Product Description

The Consumer Retail Business Capabilities Model is an integrated and in-depth matrix of business capabilities that capture the essence of what a consumer retailer does. It will help companies gain a holistic perspective of their business at a foundational level and provide a business blueprint for many valuable purposes. The consumer retail business capabilities map comprises about 300 capabilities across three levels, and is customizable to a retailer’s unique needs.

(Note: As the consumer retail business capabilities model is a digital deliverable, we do not accept returns or issue refunds. So, please read the product description and the terms carefully before purchasing.)

Watch a Product Video

The consumer retail business capabilities model is a set of multilevel and granular business capabilities with a primary focus on the core industry-specific value chain but also provides a decomposition of the horizontal shared services.

A capabilities model is a must-have tool for business architects, enterprise architects, business and technology leaders, and project teams to fathom the nuances of the industry’s core, context, and commodity capabilities.

Consumer Retail Industry Transformation:

The consumer retail industry is experiencing significant transformation due to various internal and external drivers. Internally, shifting consumer preferences demand greater convenience, personalized experiences, and sustainable products, pushing retailers to adopt omnichannel and eco-friendly practices. In addition, technological advancements, such as artificial intelligence, machine learning, and augmented reality, enable retailers to enhance customer engagement and streamline operations.

Externally, the global economy and regulatory changes force retailers to reevaluate operational models, explore new markets, and ensure compliance with data privacy, labor, and environmental laws. Environmental concerns have also driven the industry to adopt greener practices and explore circular economy models. To stay competitive, retailers must adapt to these changes, harness technology, navigate economic and regulatory challenges, and incorporate sustainable practices in their strategies.

Business Capabilities are a Cornerstone for Transformation

For a consumer retailer to transform successfully, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

Consumer Retail Business Capabilities Model Deliverables:

The consumer retail industry business capabilities model comprises ~300 capabilities across three levels and includes the following editable artifacts:

• An Excel spreadsheet with the grouping of capabilities.
• A PowerPoint format with the top three levels presented in a nested visualization.
• A Word document with capabilities in a multilevel list format.
• High Tech Capability Definitions (at Level 3)
• Capability KPIs (Key Performance Indicators) (at Level 2)

How to Use the Consumer Retailer Capabilities Model?

A business capabilities map is a fundamental and foundational deliverable in the business architecture continuum. The Capstera consumer retail capabilities model encapsulates end-to-end aspects of the business with a detailed, multilevel capabilities list.

There are several benefits from business capabilities, including, among others:

• Foster alignment between business and IT using capabilities as an everyday language.
• Capabilities are a structurally sound and internally coherent abstraction of business functions.
• A capability-based roadmap eliminates redundancy and replication and focuses on capability evolution.
• Juxtaposing capabilities and systems/applications provide a footprint analysis and can lead to better application portfolio rationalization decisions.

The consumer retail business capabilities map decomposes components up to three levels. Created by business architects and industry domain experts, the capabilities list is detailed, in-depth, and conforms to the construct of MECE (mutually exclusive and collectively exhaustive).

Who should use the Capabilities Matrix?

The consumer retail industry business capabilities matrix is a generic model; hence, it is a starting point, not the final product. (Please note that a generic map covering multiple areas will not be specific to your specific company or business model; that is where our professional services can help customize and detail the capability model. Or you can modify and tailor it to your needs internally.) The primary users encompass:

• Business architects and enterprise architects.
• Leaders focused on business transformation.
• Product and program managers enabling capabilities.

Consumer retail is a vast and diverse industry with many subsectors. However, with minor changes, the following subsectors will find the capabilities map valuable.

1. Food and Grocery Retail: Traditional supermarkets, hypermarkets, and convenience stores, as well as specialized retailers such as organic food stores.
2. Apparel and Footwear Retail: Clothing and footwear stores, including department stores, boutiques, and discount retailers.
3. Consumer Electronics Retail: Stores that sell electronic products, such as computers, smartphones, and home appliances.
4. Home Improvement and Furnishing Retail: Retailers specializing in furniture, home décor, and improvement supplies.
5. Health and Beauty Retail: Drug stores, pharmacies, and stores that offer beauty and personal care products.
6. Specialty Retail: Retailers focus on specific product categories, such as sporting goods, books, or toys.

Why Purchase a Business Capabilities Map?

Defining business capabilities from a blank slate takes time and effort and delays time to value. Instead, a pre-built and customizable business capability map helps provide 60-80% of capabilities allowing internal teams to focus on what is missing or unique to their companies.

And the cost is less than an inexpensive team dinner or the loaded cost of 4-5 team members brainstorming for an hour.

And far less than the deliverables consulting firms produce at over $100,000 or more, and compared to that number, the cost of our capabilities models is a fraction (a rounding error.)

Even if you already have a capability map, you could use our version to compare, validate, and potentially include missing capabilities.

A Note About the Artifacts:

• Business Capabilities Matrix: A functional area occupies one box in many business capability maps. Some may wonder why we decomposed the capabilities into 100X or more capabilities. We humbly submit that one box or entry in a one-page diagram is Wall Art, not an implementation tool. Decomposing capabilities into a nested list of granular items will help understand a capability’s depth, breadth, scope, and importance. It is also possible that some capabilities in our matrix may not be relevant to you. Similarly, we may have captured and documented some relevant and essential capabilities of your firm.
• Capability Definitions: We include capability definitions at Level 3. Please feel free to modify it to your company’s needs.
• Capability KPIs (Key Performance Indicators): We added a few KPIs for capabilities (mostly at Level 2) to get you started. You may not measure these KPIs in your company and have an entirely different set of metrics. Again, use them as a springboard, and not debate the applicability to your firm.

Fine Print: