As the operating environment changes, current capabilities may turn into rigidities, making it unfeasible to build your strategy and competitive advantage on the existing portfolio of capabilities. A dynamic external environment calls for dynamic capabilities – ability to combine and utilise knowledge, expertise, systems, processes and other resources in new ways – and capacity to nimbly develop novel capabilities. At the same time, technological developments are reshaping capabilities: AI is unlocking more value from data, human-machine collaboration is taking on new forms, smart automation is transforming business processes, and digital platforms are fueling new cooperation opportunities.
Connection between strategy and capabilities is a two-way street: a company’s capabilities affect its strategic choices, and its strategy influences the capabilities it needs to build or acquire – either organically or through networks, ecosystems or M&A. We help identify activity-, firm- and group-level capabilities that are necessary in a changing operating environment and that can serve as a foundation for strategy and competitive advantage. We work together with our client to prepare a plan for what capabilities to develop and how, what is lacking and how to fill the gaps. The plan includes both internal and externally sourced capabilities. We also define how to monitor capability building and the compatibility of capabilities with strategy.