Innerconnectivityofcapabilityinvestment

Organizations with multiple core competencies can build differentiated business advantages, unlock business performance.

With today’s digital paradigm shift, enterprise capabilities are building blocks to shift an organization from a reactive surviving mode to a proactive thriving mode. Thus, business investments and meaningful activities should strive to build tangible capabilities for achieving ultimate business goals. 

What are current investment and acquisition strategies, how are they related to business capabilities of an organization? How can management leverage business architecture as a useful tool to do capability mapping for improving overall strategy management effectiveness.

Capability architecture is a useful tool to enhance capability development and management cycle: Capability enabled business strategy management has a high success rate. Enterprise capability architecture is an important tool for a variety of gap analysis and risk assessment to make wise investment on capability development cycle. It also helps to 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.

The digital strategy is not static; it has to evolve emerging business properties for adapting to the “VUCA” new normal. What matters is capability dynamism and maturity, the dynamic capabilities accelerate business speed to change; the high-mature set of business capabilities can build an agile organization to fulfill their strategy, as the key business differentiator.

The business executives have to apply enterprise architecture to make an objective assessment of their investment portfolio for getting high ROIs: There are both opportunities and risks for every investment. continually evaluating individuals and aggregate investments in terms of value, risk, and reward, for building a cohesive business capability portfolio. All meaningful business investments and activities should strive to build a differentiated set of business capabilities to achieve ultimate business goals.

To improve business competency, it is important to have a good understanding of current and future capabilities, their impact on implementing the strategic business goals. identify the key business capability and make an objective assessment of capability maturity. Business leaders today need to look ahead and be proactively looking for opportunities to improve, leverage business architecture as a navigation tool to identify the capability gaps for strategy management; compare your set of capabilities with competitors' to ensure that you are developing differentiated capabilities to gain unique business competency.

Architecture is used as a collaboration instrument to create a decent business capability map: The value of capability maps is the ability to identify capability patterns and offer insight to senior management for making wise investment decisions. Assessing the importance or criticality of capability helps the business management set the right priority, strike the right balance of short-term and long term perspectives, to enable strategy execution, and build their business differentiated advantage.

With architecture as an effective mapping tool, those business capabilities with gaps are evaluated more deeply, which produces a list of remediation work that needs completing to improve differentiated business capabilities. Also, business architects can select a set of capabilities and flag them as "strategic" if they support competitiveness along the lines of a particular strategy management in making holistic investment decisions. The best scenario is to leverage architecture for creating a comprehensive capability map through cross-functional communication and collaboration; use resource and talent scientifically to build a unique set of business capabilities.

Organizations with multiple core competencies can build differentiated business advantages, unlock business performance. As a matter of fact, enterprise capability management, in essence, is to leverage architecture tools to identify capability gaps, design and model a portfolio of capabilities that are used in various combinations to execute the business strategy and achieve higher than expected business outcomes.

Posted in: EA,Enterprise Capability