Sunday, April 5, 2020

The Aspect of Business Strategy and Capability Mapping

The quality capability model allows business leaders to establish important business goals relevant to the capability and identify goal dependencies to establish a high mature enterprise.

With rapid changes and continuous disruptions, competition is fierce across many industries, business capabilities are fundamental pillars to achieve the corporate strategy. The business capability provides differentiation and the more ability to do things and finish tasks in a consistent manner.

The enterprise consists of a set of capabilities with the right mix of competitive necessity and competitive differentiator. The organization then uses these capabilities to understand its environment, create new products/services and then deliver them seamlessly to delight customers. Capability underpins the business strategy, the point is how to do business strategy and capability mapping systematically?

To identify the capability gap and convey the key capabilities required by which an enterprise is composed:
There are multiple perspectives of organizational capabilities, the top tier is a common executive or management view of the condition/suitability of capability to support the intended future operating model and implement a well-defined business strategy. Perhaps you also have to go down to a second-tier, or even a third tier, at the operational level, to get to the point where there is enough differentiation between capabilities that you can build then map against different roles in the organization to achieve business objectives and make continuous deliveries.

To provide an insight into condition and relationship/dependency, executives are sufficiently aware of the "general condition" of the various capabilities to provide input into a qualitative assessment by identifying capability gap in the context of future need, or capability dependency, for example, business capability reliance on information technology as a linchpin. You must also be aware of the integration of a single functional capability into a holistic portfolio of digital capabilities across all enterprises, to build unique and sustainable business advantage.

The value of capability maps is the ability to identify capability patterns of the enterprise to make holistic investment decisions: Usually, capability abstracts away from functions to remove any sense of who, where or how, which enables broader consideration of options in developing and strengthening the target business competency. Take a viewpoint, risk-based approach, identify capability patterns of the company and the risk profile of the enterprise performance deficiencies. If you cannot "see/read" your strategic competencies and capabilities, then it's a great question to ask of the executive and strategic planning team.

To improve business performance and reach a high level of organizational maturity, a missing but necessary capability must be created or purchased, or the strategy must be revised. The viewpoints of strategy-capability mapping would be selective, not comprehensive. Abstraction would be a key tool for balancing the cost and effort of analysis and synthesis of a dynamic capability such that appropriate investment decisions can be made in a timely manner without compromising the returns sought through outcome realization.

The value of a capability map is a tool to visualize the end-to-end enterprise: The organizational ecosystem environment is constantly changing, forcing the business to keep adjusting. Products are becoming more commoditized and there is a lot of pressure on pricing, margins, and investable budget dollars. Business leaders today need to look ahead and be proactively looking for opportunities to improve. The strategic capability mapping helps to visualize the end to end enterprise and bridge the “gap of opportunity” between where you are and want to become.

When you want to make a change to one of those capabilities for executing the strategy, then your business model - capability mapping assists with a high-level impact assessment and delivery approach. To break down silos, capability modeling facilitates the process of identifying and recognizing duplicate capabilities and opportunities to close enterprise capability gaps and optimize the business for achieving the high-level business capability coherence.

The quality capability model allows business leaders to establish important business goals relevant to the capability and identify goal dependencies to establish a high mature enterprise. It is important to take the logical steps for making an objective assessment of business capabilities, do the strategy-capability mapping, identify and close business capability gaps and build organizational competencies for achieving strategic business goals via making continuous deliveries.









2 comments:

i really appreciate your work about businessstrategy.

It is important to take the logical steps for making an objective assessment of business ncapabilities

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