Capability Model

Definition

A capability model is a structured, hierarchical representation of all business capabilities of a company, independent of processes, systems or organizational units.

Relevance for Enterprise Modernization:

A capability model creates a common understanding of the organization’s core capabilities and serves as a business-stable foundation for IT architecture, transformations and investment decisions. It helps to identify strategic gaps, avoid redundancies and target technological measures.

Example / use case:

A medium-sized production company wants to make its business architecture more transparent. To this end, a capability model is developed that divides the company into 5 top-level domains. For example, production, sales, purchasing, customer service and IT. Specific capabilities are then identified within the “production” domain, such as production control, quality management, maintenance, production planning and logistics processing. This creates a structured model that serves as a basis for identifying the need for action, clarifying responsibilities and planning modernization measures in a targeted manner.