Abstract
The objective of this thesis is to demonstrate a design to profit procedure
and its implementation in industrial case environment. The procedure is
demonstrated as a way to improve profits in a global company. The essential
elements of the procedure are product business case calculations and profit
consciousness of employees. This study utilizes a combination of product life
cycle analysis, advanced costing methods and multidimensional data processing for
the product business case calculations. The combination is necessary for solving
the research task.
The need of proactive design is emphasized in the telecommunications
industry due to shorter and shorter product life cycles. However, traditional
accounting methods do not support proactive design work sufficiently during the
life cycle of the products. The design to profit procedure has been created to
help business managers to solve following problems:
1. How to proactively ensure the growth of business profits in the
future?
2. How to prevent suboptimal decisions from being made in functional units
and to promote overall profitability?
3. How to judge the profitability of new product programs within a
company?
4. How can we ensure an adequate level of cost consciousness and
profitability-driven targets for the company's key employees?
This study presents and discusses the construction of the procedure and
describes its elements, implementation and use in practice. The argumentation is
illustrated by case studies. This method has benefits, especially when the
product life cycles are short and the market competition strong.
The design to profit procedure is a proactive mind set or thinking pattern.
This system makes the employees aware of the importance target profitability and
especially target costing. There is no decision support system that could
guarantee the profitability of business. Cautious utilization of the system
results and common sense are required to achieve continuous growth of business
profits.
| Identifer | oai:union.ndltd.org:oulo.fi/oai:oulu.fi:isbn951-42-6450-9 |
| Date | 25 July 2001 |
| Creators | Pesonen, L. T. (Lasse T. T.) |
| Publisher | University of Oulu |
| Source Sets | University of Oulu |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/doctoralThesis, info:eu-repo/semantics/publishedVersion |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess, © University of Oulu, 2001 |
| Relation | info:eu-repo/semantics/altIdentifier/pissn/0355-3213, info:eu-repo/semantics/altIdentifier/eissn/1796-2226 |
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