Menu of Frameworks, Methods, Tools & Modeling (by Eero Hosiaisluoma)
Menu of Frameworks, Methods, Tools & Modeling (by Eero Hosiaisluoma)

Business Capability

Business Capability combines business and IT together. Business capabilities contain all the operational elements of an organization. Business capabilities represent WHAT an organization needs to fulfill its mission and execute its business. A business capability describes what the business does and should not be confused with just the skills or competencies of the people [Chuen Seet].

The business capability hexagon illustrates the anatomy of a business capability.

anatomy of business capability
Figure: Anatomy of a Business Capability.

Business capabilities are central components of the organization. As they contain all the operational elements, the business capabilities can be used for executing the business strategy and executing the business. The role of business capability in overall development is illustrated in the figure below.

capability-based development
Figure: Business Capability is a key component.

Business capabilities are stable by their nature. They change when the business changes. That is why it is valuable to identify the capabilities and make them visible within a capability map. This map shows the whole organization on one page. An example capability map is shown below.

capability map
Figure: Capability Map example

See capability-based development for more details…