component-based development -> component-based business

towards the component-based business

systems thinking on loosely coupled enterprises

component-based business examples resources book
Three Business Agendas
  • Constructing business from independent components
  • Developing independent business components / services
  • Restructuring business into components
A fourth agenda involves regulating complex and dynamic markets.  There is a huge gap between the effective regulators and the others.
Recent News Aspects of the component-based business can be found in the news every day.
  • mergers / demergers
  • outsourcing / franchising
  • mission / coalition
There have been some big failures recently:
  • Railtrack
  • Concert (the joint venture between AT&T and BT)
At the same time, there have been some notable successes.
  • Tesco Personal Finance (joint venture between Tesco and Royal Bank of Scotland)
We need to understand the difference.
Management briefing

White Papers & Background Papers

Component-Based Business

Read the introduction online

component-based development -> component-based business

Component-Based Business - Recent News and Comment

veryard projects > component-based business > news
Eager outsourcers thought they had offloaded all the headaches of manufacturing, reserving for themselves the sexy areas of product innovation, marketing and customer understanding. Alas, the lesson of 2001 is that, even if you outsource the messy details of manufacturing, you cannot avoid economic exposure.
Source: Peter Martin, Financial Times, September 24th, 2001

See also: Why Cisco Fell: Outsourcing and its Perils.  Lakeman, Boyd & Frey.  Strategy and Business, Q3 2001.

Donald Rumsfeld (Defence Secretary) told CBS television: "The mission determines the coalition and we don't allow the coalition to determine the mission."  Yet Colin Powell (Secretary of State) made almost the opposite point, stressing the importance of keeping a broad coalition together.
Source: Financial Times, September 24th, 2001
Abbey National gives franchises to local managers, after a successful experiment with shadow franchises.
Source: Financial Times, September 24th, 2001
BT and AT&T terminate the Concert joint venture. 
Source: Financial Times, September 24th, 2001
BT publishes plans for the demerger of MMO2. The move was originally seen as a way of releasing the value of BT's mobile operations when mobile telephony was, along with the Internet, the fastest-growing technology business.
Source: Financial Times, September 24th, 2001

The demerger of MMO2 is overshadowed by unexpected liabilities in the remaining parent group. The biggest uncertainty stems from BT's efforts to renegotiate the structure of Concert. Negotiations are more complicated than previously realised, because of another joint venture with AT&T in Canada.

Source: Financial Times, September 25th, 2001

component-based development -> component-based business

Three Agendas of Component-Based Business

veryard projects > component-based business > three business 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

component-based development -> component-based business

Component-Based Business - Sources and Resources

veryard projects > component-based business > sources and resources

key concepts articles inspiration
> collaboration
> pleasure
> regulation
notion finder cbb notions
other notions
newThe Demise of Railtrack

Joined-Up Government

Advent of Web Services

Transition and Transformation
- the hypothetical survival of Camelot

Component-Based Merger
... and demerger
Source Books Web Links and Resources


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This page last updated on October 25th, 2001
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