The document discusses the development of business capabilities essential for creating customer value and achieving strategic outcomes. It outlines a taxonomy of capabilities across different strata, emphasizing the differentiation of customer-facing capabilities and their role in enhancing organizational agility and transformation. Additionally, it highlights the interconnectedness of strategy, architecture, and execution in delivering effective business outcomes.

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Using capabilities to deliver
organisational agility

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Definition of a business capability
• WHAT a business needs to do to
create value for a customer
• A particular ability to achieve an
outcome of value
• Named using noun-noun structure

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Strata
Strategic
Primary
Support

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Capability taxonomy
Level 1
Foundation Capabilities
Level 2
Capability Groups
Level 3
Business Capabilities
Event management
Risk assessment
Audience management
Logistics
Event administration
Event marketing
Event planning
Event operations

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Business capability modelStrategic
(directionsetting)
Primary
(customerfacing)
Support
Financial mgmt
Financial planning
Forecasting & budgeting
Investment & debt mgmt
Business planning
Policy mgmt
Goal mgmt
Target setting
Asset stewardship
Asset identification
Asset inspection
Asset enforcement
Risk mgmt
Regulatory risk
Market risk
Operational risk
Partner mgmt
Partner definition
Partner engagement
Partner mgmt

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Can’t be used in isolation: not the whole story
Customer-facing capabilities
Customer enquiry management
Order processing
Customer operations
Order fulfilment
Complaint management
Different
companies have
different
capabilities in
the customer
facing strata
Identifies
competitive
differentiators
Determines
where
to focus effort
Enables
opportunities
to be explored

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Assessing capabilities
Advantage
capability
Strategic
support
capability
Essential
capability
Business
necessity
capability
Greaterstrategic&valuepropositionimpact
Greater financial impact

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Delivering organisational agility
§ Organisations that define their business
capabilities can move more quickly & effectively
§ Capabilities are used to enable value stream
stages
§ ... and can be used to assess the impact of
strategic change on an organisation’s capability
§ … and identify gaps in capability
All organisations are the same
. . . . . except when they are different

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Capabilities & business transformation
Offer insight into range of
business scenarios
Provide pin-point investment
focus
Map to other views of the
business
Define what the business does

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Summary
Strategy Architecture Execution
Strategy drives changes
to the architecture
Architecture translates
Strategy for Execution
Architecture informs
and refines strategy
Execution enables and
generates improvements
to the architecture

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