Some enterprises define their business by means of business capabilities that describe the main functions and competencies about what is necessary to run the business. A business capability is captured as an abstract description of what is done in a company to meet its business objectives independent of the organization's structure, business processes, and people. This approach helps companies to understand which core capabilities of the business need to be supported and which parts of the IT architecture contribute to these core capabilities and are therefore most important for business success.
In contrast, a business process details the set of activities that represent the work required to achieve a business objective. This would include processes such as selling products, delivering services, distributing products, invoicing for services, and accounting for money received. For example, Support and Services is a high-level abstract description of a business capability whereas Deliver Services is a description of a repeatable activity (business process) that takes place.
You company's main business capabilities should be defined as the highest level business capabilities. It is recommended that this is limited to 5-10 generic business capabilities. Each business capability may have multiple subordinate business capabilities, whereby it is recommended that the business capability model not have more than 3 or 4 levels to provide manageability.
Assess the business capability's maturity
The Time Series Evaluation, Maturity Gap Analysis, and Business Capability Maturity Assessment views are available for users with the extension package Enterprise Architecture Management.
You can measure the maturity and effectiveness of the business capability and identify where performance falls short of expectations. Analyze the business capability based on maturity indicators in order to understand the maturity gap as well as evaluate indicators showing the as-is vs. to-be assessment of the business capabilities' digitalization, information, people, processes, and technology. By identifying maturity gaps, you can focus on the areas to prioritize and invest in order to achieve your enterprise's strategic objectives. The maturity of all business capabilities can be reviewed in the business question Where are our business priorities?
Assess the business capability's maturity.
Go to the business capability content area > Business Context > Time Series Evaluation. You can either select one evaluation type and click the
edit button to specify indicators for all periods or click the
edit button to open a bulk editor to specify indicators for all evaluation types for all periods. Select a value per time period and evaluation type for the maturity assessment. The following evaluation types are available:
- Capability Maturity Assessment - Digitalization: How mature the people, processes, technologies, and information can support and develop the business capability by digital means
- Capability Maturity Assessment - Information: How mature the information is about the business capability to understand and explore new business opportunities
- Capability Maturity Assessment - People: How mature the group of people are in the organization who are dedicated to the practice of the business capability
- Capability Maturity Assessment - Processes: How mature the organization’s adoption and usage of the business capability’s processes, practices and resources is performed
- Capability Maturity Assessment - Technology: How mature the end-to-end applications currently support the business capability practices and methods.
Review the business capability's pain points.
Go to the business capability content area > Overview > Maturity Gap Analysis.
The view shows the current and desired values for each area of evaluation and highlights the maturity gap between the as-is and to-be states for a business capability as well as its subordinate capabilities so that you can identify the maturity pain points for the business capability.
The business capabilities are colored according to a high maturity gap (dark red) and no maturity gap (yellow). Indicators are added to the business capabilities to show the as-is vs. to-be assessment of the business capabilities' digitalization, information, people, processes, and technology. Click the
three vertical dots button > Show Legend to understand the color coding and indicators
Go to the Business Capability Maturity Assessment spider chart. The radar chart compares the current maturity (AS-IS) against the target maturity (TO-BE) across five business capability dimensions of digitalization, information, people, processes, and technologies for the business capability and its subordinate business capabilities. Point to the small circle on each axis to understand which capability area the axis represents. Click the
three vertical dots button > Show Legend to understand the color coding.