Saturday, March 12, 2016

The CIO’s Digital Agenda: Running IT as a Business Capability Builder

A business capability is the set of abilities needed by an organization in order to deliver value.


Organization’s capabilities are business competency to execute its strategy and deliver value to its customers. Every surviving business has certain capabilities; however, only very few high-performing businesses have a high mature level of digital capabilities, for not only running the business today but also competing for the future. How to leverage IT in building business capabilities and competency?

Running IT as a Business Capability Builder

  • How to Leverage IT in Building Business Competency? The goal of all businesses is to generate revenue, increase net-new business, enlarge their footprint, and monetize their core competencies. In order to achieve business goals, organizations need to build a set of business capabilities such as innovation, agility or intelligence, and complementary core competencies such as customer satisfaction which consist of multiple capabilities and are infused into the being of the firm. IT is an important business enabler which can weave all necessary elements of the business into strategic capabilities and unique competency of the organization.


  • Three Business Capabilities to DIfferentiate a Digital Leader from Laggards: Digital transformation is a journey, from digital strategy crafting to organizational structure tuning, it has to permeate into business vision, strategy, mindset, culture, communication, process, capability, and action etc. A business capability is the set of abilities needed by an organization to do things effectively to achieve desired outcomes, measurable benefits and fulfill business demand consistently. In today’s digital paradigm, digital capabilities are also the building blocks to shift an organization from a reactive surviving mode to proactive thriving mode.


  • A Capability View of Enterprise: A capability is an ability that an organization, person, or system possesses. Capabilities are typically expressed in general and high-level terms and typically require a combination of organization, people, processes, and technology to achieve.


  • Digital Master Chapter V Introduction: Digital Capability: A business capability is the set of abilities needed by an organization in order to deliver value. It’s the ability of an organization to do things effectively to achieve desired outcomes and measurable benefits and fulfill business demand. In today’s business dynamic, digital capabilities are a fundamental building block in digital transformations with which companies can transform customer experiences, operational processes, and business models, to reach high-level business agility and maturity. The often described business capabilities include such as robustness, speed, comprehensiveness, responsiveness, agility, improvement, sensitivity, optimization, resilience, etc. Read this chapter to figure out the characteristics of digital capabilities:

  • Five Aspects of Digital Capabilities: A business capability is the abilities needed by an organization in order to deliver value. It’s the ability of an organization to do things effectively to achieve desired outcomes and measurable benefits and fulfill business demand. In today’s business environment, business capabilities are a fundamental building block in digital transformations with which companies can transform the customer experience, operational processes, and business models, to reach a higher level of business agility and maturity.

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