BABOK® v3 Demystified Webinar Series

Chapter: Chennai IIBA® Chapter

Date & Time: 30-June-16 | 6:30 to 7:30 PM IST

Topic: Business Capability Analysis

Presenter: Venkadesh Narayanan BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP®, CSCP

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The ability to do something

Set of capabilities define an organization

A product or service is the result of a capability

What is Capability?

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Capability Conundrum

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Capability vs Capacity

Scenarios Capability Capacity Decision

1 No NA Go ahead

2 Yes No Go ahead

3 Yes Yes Return

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What is Business Capability Analysis?

Framework For Scoping And Planning

Identifying Alignment With Strategy

Providing A Scope And Prioritization Filter

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Need for Business Capability Analysis

• Business capability analysis describes what an enterprise, or part of an enterprise,

is able to do. Business capabilities describe the ability of an enterprise to act on or

transform something that helps achieve a business goal or objective. Capabilities

may be assessed for performance and associated risks to identify specific

performance gaps and prioritize investments. Many product development efforts

are an attempt to improve the performance of an existing business capability or to

deliver a new one. As long as an enterprise continues to perform similar functions,

the capabilities required by the enterprise should remain constant—even if the

method of execution for those capabilities undergoes significant change.

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Why for Business Analysts?

• Providing the necessary structure for stakeholders such as the scope and context under which to effectively align organisational projects

• Identifying the most important aspects of the business. It can be used to highlight what is most important to the business and channel efforts in the right direction

• Improving core business processes that form part of the value chain.

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Elements: Capabilities

Capabilities are the abilities of an enterprise to perform or transform

something that helps achieve a business goal or objective. Capabilities

describe the purpose or outcome of the performance or transformation, not

how the performance or transformation is performed. Each capability is

found only once on a capability map, even if it is possessed by multiple

business units.

Resources Capabilities Products

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Elements: Using Capabilities

Capabilities impact value through increasing or protecting revenue, reducing

or preventing cost, improving service, achieving compliance, or positioning

the company for the future. Not all capabilities have the same level of value.

There are various tools that can be used to make value explicit in a

capability assessment.

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Elements: Performance Expectations

Capabilities can be assessed to identify explicit performance expectations.

When a capability is targeted for improvement, a specific performance gap

can be identified. The performance gap is the difference between the current

performance and the desired performance, given the business strategy.

Cap

Str

Per

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Elements: Risk Model

Business Risk

Technology Risk

Organizational Risk

Market Risk

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Elements: Strategic Planning

Current Need

Problem

Opportunities

Solution

Future Addressed

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Capability Maps

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Capability Maps

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Capability Maps

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Strengths

• Provides a shared articulation of outcomes, strategy, and performance, which help create very focused and aligned initiatives.

• Helps align business initiatives across multiple aspects of the organization.

• Useful when assessing the ability of an organization to offer new products and services.

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Limitations

• Requires an organization to agree to collaborate on this model.

• When created unilaterally or in a vacuum it fails to deliver on the goals of alignment and shared understanding.

• Requires a broad, cross–functional collaboration in defining the capability model and the value framework.

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About Fhyzics

Fhyzics, a leader in Business Analysis Services and Training, is an Endorsed Education Provider [EEPTM] of International Institute of

Business Analysis [IIBA®], Canada.

www.fhyzics.com

For more details about our course, please speak to Bharathi at +91-900-305-9000

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Try our Online BA Course

150+ videos as in a classroom by Mr. Venkadesh Narayanan

www.bacourse.com

For questions speak to Bharathi at +91-900-305-9000

Compatible in PC, Tablet, iOS and Android devices

https://fhyzicsbc.litmos.com/account/Login

Username: cs@fhyzics.com

Password: bacourse

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Next Webinar: Business Case

28-July-2016 [Thursday]

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Thank You Webinar Platform Compliments from

Fhyzics Business Consultants Private Limited

Presented By

Mr. Venkadesh Narayanan, BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP® , CSCP

Principal Consultant

Former Indian Civil Servant [IRAS 2001 Batch]