Wednesday, December 22, 2021


The often described maturity attributes of business capabilities include, such as robustness, speed, comprehensiveness, responsiveness, agility, optimization, quality, resilience, etc.

Business capability defines "what" a business does or can do by encapsulating organizational resources (tangible, intangible or human resources) and integrating all important business components for producing a certain outcome.

 Enterprise success is dependent upon a few core and differentiating business capabilities. There are gaps existing in capability development because organizations are at the different stages of the business growth cycle, they demonstrate various abilities to design, integration or optimization.

Capability & architecture: The business capability is the ability to achieve the desired effect under specified performance, standards, and conditions through combinations of ways and means to perform a set of business activities. Business architecture seeks to represent the organization in terms of information value, future performance, process, and capability, either as it exists or as it is intended to be. It provides strategic and resource views of capability; ensure right use of standards, policies, and industry reference models to develop new capabilities and enhance existing capabilities.

Business architects can select a set of capabilities and flag them as "strategic" if they support competitiveness along the lines of a particular strategy. The benefits of using Business Architecture in business capability management include things like portfolio rationalization, identifying gaps, assumptions, risks management, etc., leverage architectural design thinking to see how the capability-based business solution being built will perform with respect to their quality attribute goals.

Capability & strategy: The success in executing strategy depends on the level of capability maturity. The capability enabled strategy has a high success rate to reach the well-defined vision. It’s important to create the mapping between capability and strategy. Know what you are able to accomplish and what it will take to expand the differentiated capabilities, as well as how each of these capabilities can be combined in different fashions to yield multiple competencies. A good strategy helps organizations extract the maximum value from their portfolio of business capabilities to inform decision-making at multiple levels and to drive strategic alignment and optimization in a structural way.

Enterprise capability management, in essence, consists of a portfolio or matrix of capabilities that are used in various combinations to execute the business strategy and achieve expected business outcomes. Business management should make an objective assessment of what current investment and acquisition strategies are and how they are related to business capabilities of an organization. Creating a one pager view of this relationship helps an organization to identify capabilities that are critical for running business to ensure they not only have “me too” type business competitive necessity but also keep developing unique competencies based on integral business capabilities. Effective capability mapping offers opportunities for senior management to determine whether they are supporting appropriate business initiatives and evaluate effectiveness of strategy management.

Capability & process:
Capabilities are processes and competencies viewed strategically. One capability may be implemented by multiple business processes for multiple products and services. Capability encapsulates people, process, technology and other tangible and intangible resources to improve business performance. Processes underpin capabilities and impact on capability effectiveness Capabilities can be mapped to the processes that instantiate the technology used or the information required to produce certain results etc. Process management comes from the need to develop repeatable sequences of activities that are reliable to achieve business results. They can also be assessed for maturity, costs (based on the technology, systems, labor, etc.) The capability-based strategy not just sets up the strategic choices, but also follows up with the realistic process-driven actions.

A capability is a set of business processes strategically understood; capability view is for the strategic re-think of “what,” and the process view is about the “executable knowing “how.” Important business processes need to be reviewed regularly, refined regularly and are transparent across the business to bring into alignment most of the key parts of the business. Corporate competitive success depends on transforming a company’s key processes into strategic capabilities that consistently provide superior value to the customer relationship to strategy to improve business performance and reach a high level of organizational maturity.

Capability based strategic planning is about being prepared and having the organizational capability to deal with the unexpected, without losing sight of the business objectives and priorities. Unique business capabilities cannot be transferred because of the degree of organizational learning and organization that goes with it. The often described maturity attributes of business capabilities include, such as robustness, speed, comprehensiveness, responsiveness, agility, optimization, quality, resilience, etc. A set of business capabilities directly impact the overall organizational competencies and maturity.


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