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
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing i ...
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
acquisitions
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
.
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 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, not technology.
* The term 'process' within IBM's component description, is also criticized
[{{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] as requiring additional explanations because it has dual meaning in Business and single meaning in IT.
See also
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Business model design
A business model describes how an organization creates, delivers, and captures value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010 in economic, social, ...
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Business process modeling
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Business plan
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Business reference model
References
Business models