1. 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; IBM Institute for Business Value.

2. OOA&D - 2© Minder Chen, 1995-2003 Lower Transaction Costs (1995-2005)

3. OOA&D - 3© Minder Chen, 1995-2003 Internal Specialization

4. OOA&D - 4© Minder Chen, 1995-2003 Examples of External Specialization

5. OOA&D - 5© Minder Chen, 1995-2003 Internal and External Specialization

6. OOA&D - 6© Minder Chen, 1995-2003 Assess and Manage Components

7. OOA&D - 7© Minder Chen, 1995-2003 CBM Basics

8. OOA&D - 8© Minder Chen, 1995-2003 The five dimensions of a business component

9. OOA&D - 9© Minder Chen, 1995-2003 CBM Example: A Retail Firm

10. OOA&D - 10© Minder Chen, 1995-2003 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

11. OOA&D - 11© Minder Chen, 1995-2003 Heat maps identify “hot” areas to exploit business value

12. OOA&D - 12© Minder Chen, 1995-2003 The three phases of CBM analysis

13. OOA&D - 13© Minder Chen, 1995-2003 Where To Go? Most firms today have a blended process optimized and partnered model and now need to decide where to go

14. OOA&D - 14© Minder Chen, 1995-2003 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

15. OOA&D - 15© Minder Chen, 1995-2003 Order-to-Cash http://perotsystems.com/library/ServiceBrochure_OrdertoCashProcessing.pdf

16. OOA&D - 16© Minder Chen, 1995-2003 Procurement Pay Process http://perotsystems.com/library/ServiceBrochure_ProcuretoPayProcessing.pdf