Strategy
Capability
Plain English
What you’re able to do.
Definition
Capability refers to an organisation’s ability to perform a specific function or deliver a particular outcome.
In practice
Used to define what a business or glossarySystemA system is a collection of interconnected components that work together to achieve a specific function or outcome.Open glossary term can realistically achieve, such as personalisation, analytics, or glossaryAutomationAutomation is the use of technology to perform tasks with minimal human intervention.Open glossary term.
In context
It is more than the tool. Buying the glossaryPlatformA platform is a system or environment that enables users, services, or applications to interact, build, or operate.Open glossary term does not create the capability if nobody owns it, no glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term uses it, and no one is trained on it.
The reality
Organisations often overestimate their capabilities due to glossaryLegacy SystemA legacy system is an outdated system that is still in use, often due to its critical role.Open glossary term or skill gaps.
Compared with
Capability vs Capacity
Capability is whether you can do something at all. Capacity is how much of it you can do. Adding people increases capacity; it only adds capability if they bring a skill the organisation lacked.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is a business capability?
It is a specific ability an organisation has to deliver value or perform a function.
Why are capabilities important?
They define what is possible within a business or product.
How do you identify capabilities?
By analysing glossarySystemA system is a collection of interconnected components that work together to achieve a specific function or outcome.Open glossary term, glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term, and team skills.
What limits capabilities?
Technology glossaryConstraintsConstraints are limitations or restrictions that impact how a product or solution can be designed or built.Open glossary term, lack of skills, or poor glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term.
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