Sunday, May 8, 2022


There are many "ingredients" in business capability development. Among them, capability encapsulates people, process, information technology, knowledge and other tangible and intangible resources to improve business performance.

Running business is complex today, the enterprise consists of a set of capabilities, building capabilities becomes a constant process irrespective of the economic conditions. Business capabilities are fundamental pillars to implement the corporate strategy. 

A well-run digital organization needs to do this under all circumstances, and then, use these capabilities to understand its environment, create new products or services and then, deliver them seamlessly. There are varying ingredients in building business capability and there are variety of capabilities needed to run a successful organization. 

Process: Processes underpin capabilities. Capabilities are processes and competencies viewed strategically. Capability view is for the strategic re-think of “What,” and the process view is about the executable known as “How.” Process view gets into technical details, and capability view of the enterprise helps businesses identify “actuality, ability, and potentiality.” Many capabilities are often nonlinear and synthetic in nature, integrating the modular capabilities into nonlinear capabilities, to create new experiences and expand its impact, embedding agility in processes and focusing on building long-term business competency.

Capabilities, especially at the integral level may include dependencies, one is part of another or depends on another. One capability may be implemented by multiple business processes for multiple products and services. Thus, it’s important to gain insight into the condition and relationship or dependency of capabilities to improve capability coherence and maturity, and focus on building long-term organizational competency, and improve the overall business maturity.

Information/Knowledge/Resource: The capability is a firm-specific asset that is difficult if not impossible to imitate because there are varying soft ingredients such as information, knowledge that are invaluable corporate assets. High-intelligent organizations across the vertical sectors proactively invest in strategic information management solutions, leverage information to improve capability development. Knowledge is refined information; a thoughtful and systematic knowledge management solution needs to explore the breadth and depth of knowledge, its prospects and practice to improve business competency. Thus, capability cannot be transferred because of the degree of organizational learning, unique culture ingredients, or management expertise that the organization goes with at the different stages of the business.

Resource management is another important discipline in capability development for achieving a certain mission/purpose. Corporate resources include technological, financial, reputational, market structure and institutional assets, etc. Resource allocation and management impacts the level of balance in capability management. In order to shorten the capability development cycle, it is essential for the entire company to be pulling in the right direction by allocating resources, time, and assets scientifically.

: Besides hard process and soft knowledge, people are still the most critical component in capability management. Human capital is always the largest intangible asset of a company that has to keep investing in to ensure the long term prosperity of the business. Either individually or collectively, to achieve capability coherence, choose how to improve the capability based on your innate strengths. Learning, experiencing, training, are all important to develop talent, improve business capabilities, as well as integrate a set of capabilities into core competency.

Thus, retaining employees, especially high-performing and high-potential employees is crucial to drive long term business success. To build a powerful people pillar of the digital transformation, it’s important to be aware of the integration of a single talent capability into an integrated enterprise people management capability as well as a holistic portfolio of capabilities across all enterprises, to improve differentiated business competency.

There are many "ingredients" in business capability development. Among them, capability encapsulates people, process, information technology, knowledge and other tangible and intangible resources to improve business performance. To adapt to the high velocity and unprecedented uncertainty, it’s an imperative for high performance organizations to keep integrating the existing building blocks or recombine existing capabilities into the more sophisticated capabilities for solving complex problems and making high accomplishments continually.


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