Component business model: Difference between revisions
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'''Component |
'''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]]. |
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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. |
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. |
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==Criticism== |
==Criticism== |
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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: |
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: |
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* 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>http://www.ebizq.net/blogs/service_oriented/2010/01/business_architecture_and_ibm_component_business_model.php</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. |
* 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. |
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* The term 'process' within IBM's component description, is also criticized<ref>http://www.ebizq.net/blogs/service_oriented/2010/01/business_architecture_and_ibm_component_business_model.php</ref> as requiring additional explanations because it has dual meaning in Business and single meaning in IT. |
* 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. |
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==See also== |
==See also== |
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==References== |
==References== |
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[[Category:Business models]] |
[[Category:Business models]] |
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Latest revision as of 19:36, 2 January 2023
 | This article relies largely or entirely on a single source. (February 2012) |
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
[edit]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.
See also
[edit]References
[edit]- ^ "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.