Thursday, May 6, 2021

Capability-based Business Transformation

The organization has to build an impressive road-mapping, explore multipath digital gateways, and change to the fundamental business model, culture, or other critical business factors for reaching the next level of organizational growth and maturity.

Forward-thinking organizations today aim to move into a more advanced stage of digital deployment by tailoring their own unique strength and business maturity.

 It’s important to understand what drives cost and what drives value, ensuring they have both vision and passion, a set of coherent capabilities and capacities entering into the ever-changing business dynamic, as well as a solid roadmap to take the long journey for reaching the high level of organizational maturity.

Strategic capability-roadmapping: Products/services 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, develop differentiated business capabilities to make continuous deliveries. 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.

Capability mapping can be an enormous help in understanding and prioritizing business efforts that organizations are attempting to create, and improve the success rate of strategy execution. The viewpoints of strategy-capability mapping would be selective, not comprehensive. There are multiple perspectives of organizational capabilities, the top tier is a common executive view of the condition or suitability of capability to support the intended future operating model and implement a well-defined business strategy. 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. Perhaps you also have to go down to a second-tier - the program portfolio 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 the map against different roles in the organization to achieve business objectives and make continuous deliveries.

Intelligent process mapping: Processes underpin business capability. The relationships of business processes in the context of the enterprise systems (architecture, organizational structure, strategies, etc.) create greater capabilities when analyzing and planning enterprise changes. The goal of process management is to understand every workflow process, eliminate redundancy, complications and reduce the burden on the company while trying to stay current with ever-changing technologies and dynamic business environments, keep optimizing the organizational competency and capacity. The smart process needs to have dynamic aspects to it. It is rigorous; but not overly rigid, it can handle ad-hoc and exceptional matters smoothly and it ‘knows’ enough to be able to handle failures effectively.

The question is how does an organization look at the process maturity which will give real-time or near real-time view to business performance. Smart business processes should actually be born out of a strategy, when applied strategically saves much cost, allowing you to become more competitive to achieve business goals. Outlining the major business processes at the highest level helps to build business capabilities. Process maps should be well aligned with application portfolios as well as partners or customers application portfolios. Unused or under -utilized applications that consume a disproportionate amount of resources when compared to their value, need to be addressed.

Contextual governance mapping: The purpose of the GRC is to improve business performance through the creation of value to stakeholders. Governance can begin with frameworks and policies to be put in place, depending on the nature, scale and complexity of the organization, understanding one's risks and conducting Risk Assessment remains the core exercise before any controls are put in place in the overall context of GRC. GRC Mapping assists in assessing what additional system and controls you need compared to what you already have in order to mitigate risks. The regulatory compliance mapping phase is about defining requirements and tying them back to an "authority document." Once that is done for one area of concern, then the organization can start to define where requirements overlap.

There are often disruptive processes or technologies that need some relaxation of the old governance models during the changeover. It makes sense to have governance processes that are more lightweight and continuous, and focus more on results rather than detailed plans. Furthermore, governance mapping helps to identify interdependencies and streamline governance processes. Think big (holistically) and small (focus), think lightweight, think incremental, and most of all, think about how GRC can be delegated and even automated when possible.

Business transformation is the change on a grand level and it is a thorny journey full of uncertainty, velocity, complexity, and ambiguity, with many curves and bumps, roadblocks and pitfalls on the way. The organization has to build an impressive roadmapping, explore multipath digital gateways, and change to the fundamental business model, culture, or other critical business factors for reaching the next level of organizational growth and maturity.


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