Initatecapabilityassessment

All businesses have certain capabilities, what matters is the level of maturity. The high-mature set of business capabilities can make organizations more adaptable to fulfill their strategy and drive enterprise-wide digital transformation.

A business capability describes what is a business purpose and their ability to produce output to the enterprise. As capability often takes hard work to put in place, it can therefore not be completely transferred because of the degree of organizational learning and organization that goes with it. 

So, the high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive and innovative, to improve business maturity significantly.

Capability analysis has both external and internal analysis: Business capabilities are different from the mere sum of individual abilities and skills of its members. It’s composed of people, process, and technology to produce certain business outcomes. You should have an in-depth understanding of what capabilities are critical to build the long-term competency for the business. Business executives, employees, customers, and vendors all have their various observations on the capability management cycles, so their feedback, their respective viewpoints based on their special angles can indicate useful areas for further exploration and confirmation.

Capability can contain many services, processes, and functionality. Assuming the company has a great product, creating meaningful, relevant, and compelling differentiation in the mind of customers is the challenge. This is the foundation in which capabilities are built or optimized and brands are built. To develop a set of unique business capabilities, you would have an external and an internal analysis of capability effectiveness. Processes underpin capabilities; for external analysis, you might consider the processes dealing with the operational management; for internal analysis, capabilities may include dependencies - one is part of another or depends on another; identify capability 'patterns' of the enterprise to make holistic investment decisions.

Capability classification and modeling is about testing the practicality, efficiency and effectiveness of your capability design, improving the overall business competency: The business capability classification helps the management highlight the real value and a healthy capability portfolio management. The business management needs to clarify which capabilities are at base level to sustain the business; which ones are at competitive level to keep the business staying competitive in the business; which ones are at the differentiating level, to be the key differentiator for its business. Make an objective assessment of condition, suitability, or differentiation of capability to support the intended future operating model and business strategy.

It’s critical to identify capability patterns of the company and the risk profile of the enterprise performance deficiencies. Capability Modeling is about testing the practicality, efficiency and effectiveness of capability design; facilitates the process of identifying and recognizing duplicate capabilities and opportunities to leverage existing capabilities. You have to balance the art and science that goes back and forth between design and modeling in order to manage the capability development cycle successfully. It allows you to manage the spend in investing and developing capabilities, provide the executive insight about which of the strategic choices is most likely to succeed in the organizational culture, and the program of work required to build and sustain it.

The enterprise integrating school of thinking helps the organization build a strong capability portfolio to implement business strategy: It is about designing all the facets of the enterprise so that enterprise strategy may be executed by maximizing the overall coherency. Integration is the task of connecting business systems or components, clarifying business logic, optimizing business processes, refining information, updating technologies, eliminating redundant capabilities, to ensure capability-based strategy management.

Keep in mind though, the first thing to understand is that integration is not always about cost efficiency, what drives the need for better integration of information technology woven capabilities, especially with highly disparate systems, is to improve the value from existing capabilities and the need for better business intelligence, applications optimization, performance acceleration, or the core competency, etc. It has to be done with an architecture in mind, and its related information systems, etc. The successful integration will depend on the underlying business logic between all of the crucial points and how they influence each other in building solid and differentiated business competency.

All businesses have certain capabilities, what matters is the level of maturity. The high-mature set of business capabilities can make organizations more adaptable to fulfill their strategy and drive enterprise-wide digital transformation. The goal of business capability analysis, development and optimization, is to facilitate business progress but also bring down the incremental cost of growth and the time to market. Solid capabilities shape high performance organization. Besides financial value, ROI is expanding into other less measurable, but no less tangible areas such as employee satisfaction, creativity, teamwork, collaboration, making silos disappear, etc, to ensure long term business advantage.

Posted in: EA,Enterprise Capability