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How do business capability maps help you identify value streams?

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Business capability maps are a powerful tool for business architects to understand and improve the value creation of an organization. They show the core abilities and functions that a business needs to deliver its products and services to its customers and stakeholders. But how can you use them to identify and optimize the value streams that flow across your capabilities? In this article, we will explain what value streams are, how they relate to business capabilities, and how you can use business capability maps to identify, analyze, and improve them.

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1 What are value streams?

Value streams are the sequences of activities and processes that deliver value to a customer or stakeholder from a specific trigger or demand. They represent the end-to-end flow of value creation across the organization, from the initial request to the final delivery. Value streams can span multiple capabilities, functions, teams, and systems, and can have different levels of granularity and complexity.

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2 How do value streams relate to business capabilities?

Business capabilities define what a business does, not how it does it. They are the building blocks of the business model and strategy, and they enable the business to achieve its goals and objectives. Value streams, on the other hand, define how a business delivers value to its customers and stakeholders, by showing the actual steps and interactions that occur across the capabilities. They are the operationalization of the business capabilities, and they reflect the customer needs and expectations.

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3 How to use business capability maps to identify value streams?

One way to use business capability maps to identify value streams is to start from the customer perspective and map the customer journey across the capabilities. For example, if you are a bank, you can map the customer journey of opening a new account, from the initial contact, to the verification, to the activation, to the ongoing service. Then, you can identify the capabilities that are involved in each stage of the journey, such as customer relationship management, identity verification, account management, and customer service. This way, you can trace the value stream that flows across the capabilities and delivers value to the customer.

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Richard Hillier

Retired Enterprise Architect at MyOfficeAtHome
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The answer is in that example of a bank account. Value streams (in the traditional / usual sense) refer to the sequence of activities to deliver a product or service offering to a customer. So current bank account would have a value stream - as would mortgage, savings & uinsurance products/services. So basically the place to start is with the offerings / offerings groups in the market rather than capabilities. Care is needed with business capabilities as the usage in the real world is not aligned with their definition in many business architecture approaches right at the basic level: Business capability are what the company does and how it returns value to it's stakeholders i.e. the "how" and "what" depend on the perspective.

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4 How to use business capability maps to analyze value streams?

Another way to use business capability maps to analyze value streams is to assess the maturity and performance of each capability that participates in the value stream. For example, if you are a bank, you can evaluate how well each capability meets the customer requirements and expectations, such as speed, quality, security, and convenience. You can also measure how efficiently and effectively each capability uses the resources and inputs that it receives from other capabilities, such as data, processes, systems, and people. This way, you can identify the gaps and opportunities for improvement in each capability and in the value stream as a whole.

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5 How to use business capability maps to improve value streams?

A third way to use business capability maps to improve value streams is to design and implement changes that enhance the value creation and delivery across the capabilities. For example, if you are a bank, you can design and implement changes that streamline the processes, automate the tasks, integrate the systems, and empower the people that are involved in the value stream of opening a new account. You can also align the changes with the business strategy and vision, and monitor the outcomes and impacts of the changes on the customer satisfaction and loyalty. This way, you can optimize the value stream and increase the competitive advantage of your business.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do business capability maps help you identify value streams?

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6

1 What are value streams?

2 How do value streams relate to business capabilities?

3 How to use business capability maps to identify value streams?

4 How to use business capability maps to analyze value streams?

5 How to use business capability maps to improve value streams?

6 Here’s what else to consider

Business Architecture

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How do business capability maps help you identify value streams?

1

2

3

4

5

6

1 What are value streams?

2 How do value streams relate to business capabilities?

3 How to use business capability maps to identify value streams?

4 How to use business capability maps to analyze value streams?

5 How to use business capability maps to improve value streams?

6 Here’s what else to consider

Business Architecture

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