What is a Capability Map?
First, let’s look at what is a Business Capability? In TOGAF, a capability is simply defined as “an ability to do something”. A business capability represents the ability for a business to do something. Capabilities describe “what” not “how” something is done. For example, cloud operations is a capability because it describes that a business can operate cloud-based applications. It does not describe who operates, or how, or even what cloud provider is used.
In Business Architecture, we use Capability as a shorthand. When we talk about a Capability everything required to do that activity is included. We hide all the complexity and detail. Using Capabilities, we don’t have to explain how, why, or where the business uses the capability. No explanation of people, organization, skills, etc. is required. We simply talk about the Capability. The Capability includes everything required to do something.
In Enterprise Architecture, we use Business Capabilities as a management concept that facilitates planning improvement. Looking at a Capability can focus management attention on the key things that are needed to be done by your People, Process, IP, Infrastructure, Facilities, Partners, and Information
We use it to focus on:
- Things we need to start doing
- Things we need to stop doing
- Things we need to keep doing well
- Things we need to improve how well we do them
Now we know what a business capability is, we can look at a business capability map. A capability map is a visual representation of the capabilities required to achieve your business objectives. A capability map can help you identify gaps in your current capabilities and prioritize investments to fill those gaps. It’s an essential tool for aligning your resources with your strategic goals and unlocking your business potential. We typically take care to show an alignment between capabilities.
Below we have an example business capability map. It shows the things an EA Team needs to do and is drawn from the EA Capability Reference Architecture.
Useful capabilities can be intangible or very tangible. Manufacturing is a tangible capability, with factories, machines and people producing the product. An intangible capability might be the description of your company’s ability to develop software work in an agile environment.
Business capability maps focus on what the company needs to do, and where prior hard-won improvements must be maintained. Sounds simple enough, right?
Well, it can be challenging as your Business Architects works to determine what is or is not a capability. Here are a few guidelines to help effectively use business capability maps.
A capability map is a visual representation of the capabilities required to achieve your business objectives. It typically includes a list of capabilities, their associated processes, and the resources required to support them. A capability map can help you identify gaps in your current capabilities and prioritize investments to fill those gaps. It’s an essential tool for aligning your resources with your strategic goals and unlocking your business potential.
Why use Business Capability Mapping
These maps are a powerful management tool. They focus attention on things that need to be improved, or specific expertise that needs to be maintained. A map can include something that exists today. It can show something new required to enable a new direction or strategy.
Capabilities have outcomes. Again, cloud operations work as an example because the outcome is effective IT operations.
Capabilities need to be clearly defined. If you are identifying cloud operations as a capability, you may need to need to define “private cloud,” “public cloud,” and “Operations.” This can help to create a common language.
A capability’s intent is unique. Private and public cloud operations might appear to be identical. An application could be hosted in either a private or public cloud. Private and public cloud operations are distinct and require different operational skills.
Business capability mapping helps us focus on what type of improvement we are trying to make. In Navigate, we always apply properties to a capability map to identify the target. For example, we use properties that allow us to define:
- The operating model. Whether there will be one unified provider, multiple replicated providers, multiple coordinated providers, or a diversified approach
- The quality of the output
- Whether it supports business differentiation
- The level of efficiency
- The level of automation
- The level of management maturity
- The minimum level of business resiliency
- The level of standardization required
- Who is expected to deliver services, staff, Third Parties, etc.
- Whether the business capability is subject to high or low external pressure to change
Looking at the EA Capability Reference Architecture, we can identify the basic operating model of the EA Team. In this example we are starting to show the enterprise architecture capabilities.
Mapping Capabilities to Business Goals
It’s important to understand the connection between capabilities and business goals. A capability is a set of skills, processes, and resources that enable you to achieve your business objectives. Business goals are the specific outcomes you want to achieve. To create an effective capability map, you need to map your capabilities to your business goals. This will help you identify the critical capabilities you need to achieve your objectives and prioritize investments to fill any gaps.
For example, if your business goal is to increase revenue by 20%, you need to identify the capabilities required to achieve this objective. This might include increasing sales, improving marketing, and enhancing customer service. By mapping your capabilities to your business goals, you can create a clear roadmap for achieving your objectives.
Understanding Capability Mapping
Let’s look at capability mapping in more detail. Capability mapping is the process of identifying the skills, processes, and resources required to achieve your business objectives.
While it seems simplistic, the process has two steps. First, identify the capabilities needed to reach your goals. Second, identify any gaps in your current abilities. We usually start with changes to the attributes. These gaps are easily seen in terms of efficiency, automation, standardization or who will perform the capability.
Incorporating Capability Mapping into Business Strategy
To create an effective capability map, you need to incorporate capability mapping into your business strategy. This involves identifying your business goals, mapping your capabilities to those goals, and identifying any gaps in your current capabilities. Once you’ve identified your capability gaps, you can create a roadmap to fill those gaps and achieving your objectives.
Use Capability-based Planning to execute your business strategy.
Capability Mapping Best Practices
Before we dive into the details of creating a capability map, let’s review some capability mapping best practices. These will help you create an effective capability map that aligns with your business goals and drives long-term growth.
Use a Reference Architecture
We always recommend using a Reference Architecture. A Reference Architecture will speed your Business Architects and improve the quality of their work. The best reference models are comprehensive. With a comprehensive reference model, the practitioners can be confident the problem space is covered. When we use a Reference Architecture, we add a property to identify capabilities that are not important enough to make it onto our map.
We often use these as Business Reference Architecture to start building a capability map:
- IT4IT is an information reference architecture for Information Technology functions
- BIAN is a reference architecture for the Banking Industry
- SCOR is a reference architecture for supply chain
- APQC provides cross-industry, or industry-specific, business process reference architectures.
- The Open Group's Government Reference Model (GRM) for national government
- GSRM (Canada's Government Services Reference Model) provides a generic model of government services
- EA Capability Reference Architecture is used to to develop effective EA team
Identifying Business Capabilities
The first step to creating a capability map is to identify your business capabilities. If you are starting from a Reference Architecture, you are further ahead. You will have a comprehensive list that needs to be winnowed down. If you are starting from scratch, explore the business. Techniques like the Business Model Canvas and Value Chain are very helpful.
Remember to use the four questions to focus your capability map:
- Is this something we need to start doing?
- Should we stop doing this?
- Must we keep doing this especially well?
- Is this something we need to improve how well we do it?
Assessing Current Capabilities
Once you’ve identified your business capabilities, you need to assess your current capabilities. This involves evaluating the strengths and weaknesses of your current capabilities and identifying any gaps that need to be filled. You can do this by reviewing your current processes, assessing your workforce, and analyzing your technology. Feel free to download our Guide to Assessing Business Capabilities.
Identify Your Capability Gaps
Once you have a set of Business Capabilities look inside to see what needs to change to improve and what keeps you from being able to do. This involves identifying the skills, processes, and resources required to achieve your business objectives. Review your business strategy, analyze processes, and assess capabilities.
We use the attributes to move past a generic 'better' to narrow down the type of improvement. We are especially interested in:
- Competency to determine if we must invest in inventing best-practice or change to follow established industry practice
- Efficiency to determine if the improvement is cost oriented
- Fitness to determine if the improvement is quality or strategic alignment
- Agility to determine if we need to modularise
It sounds easy to say map your current capabilities to your business goals and identifying any gaps that need to be filled. The trick is identifying the shortfall in skills, processes, partners, intellectual property, and resources.
The capability gaps are central to create a roadmap for filling those gaps and achieving your objectives.
Building a Capability Roadmap
To build a capability roadmap, you need to identify the capabilities required to achieve your business objectives and prioritize investments to fill any gaps. This architecture roadmap should include a timeline for filling the capability gaps and achieving your objectives.
Conexiam Capability Mapping Tools and Resources
To create an effective capability map, you need the right tools and resources. Conexiam offers resources to align your capability map with your business goals. These include the Conexiam Navigate's set of reference capability models. We also offer a range of free enterprise architecture resources. Resources applicable to Capability Mapping include:
- Conexiam Capability-Based Planning Guide
- Conexiam Guide to Assessing Business Capabilities
- Conexiam Enterprise Architecture Capability Reference Architecture
Conclusion
In conclusion, creating an effective capability map is essential for unlocking your business potential. By mapping your capabilities to your business goals, you can identify critical capabilities and prioritize investments to fill any gaps. This will help you improve your competitive advantage, increase operational efficiency, and drive long-term growth. By following the steps and best practices outlined in this article and using Conexiam’s capability mapping tools and resources, you can create an effective capability map that aligns with your business goals and drives success. So, what are you waiting for? Get started today and unlock your business potential!
