Capability: Business Model Innovation in Mergers

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Capability is the power, ability, or capacity of a person, organization, or system to do something. In business, the term is an expression of what the enterprise can do (Capstera Staff Writer, 2022). It is the approach to management of an organization, firm, or company aimed at generating revenues and competing with rivals in the industry. Capability ought to have various levels, characteristics, a model, the right set of procedures, and a visual presentation so as to produce excellent performance results.

Characteristics of Capability

Capability must be scalable according to the needs, preferences, and demands of the organization or an individual. It should be dynamic to the extent that there is room for evolution from time to time as it suits the different entities to which it is applied ( irjevskis, 2019). Furthermore, at all times, it ought to remain relevant to the goals and objectives of either an individual or a corporate body.

Model and Systems of Capability

A capability model is a coherent integration and holistic set of what an enterprise does or can achieve. It is an architecture of deliverables that links the business to the technology system and provides the basis for enterprise evolution (Ciopages Staff Writer, 2022). Furthermore, the model has a framework that allows organizations to have understanding of their capacities, goals and strategies (Teece, 2018). However, not every organizations attribute or resource is viewed as a capability, for example, process, technology, and the organization chart are not (Ciopages Staff Writer, 2022). Likewise, physical assets, including inventory and equipment, are not considered as abilities (Schoemaker et al. 2018). Lastly, People with high capabilities are more likely to perform better that those with less of these attributes.

Levels of Capability

Level of capability defines the ability of a firm, organization, or company relative to its processes. It involves continuous practices that are aimed at improving performances, and each higher level constitutes the attributes of the lower ones. There are the incomplete, performance, management, definition, quantitatively managed process, and optimization levels (CMMI Capability Levels, n.d.). Additionally, they are related, and each layer enhances the overall operation of the organizations system.

Right Set of Instructions and Visual Presentation

A capability must have written procedures and instructions on how it should be utilized to actualize the goals and objectives of an organization. There should be a clear and well-defined scope of its ability, which explains the types of tasks to be incorporated and the necessary conditions to be adopted. Equally, there should be a step-by-step guide on how to use the capability, including all relevant details, to guarantee a successful implementation (Xia et al., 2019). In terms of visual presentation, it could be a chart showing its staff and their roles, milestones, tasks, and objects.

Conclusion

Capability should have an array of levels, attributes, a blueprint and structures, the right set of instructions, and a vision in order to deliver a quality performance outcomes. Firstly, it incorporates the incomplete, performance, management, definition, quantitatively managed process, and optimization levels that are integrated. Secondly, it should be scalable and dynamic to meet the needs of an organization. Thirdly, it is an architecture of deliverables that links the business to the technology system and provides the basis for enterprise evolution. Lastly, capability must have procedures on how it is used to meet the objectives of the business.

References

Capstera Staff Writer. (2022). Capstera. Web.

Ciopages Staff Writer. (2022). . Ciopages. Web.

irjevskis, A. (2019). The Role of Dynamic Capabilities as Drivers of Business Model

Innovation in Mergers and Acquisitions of Technology-Advanced Firms. , 5(1), 12. Web.

. (n.d.). Tutorials Point. Web.

Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). . California Management Review, 61(1), 1542. Web.

Xia, Q., Jiang, C., Yang, C., Zheng, X., Pan, X., Shuai, Y., & Yuan, S. (2019). A method towards smart manufacturing capabilities and performance measurement. Procedia Manufacturing, 39, 851-858.

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