Saturday, January 29, 2011

Business Function Models Vs Business Capability Models

The difference between these models boils down to the difference between a “business function” and a “business capability”.  Many organizations use them interchangeably. For e.g. A business capability model may illustrate current-state business functions and also future-state business functions that need to be built to deliver on the business vision.
But there are few folks who would like to draw a clear line of differentiation between the two.  Capability can be defined as the ability to perform actions to achieve specific strategic goals/objectives.

The following links provide interesting reading:
Link 1
Link 2

Hence a business capability is much more than a business function – it encompasses other objects such as Actors, Services, Functions, Processes and Infrastructure.  Examples of business capability are – the ability to service customers through online channels, capability to survive liquidity crisis, etc.