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.


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.


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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This page last updated on July 21st, 2003
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