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BEST PRACTICES TO

DEFINE
Business Capability Maps

BEST PRACTICES
STRATEGIC CUSTOMER PRODUCT & PRODUCTION PROCUREMENT ENTERPRIS MARKETIN FINANCE &
MANAGEMENT RELATIONSHIP SERVICE & LOGISTICS E G & CONTROLLING Business capability modeling is a technique for
S DEVELOPMENT SUPPORT SALES the representation of an organization’s business anchor
Stra tegy Development Customer Management Engineering Production Design & Purchasing IT Management Sa les Controlling
model, independent of the organization’s structure,
Planning processes, people, or domains.
Develop Vision/ Mission Ident ify Customer Manage Requirement s Manage Purchase Requirements IT Strategy Management Qualify Oppor tunit y Business Planning
Manage Production Requirements
Define Strategy Manage Customer Design Product s Manage Purchase Order EA Management Manage Client Cost Accounting
Define Production Process
Manage Purchase Catalogue
Track Strategy Manage Customer Hierarchy Conceptualization IT Ser vice Management Advise Client Forecasting Don’t overlap
Define Production Site
Adapt Strategy Manage Communit y Construction Tendering Application Management Create Specific Offer Good capabilities do not overlap; they are
Plan Material Requirements
Manage Strategy Manage Org. Context Manage Purchase Requisition Technology Management Negotiate Offer Payroll
mutually exclusive. A good t est is to check
Manage Waste Disposal
Approve & Transmit Order IT Project Management Create ERP whether you can assign L evel 2 capabilities
Quality Management Time Stamp Report
Manage Purchase Procedure
without ambiguity.
Organiza tion Development Contac t Management Test Initial Quality Manage Trials Manage Payment
Production Steering Manage Category
Coordinate Process Strategy Outbound Contact Track Qualit y W orkforce Management Process Taxes
Retrieve Product Information
Plan L ong Term Inbound Contact Manage Debugging Deploy Workforce Demand & Offer
Monitor Production Process
Define “What”; not “How”
Sourcing Management
Develop Organization Goals Classify Demand Manage Product Document Workforce Planning Treasury Business capabilities encapsulate what a
L ocalize Product Identit y Customer
Strategize Business Unit Route Contact Define Sourcing Strategy Manage Work Order Foreign Exchange Management business is doing right now and what it
Bill of Material Management Manage Customer Profile
Contact Interaction R&D Define Sourcing Requirements
Financial Risk Management must be doing to meet current and future
Deliver Product Manage Customer Hierarchy
Mergers & Acquisitions Manage Interaction Manage Product Por t folio Manage Sourcing Tender Process Information Management Cash Management
challenges.
Decide On Sourcing Manage Communit y
Manage M&A Strategy Manage Innovation Define Reports and KPIs
Produc tion Order Manage Customer
Manage M&A Customer Scoring Manage Patent Gather Data Settlements & Pa yments
Management
Track Acquisitions Define Customer Risks Manage R&D Process Logistics Management
Manage Org. Context Long-term stability
Process Data Account Payables
Plan Supply Quantity Identif y New Channels Properly defined business capabilities are fairly
Manage M&A Integration Manage Customer Risks Manage Returns Illustrate Data Travel & Expense Management
Plan Production Orders stable over time, persisting throughout any
Check Credit-Worthiness Requirements Definition Manage Logistic Order Govern Data
Manage Order Validiy
B illing organizational changes. Only major business model
Manage Transportation Customer Success
Manage Core Business Evaluate Existing Product s
Plan Production Program
Revenue Cycle Management updates should affect them.
Management
Evaluate Existing Product s Order Management Review Demand Manage Demand Forecast Knowledge & Resea rch
Pre- production Planning Manage Customer Onboarding
Manage B us. Per formance & Ops Management
Validate Order Manage Materials Ta x Management
Increase Customer Lifetime Value
Coordinate Projects Track Order Require Distribut ion Supplier Contac t Manage Knowledge
Handle Trading
Cross-organizational
Machine Management Avoid Customer Churn
Manage Projects B undle Order
Management Manage Research Don’t focus too much on business units.
Define Plans for Customer Upsell Tax Settlements
B uild Machine
Steer Order
Manage Supplier Collaboration Manage Tech Scanning Capabilities should remain the same and be
Method Development Manage Upsells Tax Returns Mgmt.
Operate Machine independent of the current structure of the
Manage Supplier Registration
Innovation & Technology Cancel Order Define Method Tax Planning Strategies
Calibrate Machine
Classify Supplier Offer
Terminate Contracts organization.
Management Enterprise Risk
Validate Method Tax Determ ination
Manage Machine Information
Manage Supplier Contact Routing Management
Scout Trends
Contrac t Management Refine Method Manage Tax Questionnaire
Optimize Machine Marketing & Sales
Manage Compliance
Manage External Innovation
Manage Contract E xecute Method
Manage Fraud
Development 7 to 10 capabilities at the top level
Manage Internal Innovation Supplier Contra ct
Negot iate Cont ract
Ma terials Management Define M & S Requirement s Asset Management The highest level capabilities should be a complete
Management Manage Insurance
Manage Innovation Process description of your business. Aim to make your
Manage Frame- Contract Product & Service Delivery Monitor Channels Investment Planning
Manage Containers Negotiate Supplier Contract Manage Securit y
Track Innovation
Manage Product Usage Develop M&S Channels
categories reflect key aspects of what the business
Schedule Product ion Handle Dangerous Goods Decommissioning
Enact Supplier Contract Business Continuity actually does.
Manage Production Fetch Material Develop M&S Messages Asset Performance Mgmt
Manage Supplier Contract
Externals Management Define Customer Value
SLA Management Test Quality Performance Manage Material Requirements Manage Asset Lifecycle
Manage Supplier Frame Contract Enterprise Effectiveness &
Evaluate & Select Proposition
Track & Repor t SL A B reaches Manage Product Traceabilit y Manage Incoming Materials Project Management
Maintain Contract s Define Marketing Budget
Breadth rather than depth
Manage SLA Violations Accounting
W arehouse Management Manage Port folio Don’t go too deep. Illustrate the breadth of your
Monitor Performance
Produc tion Preparation Maintenance Material Disposition Manage Programs Manage General Ledger organization’s business capabilities by going no
Manage Payments
Align Resources Manage Maintenance Plan Develop Project s Enterprise Consolidation more than three levels down. This will be enough
Restocking
Terminate Contracts
Procure Materials & Ser vices Handle Spare Parts Cost Accounting to represent the I T landscape of your enterprise.
Packaging
Select Suppliers & Developers Recognize & Recover Failure External Repor ting
Manage Claims Huma n Resources
Strategic Business Initiatives
Master Production Schedule Management Performance Reporting
Shipping
Develop Strategic Initiatives
Change Management Manage Employee Inventory Valuation
Manage Inventory
Evaluate Strategic Initiatives Accepted by all stakeholders
Ma rket Testing Manage Deviation Allowance Manage Payroll Investor Relations
Commissioning The goal of business capabilities is that they
Select Strategy
Market Survey Analyze Deviations HR Policies & Processes
Goods Receipt & Ser vice Ent r y become a common basis for discussion and
Establish High-Level Measures
Recruiting
Analyze Customer Intelligence Access Deviations planning. Take every opportunity to anchor your
Evaluate Market Opportunities Plan & Execute Deviations Manage Talent s organization’s processes to the model.
Business Concept
Establish Measures Trace Deviations
External Assessm ent
Lega l
Market Surveys Infra structure Management Corporate Governance Policies Linking strategy and execution
Internal Analysis Plan & Control Construction Preventive Law Program Dev.
Involve those who define the strategies when
Concept Establishment Operate Site Infrastructure
creating your map. Consider strategy as one input
Ensure Compliance
Restr ucture Organization
when defining your business capabilities on the
Build Site Infrastructure
highest level.
Manage Location Restrictions

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