Business Capability

Business Capability

Business Capability Jonathan Poland

A business capability is a broad term that refers to the things that a business is able to do or achieve. It describes the capabilities of the business as a whole, without regard to the specific processes or strategies that are used to achieve those capabilities. Business capabilities can be described at various levels of detail, such as at the organizational, departmental, or team level. They provide a high-level view of a business’s abilities and capabilities, and are often used to inform strategic planning and decision-making. The following are illustrative examples of business capabilities.

Manage Risk
A bank manages risk.

Manage Credit Risk
A bank’s global credit department manages credit risk.

Analyze Client Credit Ratings
An analyst team in a bank’s global credit department analyzes client credit ratings.

Sales Pipeline Management
The sales department of a telecom company manages a sales pipeline.

Qualify Sales Leads
A sales operation team qualifies sales leads before they enter a sales pipeline.

Information Security Management
An IT department provides information security management.

Security Risk Identification
A security team identifies information security risks as a part of an annual audit.

Pricing
A marketing department prices products and services.

Price Testing
A marketing operations team is able to test different price configurations to optimize revenue and margins.

Product Development
A marketing department develops and launches products.

Product Design
A design team designs products.

Customer Service
An airline provides customer service.

Meal Service
A flight crew provides meal services.

Lost Baggage Claims
An airline operations team processes lost baggage claims.

Rule of Three Jonathan Poland

Rule of Three

The rule of three is an economic theory that posits that large, mature markets tend to be dominated by three…

What is Dumping? Jonathan Poland

What is Dumping?

Dumping refers to the act of selling a product or service in a foreign market at a lower price than…

Penetration Pricing Jonathan Poland

Penetration Pricing

Penetration pricing is a pricing strategy in which a company initially sets a low price for its products or services…

Environmental Challenges Jonathan Poland

Environmental Challenges

Environmental issues are detrimental changes to the Earth’s natural surroundings that negatively impact the current quality of life for individuals…

Phased Implementation Jonathan Poland

Phased Implementation

Phased implementation is a method of developing and introducing a business, brand, product, service, process, capability, or system by dividing…

The Fundamentals of Business Mastery Jonathan Poland

The Fundamentals of Business Mastery

Overview Business comes down to just two areas: investments and deliverables. Leaders make investments in people, products that are delivered…

Diversified Real Estate Jonathan Poland

Diversified Real Estate

Real Estate Investment Trusts that acquire, develop, manage, and dispose of diversified property holdings that have no specific portfolio composition.…

Generic Brand Jonathan Poland

Generic Brand

A generic brand is a type of brand that does not have a distinct or unique image. Instead, it is…

Sales Activities Jonathan Poland

Sales Activities

A sales activity is any action or task that a salesperson undertakes in order to achieve revenue. This can include…

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Resource Efficiency Jonathan Poland

Resource Efficiency

Resource efficiency is the process of using resources in a way that maximizes their value and minimizes waste. This can…

Ease of Use Jonathan Poland

Ease of Use

Ease of use refers to the usability of a product, service, tool, process, or environment, and is an important factor…

Operating Revenue Jonathan Poland

Operating Revenue

Operating revenue is the income that a company generates from its core business operations. It is a key measure of…

Niche vs Segment Jonathan Poland

Niche vs Segment

A niche is a specific, identifiable group of customers who have unique needs and preferences that are not shared by…

What is a thought experiment? Jonathan Poland

What is a thought experiment?

A thought experiment is a mental exercise that involves exploring the implications or consequences of a hypothetical idea, story, or…

Knowledge Value Jonathan Poland

Knowledge Value

Knowledge value is the value that is derived from knowledge, skills, and information. It can be a measure of the…

Creative Services Jonathan Poland

Creative Services

Creative services refer to a range of services that involve the use of creativity and innovative thinking. These services often…

Law of Demand Jonathan Poland

Law of Demand

The law of demand is a fundamental principle in economics that states that, all other factors being equal, the quantity…

What is Jevons Effect? Jonathan Poland

What is Jevons Effect?

Jevons paradox, also known as the Jevons effect, is a phenomenon in which an increase in the efficiency of resource…