Use the business capability mapping to establish a ci relationship between the. Align investments to the underlying business model. See mapping examples and model your own business capabilities. Use this business capability map template to create a visual representation of your business capabilities. Mar 25, 2014 business capability modeling is a method leadingagile uses to inform and customize our recommendations around this structure and governance.
Hence enterprise activities are treated with far less detai l. Business capability is a configuration item ci that helps to understand how the business capability is supported by the related applications and services. The standards that are needed to implement the control environment are defined and verified by stakeholders for relevant products. A business capability is a description of what a business does independently of how or why. Our website uses cookies to improve your experience on our site. Based on business capabilities, business capability maps can be created, which enable the assessment of. Business capability modeling is an essential view for it leaders.
The most obvious way is to map the highestlevel process areas into at least one of the targeted business capabilities. Conceptual framework for modeling business capabilities. Capability represents the identity of a firm as perceived by both employees and customers. Capability based planning is structured as a hierarchy and supports up to six levels of capabilities in its series, which means a parent capability can have six levels of subcapabilities. If such a deficit is recognized for an important business capability. May 15, 2014 using a business capability model to confirm if strategic focus is aligned with current performancematurity level. Best practices to define business capability maps this business capability map template helps you get started and create a complete overview of your business capabilities. Jan 15, 20 business capability performance this capability delivers what the business expects. Hence, it is essential to crafting blueprints, views, and viewpoints, which juxtapose. This view covers gnbs internal operations as well as client services for individuals, businesses and other. Hence, it is essential to crafting blueprints, views, and viewpoints, which juxtapose capabilities and other entities to map the relationships and footprint. Business capabilities essential project documentation. A business capability is a functional building block of the business architecture that supports the business model and the business strategy. Eindhoven university of technology master business capability.
Business capability managemen hassoplattnerinstitut. Business capabilities reference model new brunswick. Furthermore, you may also wish to learn how to build a business capability map. Business capability a business capability is a particular ability or capacity that a business may possess to achieve a specific purpose or outcome. Business processes are identified, documented and aligned with. It describes what the business does outcomes and expected service levels. Ip australia has developed a business capability model that describes various aspects of its business, and has used that model in numerous ways. Each business capability should have an input and it must generate value to the business.
Business capability modeling captures the core functional model for an organization without the bias imposed. Introduction to business capability modeling leadingagile. Visit our covid19 resource center and our cost management center over 100. Simply put, a business capability describes what an enterprise does, not how it. This documents provides an overview on current major capabilities provided by the sap for me customer portal.
Capability is the ability to perform better than competitors, using a set of business attributes that is distinctive and. How to map it capabilities to business capabilities from a strategy perspective, the business capability analysis is based on current definition of functions instead of an organization. Pdf on jan 1, 2018, pouya aleatrati khosroshahi and others published business capability maps. Understanding the capabilities required by your business provides a high level overview of the business and can be a very useful exercise as it allows one to take a step back and focus on what the key elements of the business are.
Business capabilities can serve as the structuring element to uncover redundancies in it. Business capability mapping for servicedominant companies. The method is based on an ea model and the business capability map, an existing architecture viewpoint. Business capability modelling can be defined as what an organisation needs to deliver its strategic objectives it focuses on the what, not the how. In this paper, a method for analysis of dependencies between business capabilities is presented. Business capability map template infotech research group. Index termsbusiness capability map, businessit alignment, enterprise architecture management, strategy management, case study, lessons learned.
Its the ability of an organization to do things effectively to achieve desired outcomes and measurable benefits and fulfill business demand. Capability maps provide both groups with the basis to structure a merger in a beneficial way, even if the organizational structures and processes of the two companies are very different from each. See how it and business align with a complete overview of your business capability landscape. By mapping the applications of both organizations to the new. With business capabilities, you may link execution to strategy, by associating which. Business capability map and model the definitive guide. While the development of a business capability map is important, the value to the enterprise is in the assessment of its capabilities and how well they support the strategic objectives. We then heat map the capabilities in terms of business value, performance, and risk, based on interviews with key. Business capabilities and business capability modelling. This capability map is used by a business unit mainly focused on sales of financial products. Business process directors and business process architects should link their highlevel process view into business capabilities to enable impact analysis across the interdependencies. The business capability model is a key business architecture viewpoint download a free visio template and stencil here. The business product manager can use this capability map to communicate status to business stakeholders and senior executives during quarterly or semiannual executive updates. A critical yet often misunderstood concept when moving from program strategy to implementation february 1, 2016, by shiva nadarajah and atul sapkal the use of business capabilities for planning and analysis has been on the rise in recent years, yet the value they provide is not fully understood.
Business capability analysis can occur at various levels. In business capability modelling, financial management is a capability, created by a set of resources, that is then utilised within the business, wherever that capability is required, i. Mckinsey estimates the saving potential from uncovering it redundancies to be 15 20%. Capabilities map to other views of the business 10. A critical yet often misunderstood concept when moving from program strategy to implementation february 1, 2016, by shiva. Business capability definition one of many a business capability or simply capability describes a unique, collective ability that can be applied to achieve a specific. Capability maps, enterprise architecture ea, enterprise architecture management. The business architecture capability map is the deliverable. Enterprise architects use business capabilities to illustrate the overarching needs of the business in order to better strategize it solutions that meet those business needs. If you cannot define a capability, it is probably not a capability 12. A capability model or business capabilities map or capabilities model is a structurally sound and internally logical group of capabilities, which conforms to a mece model mutually exclusive, collectively exhaustive.
The level at which to analyze the business capabilities. You may also want to see the azure ad business capability map introduction. This means transparency is created with regards to which business capabilities are badly supported by available applications. An explanation of what this means and the reasoning. Business capability is the expression or the articulation of the capacity, materials and expertise an organization needs in order to perform core functions. Business capability managemen from business needs to executing change vorlesung itunternehmensarchitektur vl 05. A capability model should be distinguished from a business process model. The business capability provides a common vocabulary in business terms. Business process generally speaking, a business capability is the abilities needed by an organization in order to deliver value. Business capability definition one of many a business capability or simply capability describes a unique, collective ability that can be applied to achieve a specific outcome. A model that shows your business capabilities and how they map to business value streams.
Business capability is the ability of an organization to do its business activity successfully and fulfill its business goals. We work closely with our clients to develop their unique business capability model. Furthermore, you may also wish to learn how to build a business capability. This capability map is used by a business unit mainly focused on sales. This is a business capability map for the microsoft infrastructure service. You may also want to see the azure ad business capability map. This capability map displays relevant capabilities provided by the microsoft infrastructure service offering. How to map it capabilities to business capabilities in one.
Business capability modeling enterprise architecture blog. Reporting from the implementation of a business capability map as. Business capability mapping allows companies to clearly see what a business does to reach its objectives. The rosetta stone of businessit alignment over the past several years, the business capability has moved to the front and center of business analysis and planning. Business transformation create new business capabilities andor leverage existing capabilities in new ways business effectiveness improve business capability to serve its customers business efficiency improve processes and reduce functional overlap businessit alignment improve goal, strategy, investment, and resource. A business capability abstracts and encapsulates the organization with the people and their roles, processes. A capability model describes the complete set of capabilities an organization requires to execute its business model or fulfill its. The term business capability is widely used and generally understood, but definitions vary greatly and are often insufficiently detailed to avoid confusion. In this paper, a method for analysis of dependencies between business capabilities. A business capability defines what a business does not how it is done, can be broken down into levels, and is used for strategic planning, investment analysis, and business it alignment. Business transformation create new business capabilities andor leverage existing capabilities in new ways business effectiveness improve business capability to serve its customers business efficiency. It defines the organizations capacity to successfully perform an unique business activity. By using our website you consent to the use of cookies. At this stage, the business capability such as insurance planning may be aligned to a strategic component such as asset protection.
Nov 25, 2018 a capability model should be distinguished from a business process model. Business capabilities frequently asked questions leanix. Collect all the data that you can by yourself and try to. They offer a view into a business that is free of details such as processes and strategy. Business processes start with capabilities bptrends. One can analyze the capabilities within the context of an initiative or a transformation program. The business capability model can be utilized to identify strategic focus areas by mapping strategies, scorecards, andor executive priorities to the business capabilities.
Current practices and use cases for enterprise architecture management. Business capability analysis how to analyze business. Individuals who name and define a capability have that capability. As a view of a business, the robustness and versatility of the business capability has boosted its use within business planning teams, executive. Business capability modeling is a method leadingagile uses to inform and customize our recommendations around this structure and governance. The business capability map can be used as a basis for analyzing how an it landscape can be transformed to optimally support the business fuh11c. Also very valuable to business architects and business architecture projectsprogrammes.
Business capability map and model the definitive guide leanix. Business capability performance this capability delivers what the business expects. Current practices and use cases for enterprise architecture. The standards that are needed to implement the control environment are defined and verified by stakeholders for relevant products, accounts, clients, business partners, legal entities, counterparties, vendors, etc. Once the foundation is in place, the knowledgebase evolves based on analysis work driven by priority business. Building and putting your business capability model to work. Current practices and use cases for enterprise architecture management find, read and cite all.
This guide answers some important questions about what a business capability is and how it is being used to enhance business analysis and planning. Understanding the capabilities required by your business provides a high level overview of the business and can be a very useful exercise as it allows one to take a step back. The capability model is enterprise level, consisting of both core operational business functions e. To be used as a core document for enterprise architects and ea work. The capability map is only one business architecture blueprint and of limited value when not. The business product manager can use this capability map to communicate status to. Business capability modelling and strategic investment. A capability model or business capabilities map or capabilities model is a structurally sound and internally logical. Business capability modeling captures the core functional model for an organization without the bias imposed by the organizations structure itself. This report reveals how capability mapping enables business analysis and businessit architecture alignment. An explanation of what this means and the reasoning behind its adoption is provided in the remainder of this first opening section. Jun 21, 20 how to map it capabilities to business capabilities from a strategy perspective, the business capability analysis is based on current definition of functions instead of an organization structure, as organizational structure is quite dynamic and frequent changes, which may create a chaotic process model, use the value chain or the supplydemand. An automated capability is still a business capability, not an it capability 11.