Wednesday, September 28, 2022


Highlight the value of having a good understanding of current and future capabilities, develop differentiated business competency, and improve the overall organizational competency.

The characteristics of digital business are dynamic, volatile, uncertain, and hypercompetitive, therefore, it is critical for companies to improve business agility and develop organizational resilience. 

Faced with restrictive budgets and perceived risks of skill shortfalls, process ineffectiveness, and business dynamic, it is imperative to take initiatives for identifying and closing business capability gaps, building unique organizational competency to reach the clearly defined vision and achieve strategic business goals seamlessly.

It’s important to make an objective assessment of capability, design, build, and preserve core competency: The business capabilities today are the result of its history and this history constrains what capabilities the firm can perform in the future. That means there is corporate learning and accumulation under capability development. To truly build unique business competencies, use the profiles and assess capability portfolios. By assessing the business capability objectively, the business management readily considers information, asset, people, process, etc, elements of capability development; as well as the adequacy, differentiation, or maturity level of the capability dimensions to fulfill their business strategy.

The goal of capability assessment and improvement is to highlight the value of having a good understanding of current and future capabilities, as well as develop and improve the overall organizational competency. Other criteria of capability development may include such as the importance of each capability to the organization’s long term strategy, the multifaceted value it can generate tangibly.

It’s critical to create a comprehensive capability map to bridge capability gaps and clarify strategic business objectives of the organization: To improve capability-enabled strategy management, and increase business competency, create an organizational strategy-capability mapping and make a road map that sets clearly defined goals for capability developing and competence building.

You should have an in-depth understanding of what capabilities are important to achieve strategic business goals, improve customer centricity. Forethoughtful organizations compare their set of capabilities with competitors' to ensure that they are developing differentiated capabilities to build long-term competency.

It’s strategic to integrate relevant business capability into differentiated organizational competency:
Every business is different, and they are also at the different stages of its business life cycle, with different levels of business maturity. Many components of business capabilities are common and reusable across the enterprise. To avoid duplication, shorten the time cycle and save the cost for building business capabilities, integrate relevant functional capabilities into core competency, to solve more complex problems consistently.

The business management needs to capture the organizational development needs, develop a holistic portfolio of digital capabilities across all enterprises, build a unique and sustainable business advantage, and take logical steps to achieve high performance business results. The maturity of a business capability would be based on the ability for the organization to produce desired outcome either based on customer needs or building differentiated business competency.

Enterprise success is dependent upon a few core and differentiating business competencies. You have to continuously scale up and dig underneath, optimize organizational processes, highlight the value of having a good understanding of current and future capabilities, develop differentiated business capabilities, and improve the overall organizational competency.


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