What is the relationship between business capabilities and value streams?

The assertion that business capabilities provide what is needed for success at particular value stages is fundamental in understanding how enterprises leverage their strengths to achieve desired outcomes. Business capabilities describe what an organization can do, encompassing the skills, technologies, processes, and resources required to deliver value.

In relation to value streams, these capabilities are crucial because they directly support the various stages of a value stream. A value stream outlines the series of steps an organization takes to deliver a product or service to a customer. Success at each stage in the value stream depends on having the corresponding capabilities in place. For instance, if a particular stage requires a specific technology or expertise, having that capability enables smooth execution, ultimately leading to value creation.

The relationship highlights how value streams are operationalized through effective capabilities, which ensure that each step in the process adds value and meets customer expectations. Hence, it is clear that business capabilities play a pivotal role in the overall effectiveness and efficiency of value streams.