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Component business model (CBM) is a technique to model and analyze an enterprise. It is a logical representation or map of business components or "building blocks" and can be depicted on a single page. It can be used to analyze the alignment of enterprise strategy with the organization's capabilities and investments, identify redundant or overlapping business capabilities, analyze sourcing options for the different components (buy or build), prioritizing transformation options and can be used to create a unified roadmap after mergers or acquisitions.

The model is organized as business components along columns and "operational levels" along rows. The Business components are defined partly as large business areas with characteristic skills, IT capabilities and process. The three operational levels are "Direct", "Control" and "Execute" - they separate strategic decisions (Direct), management checks (Control), and business actions (Execute) on business competencies.

Criticism

Even though IBM’s business model approach is good for mapping the components of a business model or product, the following criticisms have been identified:

Is built on components that are supposed to consist of people, processes and technology needed by this component to act as a standalone entity. One criticism^[1] is that the 'technology' element in each block is not a mandatory part of many business models. It is strategy that is vital within a business model,^[2] not technology.
The term 'process' within IBM's component description, is also criticized^[3] as requiring additional explanations because it has dual meaning in Business and single meaning in IT.

References

^ "Purchase Intent Data for Enterprise Tech Sales and Marketing". 17 November 2015.
^ Allan Afuah, Business Models: A Strategic Management Approach, 2007
^ "Purchase Intent Data for Enterprise Tech Sales and Marketing". 17 November 2015.

[1] "Purchase Intent Data for Enterprise Tech Sales and Marketing". 17 November 2015.

[2] Allan Afuah, Business Models: A Strategic Management Approach, 2007

[3] "Purchase Intent Data for Enterprise Tech Sales and Marketing". 17 November 2015.

[1]

[2]

[3]

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+{{one source|date=February 2012}}
-'''Component Business Model''' (CBM) is a technique developed by [[IBM]] to model and analyze an enterprise. It is a logical representation or map of business components or "building blocks" and can be depicted on a single page. It can be used to analyze the alignment of enterprise strategy with the organization's capabilities and [[investment]]s, identify redundant or overlapping business capabilities, analyze sourcing options for the different components (buy or build), prioritizing transformation options and can be used to create a unified roadmap after mergers or [[Mergers and acquisitions|acquisitions]].
+'''Component business model''' ('''CBM''') is a technique to model and analyze an enterprise. It is a logical representation or map of business components or "building blocks" and can be depicted on a single page. It can be used to analyze the alignment of enterprise strategy with the organization's capabilities and [[investment]]s, identify redundant or overlapping business capabilities, analyze sourcing options for the different components (buy or build), prioritizing transformation options and can be used to create a unified roadmap after mergers or [[Mergers and acquisitions|acquisitions]].
-The model is organized as business competencies along columns and "operational levels" along rows. Business competencies are defined as large business areas with characteristic skills and competencies. The three operational levels are "Direct", "Control" and "Execute" - they separate strategic decisions (Direct), [[management]] checks (Control), and business actions (Execute) on business competencies.
+The model is organized as business components along columns and "operational levels" along rows. The Business components are defined partly as large business areas with characteristic skills, IT capabilities and process. The three operational levels are "Direct", "Control" and "Execute" - they separate strategic decisions (Direct), [[management]] checks (Control), and business actions (Execute) on business competencies.
+==Criticism==
+Even though IBM’s business model approach is good for mapping the components of a business model or product, the following criticisms have been identified:
+* Is built on components that are supposed to consist of people, processes and technology needed by this component to act as a standalone entity. One criticism<ref>{{Cite web|url=http://www.ebizq.net/blogs/service_oriented/2010/01/business_architecture_and_ibm_component_business_model.php|title = Purchase Intent Data for Enterprise Tech Sales and Marketing|date = 17 November 2015}}</ref> is that the 'technology' element in each block is not a mandatory part of many business models. It is strategy that is vital within a business model,<ref>Allan Afuah, Business Models: A Strategic Management Approach, 2007</ref> not technology.
+* The term 'process' within IBM's component description, is also criticized<ref>{{Cite web|url=http://www.ebizq.net/blogs/service_oriented/2010/01/business_architecture_and_ibm_component_business_model.php|title = Purchase Intent Data for Enterprise Tech Sales and Marketing|date = 17 November 2015}}</ref> as requiring additional explanations because it has dual meaning in Business and single meaning in IT.
 ==See also==
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 ==References==
 <references />
-* [http://www-935.ibm.com/services/uk/igs/html/cbm-intro.html Introduction to CBM]
-* [http://www-935.ibm.com/services/us/imc/pdf/g510-6163-component-business-models.pdf Component Business Models]
 [[Category:Business models]]