Note that this does not depict all elements needed to realize these resources, but only a representative sample. A small part of what this may result in is shown as well. These resources themselves are realized by the enterprise architecture core. These capabilities need to be supported by the right resources including personnel with the right knowledge and skills for the digital age, smart devices for data acquisition, and the customer data itself. For example, the Data-driven insurance capability and its sub-capabilities may require an entirely new part of the organization to be set up, and the Actuarial, Claims and Underwriting business functions may be changed substantially. These may be realized by augmenting the existing business functions (and the processes within them), but they might also need new functions and resources. The new sub-capabilities from the previous figure are part of the two green capabilities in this figure. The figure below shows some of these relationships between a number of primary capabilities of ArchiSurance from the previous figure and its current business functions. And multiple business functions may (together with other elements) contribute to the realization of a capability. Of course, when you draw a map of the current capabilities of the organization, its current business functions will often figure prominently, since what you actually do today must by nature be something you are able to do as well. This is the core of capability-based planning. Capabilities and capability levels in a target business architecture give high-level direction for change. desired levels of capability, and in uncovering capabilities that the organization already possesses but does not recognize or manage explicitly. In describing the baseline business architecture, the value of a capability map mostly lies in the analysis of the current vs.
Each capability occurs only once in a capability map, whereas in a functional decomposition of the enterprise the same sub-function can occur multiple times. In contrast, business functions describe the work actually done by the organization they are often explicitly managed, and are more closely aligned to the organization structure. They are focused on specific business outcomes, and are used for strategic planning purposes. Capabilities represent the current or desired abilities of an organization, realized by its people, processes, information, and technology. Note that business functions are distinct from capabilities.
Positioning these in the context of its current capabilities leads to the following figure, using the ‘highlight’ function of Enterprise Studio to emphasize these new elements. As we have seen in the previous blog, ArchiSurance wants to establish several new capabilities to support its ‘Digital Customer Intimacy’ strategy, such as Digital Customer Management, Data-Driven Insurance, Data Acquisition, and Data Analysis.
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