What the Component Business Model is IBM's Component Business Model is a new way of looking at your business. It represents the entire business in a simple framework that fits on a single page. It is an evolution of traditional views of a business, such as business unit, function, geographic or process.
Using the Component Business Model methodology, our consultants identify the basic building blocks of your business. Each building block includes the people, processes and technology needed by this component to act as a standalone entity and deliver value to your organisation.
After a comprehensive analysis of the composition of each business, we map these individual building blocks, or components, onto a single page.
What you'll see Each component business map is unique to each company. The columns are created after thorough analysis of a business's functions and value chain. The rows are defined by actions. The top row, "direct," represents all of those components in the business that set the overall strategy and direction for the organisation.
The middle row, "control," represents all of the components in the business that translate those plans into actions, in addition to managing the day-to-day running of those activities. The bottom row, "execute," contains the business components that actually execute the detailed activities and plans of an organisation.
The component business map shows activities across lines of business, without the constrictions of geographies, internal silos or business units. The Component Business Map lets you see your entire company on a single page.
Why it works This single page perspective gives you a view of your business that is not constricted by barriers that could potentially hamper your ability to make meaningful changes. You can see which components of the business really create differentiation and value. You can identify where you have capability gaps that need to be addressed. With the component view you can identify opportunities to improve efficiency and lower costs across the entire enterprise. Identify the components where you can realise the greatest impact, and start there.
And that's where you can begin unlocking value hidden in your company and effecting strategic change.
