Relating Capabilities to Strategy and Business Model
Relating Capabilities to Strategy and Business Model

In our ongoing blog series on Capabilities and Capability-based Planning, we’ve mainly concentrated on the capability concept itself. We’ve discussed why capabilities are useful as a concept, how to define them, and how to structure Capability Maps. We’ve also looked at how you can use Capability Maps to support business challenges such as investment decision-making, to name a few.
In this blog, we want to cast a wider net and look at the relationships between capabilities, and share best practices for your business and strategic planning.
Relating Business Strategy and Capabilities
The relationship between business strategy and capabilities is a two-way street. On the one hand, the strategy of an enterprise is a way of configuring its capabilities and resources to achieve certain goals. This may entail improving some capabilities, developing or acquiring completely new ones, or even divesting some non-core, non-strategic capabilities.
Summary
Relating capabilities to strategy and business models enables organizations to move from abstract planning to actionable insights. By aligning capabilities with resources, value streams, and investment priorities, enterprises can ensure that strategy translates into measurable outcomes. This integrated perspective allows business architects to better guide transformation initiatives, support decision-making, and create long-term business value.
FAQs
Business strategy configures capabilities and resources to achieve goals, while existing capabilities can open opportunities for new ventures.
The Business Model Canvas highlights key capabilities needed for value creation, making strategy and investment planning more concrete.
Capabilities represent potential, while value streams represent value creation in motion. Cross-mapping them shows how capabilities support each stage of value delivery.



















