OOA&D - 1© Minder Chen, 1995-2003 Imperatives of today’s economy. Source: “Your Turn: The Global CEO Study 2004” IBM Business Consulting Services. 2004;

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Presentation transcript:

OOA&D - 1© Minder Chen, Imperatives of today’s economy. Source: “Your Turn: The Global CEO Study 2004” IBM Business Consulting Services. 2004; IBM Institute for Business Value.

OOA&D - 2© Minder Chen, Lower Transaction Costs ( )

OOA&D - 3© Minder Chen, Internal Specialization

OOA&D - 4© Minder Chen, Examples of External Specialization

OOA&D - 5© Minder Chen, Internal and External Specialization

OOA&D - 6© Minder Chen, Assess and Manage Components

OOA&D - 7© Minder Chen, CBM Basics

OOA&D - 8© Minder Chen, The five dimensions of a business component

OOA&D - 9© Minder Chen, CBM Example: A Retail Firm

OOA&D - 10© Minder Chen, Template for CBM CBM Business Competencies ManagementDesignBuyMakeSell Accountability Level Direct Financial StrategyProduct strategySourcing decisionCapacity PlanningMarketing IT Strategy Planning Customer service strategy Corporate strategy Control IT GovernanceControl R&D Project Material Resource PlanningProduction Scheduling Inventory Management Execute HR Management Wahrehouse managementShop floor managementOrder Processing Accounting

OOA&D - 11© Minder Chen, Heat maps identify “hot” areas to exploit business value

OOA&D - 12© Minder Chen, The three phases of CBM analysis

OOA&D - 13© Minder Chen, Where To Go? Most firms today have a blended process optimized and partnered model and now need to decide where to go

OOA&D - 14© Minder Chen, From Business  Process  System Bank Shared Service Customer Bank 2 – “Supplier” Outsourced Case Study: Payments Processing Full Business view Process to optimize Creating IT flexibility SOA Foundation Skills & Support Software

OOA&D - 15© Minder Chen, Order-to-Cash

OOA&D - 16© Minder Chen, Procurement Pay Process