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Analyzing Business Capabilities

Analyzing Business Capabilities

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Analyzing Business Capabilities refers to team members defining the essential factors for creating value in their roles and for the business, such as people, processes, tools, technologies or resources. Capabilities answer the question, “What do we need to have in place to execute our strategy?” Capabilities represent sources of value at the intersection of customer and business, so how they are named profoundly impacts factors including culture, roles, influence, strategies, hiring, metrics, and rewards. Start with Stakeholder and Customer Analysis and then work backward to identify the most crucial business capabilities to value creation. Define business capabilities at the right level by being aware of the differences between business capabilities and value streams. Seek to assign every essential business capability as a responsibility to a single role or team. Apply the four types of business capabilities from around the Business Triangle to structure your analysis. Analyzing business capabilities is the first step in Straightening the Spaghetti. And it links to the Specifying Capabilities and Roles crucial conversation.

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