Capability management

Hi everyone, today I want to touch the topic of capability management. I found the topic when researching for capacity management (I suppose due to the similarity of the two words), and I think it is an interesting topic to reflect into the blog.

Nowadays, companies have a portfolio of capabilities. Within that portfolio, capabilities have a life-cycle with, requirements, acquisition, in-service and obsolescence/disposal phases. This makes the capabilities of a company, something that needs to be planned and maintained. It is really important, because it will determine what a company can achieve now, and what it will be able to achieve.

In capability management, the goal is to balance the economic cost and the operational requirements, taking the current capabilities into account and also which future capabilities need to be develop.

Therefore, an effective capability management, will help organizations how to integrate all different components to achieve their strategic goals and it gives solutions for management to link the strategic goals with the current operations.
Capability management focus on:

• Strategic and operational appreciations and analyses
• Capability conceptualization, definition and development
• Operations research and analysis
• Context or scenario-based capability modelling and simulation
• Capability costing
• Capital project business cases and management
• Decision making and decision support
• Capability assurance and performance management

I think capability management is important, but it is a little more confusing to me. I find a hard time understanding how value into the final products that a company produces will come from capability management. On the other hand, I think capability management will help companies to meet other goals that are not economic, like sustainability, better employee conditions, etc.
What do you think about capability management.