EdwardH.B.Giesen,GlobalCBMLeaderAnewwayoflookingatthebusiness:ComponentBusinessModeling©2015IBMCorporationCBMisatechniquetoaddressfundamentalissues2IBMConfidential|Mar1,2025ComponentBusinessModeling(CBM)Unstoppable‘ondemand’marketforcesFlexible,focused,responsiveCEOStudy2006:needforBusinessModelInnovation“WheretoSpecialize?”BMIastherealdifferentiatorOrganizationalcomplexityReducecomplexityNooptimalalignmentbusiness-IT(re-)establishdialoguebetweenbusiness-IT©2015IBMCorporationComponentBusinessModel(CBM)isastrategicmanagementframeworktoidentifyopportunitiesforimprovementorinnovationCBMisatechniqueformodelingandanalysinganenterprisebyfirstpartitioningitintoamanageablenumberofrelativelyindependent,discrete,modular,andre-usablebusinesscomponents•Abusinesscomponentisalogicalviewofpartofanenterprisethatincludestheresources,people,technologyandknow-hownecessarytodelivercapabilitiestotheorganizationCBMcanbeusedinavarietyofways,themostpowerfulofwhichistocreateaheatmap–amodelthatidentifiesthecomponentsthatprovidethegreatestopportunityforimprovement,innovationand/ortransformationMoreandmoreCBMisalsousedtocreateindustryspecificpredefinedassets:buildtheencompassingbusinessarchitecture,withpercomponentinformationonprocesses,performanceindicators,applications,services,etceteraCBMisatthecoreofIBM’sIP,withsome10patents.Thereforeatrulydifferentiatingconstruct!©2015IBMCorporationThebuildingblockofacomponentbusinessmodelisa‘businesscomponent’4IBMConfidential|Mar1,2025BusinessComponentActivitiesResourcesApplicationsInfrastructureBusinessPurposeBusinessServicesComponentGovernanceEachbusinesscomponenthasdifferentiatedcapabilitiesEachbusinesscomponentdefinesanddecidesontheuseofallresourcesneededtoperformthedefinedactivitiesEachbusinesscomponenthasagovernancestructurewithinwhichitmanagesitsactivitiesEachbusinesscomponenthasbusinessserviceswhichformtheinterfacestootherbusinesscomponentsBusinessComponentElementsAcomponentisabusinessinmicrocosm.Ithasactivities,resources,applications,infrastructure.Ithasagovernancemodel.Itprovidesgoodsandservices(businessservices)©2015IBMCorporationInthecomponentview,theenterpriseisasetofcomponentsthatarenetworkedtogetherIBMConfidential|Mar1,20256MarketSegmentPlanningMarketSegmentPlanningBusinessStrategyBusinessStrategySegmentTrackingSegmentTrackingTrackingModels&TargetsMarketEventsBusinessPlansProd.PortfolioUpdates©2015IBMCorporationHowisacomponentviewdifferentthanaprocessviewoftheenterprise?BusinesscomponentsrepresentalevelofaggregationbetweenbusinessprocessandbusinessfunctionThecomponentviewfocusesonwhatanenterpriseisdoing,notonhowitisbeingdone—processesandtheactivitiesaremorefocusedonhowAsaresult,componentsaremoredirectlyenablingofstrategythanareprocessesThecomponentviewandtheprocessviewaredifferent,butcomplimentary,andbothcouldbeusedonthesameengagement7IBMConfidential|Mar1,2025©2015IBMCorporationProcessviewandCBMviewarecomplementary8IBMConfidential|Mar1,2025Componentsby(re-)groupingactivitiesActivitieshaveinput/output->consolidationintocomponentsdefinescomponentinterfacesOrganization=setofcomponents,networkingtogetherComponents“Activities”aslinkingpinbetweenCBMandprocessviewCBMasnewdimensiontoframebusinessissuesComplementaryviews,e.g.prioritize‘hot’componentswithCBM,transformthesewithprocessrelatedtool...