Capabilities directly decide the overall organization’s competency, how well they can deliver the value to the customers, and build a long-term winning position.
There are capability necessities and capability differentiators. Enterprise capability management, in essence, consists of a portfolio or matrix of capabilities that are used in various combinations to build the business competency, implement the business strategy and achieve outcomes.
Identify the capability patterns of the company: Every competitive business has a unique set of key capabilities to achieve its business goals and reach a high level of performance. Business capabilities are typically expressed in general and high-level terms and typically require a combination of people, processes, resources, information and technology to achieve. There are different views and multiple perspectives to understand a capability. Capabilities are processes and competencies viewed strategically; capabilities are also the resources required for a certain mission/purpose. Top executives need to take a strategic perspective and identify the capability patterns of the company, make the risk profile of the enterprise performance deficiencies, and assess the management view of the condition/suitability/adequacy/viability of capability to support the intended future operating model and implement a well-defined business strategy.
Capability and process are two viewpoints of an organization. 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 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 to drive changes or implement business strategy. If you cannot "see or read" your strategic competencies and capabilities and identify related patterns, and then it's a great question to ask of the executive and strategic planning team. 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 and consider service, process, information, asset, people, etc, dimensions of the adequacy of the capability to fulfill their business strategy.
Gain an in-depth understanding of what capabilities are critical to build the unique competencies for the business's long-term prosperity: In order to know the organization better, the business management should make an objective assessment, to ensure they not only have “me too” type business competitive necessity but also keep developing unique competencies based on multilayered and integral business capabilities. And each of these capabilities can be combined in different fashions to yield multiple competencies. It is also important to connect the dots between business capabilities and strategy, make an objective assessment and a proper mapping to ensure the successful strategy execution.
A core competency is a harmonization of multiple capabilities such that it permeates the entire organization with a focus, and in alignment with the resource-based view. To improve overall business competency, digital organizations shift from process-oriented practices to capability-based strategy management. Leveraging capability view allows you to focus on “what” the business needs and not “how” the business runs. The capability represents the what, whereas the process represents the how. Also, organizations can look at both process and capability maps and decide that capabilities are much more accessible and thus, aid the conversations between its stakeholders. Fine-tuned business capabilities offer a competitive advantage in delivering and selling the products/services/processes, and supports the strategic direction of the organization.
The maturity of a business capability would be based on the ability to deliver on either customer needs or to achieve the desired business outcome: The digital capability is modular, dynamic and nonlinear, having many visible and invisible business elements. These modular business capabilities can be recombined into dynamic digital capabilities with much shorter building cycles. Organizations with high competency keep integrating and optimizing capabilities, highlight activities and identify overlaps or gaps, estimate the capability leverage, preferably in dollars, provided or potentially, and calculate the cost in strategic disciplines, operational management or governance.
All businesses have certain capabilities, there is a holistic view of the various business capabilities and strategic balances of a capability portfolio. A set of core business capabilities improve strategic performance, achieve operational excellence, and gain business advantages for the long term. What matters is capability maturity, the high-mature set of business capabilities can make organizations more adaptable to fulfill their strategy, as the key business differentiator. The capability maturity can be assessed by measuring the technology impact on capability effectiveness; the process impact on capability effectiveness, and the people factor about the collective capability effectiveness and maturity.
Capabilities directly decide the overall organization’s competency, how well they can deliver the value to the customers, and build a long-term winning position. To prepare for the unprepared circumstances, organizations need to learn how to craft digital capabilities which are more dynamic, nonlinear, and have the recombinant nature, built to change, with the goal to lead a capability-based strategy smoothly.
Identify the capability patterns of the company: Every competitive business has a unique set of key capabilities to achieve its business goals and reach a high level of performance. Business capabilities are typically expressed in general and high-level terms and typically require a combination of people, processes, resources, information and technology to achieve. There are different views and multiple perspectives to understand a capability. Capabilities are processes and competencies viewed strategically; capabilities are also the resources required for a certain mission/purpose. Top executives need to take a strategic perspective and identify the capability patterns of the company, make the risk profile of the enterprise performance deficiencies, and assess the management view of the condition/suitability/adequacy/viability of capability to support the intended future operating model and implement a well-defined business strategy.
Capability and process are two viewpoints of an organization. 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 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 to drive changes or implement business strategy. If you cannot "see or read" your strategic competencies and capabilities and identify related patterns, and then it's a great question to ask of the executive and strategic planning team. 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 and consider service, process, information, asset, people, etc, dimensions of the adequacy of the capability to fulfill their business strategy.
Gain an in-depth understanding of what capabilities are critical to build the unique competencies for the business's long-term prosperity: In order to know the organization better, the business management should make an objective assessment, to ensure they not only have “me too” type business competitive necessity but also keep developing unique competencies based on multilayered and integral business capabilities. And each of these capabilities can be combined in different fashions to yield multiple competencies. It is also important to connect the dots between business capabilities and strategy, make an objective assessment and a proper mapping to ensure the successful strategy execution.
A core competency is a harmonization of multiple capabilities such that it permeates the entire organization with a focus, and in alignment with the resource-based view. To improve overall business competency, digital organizations shift from process-oriented practices to capability-based strategy management. Leveraging capability view allows you to focus on “what” the business needs and not “how” the business runs. The capability represents the what, whereas the process represents the how. Also, organizations can look at both process and capability maps and decide that capabilities are much more accessible and thus, aid the conversations between its stakeholders. Fine-tuned business capabilities offer a competitive advantage in delivering and selling the products/services/processes, and supports the strategic direction of the organization.
The maturity of a business capability would be based on the ability to deliver on either customer needs or to achieve the desired business outcome: The digital capability is modular, dynamic and nonlinear, having many visible and invisible business elements. These modular business capabilities can be recombined into dynamic digital capabilities with much shorter building cycles. Organizations with high competency keep integrating and optimizing capabilities, highlight activities and identify overlaps or gaps, estimate the capability leverage, preferably in dollars, provided or potentially, and calculate the cost in strategic disciplines, operational management or governance.
All businesses have certain capabilities, there is a holistic view of the various business capabilities and strategic balances of a capability portfolio. A set of core business capabilities improve strategic performance, achieve operational excellence, and gain business advantages for the long term. What matters is capability maturity, the high-mature set of business capabilities can make organizations more adaptable to fulfill their strategy, as the key business differentiator. The capability maturity can be assessed by measuring the technology impact on capability effectiveness; the process impact on capability effectiveness, and the people factor about the collective capability effectiveness and maturity.
Capabilities directly decide the overall organization’s competency, how well they can deliver the value to the customers, and build a long-term winning position. To prepare for the unprepared circumstances, organizations need to learn how to craft digital capabilities which are more dynamic, nonlinear, and have the recombinant nature, built to change, with the goal to lead a capability-based strategy smoothly.
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