Business Capability Map: A Complete Guide to Understanding Your Organization’s Capabilities
A business capability map is a tool for identifying gaps, redundancies, and overlaps in an organization's capabilities. While it takes time and careful consideration, the exercise of building a business capabilities map can prove to be one of the most important steps in understanding how your company’s resources, tools, and processes work together, as well as revealing what should be closed and the capabilities that should be retained.
An Overview of Business Capability Mapping
Business capability mapping is a valuable tool for the identification of value propositions. It is a process that helps to understand and categorize business processes into their individual sub-business capabilities. When it comes to developing a business capability map, a high-level view of these capabilities is essential, and business leaders should be involved in the process. There are many tools and templates available for creating a capability map, including those provided by industry standards bodies.
A business capability map provides a framework for the development of customer-centric initiatives. It helps to define the buying cycle and the various channels used by customers. It also links these touchpoints to business capabilities. In addition to defining customer-centric processes, business capability mapping also provides a framework for assessing the priorities, complexity, and efficiency of specific projects.
Once a business capability map is defined, it can be stratified based on the different stakeholder groups that need to review it. For example, executives may be interested in the top-level view, while architects and planners will want to see the detailed breakdown of the business capabilities. Using stratification allows stakeholders to focus on the capabilities that are most relevant and important to them.
Another important element of business capability mapping is the alignment of value streams. This process helps organizations understand that business capabilities are used across different value streams, which helps them prioritize investments and plan new initiatives. By aligning business capability streams with value streams, organizations will be able to deliver more value to their customers. This makes business capability mapping a highly effective tool in an organization's transformation efforts. When used effectively, it will help organizations become more efficient, competitive, and innovative.
Iterative Refinement of Business Capability Maps
Business capability maps are visual summaries of the capabilities of an organization. They can exist at several levels, from the enterprise level to the more detailed level of organizational units and technology systems. They can be used to identify assets, capabilities, and risks. Business capability maps also help a company plan for the future.
The process of business capability mapping requires a company to first capture its value chain, which refers to the chain of activities that provide value to a customer. The process of creating a business capability map is an iterative process. Once the value chain is captured, the next step is to define the capabilities that are required for the company's core functions.
Business capabilities are the building blocks of delivering products and services. These capabilities can be hard, soft, core, or contextual. The process of business capability mapping focuses on identifying these business capabilities and developing a plan for deploying them. This way, a business can make informed decisions to improve its performance and competitiveness.
Value Proposition of Business Capability Maps
Business capability maps are a valuable tool to help companies achieve their strategic goals. They help identify core business practices and prioritize them based on their value to the business. When used properly, business capability maps can also inform IT projects and initiatives. These maps can help IT identify and prioritize investments to achieve the goals of the business.
Business capability maps enable organizations to connect key strategy pillars to methods of execution, allowing them to become more effective in their use of technology. They also eliminate enterprise-wide redundancies, saving money and time. This approach helps companies eliminate organizational silos, making it easier to reuse software and hardware assets.
Moreover, business capability maps provide a unified view of the different aspects of a business. For example, business capabilities may include processes, technologies, and applications. They may be shared across multiple departments. These departments may have many architectural layers that support different projects. For instance, a retail application may support customer service, complaints handling, sales management, and marketing. Consequently, multiple departments can benefit from a single process. In these scenarios, a comprehensive interactive business capability map is a worthwhile investment.
The process of creating a business capability map starts with an organization defining its strategic and operational objectives. The next step is identifying the capabilities that the organization needs. It can then prioritize these capabilities and determine which ones are most critical at this moment. Business capability maps can also be used to identify and prioritize employee skills, program delivery, and content development.
Business capability mapping helps organizations achieve desired results, save money, reduce risks, and enable growth. The process helps organizations link strategy execution and implementation. The mapping process also helps companies assign funds to core capabilities and assign key performance indicators. It can also help companies standardize commodity capabilities. It also enables organizations to identify inefficiencies and duplicate processes.
Business capability maps help organizations identify and understand the specific capabilities required to deliver a value proposition. The generic model looks something like Figure 2.
Creating a Business Capability Map with Lucidchart
Creating a business capability map is an important component of strategic planning. It identifies the capability gaps between present and expected performance and helps you determine how to best address these gaps. A business capability map is a visual representation of all the core functions and processes of a company. The software includes a variety of templates and tools that make it easy to create the map that best matches your business' needs.
This is the Business Capabilities Map template that is available in Lucidchart (to premium accounts).
Lucidchart has integrated with Salesforce, which allows you to access it directly from the CRM platform. You can also customize the data that is imported from Salesforce. This makes it possible to visualize key influencers, roadblocks, and internal relationships. Lucidchart is free to use, so you can give it a try for free!
Once you've created your business capability map, share it with others. This allows you to get feedback and add new capabilities. The software also allows you to download the graph as an SVG, JPEG, or PDF. In addition, you can share the chart with others via email, making it easier to share and get feedback.
Business capability mapping is an important part of process automation projects. It helps identify waste and streamline work. It allows you to visualize all the details of the process. It also provides a common language and framework to communicate the details of the process. In addition, it can help you improve your understanding.
Lucidchart is an intuitive cloud-based visual workspace that supports team collaboration and diagramming. It can help you create visual business capability maps that meet a variety of use cases. Lucidchart allows you to draft a business capability map, update it as needed, and easily share it with stakeholders.
Lucidchart supports Salesforce as its integration platform. Salesforce users can connect Lucidchart with Salesforce by logging into Salesforce and allowing Lucidchart to access their data.
Frequently Asked Questions About Business Capability Maps
What is a business capabilities map?
Answer: A business capabilities map is a visual diagram that represents the essential functions and activities an organization performs. It groups capabilities into high-level categories, typically showing how individual capabilities relate to each other and to the overall business strategy. This map helps in aligning business strategy with operations and technology investments.
Why is a business capabilities map important?
Answer: A business capabilities map is important because it provides a clear and technology-agnostic view of what a business does to create value. It aids in strategic planning, transformation initiatives, and improves alignment between IT investments and business goals. It helps identify redundancies, streamline processes, and pinpoint areas for innovation or improvement.
How do you create a business capabilities map?
Answer: Creating a business capabilities map involves several steps:
Identify Core Capabilities: Start by identifying the core functions that are critical to your business operations. These could include sales, marketing, product development, etc.
Decompose Capabilities: Break down each core capability into more detailed sub-capabilities.
Alignment with Strategy: Ensure each capability aligns with your business strategy and objectives.
Validation: Collaborate with stakeholders across the organization to validate and refine the capabilities.
Visualization: Use diagramming tools to create a visual representation of the capabilities map.
What are the key components of a business capabilities map?
Answer: The key components of a business capabilities map include:
Core Business Functions: High-level categories that reflect the major areas of business activity.
Sub-capabilities: More detailed descriptions of specific activities within each core function.
Interdependencies: Connections and relationships between different capabilities.
Information Flows: How data and information flow between capabilities.
How does a business capabilities map differ from a process map?
Answer: While a business capabilities map focuses on ‘what’ a business does, a process map focuses on ‘how’ it is done. The capabilities map is concerned with the abilities the organization requires to operate effectively, independent of how these activities are performed or who performs them. On the other hand, a process map details the sequence of tasks and who performs them, often including timelines and resources.
How often should a business capabilities map be updated?
Answer: A business capabilities map should be reviewed and updated regularly to ensure it remains aligned with the business’s strategic goals. This might be annually, or whenever significant organizational changes occur, such as mergers, acquisitions, or the launch of new products or services.
Can a business capabilities map help in technology decision-making?
Answer: Yes, a business capabilities map can significantly aid in technology decision-making by highlighting which capabilities are supported by existing technologies and identifying gaps where new technologies are needed. This ensures that technology investments are aligned with strategic business needs and can drive maximum value.
