Initiatecapabilityinnovation

To build long term business advantage, organizations keep developing unique competency based on multilayered and integral business capabilities.

In face of rapid change and high competitions, the organization's long-term success is based on a set of differentiated capabilities and its core competency, enabling a company to deliver unique value to customers.

High performance organizations can integrate, build, and reconfigure internal and external competences to address rapidly changing environments and produce great outcomes all the time. 

Understanding of what capabilities are important to develop core competency: To bridge the gap between “as is” and “to be” state of the business, the business management should identify capability gaps, make an objective assessment of their current capability -how they impact the business performance, agility, and maturity; Then which capabilities the future of the organization should sharpen based on their inner strength in order to design the future of business. It helps the organization take a look at what’s happening now, what’s coming down the pike so they can be proactive in preparing for it. To build long term business advantage, organizations should not only have “me too” type competitive necessity but also keep developing unique competency based on multilayered and integral business capabilities.

Using capability models, also understand their limitations: Capability modeling is a useful analytical and communication tool to bring visibility and capture unique insight in the capability management cycle. Effective business capability design modeling highlights the value of having a good understanding of current and future capabilities, developing and optimizing the overall organizational competency. However, people might make simplistic assumptions, sometimes fail to make these assumptions explicit or assume that the future can be predicted by simply looking at past history. Keep in mind, there is no “one size fits all” formula for capability development, organizations need to do customized design, integrate and optimize to build core competency.

Unified capability architecture allows people to think outside the current constraints and comfort zones: Companies have limited capital and resources to invest in and it takes time to develop talent and build their core capabilities. Capability Architecture is a useful tool to allow budget, resources, and talent aligned with the business strategies scientifically, to improve effectiveness of business capability development and management. An effective capability architecture brings a systematic view for business executives to understand an unknown future state to emerge and shape a set of differentiated business capabilities to enable strategy management.

The digital organization is an integral business system with processes, policies, culture, work climates, people. Organizational capabilities have business outcomes; they collaborate with each other and are enabled by processes to integrate into differentiated business competency for successful strategy management and acceleration of  high performance.

Posted in: EA,Enterprise Capability