Business capability models a key aspect of the fragile to agile approach to enterprise architecture is aligning business and technology design. By using our website you consent to the use of cookies. A business capability is not about what a business does, rather the ability it requires. It describes what the business does outcomes and expected service levels. The capability view of the business provides the highlevel foundation for alignment between them. The business model canvas is also very customerdriven. Business capability managemen hassoplattnerinstitut. You can use a balanced score card to monitor the state of your capability portfolio, using e. Business capability maps are useful for strategic, conceptual, operational, and it enablement needs. Our website uses cookies to improve your experience on our site. To be used as a core document for enterprise architects and ea work. Business capability, core competence, resource based theory, enterprise architecture. Business capability modeling is a technique for creating a business anchor model that represents an organizations distinct and differentiated business capabilities, independent of the organizations structure, systems, processes, people or domains. Introduction to business capability modeling leadingagile.
Whether you are from the banking or insurance industry, automotive or logistics industries or others, this generic business capability map is the perfect. Creating a business capability model for the enterprise promotes more of a common understanding of the business. The business capability model is a key business architecture viewpoint download a free visio template and stencil here. Specific business capabilities in business capability models can be titled using either a nounverb style or a verbnoun style, e. There are multiple gartner conferences available in your area. Business capability map and model the definitive guide. As a tool for enterprise architects, business capability models enables the discussion of strategic invest or divest.
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. Yet, there has not been in the past an easy way to plan a detailed business architecture model starting from a business model canvas to enable marketing and operation planning. Capability maps link the capabilities up to the strategies, goals, objectives, products and. Their contribution considers new architectural artifacts. It consists of business processes, product models, development frameworks, information models, data models, and capability models which help organizations to run, develop, modify, and maintain various insurance industry applications. One of the challenges companies face when establishing a business capability planning program is the collection, organization and management of the foundational data needed to inform important decisions. Business capabilities reference model government of new. A business capability model for an insurance company. Business capability a business capability is a particular ability or capacity that a business may possess to achieve a specific purpose or outcome. Whatever name you want to call this discipline, it is an outline of principles, practices, and perspectives on how individual business capabilities are defined and enriched to form a holistic enterprisewide business capability model. Deliverables produced by executing the adm are shown in the. The acord reference architecture provides an enterprise architecture framework for the insurance industry.
Conceptual framework for modeling business capabilities. This study also provided two feedback loops, namely the organizational feedback loop and the innovative feedback loop. This guide answers some important questions about what a business capability is and how it is being used to enhance business analysis and planning. Pdf on jan 1, 2018, pouya aleatrati khosroshahi and others published business capability maps. Business capability modelling enterprise architecture. Ip australia has developed a business capability model that describes various aspects of its business, and has used that model in numerous ways. Current practices and use cases for enterprise architecture management find, read and cite all. Transformation strategy core document document description.
Having built your business capability model, you can start to use it to develop different aspects of the operating model, i. Once youve created a business capability model that represents the essence of your enterprise, the next step shall be to a define each capability b add rich semantics to add color, context, and texture to the capabilities such as capability level goalsoutcomes, the assessments, and other related information. An anchor model by representing a businessoriented view of the organization that is stable over longterm planning horizons while the development of a business capability map is important, the value to the enterprise is in the assessment. Business capability is the ability of an organization to do its business activity successfully and fulfill its business goals. So, the business processes made up of the capabilities could be implemented in software with a service oriented architecture. The capability model is enterprise level, consisting of both core operational business functions e. Other deliverables may be produced elsewhere and consumed by the adm. A capability model describes the complete set of capabilities an organization requires to execute its business model or fulfill its mission. An automated capability is still a business capability, not an it capability 11. The most significant findings from this research study were the development of a conceptual framework that is later utilized to construct business capabilities. Business capabilities and business capability modelling. Business capabilities are modeled in the business conceptual layer and represent what the business does or needs to do in order to fulfill its objectives and responsibilities. The use of business capability maps is on the rise, but business capabilities as a discipline will take some time to become a mainstream tool for planning, communicating and actualizing business strategies.
Transform your business and experience the value of gartner, live and in person. Compendium of business capability models pdf gartner. Capstera defines business capability analysis as the assessment of individual business capabilities as well as an integrated set of enterprise business capabilities model to evaluate their strategic importance, business process maturity, resource adequacy, level of it support, and cost factors. Conceptual framework for modeling business capabilities abstract. To help understand the concept of capability modelling and its potential benefits, the following 2 videos give a useful background. Business capabilities, business strategy, innovation, agile organization, information modeling introduction.
Business model design the capability driven roadmap. Enterprise architecture, zachman framework, business capability model, management fads, best practices. It is about the what rather than the how, but unfortunately people tend to equate the what word with the activities of an organisation. Depending on the purpose, one can define the business capability model for the entire company, or start at the level of a business unit or a. A capability model describes the complete set of capabilities an organization requires to execute. The problem, though, is that maturity models are often shrouded in complex terminology and overlyconvoluted systems.
The mission of the corporate executive board company and its affiliates ceb is to. Use the business capability mapping to establish a ci relationship between the business capability and the business applications. Building and putting your business capability model to work. Figure 1 is the togaf meta model, which positions business capabilities as an overarching representation of the business. Introduction to business capabilities a business capability is a particular ability of an enterprise to achieve a specific purpose or outcome. A business capability is the cornerstone of business architecture and an elemental building block. Bridging business model canvas and business architecture. A capability model describes the complete set of capabilities an organization requires to execute its business model or fulfill its. Role of business capabilities in strategy to results process. A business capability is a functional building block of the business architecture that supports the business model and the business strategy. As such, this is naturally a service oriented model or view of the business. Utility company business capability model pdf flevy. Capabilities may be captured at various levels of detail such as organizational, department or team capabilities.
Business capabilities reference model new brunswick. Toward improving organizational performance article pdf available in journal of integrated design and process science 211. Capability models dont reduce the complexity, rather they illustrate it in ways that provide new insight to the business. And business capability modelling is not about modelling activity. All new business capabilities got through a number of maturity. The term business capability is widely used and generally. A capability model or a business capabilities model is an integrated and comprehensive set of business capabilities. It describes what the business does that creates value for customers without consideration of who does it or how it is carried out. Business capability modelling and strategic investment. A business capability is a description of what a business does independently of how or why. Also very valuable to business architects and business architecture projectsprogrammes.
Taking a step further, a business capability model is simply the network of capabilities found within the enterprise. If you cannot define a capability, it is probably not a capability 12. The business model canvas is a common method to build a business plan in very large and small companies because it is both structured and very simple to understand. This model is a lot of thinking packed into a single artefact, and still a work in progress.
The data management program discusses whats organizationally needed to stand up a sustainable data management program. A capability model describes the complete set of capabilities an organisation requires to execute its business model or fulfill its mission. Business capability modeling is a technique for the representation of an organizations business anchor model independent of the organizations structure, processes, people or domains. The capability model is a decomposition of what a business does and can do in a logical and granular grouping. The purpose of the article is therefore to model business capabilities based on a. With this year the year of capability engineering i spent last night building out a simplified maturity model for how new business capabilities might evolve. Business capability modelling can be defined as what an organisation needs to deliver its strategic objectives it focuses on the what, not the how. Business capability modeling is a technique for the representation of an organizations business anchor model, independent of the organizations structure, processes, people or domains. A business capability model is one of the critical business architecture deliverables and a bridge between business. A business capability abstracts and encapsulates the organization with the people and their roles, processes. 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. A capability model can be one of the foundational components of a.
A business capability model helps to discuss the areas of strategic invest or divest. Introduction to part iv identifies deliverables that are produced as outputs from executing the adm cycle and potentially consumed as inputs at other points in the adm. Individuals who name and define a capability have that capability. Business capabilities framework or enterprise business capabilities framework, or a capability modeling framework. Based on business capabilities, business capability maps can be created, which enable the assessment of. To achieve this alignment, fragile to agile uses a business capability model bcm which describes what the business does as opposed to how business process models or who organisational models does it.
They offer a view into a business that is free of details such as processes and strategy. Business model is to create coherence building coherence requires an understanding of the components of a business model, and how to assemble them in a manner that is innovative and differentiating whilst maintaining stability. It defines the organizations capacity to successfully perform an unique business activity. You can avoid getting bogged down in the details of how things happen and concentrate on what does or needs to happen. A business capability or simply capability describes a unique, collective ability that can be applied to achieve a specific outcome. As mentioned, the capability model provides a modular, outcomesbased description of the business.
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