Business capabilities at the cornerstone of your digital transformation strategy

Business capabilities help architects give decision support to the C-level to execute the organization's transformation strategy.?

With capability-based planning, you can support IT and business alignment, Strategy execution, Decision-making, and Digital transformation success.??

In this issue, we take a look at the practical approach to business architecture and capability-based planning.?

Why capabilities in business architecture???

Enterprise and business architects create coherence between the various moving parts of the enterprise. However, much of their work centers on 'how' the organization operates, while business leaders focus on 'what' an organization can do and 'why' this is important.??

Capabilities reduce this gap by focusing on business outcomes. They provide a high-level view of an organization's current and desired abilities in relation to its strategy and environment.??

Capabilities are the only concept in the architecture of the business that links strategy, business model and operating model.?

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What are the main steps of capability-based planning???

Capability-based planning activities can be structured in a cycle. It shows you where to begin and the next steps you need to take to gradually increase the impact on the organization.?

• Map. Define and create a capability map that you can use to analyze the organization, assessing the strategic and architectural alignment of the capability framework??
• Assess. Measure capabilities based on their contribution to the business strategy, identifying opportunities to improve maturity. You can then visualize this on a capability map, e.g. using heatmapping techniques??
• Plan. Create scenarios and roadmaps for gap closure. Define and prioritize investments in capability improvement or the development of new capabilities??
• Control. Monitor and steer those capability improvements based on strategic KPIs. Use this information to feed back into the planning process, continuing the improvement cycle?

Don’t forget to follow Bizzdesign on LinkedIn ??????

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10-steps to implement capability-based planning?

Our recommended approach is:??

1. Identify the initial scope??

2. Lay the groundwork with stakeholders and subject matter experts??

3. Create a draft capability map??

4. Assess the strategic importance of capabilities??

5. Analyze relevant capabilities from step 4 to identify required improvements??

6. Relate capabilities to change initiatives??

7. Assess expected impact of initiatives on desired improvements (step 5)??

8. Prioritize these initiatives??

9. Design capability roadmaps Close the gap between current and desired capability maturity (we show you how!)??

10. Track relevant KPIs and adjust priorities as needed?

MORE RESOURCES?

• Download the full FREE guidebook on capability-based planning
• Read our blog to learn “How to use ServiceNow APM and Bizzdesign to win at Digital Transformation”
• Listen to our podcast episode on “Humanizing Enterprise Architecture with Dave Armes from ServiceNow”