Integrating local and global optimization in capability delivery

Abstract

Efficient value creation and service delivery processes are considered as key factor to competitiveness in a globalized market. The systematic management of the capabilities of an enterprise is emerging into a key activity for achieving efficiency. In capability management, the capability design and delivery approach (CDD) has been proposed and its utility was demonstrated in previous work. An essential activity in CDD is the analysis of the context of capability delivery in order to understand the cause of variations in delivery of capabilities. This paper builds on CDD and elaborates on the feature of CDD to combine local context information from individual clients with global context information from the capability provider when optimizing capability delivery. An additional method component for the CDD methodology is proposed and demonstrated using a case from business process outsourcing.