Every business has its own unique strength and should spend sufficient time on developing their own competency.
As of today with ever-evolving digital new normal, companies are gradually opening up to the next practice to enforce change, catalyze growth, harness innovation, and accelerate digital transformation. Organizational capabilities continue being considered firm idiosyncratic and market-relevant bundles of resources with the potential to drive competitiveness. They are processes and competencies viewed strategically to implement strategy, innovation, and make changes.
A capability view of enterprise helps business leaders identify “actuality, capability, and potentiality,” so the business management readily considers people, process, information, asset, culture, products/service/solutions, etc, dimensions of the adequacy of the capability to build their strength and fulfill their mission.
Actuality - understand the “current state” by growing the “reality tree”: Analyzing the current state of the business is important, business management needs to do the periodic state check by asking: What is the current state? What are the concerns with the current state (costs, efficiencies, top-line impacts, etc)? A detailed description of the current state of the business including current policies/procedures/practices, values, and resources associated with the current reality. It’s also important to imagine: What is the proposed state? What is the cost, time; other resources needed to get to the proposed state? What is the financial impact of the proposed state in terms of ROI, etc?
The more insightful questions include: "Why are we here?" What does revenue look like? How has the business model evolved? How to fill the gaps in building business capabilities, what are barriers, and how to overcome them, how to manage risks, etc? Current reality trees ascertain the forces creating the current state and thus, constraining programmatic efforts to attain the desired state. The success of executing a current reality tree is to ask the key question “Why …?” You build the“Reality Tree'' by asking enough “WHY”s to get to the root. You must ask “why” enough times to uncover the negative factors that create a divide between the vision/strategy of the desired future and the current reality.
Capability - capture a vista point of capability view: Capabilities are what abilities/competencies an organization has/need and they are the resources required for a certain mission/purpose. What and how much you model for business capabilities depends on what you intend to use the model for. This has helped management refocus on what is truly a core competency. It can also offer the opportunity for senior management to determine whether they are supporting the appropriate projects. The capability view provides a level of abstraction that allows for more open consideration.
To capture a vista point of capability view, gather as much input from all the business groups and departments including adherence to industry standards, approach to human resources showing support of overall organizational growth or shrinkage, and sourcing alternatives, with an in-depth understanding of the organization's capacity for change. By applying a business capability view, the management deliberately makes the close alignment among the company’s strategic direction, its most distinctive capabilities, and most or all of its products and services to achieve strategic goals in a stepwise manner.
Potentiality - lift up the business to the next cycle of the growth: Digital is the age of information overloading and fierce competition, business potentiality includes the overall organizational ability to perform in the future by discovering their strength and building their core competency. The potentiality is the worthy investment and hidden dimension to explore the emerging opportunities, design new business models, and investigate hidden paths for accelerating business growth. In reality, many traditional organizations still only focus on the performance today - to keep the light on. But forward-looking digital organizations explore the new possibility and unlock the potentiality to perform in the future so that the business does not only “earn enough from today,” but “thrive in the future,” because that’s what really matters from the longer-term perspective.
People and organizations now can learn faster in a time when leading strategists were arguing that the only sustainable advantage was to learn faster than your competition and unleash their full digital potential. A high potential organization can make coherent use of various already known concepts and gradually open up to the best and next practices by enforcing communication, fostering relationship-building, emphasizing participation, and realizing that they have to renew themselves periodically to grow, innovate and transform by taking a systematic approach to identify and develop potentiality into a more solid form and transform it into differentiated business advantage.
The digital transformation makes a significant impact on almost every aspect of the business from people; processes, to technologies, both horizontally and vertically. Every business has its own unique strength and should spend sufficient time on developing their own competency. The capability view can leverage different perspectives from different roles, each of whom have come from different backgrounds and perspectives and question whether and how a business capability perspective adds value over the perspectives/viewpoints that they are accustomed to using and executes capability-based strategy smoothly.
The more insightful questions include: "Why are we here?" What does revenue look like? How has the business model evolved? How to fill the gaps in building business capabilities, what are barriers, and how to overcome them, how to manage risks, etc? Current reality trees ascertain the forces creating the current state and thus, constraining programmatic efforts to attain the desired state. The success of executing a current reality tree is to ask the key question “Why …?” You build the“Reality Tree'' by asking enough “WHY”s to get to the root. You must ask “why” enough times to uncover the negative factors that create a divide between the vision/strategy of the desired future and the current reality.
Capability - capture a vista point of capability view: Capabilities are what abilities/competencies an organization has/need and they are the resources required for a certain mission/purpose. What and how much you model for business capabilities depends on what you intend to use the model for. This has helped management refocus on what is truly a core competency. It can also offer the opportunity for senior management to determine whether they are supporting the appropriate projects. The capability view provides a level of abstraction that allows for more open consideration.
To capture a vista point of capability view, gather as much input from all the business groups and departments including adherence to industry standards, approach to human resources showing support of overall organizational growth or shrinkage, and sourcing alternatives, with an in-depth understanding of the organization's capacity for change. By applying a business capability view, the management deliberately makes the close alignment among the company’s strategic direction, its most distinctive capabilities, and most or all of its products and services to achieve strategic goals in a stepwise manner.
Potentiality - lift up the business to the next cycle of the growth: Digital is the age of information overloading and fierce competition, business potentiality includes the overall organizational ability to perform in the future by discovering their strength and building their core competency. The potentiality is the worthy investment and hidden dimension to explore the emerging opportunities, design new business models, and investigate hidden paths for accelerating business growth. In reality, many traditional organizations still only focus on the performance today - to keep the light on. But forward-looking digital organizations explore the new possibility and unlock the potentiality to perform in the future so that the business does not only “earn enough from today,” but “thrive in the future,” because that’s what really matters from the longer-term perspective.
People and organizations now can learn faster in a time when leading strategists were arguing that the only sustainable advantage was to learn faster than your competition and unleash their full digital potential. A high potential organization can make coherent use of various already known concepts and gradually open up to the best and next practices by enforcing communication, fostering relationship-building, emphasizing participation, and realizing that they have to renew themselves periodically to grow, innovate and transform by taking a systematic approach to identify and develop potentiality into a more solid form and transform it into differentiated business advantage.
The digital transformation makes a significant impact on almost every aspect of the business from people; processes, to technologies, both horizontally and vertically. Every business has its own unique strength and should spend sufficient time on developing their own competency. The capability view can leverage different perspectives from different roles, each of whom have come from different backgrounds and perspectives and question whether and how a business capability perspective adds value over the perspectives/viewpoints that they are accustomed to using and executes capability-based strategy smoothly.
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