellaista kehitystyön tapaa, joka mahdollistaa kehittymisen uudistuvaksi organisaatioksi. Osaamisen johtaminen teknologiaprojekteissa on kriittinen menestystekijä Ilmavoimien menestykselle ja koko Ilmavoimien toiminnalle. Voimakas teknologian kehitys ja palvelutuotannon keskittäminen johtamisjärjestelmäalalla ovat pakottaneet Ilmavoimien organisaation keskittymään Ilmavoimallisiin johtamisjärjestelmäalan kohdearkkitehtuurien hallintaan osaamisen johtamista kehittämällä. Johtamisjärjestelmäalan kehitys ja hallinnon uudet palvelut edellyttävät, että Ilmavoimien tulee kehittää henkilöstöään, työprosessejaan, johtamistaan ja toimintakulttuuriaan oppimista ja vuorovaikutusta tukeviksi. Tieto ja osaaminen ovat tulevaisuudentekijöitä. Tätä tutkimusta varten erikseen tehdyssä selvityksessä ilmeni myös tarve systemaattiseen osaamisen arviointiin ja kehittämiseen. Haastatteluun osallistui projektienjohtoa ja asiantuntijoita neljässä ilmavoimien toimipisteessä ja Puolustusvoimien Johtamisjärjestelmäkeskuksessa. Haastattelussa keskityttiin uusien teknologiaprojekteihin jotka kohdistuivat Ilmavoimien käyttämien johtamisjärjestelmäalustojen kehittämiseen. Tulevaisuudessa Ilmavoimien eri tehtävät vaativat entistä pidemmälle menevää ja kehittyvää osaamista ja henkilöstön kysyntä kohdistuu erityisesti koulutettuun henkilöstöön. Ilmavoimien johtamisjärjestelmäalan uudistusten ja organisaatioratkaisujen yhteydessä on varmistettava organisaatioiden inhimillisen ja sosiaalisen pääoman säilyminen ja kehittyminen vastaamaan ilmavoimien asettaman strategian ja vision tavoitteita yhä enemmän kansainvälistyvän toiminnan yhteydessä.The aim of my development project was to search an answer to the question of how project members develop and utilize learning in a technology project and utilize these skills in following projects, how strategies can be aimed to fulfill the goals of the organization and how simultaneously a way of development that enables development to a renewing organization can be maintained. Competence management in technology projects is a critical success factor for the whole operation of the Finnish Air Forces. Strong development of technology and convergence of service production at management system industry have forced the Finnish Air Forces organization to focus on air force related management system target architecture management by developing competence management. Development of the management system industry and the new services of the administration require the Finnish Air Forces to develop its personnel, processes, management and operational culture to support learning and interaction. Knowledge and competence are the future makers. In a research made for this development project also a need for systematic competence evaluation and development was raised. Project management and specialists in four Finnish Air Forces units and at Defense Forces Management System Centre participated in the interviews targeted for projects developing the Finnish Air Forces management system platforms for several technology projects. In the future different tasks in the Finnish Air Forces require even further competence and developing it and personnel demand is directed especially to educated personnel. During the Finnish Air Forces management system renewals and changes in organizational solutions it has to be ensured that the human and social capital of the organizations is preserved and developed to correspond to the targets of the Finnish Air Force strategy and vision along more international operation