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 traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...
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.
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
Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a Government agency, government bodies through business administration, Nonprofit studies, nonprofit management, or the political s ...
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
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Business process modeling
Business process modeling (BPM) is the action of capturing and representing business processes, processes of an enterprise (i.e. modeling them), so that the current business processes may be analyzed, applied securely and consistently, improved, ...
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Business plan
A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on ...
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Business reference model
References
Business models