Product Description

The Energy Industry Capabilities Model is a customizable, comprehensive, and in-depth set of business capabilities that capture the essence of what an Energy company 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 Energy Industry business capabilities map comprises about 290 capabilities across three levels. (Even though it is called the energy industry business capability map, it represents the business capabilities of an individual energy company. Furthermore, if you are an oil and gas producer, there is a separate capability map for you to consider.)

(Note: As the Energy Industry 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.)

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The Energy Industry Capabilities Model is a set of multilevel and granular business capabilities with a primary focus on the core industry-specific value chain but also decomposes 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.

Energy Industry Transformation:

Key factors necessitating transformation in the energy sector include the global transition towards renewables, regulatory pressures, technological advances, and evolving consumer expectations.

The global transition towards renewable energy is driven by the need to reduce greenhouse gas emissions, combat climate change, and diversify energy sources. As a result, governments and businesses worldwide are investing in renewable energy projects, such as solar, wind, hydro, and geothermal, to transition from fossil fuels and achieve energy security.

Regulatory pressures shape the industry as governments implement policies and regulations to reduce emissions, promote clean energy, and phase out fossil fuel subsidies. As a result, companies must adapt their business models to comply with these regulations, often accompanied by financial incentives for clean energy adoption and penalties for non-compliance.

Technological advancements disrupt the energy landscape, making renewables more cost-effective and efficient. Innovations in energy storage, grid management, and smart grid technologies enable increased integration of renewables and ensure a more reliable and flexible energy supply. These advances have created new business models and opportunities, such as energy-as-a-service and microgrid solutions.

Evolving consumer expectations drive energy companies to cater to increasing demands for clean, affordable, and reliable energy. Consumers are adopting distributed energy resources, such as rooftop solar panels and electric vehicles, and demanding greater control over their energy consumption through smart meters and energy management systems.

Business Capabilities are a Foundation for Transformation

For an Energy company 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.)

Energy Industry Capabilities Model Deliverables:

The Energy Industry Capabilities Model comprises ~290 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.
• Capability Definitions (at Level 3)
• Capability KPIs (Key Performance Indicators) (at Level 2)

How to Use the Energy Industry Capabilities Model?

A business capabilities map is a fundamental and foundational deliverable in the business architecture continuum. For example, the energy industry 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 energy industry 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 energy 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.

The energy industry is vast and complex and includes companies specializing in niche areas to global giants spanning every subsector. With modifications and customization, you can use the energy industry capabilities matrix for the following sectors.

• Oil and Gas: Exploration, production, refining, and distribution of crude, natural gas, and petroleum products. (Please note that we have a separate product for Oil and Gas.)
• Coal: Mining, processing, and distribution of coal, which is primarily used for electricity generation.
• Nuclear Power: Production of electricity through nuclear fission in reactors and management of nuclear waste.
• Renewable Energy: Generation of electricity using renewable sources, such as solar, wind, hydro, geothermal, and biomass.
• Energy Services and Technology: Companies providing services and solutions for the energy sector, such as engineering, consulting, and equipment manufacturing.

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:

• We sell digital products, so there are no returns, refunds, or replacements. Therefore, please read the product description carefully before making a purchasing decision.
• A generic set of deliverables and templates may or may not fit your needs, or the content relevance will vary substantially.
• Sold on an as-is basis and without any implied or explicit warranties
• Consultants and firms wanting to use it for their clients have a different pricing model.
• The sale is for digital products only and does not include customization or implementation help.
• Please review our standard terms of service.