The Strategic Imperative of Business Capabilities
Published Dec 24, 2022
By A Staff Writer
Why are business capabilities importance to your firm? More importantly, how do you articulate the criticality of business capabilities? In the last several years, business capability mapping has emerged as a key concept for modeling an enterprise and defining the fundamental essence in foundational terms. Business capabilities are like Lego blocks which encapsulate what a business does to a sufficient level of abstraction and a finer standard of decomposition.
Business capabilities are like Lego blocks which encapsulate what a business does in an adequate level of abstraction and a finer standard of decomposition.
Business capabilities are definitely worth the buzz as they are the fountainhead elements from which a lot of other things flow. They complete the business definition.
Here are a few reasons business architecture in general, and business capability mapping, in particular, has emerged as a core enterprise modeling technique.
Business Capabilities Importance and Value:
Business capabilities are intuitive and logical, thus providing an intellectually consistent framework
Business capabilities are stable and long-term thus laying a foundation that is not volatile and ephemeral
Business capability mapping can be the common language between business and technology
Business capabilities, when expressed as a mutually exclusive and collectively exhaustive set, can capture the end to end and multidimensional blueprint of an enterprise
Capability-based funding (rather than project-based funding) can help evolve capabilities that matter, not siloed functionality.
Capability-centric requirements can contribute to minimizing overlap and redundancy
Capabilities, when juxtaposed against various parameters to generate heat maps, can provide insights to make informed and intelligent decisions, for example, by identifying gaps to achieve a strategy
Business capabilities can inform and influence the modularity and granularity of the IT services landscape
Business capabilities may not be a panacea to what ails the business/IT relationship, but they are as close to a bridge as one can get to. Indeed, business capabilities matter! How do you view the business capabilities importance in your company?
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