Saturday, June 6, 2020

Capability Mapping, Design, and Modeling

The maturity of a business capability would be based on its ability to deliver on either customer needs or to achieve the desired capability outcome.

A business capability is the ability to achieve desired effects. The enterprise consists of a set of capabilities with the right mix of competitive necessity and competitive differentiator. And then, it uses these capabilities to understand its environment, create new products/services to delight customers.

One of the beauties of working with capabilities is that it keeps you from being dragged into all the detail of the processes involved too early. The value of capability mapping, design, and modeling is to provide a useful tool to visualize the enterprise, highlight the value of having a good understanding of current and future capabilities, as well as develop and improve the overall organizational competency.

Capability mapping: A capability map is a model describing what the enterprise currently does and it’s a set of activities for making reference links between each capability and the relevant set of people, process, technology, or tool, etc. It can also identify capability gaps in the context of future need, or capability dependency (for example, business capability reliance on technology capability) It’s about measures of performance and maturity of each capability by providing an insight into condition and relationship/dependency. By assessing and mapping business capabilities, the business management readily considers service, process, information, asset, people, etc, and dimensions of the adequacy of the capability to fulfill their business strategy.

Capability design: A business capability is the firm’s ability to integrate, build, and reconfigure internal and external competence to address rapidly changing business environments. Capabilities have outcomes; they collaborate with each other and are enabled by processes. In practice, there are a lot of reasons why the design results are something different from intended. And capability design is uniquely challenging because the products of the creative design must fit inside very strict constraints and need to be done under extreme pressure of time, cost, and functionality. There are gaps existing in the design because there are no processes to handle uncertain situations, the unrealistic designs that could not be implemented in the organizational system. Thus, it’s important to leverage design thinking, fine-tune business processes, embed risk control mechanisms into key processes, assign resources, technology, and human capital, and weave all-important business components into differentiated competencies.

Capability modeling: Designing and modeling are the two sides of the "capability development" coin. You have to balance the art and science that goes back and forth between these two activities. Modeling can be seen as an evaluation activity (simulation and/or analytics review) prior, during, or after the design phase. Capability Modeling means representing a sequence of activities, events, decision gateways, links the sequence from end to end, and taking the theoretical design to implementation. Modeling and design are not one-shot activities, you design the capability, then model, execute, monitor, optimize then again back to design. It's a continuous improvement cycle.

A cohesive set of business capabilities becomes the digital competency of the organization. The maturity of a business capability would be based on its ability to deliver on either customer needs or to achieve the desired capability outcome. The quality capability management allows business leaders to establish important business goals relevant to the capability and identify goal dependencies to establish a high mature enterprise.


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