How to create a capability model

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how to create a capability model many

businesses are continuously transforming

themselves to adapt to the future a

capability model is a fundamental way to

understand your business from a holistic

perspective so you can transform it with

intent using such a model managers can

look at the whole enterprise and

identify capabilities that have to be

prioritized based on your strategy for

example with the basic model in place

you can use it as a heat map to identify

which capabilities are consuming the

most amount of resources which

capabilities are critical for the

enterprise and which capabilities

provide a competitive differentiator for

example capabilities are also important

because they form the foundation of

delivering value to your customers

through processes each step in the

process use a certain set of

capabilities of your organization

capabilities that either you have or

your partners provide for example if you

are for fast delivery service to your

customers as a competitive advantage

then you better have the mechanisms in

place to deliver on that promise

this means that not only would you want

to ship the products but you will have

to have the mechanism to track it

facilitate ordering offer customer

support etc given that it's important to

understand your organization's

capabilities how do you start building

the capability model I'll use a simple

relatable scenario this capability model

example is not even about a business but

rather about your family you should be

able to translate this example to the

business let's say you want to make

dinner for your family here's a simple

process look up the recipes get the

groceries cook the meal and serve it

this will make the family happy each

step in this process requires some

things information about those things

and skills

to put those things together for example

for shopping you'll need a list a way to

get to the store and money for cooking

you'll need utensils gas and water

utilities and some cooking knowledge to

make sure you have all this you'll have

to manage information about these things

for example you need a list for grocery

shopping you need to know how much money

is in the bank and how much you can

afford to spend and you need to know how

much gas is in your car to get you back

and forth I'll stop here but you get a

sense of the information that you'll

need to manage each of these things the

ability to do these tasks and to be able

to manage these tasks with information

you have is what constitutes a

capability now putting these

capabilities together in a certain order

you can execute a process that results

in a good meal for the family in other

words the capabilities are pulled

together in the context of a process to

deliver value this is exactly the same

thing that happens for a business to

deliver value to your customers you

identify what processes deliver such

value and build in the capabilities

within your organization to execute the

different steps in that process as you

consider more and more processes you can

identify more and more capabilities that

are required to deliver the value not

only to external customers but to

internal as well

many of these capabilities will be used

across different processes one nuance

that I glanced over was that not all

capabilities are at the same level as

you work through them you'll get a sense

of how big or how small a capability is

and you'll start breaking down the

capabilities into smaller components

that form the larger capability

that's what makes up the different

levels in the capabilities typically

organizations define capabilities at

levels one two three which gives them

enough granularity to look at a

reasonable level of detail as well as

the big picture if you want my help with

your architecture or AI strategy please

reach out we help organizations

architect their capabilities from

concept to implementation so your

organization can transform and thrive in

the future thanks for watching and

please sign up for more value at dr. raj

ramesh calm thank you