Friday, October 2, 2015

Digital Master Chapter V Introduction: Digital Capability

Digital capability is synthetic in nature, and focusing on long-term competency.

A business capability is the set of abilities needed by an organization in order to deliver value. It’s the ability of an organization to do things effectively to achieve desired outcomes and measurable benefits and fulfill business demand. In today’s business dynamic, digital capabilities are a fundamental building block in digital transformations with which companies can transform customer experiences, operational processes, and business models, to reach high-level business agility and maturity. The often described business capabilities include such as robustness, speed, comprehensiveness, responsiveness, agility, improvement, sensitivity, optimization, resilience, etc. Read this chapter to figure out the characteristics of digital capabilities:

1. Digital capability is synthetic in nature, embedding agility in processes and focusing on long-term competency.

2. Digital capabilities cut across all functional pillars. They are fundamental building blocks for business transformation.

3. Strategy execution takes both capabilities and disciplines. Innovation is about reducing the unnecessary complexity.

4. Complexity is not just a phenomenon, it can be perceived as a property of a system.

5. The business capability is at a higher level than business process, and it is in the conceptual layer.

6. The core business capabilities are an integrated set of capabilities contribute directly to the competitive advantage of the business.

7. Business capability mapping is about measures of “importance,” “maturity,” and “performance” attached to each capability.

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