The New Book “Digital Capability - Building Lego-Like Capability Into business Competency” Conclusion: The Capability-Driven Digital Transformation ~ Future of CIO

Sunday, June 18, 2017

The New Book “Digital Capability - Building Lego-Like Capability Into business Competency” Conclusion: The Capability-Driven Digital Transformation

10:57 PM Pearl Zhu No comments

Let capability shine - Either at the individual or organizational level, the capability is considered one of the fairer criteria to differentiate digital leaders from laggard.

Digital capabilities are the fundamental building blocks in digital transformations with which companies can transform business models, customer experiences, operational process, and talent development to reach the high-level business agility and maturity. Today’s organizations have to stretch out in every business dimension for driving the full-fledged digital transformation based on the set of digital capabilities and its unique business competency.

The success in executing a strategy depends on the level of capability maturity as well as the management assumptions that go into strategy execution: Strategy execution takes both capabilities and discipline. The hyper-connecting nature of digital offers particularly fertile ground for developing dynamic and recombinant digital capabilities cross-industrial ecosystems and business opportunities, in part because ways of doing business and customer expectations both tend to be more flexible than the siloed industrial age. Enterprise capability management, in essence, consists of a portfolio or matrix of capabilities that are used in various combinations to execute the business strategy and achieve expected business outcomes.

The core business competency is an integrated set of capabilities contribute directly to the competitive advantage of the business: Traditional organizations are often process driven or operation oriented, but digital organizations should be capability-driven to leapfrog digital transformation. Digital capabilities cut across all functional pillars and are built dynamically to adapt to changes. The often described attributes of business capabilities include, such as robustness, speed, comprehensiveness, responsiveness, agility, improvement, optimization, sensitivity, quality, resilience, etc. The set of core business capabilities will build the business competency and drive the digital transformation via an iterative continuum, improve performance and gain business advantages for the long term.

Let capability shine: Either at the individual or organizational level, the capability is considered one of the fairer criteria to differentiate digital leaders from laggard. Though making an objective assessment of digital capability maturity is not an easier thing, to put another way, it takes the capability to evaluate capability in the right way. People, culture, leadership, circumstances, belief, etc, are all important for business capability management. Enterprise success is difficult to replicate, forward-thinking individuals or organizations have to continue building their own unique set of capabilities, and take the capability-driven digital transformation with solid steps, in order to achieve the long-term prosperity.

Digital transformation is a journey rather than a destination. At the higher maturity level, organizations have to stretch out in every dimension and scale up for building a differentiated set of business capabilities to enable and accelerate digital transformation.

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