Module 4: Capability View Flashcards

1
Q

What is Bizbok definition of a business capability?

A

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

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2
Q

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?

A

True

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3
Q

How does a business capability differ from a process?

A

Business capability is ‘what’ and a process is ‘how’

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4
Q

What are the 8 components of a capability?

A

1.Process
2. Apps
3. Structure
4. Staff
5. Performance
6. Activities
7. Infrastructure
8. Data

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5
Q

Are organisations who defined their capabilities and capture them in a capability model are likely to…

A

demonstrate business agility.

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6
Q

What are the 3 aspects of the capability model

A

Strategic: Direction Setting
Primary: Customer Facing
Support

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7
Q

What makes up the Strategic: Direction Setting in the Capability Model?

A

Business Planning
Commercial Management
Brand Management

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8
Q

What makes up Support activities capability?

A

Financial Management
Risk Management
Environmental Sustainability

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9
Q

What is the rationale for Business Capability Model?

A

-Planning business change
-designing business change
-analysing strategy
-analysing business model
-analysing a customer segment

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10
Q

What are the three strata for the business capability model?

A

-Strategic strata - direction setting
-Primary/core strata - Customer facing
-Support strata

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11
Q

Each strata contains capabilities at three levels?

A

Level 1 - Foundation Capabilities
Level 2: Capability Groups
Level 3: Business Capabilities

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12
Q

What is included in the Level 1 - Foundation in the strata level?

A

High level capabilities that cover the scope of the business. Can be internal or external.
-Categorised as the following:
Operational capabilities
Environmental capabilities

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13
Q

What are the capabilities in the Level 2 - Capability Group in the strata level about?

A

Output; nested in foundation capability

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14
Q

Can Level 2 capability groups be decomposed into lower levels?

A

Yes, these form the building blocks for a capability mapping exercise

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15
Q

Why can a foundation capability exist in isolation?

A

It has not yet been decomposed
It is an environmental capability

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16
Q

A capability group does not need to contain more than one business capability. True or False?

A

False

17
Q

Can a business capability be decomposed to any level?

A

Yes

18
Q

A business capability cannot exist in it’s own right?

A

False

19
Q

Define customer management

A

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

20
Q

Define contract management

A

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

21
Q

Define capital management

A

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.

22
Q

In practice, a capability model would be built in isolation. True or False?

A

False, would be a separate document capturing definitions of each capability

23
Q

Capabilities must be SUAVE. What does SUAVE stand for?

A

Stable
Unique
Abstracted
Valuable
Executive

24
Q

What do the aspects of SUAVE mean?

A

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

25
Q

To what level should a capability be mapped?

A

To whatever level is needed

26
Q

What is business competency?

A

What is needed to perform a capability to the required standard

27
Q

What is business capacity?

A

Overall volume the the business can achieve.

28
Q

A capability is an abstraction of ‘how’ the business does what it does. True or False

A

False

29
Q

What of the following best describes what the business has to do well in order to deliver value to its customers?

A. A competence
B. A CSF
C. A Capacity
D. A Capability

A

D.

30
Q

Which of the following are customer facing Strata?

A. Strategic Strata
B. Primary Strata
C. Core Strata
D. Support Strata

A

B.
C.

31
Q

According to Accelare, what describes an Essential Capability?

A

Greater Financial Impact
Lower Strategic Value

32
Q

If an operational capability contains four more capabilities, at what level is the operational capability?

A

Foundation

33
Q

According to Accelare, what describes an Advantage Capability?

A

Greater financial impact
Greater Strategic Value

34
Q

According to Accelare, what describes a Business Necessity Capability?

A

Lower Financial Impact
Lower Strategic Value

35
Q

According to Accelare, what describes a Strategic Support Capability?

A

Greater strategic value
Lower financial impact

36
Q

What are examples of Business Necessity Capabilities?

A

Candidates for outsourcing

Product Delivery

37
Q

What are examples of Essential Capabilities?

A

Candidates for improvements in efficiency

Measurement of product performance

38
Q

What are examples of Strategic Support Capabilities?

A

Closely guarded and support advantage capabilities

Product Launch

39
Q

What are examples of Advantage Capabilities?

A

Value contribution is assured when performance is among best in peers

Product innovation