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IBM Research

Business Transformation Seminar 2007

IBM Haifa Labs

Invitation Program Registration Abstracts Call for Papers

June 20, 2007
Organized by IBM Research Lab & Global Business Services, Israel

Business Models Innovation

Edward Giesen, Global S&C on demand, EMEA CBM lead, EMEA Business Strategy Lead, IBM Global Business Services

The IBM CEO Study 2006, in which we interviewed 765 CEOs worldwide, concentrated on innovation. One of the conclusions was that the top performing companies were concentrating on business model innovation. As one CEO told us, products and services can be copied, the real differentiator is the business model. In a follow-up study, we examined more in detail business model innovation: What exactly is business model innovation? And what type of business model innovation yields the best results? We therefore defined a new framework for business model innovation and applied this to assess thirty-five best practice case examples. The conclusions of this study can guide companies in defining their strategy on business model innovation.

Rethinking Business Models

Shanker Ramamurthy, Global Managing Partner, Banking & Financial Market, IBM Global Business Services

In order for enterprises to succeed in the business ecosystems of tomorrow, they will have to fundamentally re-think their business models. Existing business models based around 'value chains' will be replaced by collaborative business models designed around constructs such as specialization and global integration. For large enterprises, such a transformation will take several years and require them to think of their business as consisting of business building blocks or centers of competence that provide specialized services that can be linked together. This model will enable enterprises to achieve the competing objectives of growth and differentiation, efficiency, and business resiliency and flexibility.

Modeling with Business Artifacts - IBM Research Perspective

David Cohn, Director, Business Informatics, Business Value strategy Leader, IBM Research

To make a high-level business model effective, it must be realized in the business's operations. This is a complex linkage even for classic monolithic models, but is particularly problematic for a network of components model. The Business Artifact abstraction represents the important entities that a business processes. It describes them using business language (which is understandable by operations people) within a structured framework (which can be implemented by the underlying IT). Thus, it has proven to be an effective mechanism for optimizing activities, building the underlying infrastructure, and monitoring operations. This talk will describe the role of Business Artifacts in dealing with emerging composite enterprise models.

Componentise Your Enterprise - from Theory to Practice

Guy Rackham, IBM Distinguished Engineer, Component Business model Subject Matter Expert, IBM Global Business Services

In the increasingly flat and global economy, businesses need to componentize. Componentization allows the responsive business to focus on those aspects or 'components' of their operation where they can best compete, and divest of other capabilities that others are better positioned to undertake on their behalf. The arguments behind this are broadly established but the approach and some of the implications of realizing this vision are far less obvious. First, some of the forces driving business componentization will be described. In this context, the key properties of a typical business component will be defined.

When developing systems solutions, existing analysis and design approaches do not align well to this business component concept. Traditional process-based models are more suited to streamlining repetitive production-type activity, and less useful for defining the networked business collaboration that is a key feature of componentized business. A different business architectural representation is needed to represent networked business collaboration. An emerging approach used by IBM to tackle this need will be outlined, including some more advanced features being tested out in the IBM composite business services (CBS) initiative.

The session will conclude with the presentation of a maturity model defining five possible stages of industry componentization. Using this model, an example of one industry that has already developed to an advanced state will be discussed to identify clues as to what others might expect.

Innovation in Practice

Nachum Sussman, Business development, IBM Global Services and Amit Fisher, manager, Business Transformation, IBM Haifa Research Lab

Today everybody is preaching innovation, from business analysts to political leaders. What is so special and unique about this moment in time that makes innovation so important, more than ever before?

The answer may be found in the Schumpeter-Perez theory.

According to their findings, there are historical patterns in the way technological revolutions form and become assimilated into society. These revolutions have a life cycle of approximately 50 years and go trough a cyclical pattern. According to this pattern, we are now at the turning point of the current Information Communications Technology (ICT) revolution.

The characteristics of this new paradigm are well described in Tom Friedman's book, "The World is Flat."

The consequences from being at this specific point are that companies must adapt through innovation to the new paradigm, or disappear.

Is there a way or a methodology that can help companies make the necessary transformation? IBM believes there is.

In this talk we will present how IBM's Component Business Modeling and Business Driven Development can be used to transform organization through the adoption if innovative and flexible business models. We will put the emphasis on how Israeli customers can engage with IBM in this fascinating path.


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