Business Capabilities | The Cornerstone of your Digital Transformation Strategy

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What are the main steps of capability-based planning?

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

Follow our recommended approach: 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

10-steps to implement capability-based planning

At the heart of capability-based planning is a business capability map. The map is typically drawn up in business language so all your stakeholders can understand it, supporting strategic discussions and decisions. A well-understood capability map quickly becomes the backdrop for many different discussions. Projecting information on top of the map using heatmaps, for instance, makes it easier for everyone to quickly get an overview of the issues and decisions involved in a way that everyone can understand. Design principles for business capability maps focus on the following: Stakeholders Capability map structure Capability map definition Capability map decomposition Visual appeal

Design principles for business capability maps

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. They relate to various elements (people, processes, systems, etc.) that can be described, designed, and realized using enterprise architecture approaches. Capabilities are the only concept in the architecture of the business that links strategy, business model and operating model.

In brief:

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The CIO often tasks architects to help execute the organization's digital transformation strategy and for this, they use business capabilities Capability-based planning is a powerful tool to ensure alignment of business and IT transformation to business strategy Read our eBook for our practical approach to business architecture and capability-based planning – it includes everything you need to get started or mature your approach.

Marc Lankhorst Managing Consultant

Sven van Dijk Consultant and Trainer

Henk Jonkers Customer Success Consultant

Bernd Ihnen Managing Consultant

IT and business alignment

Digital transformation success

Decision-making

Strategy execution

With capability-based planning, you can support:

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Do you need help with capability-based planning?

Authors:

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.

Jeeps Rekhi Senior Business and Enterprise Architect

In brief:

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Do you need help with capability-based planning?

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

Bizzdesign's Horizzon supports these four activities in an integral and consistent way.

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Map capabilities strategically in combination with cost and investment information to support management decision making. A business capability map of strategic capabilities combined with cost and investment information

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Source: Bizzdesign Horizzon

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told us how fit their EA practice was to meet today's business change priorities

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Business Capabilities | The Cornerstone of your Digital Transformation Strategy

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