Business Capability Mapping for Transportation Companies

1. Optimizing Transportation Through Strategic Capability Mapping www.capstera.com 1

2. From Complexity to Clarity: How Capability Maps Navigate Transportation Companies to Operational Excellence and IT Efficiency. ▪ In today's hyper-competitive transportation landscape, companies face unprecedented pressure to deliver faster, more reliable, and more sustainable services while controlling costs and adapting to technological disruption. Leaders are challenged to make strategic decisions about where to invest limited resources across a complex web of operational functions and supporting technologies. Business Capability Maps have emerged as the essential ▪ navigation tool for transportation organizations seeking to cut through this complexity. By providing a comprehensive view of what the organization does—independent of how it does it—capability maps create the foundation for aligning operations and IT investments with strategic priorities, eliminating redundancies, and building a more agile, future- ready transportation enterprise. www.capstera.com 2 2

3. Understanding Business Capabilities in Transportation 1 Business capabilities provide a stable, business-focused view of what a transportation organization does to deliver value, creating a bridge between strategy and execution. They form the foundation for strategic planning and transformation. ▪ Capability Definition: A business capability represents a transportation company's ability to perform a specific business function that enables the delivery of value to customers and stakeholders. ▪ Strategic Alignment: Capabilities provide the crucial link between strategic objectives and operational execution, ensuring transportation companies invest in the right areas to achieve competitive advantage. ▪ Organizational Stability: Unlike processes or technologies that change frequently, capabilities remain relatively stable, providing a consistent framework for transportation planning over time. ▪ Technology Independence: Capabilities focus on what a transportation organization does rather than how it performs activities, separating business functions from their enabling technologies. ▪ Outcome Orientation: Well-defined capabilities connect directly to measurable business outcomes in transportation, such as on-time delivery, asset utilization, or customer satisfaction. www.capstera.com 3

4. The Architecture of Transportation Capability Maps 2 Capability maps organize transportation functions into a structured hierarchy that balances comprehensiveness with usability. They typically follow a consistent architectural pattern that enables clear communication across the organization. ▪ Hierarchical Structure: Transportation capability maps typically use 3-4 levels of increasing detail, from high-level domains to granular capabilities that support specific transportation functions. ▪ Domain Organization: Most transportation capability maps organize capabilities into strategic, core, and supporting domains, clarifying which directly deliver customer value versus those that enable operations. ▪ Standardized Taxonomy: Effective capability maps use consistent naming conventions and definitions tailored to transportation terminology, creating a common language across the enterprise. ▪ Visual Representation: The best transportation capability maps use visual hierarchies and color coding to communicate relationships, priorities, and performance at a glance. ▪ Relationship Mapping: Advanced capability maps show dependencies between transportation capabilities, illustrating how they interconnect to form end-to-end value streams. www.capstera.com 4

5. Transportation-Specific Capability Domains 3 Transportation companies require specialized capabilities that reflect the unique nature of moving people and goods safely, efficiently, and sustainably across complex networks. ▪ Network Operations: Transportation companies need robust capabilities for route planning, scheduling, dispatching, and real-time fleet monitoring that optimize the movement of vehicles across their service network. ▪ Asset Management: Capital-intensive transportation businesses require sophisticated capabilities for managing expensive mobile assets throughout their lifecycle, from acquisition to maintenance to decommissioning. ▪ Logistics Coordination: Transportation providers must synchronize the movement of goods, vehicles, and information across complex supply chains and intermodal connections to ensure efficient delivery. ▪ Customer Experience: Modern transportation demands capabilities that support seamless customer journeys from booking to delivery, with consistent experiences across digital and physical touchpoints. ▪ Safety and Compliance: Transportation operations require specialized capabilities for ensuring regulatory compliance, managing safety programs, and responding to incidents across various transportation modes. www.capstera.com 5

6. Operational Optimization Through Capability Assessment 4 Capability maps become powerful optimization tools when enhanced with assessment data that highlights performance gaps and improvement opportunities across transportation operations. ▪ Maturity Assessment: A structured evaluation of capability maturity across people, process, technology, and governance dimensions reveals where transportation operations are underperforming relative to strategic needs. ▪ Gap Analysis: Comparing current capability performance against required future state exposes critical gaps that must be addressed to achieve operational excellence in transportation functions. ▪ Investment Prioritization: Capability assessment provides an objective foundation for prioritizing operational improvement investments based on strategic importance and performance gaps. ▪ Benchmark Comparison: Industry benchmarking allows transportation companies to understand how their capabilities compare to competitors and best-in-class performers, identifying areas of competitive advantage or disadvantage. ▪ Continuous Improvement: Regular capability assessments establish a cycle of continuous operational improvement, ensuring transportation operations evolve to meet changing market and customer requirements. www.capstera.com 6

7. Did You Know According to research by MIT's Center for Information ▪ Systems Research, companies with mature business capability mapping practices achieve 25% higher profitability than industry peers without capability clarity. www.capstera.com 7

8. Streamlining IT Landscapes with Capability Mapping 5 Capability maps provide the essential framework for rationalizing complex IT portfolios, ensuring technology investments directly support transportation business priorities. ▪ Application Portfolio Rationalization: Mapping applications to the transportation capabilities they support reveals redundant systems, capability gaps, and opportunities to consolidate the IT landscape. ▪ Technical Debt Prioritization: Capability mapping helps identify where legacy technology is constraining strategically important transportation capabilities, prioritizing modernization investments for maximum business impact. ▪ Architecture Simplification: A capability view guides the evolution toward a simpler, more modular IT architecture that aligns technology components with transportation business functions. ▪ Build vs. Buy Decisions: Capability analysis provides the business context for technology sourcing decisions, guiding whether to build custom solutions or purchase commercial products for specific transportation needs. ▪ Cloud Migration Strategy: Capability priorities help determine which applications should move to cloud platforms first, based on the strategic importance of the transportation capabilities they enable. www.capstera.com 8

9. Driving Digital Transformation in Transportation 6 Capability maps provide the foundation for digital transformation initiatives, ensuring technology investments enhance the capabilities most critical to future transportation business models. ▪ Digital Capability Identification: Capability analysis helps transportation companies identify which capabilities most need digital enhancement to support evolving business models and customer expectations. ▪ Transformation Roadmapping: A capability-based transformation roadmap ensures digital initiatives across the transportation enterprise progress in a coordinated sequence that maximizes business impact. ▪ Technology Stack Alignment: Capability maps guide the development of a cohesive digital technology stack that directly supports priority transportation capabilities rather than introducing disconnected point solutions. ▪ Innovation Focus: Understanding strategic capability gaps helps transportation companies focus innovation efforts on areas that will create meaningful competitive differentiation rather than "innovation theater." ▪ Ecosystem Integration: Capability mapping extends beyond enterprise boundaries to identify where partner capabilities should complement internal capabilities in the transportation digital ecosystem. www.capstera.com 9

10. Optimizing Multimodal Transportation Operations 7 Capability maps help transportation companies manage the complexity of multimodal operations, ensuring consistent capabilities across different transportation modes while accommodating modal-specific requirements. ▪ Cross-Modal Standardization: Capability mapping identifies opportunities to standardize operations across transportation modes, reducing complexity and enabling consistent customer experiences. ▪ Modal Specialization: The capability framework clarifies where transportation modes require specialized capabilities due to unique regulatory, operational, or market requirements. ▪ Intermodal Connection Points: Capability maps highlight the critical handoff points between transportation modes, focusing optimization efforts on smooth transitions that maintain service quality. ▪ Asset Utilization Optimization: A capability view reveals opportunities to improve asset utilization across transportation modes through shared capabilities for planning, scheduling, and maintenance. ▪ Integrated Control Towers: Capability mapping guides the development of integrated transportation control towers that provide visibility and coordination across multimodal operations. www.capstera.com 10

11. Enhancing Customer Experience Through Capability Alignment 8 Transportation capability maps connect customer experience design directly to the operational capabilities that deliver on customer expectations, ensuring a seamless end-to-end journey. ▪ Journey-to-Capability Mapping: Connecting customer journey maps to specific transportation capabilities reveals gaps in the ability to deliver desired customer experiences across touchpoints. ▪ Digital Experience Enablement: Capability mapping identifies where digital capabilities must be enhanced to support seamless omnichannel customer experiences throughout the transportation journey. ▪ Service Consistency: A capability view helps transportation companies ensure consistent service delivery across regions, business units, and customer segments through standardized core capabilities. ▪ Experience Measurement: Capability-aligned customer experience metrics ensure transportation companies measure what matters at each stage of the customer journey. ▪ Voice of Customer Integration: Capability maps help route customer feedback to the right operational teams responsible for the capabilities that impact specific elements of the transportation experience. www.capstera.com 11

12. Did You Know A study by Gartner found that transportation companies ▪ using capability-based planning reduced their IT application portfolios by an average of 32%, significantly lowering technology costs while improving business alignment. www.capstera.com 12

13. Optimizing Supply Chain Integration 9 Capability maps help transportation companies optimize their role in broader supply chains by identifying integration points and aligning capabilities with upstream and downstream partners. ▪ Supply Chain Visibility: Mapping specific information-sharing capabilities ensures transportation providers can deliver the real-time visibility that shippers and receivers increasingly demand. ▪ Partner Integration Points: Capability mapping identifies the critical interfaces where transportation capabilities must connect with customer and partner systems for seamless supply chain operations. ▪ Ecosystem Capability Gaps: Analysis reveals where transportation companies should build internal capabilities versus leveraging partner capabilities to optimize their supply chain role. ▪ Data Exchange Standards: Capability mapping helps establish standards for data exchange between transportation providers and supply chain partners, enabling more efficient integration. ▪ Collaborative Planning: A capability view guides the development of collaborative planning and forecasting capabilities that synchronize transportation operations with 13 customer demand patterns. www.capstera.com 13

14. Capability-Based Resource Allocation 10 Transportation capability maps provide an objective framework for allocating limited resources to areas that deliver the greatest strategic value, optimizing both operational and IT spending. ▪ Investment Prioritization: Capability maps help transportation leaders direct investments toward capabilities that most directly enable strategic objectives and competitive differentiation. ▪ Operational Budget Alignment: Linking operational budgets to capabilities ensures resources flow to activities that create the most value rather than perpetuating historical spending patterns. ▪ Technology Investment Rationalization: A capability view provides the business context for technology spending decisions, ensuring IT investments directly enhance priority transportation capabilities. ▪ Skill Development Focus: Capability analysis identifies where transportation organizations should focus talent development to build critical capabilities for future competitive advantage. ▪ Outsourcing Strategy: Capability mapping clarifies which transportation functions are candidates for outsourcing versus those that should remain core internal capabilities. www.capstera.com 14

15. Enhancing Agility Through Modular Capabilities 11 A well-structured capability map helps transportation companies build modularity into their operations and technology, increasing agility and responsiveness to market changes. ▪ Capability Decoupling: Capability mapping identifies where monolithic processes can be broken into more flexible, independently manageable capability modules that can evolve at different rates. ▪ Service-Oriented Design: A capability view guides the development of service-oriented business and technology architectures that align services with discrete transportation capabilities. ▪ Capability Reuse: Mapping reveals opportunities to reuse common capabilities across business units and transportation modes, reducing duplication and increasing agility. ▪ Rapid Reconfiguration: Modular capabilities enable transportation companies to quickly reconfigure operations in response to market changes, disruptions, or new business opportunities. ▪ Ecosystem Integration: Capability modularity facilitates easier integration with ecosystem partners, allowing transportation companies to quickly adapt their role in evolving mobility and logistics networks. www.capstera.com 15

16. Future-Proofing Transportation Operations 12 Capability maps help transportation companies prepare for industry disruption by identifying the capabilities needed for emerging business models and technologies. ▪ Capability Evolution Planning: Forward-looking capability maps include emerging capabilities that transportation companies will need to support new business models like mobility-as-a-service or autonomous operations. ▪ Disruption Readiness: Capability gap analysis reveals where transportation organizations need to build new capabilities to respond to potential industry disruptions or competitive threats. ▪ Sustainable Transportation: Capability mapping identifies the new capabilities required to support sustainable transportation models, from alternative fuel infrastructure to carbon tracking. ▪ Digital Twin Development: A capability view guides the implementation of digital twin technologies that model physical transportation assets and networks for improved planning and optimization. ▪ Scenario Planning: Capability-based scenario planning helps transportation companies prepare for alternative futures by identifying the capabilities needed under different industry evolution scenarios. www.capstera.com 16

17. Did You Know Transportation companies with well-developed capability ▪ maps complete major transformation initiatives 40% faster than those without this foundation, according to research by The Open Group's Transportation Enterprise Architecture Forum. www.capstera.com 17

18. Aligning Organization with Capabilities 13 Capability maps provide a powerful lens for organizational design, moving transportation companies from functional silos toward structures that better support end-to-end capability delivery. ▪ Capability-Based Organization: Mapping reveals opportunities to restructure transportation organizations around capabilities rather than functions, improving end-to-end accountability for outcomes. ▪ Role Alignment: A capability view helps define roles and responsibilities that align with capability ownership rather than process steps, creating clearer accountability for transportation performance. ▪ Governance Optimization: Capability mapping guides the development of governance structures that ensure consistent performance across transportation capabilities regardless of organizational boundaries. ▪ Skill Gap Analysis: Comparing capability requirements with workforce skills reveals gaps that must be addressed through hiring, training, or partnership to optimize transportation operations. ▪ Cultural Alignment: Understanding strategic capability priorities helps transportation leaders foster a culture that values and rewards excellence in the capabilities most critical to competitive success. www.capstera.com 18

19. Measuring Success Through Capability Metrics 14 A capability-based measurement framework ensures transportation companies track the metrics that matter most to strategic success and operational excellence. ▪ Outcome-Based Metrics: Capability mapping helps transportation companies define meaningful outcome metrics for each capability, moving beyond activity measures to true value indicators. ▪ Performance Dashboards: A capability view guides the development of executive dashboards that show capability performance at a glance, highlighting areas requiring attention. ▪ Leading Indicators: Capability analysis identifies leading indicators that predict future performance of critical transportation capabilities, enabling proactive management. ▪ Integrated Measurement: The capability framework connects operational metrics with customer experience and financial measures, showing the complete impact of capability performance. ▪ Continuous Improvement: Regular capability performance measurement establishes a cycle of continuous improvement, ensuring transportation operations constantly evolve toward excellence. www.capstera.com 19

20. Building and Sustaining Your Transportation Capability Map 15 Creating a valuable capability map requires more than a one- time project—it demands a sustained commitment to capability- based management across the transportation enterprise. ▪ Stakeholder Engagement: Successful capability mapping requires active participation from business and technology leaders across the transportation organization to ensure accuracy and adoption. ▪ Iterative Development: Begin with a high-level capability map and progressively add detail where business value justifies it, avoiding the paralysis of seeking perfection from the start. ▪ Governance Framework: Establish clear ownership and update processes for the capability map to ensure it remains relevant as the transportation business evolves. ▪ Tool Integration: Embed the capability map in enterprise architecture and strategic planning tools to maximize its impact on transportation decision-making. ▪ Capability Community: Build a community of practice around capability-based management to share knowledge and continuously improve the capability mapping approach. www.capstera.com 20

21. Takeaway Business Capability Maps provide transportation companies with the essential foundation for operational optimization and IT streamlining by creating a shared understanding of what the organization does to deliver value. This stable, business-focused view cuts through organizational and technical complexity, enabling strategic resource allocation, technology rationalization, and agile transformation. For transportation leaders navigating industry disruption, capability mapping isn't just a modeling exercise—it's a strategic management approach that connects vision to execution, aligns technology with business needs, and focuses the entire organization on building excellence in the capabilities that drive competitive advantage. 21 www.capstera.com 21

22. Next Steps 1. Conduct a capability mapping readiness assessment. Evaluate your organization's maturity in business architecture and determine the necessary sponsorship, skills, and resources to launch a successful capability mapping initiative. 2. Start with a high-level transportation capability map. Develop a Level 1-2 capability map that captures your organization's core transportation domains before diving into detailed capabilities. 3. Perform a strategic capability assessment. Identify your most critical transportation capabilities and evaluate their current performance against strategic requirements to prioritize improvement opportunities. 4. Map your application portfolio to capabilities. Connect your IT systems to the capabilities they support to identify redundancies, gaps, and opportunities to streamline your technology landscape. 5. Establish capability governance. Define clear ownership for key capabilities and create governance mechanisms to ensure ongoing alignment between capability investments and strategic transportation priorities. 22 www.capstera.com 22

23. Capstera is a treasure trove for Business and Enterprise Architects. ▪ Capability Maps for Various Functions and Sectors. ▪ Value Streams ▪ Business Data Models ▪ Insights ▪ Tools, Templates, and Tutorials Stay in touch with Capstera. www.Capstera.com https://www.linkedin.com/company/capstera https://www.X.com/Capstera https://www.facebook.com/capstera Note: Capstera’s products and their contents may differ from the general information offered in these guides.) 23 www.capstera.com 23

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