Capability Architecture

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1 Capability Architecture

2 Transformation of business models in four phases ANALYSIS INNOVATION DESIGN REALIZATION A1 Analyze the market and the competitive landscape I1 Segment customers and understand their needs, behaviors D1 Define and prioritize strategic business requirements R1 Build a change strategy and design its implementation A2 Verify & update the strategic intent and the desired market position I2 Define concrete and attractive value propositions D2 Survey existing supporting structures R2 Organize and mobilize the available organizational resources A3 Identify and describe the current business model portfolio I3 Identify enablers for future business models D3 Determine the required degree of transformation in each structural dimension R3 Establish structural preconditions for the change A4 Analyze the identified business models and business model portfolio I4 Suggest new or redesigned business models D4 Design ideal architecture R4 Drive execution of the change. A5 Define the desired position and strategic goals per business model I5 Detail and prioritize new and redesigned business models D5 Design solution architecture R5 Reinforce the change to secure sustainable results 2

3 In the design phase we build the detailed structures that will enable realization Business environment Business idea Vision BUSINESS STRATEGY Strategic objectives Strategies CSF Structure Competence BUSINESS MODEL(S) Value proposition relationship GOVERNANCE MODEL Forum Decision mandate KPI OFFERINGS Offering guidelines Offerings Services Products BUSINESS PLAN Corporate plan Business plan Unit plan Team plan ORGANISATION Organizational area Area of responsibility Organizational unit Team PROCESS Process area Main process CAPABILITY INFORMATION Sub process Sub capability Business object Process component Capability Capability area Process capability Information area Object group SYSTEM System area System Sub system System component Strategic business requirements BUSINESS REQUIREMENTS Individual plan Role Process activity Activity capability Object System function 3

4 Capabilities are central in the architecture and includes the other dimensions Capability! Business plan! Area of responsibility! Main process! System! Unit plan! Organizational unit! Sub process! Sub capability! Business object! Sub system! Team plan! Team! Process component! Process capability! Object group! System component! Individual plan! Role! Process activity! Activity capability! Object! System function! 4

5 A Capability describes WHAT the enterprise does and connect other dimensions Process Organization Describes how carry out Information used in Capability produce Information supports System 5

6 An example of a Capability CUSTOMER ORDER REGISTRATION CUSTOMER PRODUCT CATALOGUE customer order service CUSTOMER ORDER CUSTOMER ORDER managementsystem 6

7 The capabilities has a capability and process view L2 L3 Sales planning Sales Contact Contact Sales mgmt Identify customer need need L2 Sales Booking L3 Plan sales Sales Plan L3 Sell Need L3 Manage Delivery preparation 7

8 Similar processes are generally supported by specialized systems A common situation B2B Business Unit Web channel Booking Reservation POS 8

9 From process components we can identify functional requirements A common situation Req. A1 Req. A2 Req. B1 Req. B2 Req. C1 Req. C2 Req. B3 B2B Business Unit Web channel Booking Reservation POS 9

10 By introducing capabilities we can consolidate requirements and systems A common situation Req. A1 Req. A2 Req. B1 Req. B2 Req. C1 Req. C2 Req. B3 B2B Business Unit Web channel Booking Reservation POS A redesign of the situation X B2B Business Unit Web channel Req. A1 Req. A2/C2 Req. B1/C1 Req. B2 Req. B3 POS 10

11 Capability architecture in 5 levels LEVEL 1 Capability areas are used to categorize capabilities and to plan/organize capability management efforts LEVEL 2 Capabilities on level 2 are used to consolidate all other enabling structures such as processes, organization, information and systems LEVEL 3 LEVEL 4 LEVEL 5 A sub capability creates a clear significant value without describing how it`s done, only which process capabilities are needed to create the value A process capability that satisfies a clear need by supporting one or more process components on level 4 An activity capability that describes the logic necessary to support one or more activities at level 5 in the processes 11