Business Capability Modelling

I’ve just been reading a couple of articles on this topic in the online version of Architecture and Governance Magazine. (registration required to read full article text).

In Business Capability Modeling: Theory & Practice, author Leonard Greski gives a good overview of the process steps:

Business capabilities can be modeled using a variety of simple techniques, using low-cost tools. There are four steps to create a capability model:

  1. Develop the capability hierarchy.
  2. Identify key relationships between capabilities and other planning elements.
  3. Develop demand models for the capabilities.
  4. Develop financial models for the capabilities.

The “how” of the approach seems to be similar to most modelling approaches – capture a hierarchical decomposition of objects and identify cross-relationships using matrices.

Of particular interest is the “what” – this approach is focused very much on identifying the characteristics of a business that create value (for customers or shareholders), and identifying the resources, investments and cashflows that underpin them. I can see this approach would be very useful in situations such as programme blueprint creation – identifying the desired future shape of the organisation.

In the second article Business Capability Modelling: Building the Hierarchy Leonard dives more deeeply into the “How” of the first two steps. I look forward to reading the next article, which presumably will look at steps 3 and 4.

(NB I’ve looked for a blog by Leonard, but can’t find one, hence linking to his LinkedIn profile.)

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Julian Elve
Proactive application of technology to business

My interests include technology, personal knowledge management, social change

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