Business Component Models (BCM) sometimes refereed to as Component Business Models is a technique for modeling an enterprise as non-overlapping components in order to identify opportunities for innovation and improvement. BCMs view the enterprise as a set of components that are networked together. They define business domains and high-level essential business constructs around which business operations are organized, group related business functions, use functional decomposition to refine business concerns into lower level capabilities. Business Capability Maps are tabular views of the BCM.
A Business Component is a logical view of part of an enterprise that includes the resources, people, technology and know-how necessary to deliver business value. Business components have discrete boundaries, defined by the business services that they offer and the business services that they use. They include the resources, people, technology and know-how necessary to deliver value. It can have attributes, such as cost, revenue, importance to the business, etc.
Business services are goods or services that a business component offers to other business components and/or to external parties
What is a Component?
1. A Group of cohesive business activities
2. Considerations for Grouping Activities into Components :
a. Similar Activities
b. Common Subject
c. Cohesive Organizational Unit
3. Each component serves a unique purpose
Enterprise Reconstruction : Firms transform business models from siloes to customer-led competencies
Industry Deconstruction : The evolution from traditional, linear lines of business chains into integrated value networks
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