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ISM 158 – Brandon Espinoza – 5/4/10 . BTM Business Agility Index. What does the BTM do? . BTM analyzes a businesses performance by focusing on certain areas that pose the greatest strategic and operational challenges.
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ISM 158 – Brandon Espinoza – 5/4/10 BTM Business Agility Index
What does the BTM do? • BTM analyzes a businesses performance by focusing on certain areas that pose the greatest strategic and operational challenges. • This enables businesses to: maximize business value, drive business models, optimize business and technology services, reduce costs while improving efficiency and achieve an enduring performance.
What is the BTM Agility Index? • Conducted by BTM in partnership with IBM. • Examines the attributes of agility and how successful companies employ the technology to achieve it. • Built on a framework that describes the processes, structures and behaviors that comprise business agility. • The framework consists of: Management Behaviors, Business Technology Architecture, and Operational Practices.
"The Index reveals the key role business agility holds in economic performance and how business technology convergence can accelerate establishment of that strategic position. Furthermore, the findings specify the behaviors and constructs that drive agility, which are defined as a repeatable management practice that can be implemented in any organization, regardless of size or industry." – Faisal Hoque, CEO of BTM
How was the index created? • Examination of publicly traded US companies across multiple industry groups. • A range of financial measures, including value, performance, growth, margin, capital efficiency and stock price volatility. • These things are used to measure the financial effect of business agility.
"The BTM Business Agility Index results show the importance and true business value to customers of focusing on improving their overall business agility." • "Customers will be able to compare their current level of business agility and learn how to create significant revenue and earnings improvement. We are excited about working with BTM on this new agility index." - Paul Brunet, IBM VP of WebSphere
Conclusion • Research shows that companies with highly mature business agility characteristics exhibited superior financial performance. • 13% to 38% performance advantage in capital efficiency and value. • 10% to 15% performance advantage in margin. • 0.2% to 5% performance advantage in revenue and earnings growth. • 23% to 29% less stock price volatility.
BTM’s Business Agility Index shows the correlation between technology and business. • Businesses that utilize technology to a fuller extent have a competitive advantage, better communication to customers/vendors, a more streamlined business plan and a more efficient information flow.
Sources • http://www.btmcorporation.com/ • http://www.marketwatch.com/story/btm-corporation-releases-the-btm-business-agility-index-2010-05-03?reflink=MW_news_stmp