BRM - Module 3: Business IQ
The video below is the first lesson in this module, and is part of the Business Relationship Course
The ‘Business Relationship Management Professional’ foundation course
Module 3 – Business IQ
Lesson 1 – Business Capability
Welcome to module 3 lesson 1!
In this lesson we’ll be studying business capability road mapping
Topics covered include:
What is Business Capability?
The Business Capability Road Mapping technique
I’ll start by giving you the Business Relationship Management Institutes definition of Business Capability:
“Business capability is the expression or the articulation of the capacity, materials and expertise an organization needs in order to perform core functions”
You can think of it as the things a business must do in order to operate. It can be helpful to think of business capabilities in the context of sentences such as “The Ability to do...” or “Excellence in…”
Business Capabilities are thewhat, not the how of business activity.
For example, a car manufacturer has capabilities for car design, manufacture, supply chain management, and human resource management to name just a few. These high-level capabilities could be broken down into more specific capabilities. It is differences in capabilities that distinguish one car manufacturer from another; it is a difference in capability that can give one company a competitive edge over another.
Now let’s take a look at the Business Capability Roadmapping technique.
Business Capability Roadmapping is an approach to aligning Business and IT strategies and imperatives. I’ll start by defining it:
“Business Capability Roadmapping is a way to clarify Business Capabilities needed to implement business strategy and the IT Capabilities needed to enable those Business Capabilities”
There are various methodologies and tools available—some proprietary—to support Business Capabilities Roadmapping, including CEBs IT Roadmap Builder and the Albright Strategy Group’s Capability Roadmapping.
The diagram on your screen is an overview of Business Capability Roadmapping that puts it in context. So, the actual Roadmapping has three aspects: roadmap business capabilities, roadmap enabling capabilities, and assess enterprise opportunities.
The precursor to these is ‘identify business strategies’. The roadmap of business capabilities identifies how business capabilities need to change in order to achieve the chosen strategies. The roadmapping of enabling capabilities identifies how the capabilities of the Provider need to change in order to support the changed business capabilities. Assess enterprise opportunities examines how the new Provider capabilities can be used across the enterprise.
As you can see the roadmapping exercise then leads to specific projects to deliver enhanced capabilities.
To summarise: Business Capability Roadmapping is the crucial set of steps that link IT projects to business strategy.
Business Capability Roadmapping offers a number of important benefits. For example:
It lays out where the business is taking key capabilities over the next 2 to 3 years to support its strategic objectives It aligns business process, information, application and technology capabilities to a common plan It facilitates strategic thinking versus short-term project thinking
Here are three more benefits of Business Capability Roadmapping:
It drives conversations that help to increase business and IT savviness. The Provider gets a better understanding of the Business Partner, and the business Partner gets a better understanding of its Provider. Roadmap analysis reveals cross-enterprise opportunities to deploy capabilities smarter and faster And roadmaps supply insights into IT technology direction and workforce planning.
An IT capability can be thought of as everything it takes behind the scenes that makes an IT service possible. This will include:
Service Management processes such as Incident Management or ‘Release and Deployment Management’ Descriptions of the roles required by each process, and the skills and knowledge required for each role. For example, a Business Analyst would need a knowledge of the business, interpersonal skills and so on. Enough people with the necessary skills to fill the roles Tools and technologies to support the processesThe Provider also needs management systems to ensure the performance of the capability including funding, organizational will, personal incentives, and so on.
In the context of Business Capability Roadmapping, we can simplify the ‘Enabling IT Capability’ as comprising information, applications, and technology.
Now let’s take a closer look at the Roadmapping technique. It involves a sequence of seven steps as shown on your screen.
Step one is to take the business strategy and use it to identify and roadmap the business capabilities needed to deliver the objectives of the strategy. This means mapping out the capability requirements within business units, functions and regions.
In step two the enabling IT capabilities are identified and roadmapped. This involves completing an architecture assessment to identify IT requirements. It also identifies new opportunities to leverage existing IT capabilities.
Step three is to determine how to deliver standardized business and IT capabilities across all parts of the enterprise.
In step four we create a capability business case. This means identifying the requirements, benefits, costs and risks for the top value capabilities.
In step five the enterprise capability roadmap is updated to include the agreed capability enhancements. The enterprise capability roadmap provides a single integrated roadmap of both business and enabling IT capabilities.
Step 6 – create project proposals. Develop concrete proposals with complete business cases for projects to deliver the enhanced IT capabilities that are needed.
In step 7 the projects and capabilities are prioritized. The enterprise capability roadmap is evaluated and decisions made on which project proposals to go ahead with.
OK before we end this lesson let’s do an exercise.
Plan to spend 15 minutes on this exercise. When you’re done check out our solution on the next screen.
What is the role of the Business Relationship Manager in Business Capability Roadmapping?
Articulate: do not progress to next screen automatically
The role of the Business Relationship Manager in Business Capability Roadmapping includes:
Ensuring that business strategy is translated into a Business Capability Roadmap Orchestrating key provider resources to be involved in Business Capability Roadmap development e.g. Project Management, Enterprise Architecture, Business Analysis, Strategists Ensuring that key business partner resources are involved in and take ownership for the Business Capability Roadmap e.g. Executive leadership, Process Owners, Subject Matter Experts Help communicate and socialize the drafts and final results Consider and incorporate the wider enterprise implications e.g. Business Transition Management issues
Before we end this lesson I’ll make a few key points about Business Capability Roadmapping:
First, Capability Roadmapping surfaces and clarifies the linkages between Business Strategy and the provider’s products and services
Second, Capability Roadmapping surfaces and clarifies the investments, assets and activities the provider must make to realize Business Strategy
And third, Capability Roadmapping links provider investments, assets and activities to Business Strategy
Ok, we’re almost finished but before I wrap up this lesson here’s a quiz to check out what you’ve learned
Articulate: insert quiz at this point
That completes lesson 1.
You learned about about business capability and Business Capability Roadmapping
The next lesson is Lesson 2 where we’ll study value management
Move on when you’re ready