Kunttu, S., Räikkönen, M., Kortelainen, H. & Komonen, K. 2014. Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management. EuroMaintenance 2014, Helsinki, Finland, 5 - 7 May 2014. Congress Proceedings (2014), pp. 166 - 171.

Abstract: In capital intensive industries and infrastructure sector strategic decisions often deal with maximizing the value of investment portfolio and aligning it with the strategy. Production assets typically have long life cycles andduring the operating time numerous rebuilds, replacements and expansion investments take place. All of these decisions, together with the chosen maintenance strategy, affect not only the length of functional and technological life but also the length ofeconomic life of assets. In order to optimize the investment decisions and the economic life of production assets, companies need to create an asset management strategy, which should be based on constructed and systematic decision-making at all the levelsof the corporate hierarchy. In this paper we propose a practical techno-economic approach and evaluation application which aims at to fulfill the gap between theoretical approaches and companies' needs to make deliberated investment decisions in turbulentbusiness environment.

Dooley, K. 2014. The business case for environmental sustainability: embedding long-term strategies that enhance environmental and economic performance. Sustainable Futures in a Changing Climate conference, 11-12 June 2014, Helsinki, Finland.

Abstract: The business benefits that can be harnessed by embracing sustainability have been widely discussed and verified, however, the potential has only been fully explored by a small portion of organisations. This paper aims to present a clear business case for corporate sustainability in order to increase investments in this area. The core focus is on the tangible economic benefits that can be realised through environmental strategies such as risk reduction and efficiency gains. The aim is to show that sustainability can be an opportunity rather than an obligation and that not only can environmental and economic performance be optimised simultaneously but that economic performance can be optimised through environmental strategies. It is expected that this approach shall increase competitive advantage while supporting climate change mitigation. The paper also highlights the current drivers that provide motivation for environmental performance improvement such as global trends towards resource efficiency and the exposure to long term environmental risks. Sustainability is a multidimensional subject that involves a diverse range of operational processes and it is argued that a greater portion of sustainability resources should be invested in strategically integrating sustainability into core business practices. Embedded sustainability is the term used to describe a high level of sustainability integration. In order to develop the business case, the paper first provides a brief overview of the concept. In addition, it provides an argument as to why this approach is becoming more relevant in the age of resource efficiency and changing climate.

Martinsuo, M. & Thitz, O. 2014. Moving towards integrated solutions in service-centered business. EURAM European Academy of Management conference, 4-7 June, 2014, Valencia, Spain. pp.1-20.

Abstract: Integrated solutions combine products and services to serve holistic customer needs. Companies have invested in integrated solutions to gain competitor differentiation, added business value, and growth. Much of previous research has investigated such integrated solutions that have a physical product or technology in their core. Earlier studies have identified significant capability requirements from product-centered companies that are moving towards integrated solutions. Clearly less research has explored integrated solutions that are based on services as their core component. The goal in this study is increased understanding on the transformation of service-centered firms that intend to move towards integrated solutions, and the particularities of the service-centered perspective compared to the product-centric orientation to solutions. We employ a qualitative, interview based study in the waste management industry as an example of a service-centered business. The interviews reveal clear indications of companies moving towards integrated solutions, both due to their customers’ request and legal requirements. Service providers have developed comprehensive offerings as well as built new stakeholder networks, to satisfy their customer’s one-stop procurement needs. Service-centered integrated solutions may enable efficiency and easiness for the customer and business benefits for the supplier. Further research is needed, both to validate the findings and to build a framework on the successful solution transformation from the service-centered perspective.

Palomäki, K., Valkokari, K. & Ryyppö, M. 2014. Mapping value network and multiple stakeholder values for developing a new service: An industrial case study. XXIV International Conference of RESER - Services and New Societal Challenges: Innovation for Sustainable Growth and Welfare (RESER). Helsinki, Finland, September 11th - 13th 2014. pp. 1327 - 1336.

Abstract: The understanding of value has changed, and in addition to customers, the role of also other stakeholder groups in the value creation has been emphasised. This case study presents a way in which stakeholder values can be taken into consideration in newservice development process. The paper employs the case study methodology, and the case data was collected from workshops, interviews and thematic discussions. The main result of this case study is the description of the new service development processthat considers stakeholders and multiple stakeholder values.

Hannola, L., Tervonen, N., Kaikkonen, S.& Virtanen, H. 2014. Green principles in SMEs innovation activities. XXIV International Conference of RESER - Services and New Societal Challenges: Innovation for Sustainable Growth and Welfare (RESER). Helsinki, Finland, September 11th - 13th 2014. pp. 1327 - 1336.

Abstract: This study explores the effects and future possibilities of applying green principles in SMEs innovation activities. The most significant benefits of developing green innovations were identified such as an increase in revenues, improvement of competitiveness, costs savings, energy efficiency and respect from customers. However, the recognition of the benefits in the early phases of the innovation activities was seen to be challenging. The study revealed that the most significant and probable changes in the future are changes in customer requirements and new regulations and laws required by authorities, which will tighten and change business operations. These influence also on the development of SMEs green activities.

Uusitalo, T., Hanski, J., Reunanen, M. & Kunttu, S. 2014. Support for Life Cycle Decision-Making in Sustainable Manufacturing: Results of an Industrial Case Study. IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2014, Ajaccio, France, 20 - 24 September 2014. Vol. 439 (2014) No: PART 2, 162 - 169.

Abstract: This paper presents results of a case study in which a life cycle cost estimation tool has been developed and tested. Improving sustainability requires holistic information on the life cycle costs of the system. There is a need to increase the transparency of decision-making by informing customers about the costs of the solutions when taking into consideration the whole life cycle. This benefits both the supplier and the customer in forms of showing the total costs of the system and selecting the system with the lowest total costs.

Hannola, L. & Tervonen, N. 2014. Back to the future of green business environment. ISPIM Asia-Pacific Innovation Forum 2014, Singapore on 7-10 December 2014. (Forthcoming)

Abstract: Green business environment is experiencing constant changes and thus affecting the competitive landscape. Companies need to adapt their innovations and strategies to this dynamic green environment. By understanding the nature of change in the green industry helps the decision-making on which strategies to follow in the future. The objective of this study is to identify the key drivers, opportunities and threats of the green industry, which will have an influence on companies' long-term strategies and sustainability-based decisions as a part of their innovation processes. The key drivers were identified such as increasing social awareness of sustainable development, new potential customers and technological solutions, regulations, cooperation and networks, companies’ internal resources and forecasts of the future. The results highlight especially the importance of proactive innovation strategies for achieving the competitive advantage in the markets.

Tervonen, N. & Hannola, L. 2014. How to be green? Specifying the value of sustainable business. ISPIM Asia-Pacific Innovation Forum 2014, Singapore on 7-10 December 2014. (Forthcoming)

Abstract: Sustainability is central to future business development. Companies focus on green development to minimize negative environmental impacts as well as to promote value creation and demonstrate social responsibility. This study aims to specify what it means for companies to be green; we explore the negative and positive effects of sustainability in business and describe the problems related to the understanding, argumentation and measurement of sustainability value. The results indicate that companies have troubles in seeing the actual value of sustainability and in presenting the value of their sustainability actions to their stakeholders. The measurement of sustainability value is evolving, but unsolved issues remain. Especially the identification of negative effects continues to be a challenge. Companies still lack understanding of the relative importance of different measures, and practices for utilizing data. The study concludes by presenting needs related to the further development of sustainability value measurement.

Tervonen, N. & Kutvonen A. 2015. Genuine Sustainability: Opportunity Cost and Outcome Uncertainties in Sustainability Development. The XXVI ISPIM Innovation Conference,  14‐17 June, 2015, Budapest, Hungary.

Abstract: Investors, customers and society continually push companies to do more in terms of environmental and societal sustainability. As many of the supporting structures - academic, political or managerial - to sustainable development are lagging behind companies have had to venture into uncertain decisions with insufficient information. We direct our attention to identifying value-reducing elements that are currently missing from sustainability value evaluation and how these influence on the management of sustainability innovations. We find that the managerial problems surrounding the decision to invest in sustainability innovation relate to determining opportunity costs and dealing with heightened uncertainties that result from the idiosyncratic nature of sustainability innovation. Eventually we conclude that immature management practice currently undermines the pursuit for genuine sustainability.

Palomäki, K., Valkokari, K. & Opresnik, D. 2015. Practices in sustainable networked operations. Operations management for sustainable competitiveness, EurOMA, June 26th - July 1st, 2015, Neuchâtel, Switzerland

Abstract: The purpose of this paper is to explore the sustainability management practices that companies deploy in order consider, control and influence stakeholders to implement sustainability in their networks. The study is based on 14 semi-structured interviews in three industrial companies. In the cases, influencing and managing suppliers was emphasised. There seem to be ready processes for the purposes of managing suppliers, but not for the needs of collaborating either with them or with other stakeholders. Shared practices for stakeholder collaboration and joint decision-making are still emerging.

Martinsuo, M. & Arvio, I. 2015. Decision making on sustainability in product development projects. Paper presented at the EURAM European Academy of Management conference, 17-20 June, 2015, Warsaw, Poland.

Abstract: Companies use various evaluation and decision making criteria in their product development projects, to ensure the selection of the right projects to their project portfolio. Recently, sustainability has become an increasingly important decision parameter in companies, but it has not, yet, been studied sufficiently as part of decision making in product development projects. This study pursues increased understanding on the ways in which companies can embed sustainability into their decision making and information search. We employed a qualitative, interview-based research design with three environmentally oriented companies and studied their practices of sustainability-related decision making in projects. The results map factors relevant in sustainability-based decision making particularly concerning the product development task, decision makers, decision elicitation and decision aggregation. Sustainability-orientation in decision making particularly reveals internal information processes, decision makers' different incentives, cost saving orientation and relationships between different project evaluation criteria as relevant factors. The paper contributes by supplementing a generic framework of relevant factors in product development decision making with specifics in sustainability-based decision making.

Martinsuo, M., Kivilä, J. & Heikkilä, J. 2015. Creation of sustainable value in manufacturing operations. Paper presented at EUROMA European Operations Management Association conference, 28 June - 1 July, 2015, Neuchatel, Switzerland.

Abstract: Manufacturing companies need to fulfill sustainability requirements in their operations. Previous research has not covered external service providers' sustainability-oriented cooperation with manufacturing firms sufficiently. The purpose is to develop new knowledge on ways to create sustainable value as part of manufacturing operations, particularly in cooperation with an external service provider. We conducted a qualitative study with two companies and mapped the activities in sustainable value creation. The results reveal a strategic approach to sustainable value, creation of sustainability by continuous improvement and development projects, and enhanced sustainable value creation through an industrial symbiosis with the external service provider.

Tervonen, N. & Ojanen, V. 2015. Sustainability knowledge utilization: Challenges from internal and external perspectives. PICMET '15 Conference. "Management of the Technology Age". August 2 - 6, 2015, Portland, Oregon, USA.

Abstract: The issues of sustainability have been acknowledged to be in the heart of the 21st century innovations and competitive business. In a rising extent companies need to report their activities and levels of sustainability. The motivation rises from external sources (e.g. regulators, stakeholders, media) but also from companies' internal goals and management actions. The importance of sustainability measurement actions is widely recognized in modern companies. In best cases, measurement information guides in managerial decision-making, but only if the knowledge is analyzed properly and further utilized. Previous research does not focus on knowledge utilization beyond the measurement and reporting actions of sustainability. Practitioners in companies are also struggling with the utilization of large amounts of measurement data and ways to argue the sustainability value to their stakeholders. Our study discusses the challenges and reasons behind the insufficient utilization of sustainability measurement knowledge in management actions based mainly on the Finnish qualitative expert data. Practically, we take a step towards effective argumentation of sustainability value to promote the management of technologies and business.

Martinsuo, M., Sukanen, I., & Kivilä, J. 2015. Defining product end-of-life strategies in new product development. Paper presented at NFF Nordic Academy of Management conference, 12-14 Aug, 2015, Copenhagen, Denmark.

Abstract: New product development is about creating new offerings to the market and new business for the supplier. At the same time, it needs to consider the end-of-life options for the product, due to increasing legal and regulatory requirements towards eco-friendly product designs. Even if sustainability has become a relevant concern in product development, previous research does not sufficiently cover how end-of-life strategies can be taken into account in new product development processes. This study explores the ways in which environmentally conscious manufacturing firms consider end-of-life strategies in their product development processes. A pre-study with two companies and their external service provider is reported, covering the different practices for identifying end-of-life options and factors relevant in considering product end-of-life strategies during new product development. The results open up avenues for focused studies on the front end of innovation that is identified as the crucial phase for initiating material choices and other end-of-life considerations.

Hanski, J., Jännes, J., Ojanen, V. & Valkokari, P. 2016. Strategic asset information management: experiences from Finnish companies . 10th World Congress on Engineering Asset Management, WCEAM 2015, 28 - 30 September 2015, Tampere, Finland, Springer Lecture Notes in Mechanical Engineering
ISBN 978-3-319-27062-3. http://www.springer.com/cn/book/9783319270623

Abstract: Decisions on strategic asset management are crucial from the perspective of improving the sustainability of companies. The new ISO 55000 series of AM standards is a means of improving the AM strategies and practices of companies, and thus their sustainability performance. For this study, three Finnish companies were interviewed about their asset management, especially related to their asset information management practices and sustainability. The results are compared with the asset information management guidelines given in the AM standard. The goal of the research is to find best practices and areas of improvement in asset information management, and thus to improve asset management related decision-making and the sustainability of companies. All the interviewed companies gather and analyse data from their machinery and infrastructure and the analysis and utilization of asset related information is considered important. The economic perspective of AM is seen crucial in decision-making, but also sustainability reporting, maintenance and operating information, value of assets and fault data are utilized. The asset information is scattered in different systems and behind different organisational barriers. Companies, however, strive towards unified asset information management systems.


Arvio, I. 2014.  Sustainability-Based Strategic Decision Making in Product and Service Development. Master's thesis. Tampere University of Technology, Faculty of Business and Built Environment, Department of Industrial Management. 59p. Available at: http://URN.fi/URN:NBN:fi:tty-201408221385 

Kivilä, J.  2015. Formation of sustainable value in industrial processes. Master of Science thesis. Tampere University of Technology. Degree program in Industrial Engineering and Management.

Sukanen, I. 2015. Tuotteen elinkaaren loppupäätä koskeva päätöksenteko innovaatioprosessissa. Diplomityö, Tampereen teknillinen yliopisto, Tuotantotalouden koulutusohjelma. (In Finnish)

Kaikkonen, S. & Virtanen, H. 2014. Green principles in Finnish SMEs innovation activity. Bachelor's thesis. Lappeenranta University of Technology. 41p. Available at: http://www.doria.fi/bitstream/handle/10024/100074/Kandidaatinty%C3%B6_Kaikkonen_Virtanen.pdf?sequence=2 (In Finnish)

Mehtänen M. & Miettinen O. 2014. Kestävän kehityksen arvo ja sen mittaaminen yrityksissä, Kandidaatintyö, Lappeenrannan teknillinen yliopisto, Innovaatiojohtamisen laitos. Kandidaatintyö on julkaistu LUTPub tietokannassa. (In Finnish)

Komulainen, M. & Piiparinen, S. 2015. Kestävän kehityksen innovaatioiden edistäminen alueellisissa verkostoissa. Kandidaatintyö, Lappeenrannan teknillinen yliopisto, LUT School of Business and Management, Innovation & Software. Kandidaatintyö on julkaistu LUTPub tietokannassa. (In Finnish)

Reitti, J. & Sutinen, A. 2015.  Kestävä kehitys osana yritysten strategista johtamista. Kandidaatintyö, Lappeenrannan teknillinen yliopisto, LUT School of Business and Management, Innovation & Software. Kandidaatintyö on julkaistu LUTPub tietokannassa. (In Finnish)