business capabilities importance

Why are business capabilities critical 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 critical 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 many 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 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
  • When expressed as a mutually exclusive and collectively exhaustive set, business capabilities can capture an enterprise’s end-to-end and multidimensional blueprint.
  • 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.
  • When juxtaposed against various parameters to generate heat maps, capabilities 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 possible. Indeed, business capabilities matter! So how do you view the importance of business capabilities importance in your company?