IT as the Digital Business Capability Builder

Capability can "contain" many services, processes, and functionality in which IT as one of the most critical elements in weaving them together and building up business competency: The capability is the ability to achieve the desired effect under specified performance standards and conditions through combinations of ways and means (activities and resources) to perform a set of activities. The business is then designed around the experience. In any case to monitor or seek disruptive opportunities requires businesses’ transformational capability with agility to adapt to changes. IT plays a more important role in such a digital paradigm shift.
IT capabilities directly make an impact on business capabilities: The capability is the ability to achieve the desired effect under specified performance, standards, and conditions through combinations of ways and means, activities and resources to perform a set of activities. To improve overall competency, digital organizations shift from process-oriented practices to capability-based strategy management. Digital IT is the integrator and superglue to recombinant dynamic business capabilities, without them, strategy execution can not be sustained, and IT maturity is proportional to overall organizational maturity. Strategies fail either because of improper execution or more likely because the strategy was flawed. It implies the potential organizational capabilities would play the crucial role in setting or resetting the strategic direction of the business in order implement strategy effectively.

Defining your enterprise business capability is part art and part science, and building your business capabilities is more science than art. Business capabilities are fundamental pillars to achieve the corporate strategy, the capability-based strategy management has much higher success rate statistically. As IT is in a unique position to oversee the underlying processes and functions, It needs to become the digital capability builder of the organization via weaving all the important business elements, to orchestrate digital transformation seamlessly.
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Published on January 21, 2017 23:19
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