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

Prasanna Kukkamalla, Veli-Matti Uski, Olli Kuismanen, Hannu Kärkkäinen, Karan Menon

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review


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.
Original languageEnglish
Title of host publicationProduct Lifecycle Management. PLM in Transition Times: The Place of Humans and Transformative Technologies
Subtitle of host publication19th IFIP WG 5.1 International Conference, PLM 2022, Grenoble, France, July 10–13, 2022, Revised Selected Papers
EditorsFrédéric Noël, Felix Nyffenegger, Louis Rivest, Abdelaziz Bouras
Number of pages10
ISBN (Electronic)978-3-031-25182-5
ISBN (Print)978-3-031-25181-8
Publication statusPublished - 2023
Publication typeA4 Article in conference proceedings
EventIFIP International Conference on Product Lifecycle Management - Grenoble, France
Duration: 10 Jul 202213 Jul 2022

Publication series

NameIFIP Advances in Information and Communication Technology
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X


ConferenceIFIP International Conference on Product Lifecycle Management


  • Data analytics capabilities
  • Pay-per-outcome
  • Business model
  • Equipment manufacturing
  • Remote monitoring
  • Roadmap

Publication forum classification

  • Publication forum level 1


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