Monday, February 14, 2022

Innercapability

The right set of scalable, coherent and impactful capabilities directly contribute to the business maturity.


Business capability is an organized "ability" within a company and takes hard work to put in place. Capability can contain many services, processes, resources, structures, and functionalities to perform a set of activities for producing successful outcomes, whether financial, brand, or double bottom line.

The successful businesses are the ones that have learned how to implement change time after time after time, and build a set of solid business capability to drive desired change or leaping progression.

Business capability analysis: The enterprise consists of a set of capabilities with the right mix of competitive necessity and competitive differentiator, but at the different stage of the maturity cycle. Some capabilities are ineffective, some are duplicated. The scientific capability diagnosis helps businesses sufficiently aware of the general condition of the various capabilities, provide input into a qualitative capability assessment, development, and improvement. and be proactively looking for opportunities to build relevant capabilities. Conduct a fit/gap analysis of business requirements vs. capability, do deep analysis, identify areas in a capability portfolio that can be changed and optimized. Also do cost-benefit analysis of business capability development by comparing investment cost to its anticipated financial benefit.

Technically, enterprise capability architecture is an important tool for a variety of gap analysis and risk assessment. To make wise investment on capability development, create a business initiative brief that describes business objectives, scope, outcomes, making assessment of business and technical capabilities within scope, approach, costs, time frames, risks, etc as the initial basis for launching the business initiative, make sure the executive team first understands what it needs to drive future business growth and improve cash flow, map the strategic objectives into business capabilities and processes, and then determine, what capital investments will be needed to develop unique business competency to improve strategy success rate.

Capability mapping/realignment: There are strategic capability mapping and operational capability mapping. The value of capability mapping is to identify capability patterns and offer insight to senior management in making holistic investment decisions and improving organizational maturity. So the management can get to the point where there is enough differentiation between capabilities that you can build, and then, map between capability and capacity, as well as map against different roles in the organization to achieve business goals and objectives smoothly.

Besides capability mapping, align the capabilities exposed in a platform to create new experiences and develop core competency. In fact, alignment is a continuous process that demands continuous attention. Business management has to align, realign capabilities to fit the emerging business circumstances, keep an eye on the horizon” - determining the business suitability of capability, adaptation, and maturity, deliberately closing alignment among the company’s strategic direction, its products and services to execute the dynamic capability-based strategy.

Capability integration:
Due to the complexity of modern society with hyperconnectivity and interdisciplinarity, integral capabilities are the combined or recombined nonlinear capabilities which can make a bigger impact by solving significant organizational or societal problems fluently. The business capability development moves from fixed to dynamic, transactional to transformational, linear to nonlinear to solve more complex problems or thorny issues effectively on-time.

By integrating, you are creating a case in which you force organizational management to close gaps, tune process; identity, model, develop, optimize a set of cohesive capabilities to achieve business goals at both strategic and operational level. To deal with integration hairballs, the successful integration will depend on the underlying business relationships between all of the crucial integral points and how they influence each other in building differentiated business competency.

There may be many elements of digital capabilities that are foundational to almost any foreseeable digital strategy. Due to the increasing speed of changes, digital capabilities need to be more dynamic and diverse. It is crucial to identify and close enterprise capability gaps, do effective capability mapping, and proactively develop a set of differentiated competency with layered and loosely coupled modular capabilities to enable strategy execution. The right set of scalable, coherent and impactful capabilities directly contribute to the business maturity.





0 comments:

Post a Comment