Module 4: Capability View Flashcards
What is Bizbok definition of a business capability?
A particular or capacity that a business may possess to achieve a specific outcome. It describes what a business does that creates value for its customers
Is a Business Capability Model abstracted and conceptual view of ‘what’ an organisation does or can do to create value for a customer. True or False?
True
How does a business capability differ from a process?
Business capability is ‘what’ and a process is ‘how’
What are the 8 components of a capability?
1.Process
2. Apps
3. Structure
4. Staff
5. Performance
6. Activities
7. Infrastructure
8. Data
Are organisations who defined their capabilities and capture them in a capability model are likely to…
demonstrate business agility.
What are the 3 aspects of the capability model
Strategic: Direction Setting
Primary: Customer Facing
Support
What makes up the Strategic: Direction Setting in the Capability Model?
Business Planning
Commercial Management
Brand Management
What makes up Support activities capability?
Financial Management
Risk Management
Environmental Sustainability
What is the rationale for Business Capability Model?
-Planning business change
-designing business change
-analysing strategy
-analysing business model
-analysing a customer segment
What are the three strata for the business capability model?
-Strategic strata - direction setting
-Primary/core strata - Customer facing
-Support strata
Each strata contains capabilities at three levels?
Level 1 - Foundation Capabilities
Level 2: Capability Groups
Level 3: Business Capabilities
What is included in the Level 1 - Foundation in the strata level?
High level capabilities that cover the scope of the business. Can be internal or external.
-Categorised as the following:
Operational capabilities
Environmental capabilities
What are the capabilities in the Level 2 - Capability Group in the strata level about?
Output; nested in foundation capability
Can Level 2 capability groups be decomposed into lower levels?
Yes, these form the building blocks for a capability mapping exercise
Why can a foundation capability exist in isolation?
It has not yet been decomposed
It is an environmental capability
A capability group does not need to contain more than one business capability. True or False?
False
Can a business capability be decomposed to any level?
Yes
A business capability cannot exist in it’s own right?
False
Define customer management
The ability to control, predict, process, organise, present and analyse all infromation, documents, preferences, experiences and history relating to an individual, organisation that has plans to have or has had an agreement in place with the company
Define contract management
The ability to establish, organise, analyse, administer and report on all aspects of a legally binding contract entered into between the company and the customer
Define capital management
The ability to control, develop, review, analyse and report on a financial strategy for maintained sufficient, equitable levels of assets and liabilities in order to meet expense obligations and maintain sufficient cash flow.
In practice, a capability model would be built in isolation. True or False?
False, would be a separate document capturing definitions of each capability
Capabilities must be SUAVE. What does SUAVE stand for?
Stable
Unique
Abstracted
Valuable
Executive
What do the aspects of SUAVE mean?
Stable - What a business does. Do not tend to change
Unique - Not be duplicated
Abstracted
Valuable - Adds value to the customer
Executive - capture interest of the executive team
