Management Briefing - Component Based Business

building the component-based business

1-day management briefing

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Business and technological innovation lead to a new and highly practical approach to achieving business goals – rapidly and effectively – creating and managing loosely-coupled business structures – with strong support from technology. This 1-day management briefing for general and IT management explains the successful patterns, and demonstrates some of the ways in which IT can support or impede the (dynamic) alignment of a business to its markets.

This workshop is based on the ideas and concepts articulated in The Component Based Business - Plug and Play, by Richard Veryard.

We are currently negotiating dates and locations for briefings in September/October. In-house presentations and full training workshops are also available. Please contact us.

Introduction

The trend towards component-based business has been greatly accelerated by technology, especially Internet and E-Business. The component-based business is a loosely coupled network of independent business components providing services to one another and a coherent set of services to its customers. The goal is to achieve the right balance/combination of tight and loose coupling in business organizations and processes that optimizes adaptability and responsiveness of the overall business system.

Component-based business concepts open up significant opportunities for both new and established players in many industries. There are also some massive pitfalls. In this workshop, we shall explore a range of successes and failures, and provide practical guidance for building an effective component-based business.

Three Agendas

Component-Based Business means creating or transforming a business operation or process by connecting components from different companies. There are three ways that a new or established business might take advantage of this.

Constructing a Business From Independent Components

Developing Independent Business Components and Services

Restructuring the Business Into Components

Typical goals

Rapid low-risk entry into new markets
Short-term profits
Longer-term flexibility, survival and growth

Typical concerns

Defining and maintaining the business kernel
Finding and negotiating third-party components and services
Balancing stability (trust) with dynamic response (freedom)

Typical goals

Creating and marketing an autonomous business component to provide business services

Typical concerns

Defining and maintaining stable yet flexible service interfaces and protocols
Aligning internal capabilities with external demand
Evolving the service to maintain and improve market penetration

Typical goals

Improving organizational flexibility and performance
Accommodation of mergers and acqusitions
Satisfying industry regulation

Typical concerns

Creating and exposing internal interfaces
Overcoming fragmentation - maintaining business integrity
Customer service and brand management

Key questions for business

Key questions for IT

	How do you maintain dynamic alignment between the demands of your customers and markets and the capabilities of your organization?
	What information and system platforms are available to support the demands of your organization?
	How well does your IT department or service provider support your requirements?

	Are your business systems able to adapt to changing business conditions and competitive situations?
	Do you have a management framework for business/IT alignment?
	Do you have a communication system that allows business management to fully participate in defining how systems and processes should be optimally organized to meet today and tomorrow's needs?

Intended audience

What you will learn

	This seminar is aimed at business and IT managers, business analysts and architects, e-business planners, service providers and venture capitalists, interested in exploiting the opportunities for the component-based business.
	It is also relevant for industry regulators, interested in improving customer service and competitiveness without excessive fragmentation or risk.

	You will learn how to recognize and apply patterns of component-based business, and appreciate the qualities of effective business services.
	You will learn how to evaluate the effectiveness and stability of the whole business across a loosely coupled network, and consider such customer-facing elements as integrity and trust.
	The workshop style is highly interactive to provide an opportunity to discuss how it will specifically affect your organization.

Topics

	Motivation & Background	Three types of organization: Fragmented, Monolithic, Articulated. Business Strategy and Market Organization. Some Triggers for Action: Merger & Demerger, Supply Chain Rationalization, Industry Regulation
	Coherent Components	Global Economies of Scale & Scope Interchangeable Components with Simple/Standard Interfaces Component Value Proposition
	Wiring Components Together	Business Relationships: Interaction Distance and Bandwidth Managing Transaction Costs - Setup and Operational Shared Learning and Negotiating Process Design
	Emerging and Evolving Business Networks	Maintaining coherence, brand and customer service Maintaining trust and business continuity Distribution of value: benefits, costs and risks Managing evolutionary change

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