When you adopt a business capability approach you will …
Digital business demands integration, not just of technology, but also of resources. As a result, enterprise architects are increasingly found throughout the organization. Implementing a business capability approach in EA enables you to effectively collaborate with business stakeholders to manage complexity and cost, identify risk, implement value streams, and deliver new products, because it provides a common framework for all to operate from.
A company’s abilities are represented by its business capabilities. Specifically, a business capability is of a set of abilities a company possesses and manifests to deliver a specific outcome, while a business capability map represents the full set of abilities of a company. In effect, business capabilities fundamentally describe what a business can do, without reference to how it is done, making it an effective tool to quickly perform impact assessments, identify new business opportunities, and more.
While business capabilities may encompass technology, the specific technology is not a primary focus of the capability. In fact, technology can be replaced so long as it doesn’t impact the outcome of the business capabilities associated with it. By shifting the point of view away from technology and toward the business, companies can focus more on strategic investments that deliver value – improving customer experience, reducing costs, increasing margins, etc.
When business capabilities are known, you can quickly assess your company’s ability to meet current strategic objectives and pivot in response to market disruption, customer demands, realized risks, etc. You can also map your company’s path to a desired future state, whether that be adding new value streams or products, or transforming your business entirely.
Further, when business capabilities are part of the enterprise architecture, you can:
By adopting such an approach, you increase the value of Enterprise Architecture for your organization.
The collaboration and insight gained when using business capabilities drives alignment between strategy and execution. Decisions are made based on the value to the business and this is critical in digital business where demands are high, change is constant, and adaption is a necessity.