The most advanced approach, this is the framework that an organization should adopt to orchestrate business transformation. As shown in the graphic, this approach introduces the concept of business capabilities, which represent the core operating functions of a business. Capabilities can be broken down into the people, processes, and technology that are responsible for enabling each of these key functions within an organization.
By understanding the mapping between strategies themselves and the key capabilities needed to realize each strategy, it’s possible to generate the right demand and/or execution. For example, if there is a strategy that has no supporting business capability, then a new capability can be introduced by funding a program. If a strategy is dependent upon a poorly performing capability, then projects and programs can be funded to enhance that capability and knock the strategy out of the park.
In turn, this approach truly acknowledges and connects the business, IT assets and products that all execution is funded to transform. Any type of change can have major repercussions. For example, an IT portfolio manager can engage the business in a discussion around improvements they wish to make to each capability, revealing the supporting IT environment – apps, services or technology – that automates each capability, making it possible to drive the changes needed to deliver on business requests. In this scenario you can more quickly cost out the impact and quickly make trade-off decisions.