Product-level profitability analysis and decision-making : opportunities of IT application-based approach

Abstract

<div lang="en" class="abs"><p class="abs_header">Abstract</p><p>Product portfolio management (PPM) is vital for companies to succeed. It aims to constitute a profitable entity for company products in the long-term. The extant literature on PPM is, however, lacking in IT application-based discussion, which links to the potential of IT system independent analysis and reporting. One potential application is producing accurate product-level profitability calculations. This study aims to conceptualise application-based PPM analysis and identify the related data needs. Additionally, the opportunities and risks related to the implementation of the concept are studied. The study combines a literature review with qualitative company analyses. The results aid in understanding application-based PPM analysis and clarify the related opportunities for its use. Our research appears to indicate that application-based PPM analysis has the potential to improve product portfolio-related decision-making while reducing the manual work needed for profitability reporting.</p></div>