Business capabilities: A misunderstood and underrated tool for your IT strategy

Too often, we have seen discussions on business capabilities being limited within Enterprise Architecture teams. These hardly reach CIOs and business strategists to really make an impact. In fact, business capabilities, when used correctly, are foundational to any business and IT strategy.

CIOs and IT leaders who don’t use them in their strategy creation are building strategies that don’t deliver the business outcomes.

Let’s understand what business capabilities are: In simple terms

A Business Capability is what businesses do or should do to achieve a business outcome.  

Business capabilities are a link to your strategy and its implementation. Having a good business capability map helps you identify where your competitive advantage lies.

It’s a mindset shift. A capability-based mindset builds a stable, interlocking architecture where new projects enhance and mature existing strengths rather than starting from scratch.

It poses an important question to CIOs and IT leaders: If you look at your IT budget today, is it invested in temporary projects, or is it building lasting capabilities that will serve your business for years to come?