Documenting Business Capabilities

Business Capabilities and Business Process make up the means by which architecture is defined for commercial-off-the-shelf (COTS) software purchased by The State of Vermont (SOV).

Business capabilities represent the “what” the business needs to accomplish. Business processes indicate the “how” the “what” is accomplished.

Business capabilities enable business/IT transformations by:

  • Providing business with a common language
  • Enabling business investment focus
  • Serving as a baseline for strategic planning, change management, and impact analysis
  • Leading directly to business service specification and design.

Modeling business capabilities requires a combination of people, business processes, and physical assets in order to deliver value to customers and stakeholders. The business capability model is a useful abstraction that helps to connect the business strategy to future business architecture. The capability model also provides a way to organize and prioritize investments in physical assets: buildings, equipment, and information systems. 

Four major steps to build a capability model include:

  • Develop the capability hierarchy.
  • Identify key relationships.
  • Develop the demand (utilization) model.
  • Develop the financial model.