Strategy tells an organisation where it wants to go, but it rarely tells leaders whether their current enterprise architecture can get them there. Business capability mapping sets out what the business does and how well its technology, information and people support it. The result is a single view leaders can use to find gaps, cut duplication and prioritise investment.
Key Insights:
- Capabilities describe what the business does, not how it does it. That’s why they stay stable when processes and technology change, and why they make a reliable baseline for a current-state assessment.
- Mapping capabilities against applications, information, infrastructure and people shows where support falls short. It also shows where duplicated systems can be consolidated.
- A single-page placemat gives business and technology leaders a shared language. That makes it easier to prioritise investment against strategy.
Business strategy sets the direction for an organisation, but translating that strategy into technology decisions can be a challenging task. Leaders need to understand what the business does now, what it needs to do in the future, and whether its existing enterprise architecture can support those requirements.
With so many systems, processes and dependencies to consider, business leaders can quickly become immersed in operational detail. The problem becomes more acute when assessing the current state ahead of transformation. Leaders need to understand the business functions that technology supports before they can properly assess where there might be gaps, duplication or opportunities for improvement.
Business capability mapping helps leaders distil this complexity into a set of high-level business functions. Mapping these functions onto a single-page ‘placemat’ gives them a practical basis for discussion and decision-making without having to navigate the detail of day-to-day operations.
What is business capability mapping?
One of the best ways to develop a placemat view and demonstrate an understanding of the business is to map its capabilities.
A business capability defines an organisation’s capacity to perform a particular business activity. Capability mapping focuses on what the business does or needs to do to achieve its objectives, rather than how individual processes are performed.
These capabilities tend to remain relatively stable, even as the processes and technology supporting them change. This makes them a useful basis for examining whether the organisation’s existing resources and systems can meet its business requirements.
How capability mapping supports better decisions
Prioritise projects against strategy
A business capability map helps organisations translate business strategy into technology priorities by identifying the capabilities needed to achieve their objectives.
Leaders can use the map to assess whether proposed initiatives will address existing pain points and capability gaps or support new capabilities required by the business.
This helps organisations prioritise projects against business needs and direct investment towards work that supports their strategy.
Identify gaps and duplication in the current state
A business capability map helps business and technology teams identify gaps and duplication in the current state by examining how the organisation supports its core functions across:
- Applications and software
- Information, including business and operational data
- Infrastructure, including hardware, networks and servers
- People, including organisational structures, processes and skills
Leaders can use this mapping to pinpoint where existing systems and resources fall short of business needs. They can also identify duplicated applications and services and reduce costs through consolidation and centralisation.
When planning for the future, leaders can use the map to inform a roadmap of projects and portfolios of work that support business growth. It gives CIOs and CTOs a practical basis for discussing priorities with business leadership teams and making informed investment decisions.
Articulate pain points and find quick wins
A business capability map helps transformation and technology teams engage directly with the business to understand the challenges it faces. These conversations can uncover opportunities for quick wins, particularly where improvements to existing services could address immediate frustrations or operational problems.
By focusing on the issues that matter most to the business, technology teams can demonstrate their ability to respond to business needs and deliver practical improvements.
Explain technology in business terms
The capability map gives technology teams a practical way to demonstrate their understanding of the business and the issues that matter most.
It also helps them explain technology initiatives in business terms, making it easier for stakeholders to understand how proposed projects will address business needs and priorities.
Keep the map current as the business changes
Finally, a business capability map provides a snapshot of the organisation at a particular point in time, showing how technology supports its core business functions. As the business evolves, leaders can update the map to reflect changing requirements and assess whether existing technology continues to meet its needs.
Leaders can compare existing capabilities with those required to support the organisation’s strategy, identifying where they may need to improve current systems or introduce new capabilities.
From capability map to future-state planning
The business capability map is an essential part of how organisations connect business strategy with technology planning. By understanding the capabilities the business needs, and how existing systems support them, leaders can identify gaps and make informed decisions about where investment is needed.
For transformation leaders, this also provides a common language for engaging with the business. It helps them demonstrate an understanding of business priorities and contribute to strategic decisions about where technology investment is needed.
As organisations look towards their future state, that understanding becomes increasingly important. A clear view of current capabilities provides the foundation for determining what needs to change to support the organisation’s strategy.
Quay Consulting is a professional services business specialising in the project landscape, transforming strategy into fit-for-purpose delivery. Meet our team or reach out to have a discussion today.
