An Analytical Study of Surplus Value using a Value Driven Design Methodology

2017

Preprint

Abstract:Manufacturing organizations shall recognize sustainability as a business occasion to capitalize on, rather than an undesirable pressing situation. Still, empirical evidence shows that this opportunity is hard to capture and communicate in global strategic decisions, through planning by tactical management, to daily operational activities. This paper systematically reviews the modeling challenges at the crossroad of value and sustainability decisions making, spotlighting methods and tools proposed in literature to link sustainability to customer value creation at strategic, tactical and operational level. While statistical results show that the topic of sustainability and value modeling is trending in literature, findings from content analysis reveal that recent attempts to promote a value-based view in the sustainability discussion remain at a strategic level, with most of the proposed indicators being suited for managerial decision-making. The lack of support at operational level points to the opportunity of cross-pollinating sustainability research with value-centered methodologies originating from the aerospace sector. The Value Driven Design framework is proposed as main hub from which to derive models supporting engineers and technology developers in the identification of win-win-win situations, where sustainable improvements are aligned with business advantages.

Section: Discussionmentioning

confidence: 99%

Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

2017

Preprint

“…An opportunity is seen with regards to exploiting the VDD framework to become a main hub from which to derive models supporting the identification of win-win-win situations, where sustainable improvements are aligned with business advantages. VDD research has long being working with Net Present Value (NPV) and Surplus Value (SV) models, and several examples of surrogate objects and functions that can be used to assess the long-term profitability of system alternatives are shown [216][217]. The profitability idea is further cascaded down to the system components, and used to establish requirements at different levels of granularity in the system description.…”

Section: Discussionmentioning

confidence: 99%

Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

2017

Preprint

Abstract:Manufacturing organizations shall recognize sustainability as a business occasion to capitalize on, rather than an undesirable pressing situation. Still, empirical evidence shows that such an opportunity is hard to capture and communicate in global strategic decisions, through planning by tactical management, to daily operational activities. This paper systematically reviews the modelling challenges at the cross-road of value and sustainability decisions making, spotlighting methods and tools proposed in literature to link sustainability to customer value creation at strategic, tactical and operational level. While statistical results show that the topic of sustainability and value modeling is trending in literature, findings from content analysis reveal that recent attempts to promote a value-based view in the sustainability discussion remains at a strategic level, with most of the proposed indicators being suited for managerial decision-making. The lack of support at operational level points to the opportunity of cross-pollinating sustainability research with value-centered methodologies originating from the aerospace sector. The Value Driven Design framework is proposed as main hub from which to derive models supporting engineers and technology developers in the identification of win-win-win situations, where sustainable improvements are aligned with business advantages.

“…These have converged in the early 2010s in the research stream of Value Driven Design (VDD). Net Present Value (NPV) and Surplus Value (SV) are two major monetary optimization functions proposed in VDD to assess the long-term profitability of system alternatives [219][220]. The profitability idea is further cascaded down to the system components, and used to establish requirements at different levels of granularity in the system description.…”

Section: Discussionmentioning

confidence: 99%

Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

2017

Preprint

Abstract:Manufacturing organizations shall recognize sustainability as a business occasion to capitalize on, rather than an undesirable pressing situation. Still, empirical evidence shows that this opportunity is hard to capture and communicate in global strategic decisions, through planning by tactical management, to daily operational activities. This paper systematically reviews the modelling challenges at the cross-road of value and sustainability decisions making, spotlighting methods and tools proposed in literature to link sustainability to customer value creation at strategic, tactical and operational level. While statistical results show that the topic of sustainability and value modeling is trending in literature, findings from content analysis reveal that recent attempts to promote a value-based view in the sustainability discussion remain at a strategic level, with most of the proposed indicators being suited for managerial decision-making. The lack of support at operational level points to the opportunity of cross-pollinating sustainability research with value-centered methodologies originating from the aerospace sector. The Value Driven Design framework is proposed as main hub from which to derive models supporting engineers and technology developers in the identification of win-win-win situations, where sustainable improvements are aligned with business advantages.