What are Business Capabilities? What is their Purpose?

Business capabilities are the abilities that a company has or should have in order to be successfully on the market. A business capability requires the goal-oriented interaction of various factors: employees and managers must have the appropriate knowledge and experiences, the organizational structure must enable efficient cooperation, and committees must make decisions quickly and in a transparent manner. Processes must be actively designed across company boundaries with partners and customers. And finally, all process steps must be supported by integrated digital solutions.

Business capabilities thus create a common basis between business units and IT.  Required transformations can be planned and managed based on the needs of the business along the entire value chain.