3. It's all About Components
What are business components? What happens to an industry when its core processes and services become interchangeable, and what does a componentized business look like? What are the advantages of componentization? In this chapter, we examine these what's, why's, and how's of componentization and identify both the growth opportunities that they open up and the problems that they create.
Redefining Business Components
Business components are the equivalent of interchangeable manufacturing parts but are instead composed of processes, functions, services, and activities—capabilities. A business component is a set of related capabilities that companies carry out on a daily basis. A company might define "marketing" as a ...