What does the Business Capability Model represent?

The Business Capability Model represents a nested hierarchy of organizational capabilities. This model serves as a strategic tool that identifies and visualizes the key capabilities required for an organization to execute its business strategy and achieve its objectives. By outlining these capabilities, organizations can assess their current state and identify areas for improvement or development.

In this model, capabilities are typically organized into a hierarchy that ranges from high-level business functions to more detailed capabilities, allowing stakeholders to see how different aspects of the business interconnect and contribute to overall strategic goals. This hierarchical structure aids in understanding the organization's strengths and weaknesses and lays the groundwork for aligning resources, processes, and technology with desired business outcomes.

When organizations leverage a Business Capability Model, they can more effectively plan initiatives, allocate resources, and prioritize investments to enhance performance and drive transformation initiatives. This clarity in capability definition also facilitates communication and cross-functional collaboration within the organization.