Business Capabilities as Philosophers’ Stone ?

Preamble

To hear the buzz around business capabilities one would expect some consensus about basic principles as well as an established track record. Since there is little to be found on either account, should the notion be seen as a modern philosophers’ stone ?

People, System, Environment

Clear evidence can be found by asking two questions: what should be looked for, and why it can’t be found.

What is looked for

Business capabilities can be understood as a modern avatar of the medieval philosophers’ stone, a alchemical substance capable of turning base metals into gold.

In the context of corporate governance, that would mean a combination of assets blueprints and managing principles paving the way to success.

But such a quest is to err between the sands of businesses specificities and the clouds of accounting generalities.

At ground level enterprises have to mark their territory and keep it safe from competitors. Whatever the means they use (niche segments, effective organization, monopolistic situations, …,) success comes from making a difference.

With hindsight, revealing singularities may be discovered among the idiosyncrasies of business successes, but that can only be done from accounting heights, where capabilities are clouded by numbers.

why it can’t be found

The fallacy of a notion can also be established a contrario if, assuming the existence of a philosophers’ stone, the same logic would also demonstrate the futility of the quest.

Such a reasoning appears more like a truism when applied to business capabilities: insofar as business competition is concerned success is exclusive and cutting edges are not shared. It ensues that assuming business capabilities could be found, they would by the same move become obsolete and be instantly dissolved.

What should be looked for

As far as business environments are concerned, success is by nature singular and transient, and it consequently depends on sustaining a balancing act between assets and opportunities. To that end business capabilities should be understood as a hub between value chains and enterprise architectures.

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