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.

Over-positioning Jonathan Poland

Over-positioning

Over-positioning refers to the practice of positioning a brand in a way that is too narrow or limited, potentially limiting…

Liquidity Risk Jonathan Poland

Liquidity Risk

Liquidity risk is the risk that a financial institution or company will not be able to meet its financial obligations…

Storytelling Jonathan Poland

Storytelling

Storytelling is the act of using narrative to communicate information in an engaging and memorable way. Businesses can use storytelling…

Examples of Respect Jonathan Poland

Examples of Respect

Respect is the recognition and understanding of the inherent value and worth of people, animals, and things. It is a…

Customer Expectations Jonathan Poland

Customer Expectations

Customer expectations refer to the base assumptions that customers make about a brand, its products and services, and the overall…

What is a Superior Good? Jonathan Poland

What is a Superior Good?

A superior good is a type of good that tends to see an increase in demand as income levels rise.…

Opportunity Cost Jonathan Poland

Opportunity Cost

Opportunity cost is the value of the next best alternative that is given up as a result of making a…

Needs Identification Jonathan Poland

Needs Identification

Needs identification is the process of discovering and understanding a customer’s needs, constraints, pain points, and motivations. This is a…

Two-Sided Market Jonathan Poland

Two-Sided Market

A two-sided market, also known as a multi-sided platform, is a market in which two or more groups of customers…

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Human Behavior Jonathan Poland

Human Behavior

Behavior is a pattern of actions or reactions that varies depending on factors such as context and mood. It is…

Technology Skills Jonathan Poland

Technology Skills

Technology skills refer to the talents and abilities related to information technology and physical technology, such as machines. This includes…

Customer Acquisition Jonathan Poland

Customer Acquisition

Customer acquisition is the process through which a business attracts and persuades consumers to avail its products or services, thereby…

Risk Probability Jonathan Poland

Risk Probability

Risk probability refers to the likelihood that a particular risk will occur. It is an important element of risk analysis,…

Key Performance Indicators Jonathan Poland

Key Performance Indicators

KPIs, or key performance indicators, are metrics that are used to measure the performance of a business or organization. These…

What is Moral Hazard? Jonathan Poland

What is Moral Hazard?

Moral hazard is a term used in economics to describe a situation in which one party has less incentive to…

Customer Preferences Jonathan Poland

Customer Preferences

Customer preferences are the specific desires, likes, dislikes, and motivations that influence a customer’s purchasing decisions. These preferences complement customer…

Exchange Rate Risk Jonathan Poland

Exchange Rate Risk

Exchange rate risk, also known as currency risk, is the risk that changes in exchange rates will negatively impact the…

Organizational Culture Jonathan Poland

Organizational Culture

Organizational culture refers to the shared beliefs, values, customs, behaviors, and symbols that characterize an organization and differentiate it from…