Business Capability Mapping for Media & Entertainment

1. Business Capability Mapping for Media & Entertainment www.capstera.com 1

2. Transform Your Enterprise with Strategic Capability Visualization In today's digital-first media landscape, organizations face ▪ unprecedented pressure to deliver compelling content across multiple platforms while maintaining operational efficiency and adapting to rapidly evolving consumer behaviors. Traditional organizational structures and technology infrastructures often struggle to keep pace with these demands, creating friction that impedes innovation and growth. Business capability mapping offers media and entertainment ▪ companies a powerful lens to visualize their entire enterprise, identify critical gaps, and prioritize investments in an industry where technology, consumer preferences, and competitive threats change at lightning speed. By creating clarity around what the business does (capabilities) rather than how it's organized (structures), capability maps become the foundation for strategic transformation initiatives that align technology, talent, and processes with the organization's core mission. www.capstera.com 2 2

3. Decoding the Business Capability Map 1 A business capability map provides a comprehensive, structured visualization of everything your media organization does or should do to fulfill its mission. Unlike process maps or organizational charts, capability maps focus on stable business functions rather than how those functions are executed or who performs them. This distinction is crucial for media companies navigating constant change. Strategic Alignment Tool: Business capability maps create a shared ▪ language between creative, technology, and business teams, ensuring all transformation initiatives directly support strategic objectives. Enterprise Navigation System: The map serves as an intuitive guide ▪ to the organization's complex ecosystem, helping executives understand interrelationships between capabilities that might otherwise remain hidden. Transformation Blueprint: Capability maps reveal maturity gaps and ▪ redundancies across the enterprise, providing an objective basis for investment decisions and transformation roadmaps. Technology Portfolio Rationalizer: For media companies managing ▪ complex technology landscapes, capability maps connect business functions to supporting applications, highlighting redundancies and integration opportunities. Merger & Acquisition Framework: When evaluating potential ▪ acquisitions or partnerships, capability maps provide a structured way to assess fit, identify complementary strengths, and plan integration activities. www.capstera.com 3

4. Media Industry Capability Map: Core Domains 2 Media and entertainment organizations require specialized capability maps that reflect their unique value chains and business models. While each organization will customize its map, most media enterprises share common capability domains that form the foundation of their operations. ▪ Content Development & Production: Capabilities enabling the creation, acquisition, and management of intellectual property across formats, from concept development to final production. ▪ Rights & Royalty Management: Capabilities supporting the complex rights acquisition, tracking, and royalty management that underpin the media business model across territories and platforms. ▪ Content Distribution & Delivery: Capabilities that power multi- platform content distribution across owned channels, partner networks, and emerging platforms with appropriate formatting and metadata. ▪ Audience Engagement & Experience: Capabilities that attract, retain, and grow audience relationships through personalization, community features, and interactive experiences. ▪ Monetization & Revenue Management: Capabilities supporting diverse business models, from advertising and subscriptions to merchandise and experiential offerings, including pricing, billing, and revenue recognition. www.capstera.com 4

5. Building Your First Capability Map 3 Creating a capability map requires a structured approach that balances breadth with depth while ensuring cross-functional alignment. For media organizations, the process must accommodate both traditional and emerging capabilities as the industry continues to evolve. ▪ Executive Sponsorship: Securing leadership commitment from both business and technology executives establishes the map as an enterprise asset rather than a departmental project. ▪ Cross-Functional Team: Assembling representatives from content, technology, finance, marketing, and operations ensures the map captures diverse perspectives and builds organizational buy-in. ▪ Capability Definition Framework: Establishing clear criteria for what constitutes a capability (vs. a process, function, or technology) creates consistency in how capabilities are identified and documented. ▪ Industry-Specific Reference Models: Leveraging industry- standard capability models accelerates development while ensuring comprehensive coverage of media-specific capabilities. ▪ Iterative Development Approach: Starting with a high-level capability model and progressively decomposing priority areas balances the need for completeness with practical time constraints. www.capstera.com 5

6. Capability Decomposition for Media Organizations 4 Effective capability maps provide both breadth across the enterprise and depth in critical areas. Capability decomposition breaks high-level capabilities into increasingly detailed sub- capabilities, revealing the building blocks of your media organization. ▪ Three-Level Hierarchy: Most media capability maps employ a three-tier structure: domains (L1), capabilities (L2), and sub- capabilities (L3), with each level providing increasing specificity. ▪ Consistent Naming Conventions: Using noun-verb formulations (e.g., "Content Acquisition" rather than "Acquire Content") maintains consistency and focuses on what the business does rather than how it does it. ▪ Capability Definition Cards: Creating standardized documentation for each capability captures essential information like description, business value, stakeholders, and key performance indicators. ▪ Capability Relationships: Mapping dependencies between capabilities reveals critical pathways and potential bottlenecks, especially important for media value chains with complex handoffs. ▪ Automation Potential: Identifying capabilities with high automation potential helps prioritize technology investments in areas like content metadata management, rights verification, and personalization. www.capstera.com 6

7. Did You Know Media organizations with mature capability mapping ▪ practices realize 32% higher return on digital transformation investments compared to those without structured capability models. www.capstera.com 7

8. Media-Specific Capability Spotlight: Content Lifecycle 5 Content remains the core asset for media enterprises, requiring specialized capabilities that span its entire lifecycle. Properly mapping these capabilities reveals opportunities for integration, automation, and enhanced content ROI. ▪ Content Strategy & Planning: Capabilities that align content investment decisions with audience insights, market trends, and strategic objectives to optimize the content portfolio. ▪ Content Creation & Production: Capabilities supporting the end-to-end content development process, from ideation and creative development to production and post-production across formats. ▪ Content Management & Enrichment: Capabilities for content storage, metadata management, versioning, localization, and enhancement that maximize content discoverability and reusability. ▪ Content Packaging & Distribution: Capabilities enabling content compilation, formatting, and delivery across platforms, including content supply chain automation and quality control. ▪ Content Performance Measurement: Capabilities that track content consumption, engagement, and financial performance across platforms to inform future investment decisions. www.capstera.com 8

9. Media-Specific Capability Spotlight: Audience Relationship 6 Media organizations are evolving from anonymous broadcast models to direct relationships with identified users. Mapping audience-related capabilities is critical for organizations transitioning to direct-to-consumer business models. Audience Acquisition: Capabilities supporting discovery, ▪ trial, and conversion of potential audiences across channels, including marketing, sampling, and frictionless onboarding. Audience Data Management: Capabilities for collecting, ▪ unifying, and activating audience data across touchpoints while maintaining privacy compliance and preference management. Personalization & Recommendation: Capabilities leveraging ▪ audience data to deliver tailored content recommendations, user experiences, and monetization approaches across platforms. Audience Engagement & Retention: Capabilities fostering ▪ ongoing audience relationships through community features, interactive elements, rewards, and churn prevention. Audience Insight Generation: Capabilities transforming raw ▪ audience data into actionable insights that inform content, product, marketing, and monetization decisions. www.capstera.com 9

10. Media-Specific Capability Spotlight: Monetization Models 7 Media companies must support multiple revenue models simultaneously while experimenting with new approaches. Capability mapping reveals how monetization capabilities connect to content and audience domains. ▪ Advertising Operations: Capabilities spanning ad inventory management, campaign execution, audience targeting, and performance measurement across linear and digital platforms. ▪ Subscription Management: End-to-end capabilities for subscription packaging, pricing, billing, retention, and analytics across various tiers and offerings. ▪ Transactional Revenue: Capabilities supporting one-time purchases, rentals, pay-per-view offerings, and microtransactions with seamless payment processing. ▪ Licensing & Syndication: Capabilities enabling content licensing to third parties, including rights clearance, contract management, delivery, and revenue recognition. ▪ Ancillary Revenue Streams: Capabilities supporting merchandise, experiential offerings, and emerging revenue models that extend core content intellectual property. www.capstera.com 10

11. Assessing Capability Maturity 8 Capability mapping becomes truly valuable when combined with maturity assessment, revealing where your organization leads or lags in critical functions. For media companies, maturity assessment provides the foundation for transformation roadmaps. ▪ Multi-Dimensional Assessment: Evaluating capabilities across dimensions like process efficiency, technology enablement, governance, and strategic importance provides a comprehensive view of current state. ▪ Maturity Scale Definition: Establishing clear criteria for each maturity level (typically 1-5) ensures consistent evaluation across capabilities and assessors. ▪ Stakeholder Input Collection: Gathering perspectives from both capability performers and recipients captures the full picture of how capabilities function in practice. ▪ Current vs. Target State: Documenting both current maturity and required future state based on strategic priorities identifies critical gaps requiring investment. ▪ Heat Map Visualization: Presenting assessment results as color-coded heat maps makes findings accessible to executives and supports investment conversations. www.capstera.com 11

12. INDUSTRY INSIGHT According to a 2023 survey, 74% of media executives ▪ reported that siloed organizational structures were their biggest obstacle to content monetization across platforms. Capability mapping directly addresses this challenge by providing cross-functional visibility. www.capstera.com 12

13. Connecting Capabilities to Technology 9 For media organizations managing complex technology landscapes, capability maps provide the critical link between business functions and supporting applications. This connection powers application rationalization and technology investment decisions. ▪ Application Portfolio Mapping: Connecting each capability to its supporting applications reveals redundancies, gaps, and integration opportunities across the technology landscape. ▪ System of Record Designation: Identifying authoritative sources for critical data domains like content, rights, customers, and revenue establishes the foundation for data governance. ▪ Technology Debt Identification: Highlighting capabilities supported by aging or inadequate technology focuses modernization efforts on areas with highest business impact. ▪ Build vs. Buy Analysis: Understanding capability uniqueness and strategic importance informs decisions about custom development versus commercial solutions. ▪ Integration Priority Setting: Identifying capability intersections that require data sharing helps prioritize API development and integration investments. 13 www.capstera.com 13

14. The Accelerated Path: Pre-Built Capability Maps 10 While custom capability mapping delivers long-term value, media organizations can accelerate time-to-benefit by leveraging pre- built, industry-specific capability models. These reference models provide a proven foundation that can be customized to your organization's unique needs. ▪ Time-to-Value Acceleration: Starting with a comprehensive industry model reduces development time from months to weeks, allowing faster transition to value-adding assessment and planning activities. ▪ Industry Best Practices: Pre-built maps incorporate capabilities derived from industry leaders, ensuring your organization doesn't overlook emerging or specialized functions. ▪ Standardized Taxonomy: Industry-standard capability naming and categorization facilitates benchmarking and communication with partners, vendors, and potential acquisition targets. ▪ Reduced Consultant Dependency: Reference models reduce reliance on expensive external expertise, allowing internal teams to own and evolve the capability model over time. ▪ Customization Framework: Leading reference models include methodologies and tools for adapting the standard model to your organization's unique terminology, priorities, and structure. www.capstera.com 14

15. Capability Mapping for Strategic Planning 11 Capability maps become powerful strategic planning tools when connected to business strategy, market trends, and competitive analysis. This connection ensures transformation initiatives directly support strategic priorities. ▪ Strategy Translation: Capability maps provide the bridge between high-level strategic objectives and the specific capabilities required to achieve them. ▪ Investment Prioritization: Overlaying strategic priorities onto capability maturity assessments creates an objective foundation for resource allocation decisions. ▪ Capability Gap Analysis: Comparing your capability model against industry benchmarks or competitive intelligence highlights strategic vulnerabilities and opportunities. ▪ Scenario Planning: Mapping capabilities required for alternative future scenarios enables flexible planning in the rapidly evolving media landscape. ▪ Transformation Roadmapping: Sequencing capability enhancements based on strategic importance, dependencies, and implementation complexity creates actionable transformation plans. www.capstera.com 15

16. Capability-Based Operating Model Evolution 12 Forward-thinking media organizations are evolving from traditional functional structures to capability-centered operating models. This evolution enables greater agility, cross- functional collaboration, and customer-centricity. ▪ Capability Ownership Model: Assigning executive-level ownership for critical capabilities ensures consistent investment, measurement, and optimization regardless of organizational structure. ▪ Cross-Functional Capability Teams: Forming persistent teams around key capabilities breaks down silos between content, technology, and business functions. ▪ Capability-Based Budgeting: Allocating resources to capabilities rather than departments aligns funding with business outcomes rather than organizational boundaries. ▪ Capability Performance Metrics: Defining success measures for each capability creates accountability for results and continuous improvement. ▪ Capability Innovation Process: Establishing mechanisms for systematically evolving capabilities ensures the organization adapts to changing market conditions and technologies. www.capstera.com 16

17. TRANSFORMATION METRIC Media companies that begin transformation planning with ▪ capability mapping complete their initiatives 40% faster than those starting with technology or process mapping alone. www.capstera.com 17

18. Implementing Capability Governance 13 Sustained value from capability mapping requires effective governance that maintains architectural integrity while enabling continuous evolution. Governance ensures the capability map remains a living asset rather than a one-time project. ▪ Governance Framework: Establishing clear processes for capability definitions, decomposition decisions, and map changes ensures consistency as the model evolves. ▪ Capability Review Cadence: Regular review cycles keep the capability model aligned with changing business strategies and market conditions. ▪ Capability Repository: Creating a central knowledge base that documents capabilities, assessments, and supporting assets provides a single source of truth. ▪ Stakeholder Communication: Regular updates and visualization tools make capability concepts accessible to stakeholders throughout the organization. ▪ Capability Community: Fostering a cross-functional community of practice around capability mapping builds organizational expertise and champions. www.capstera.com 18

19. Case Study: Streaming Service Transformation 14 A leading media company used capability mapping to transform from a traditional content producer to a direct-to-consumer streaming service. The capability map revealed critical gaps in audience management and personalization that would have otherwise been overlooked. ▪ Capability Baseline: Comprehensive mapping revealed 12 new capabilities required for streaming success that did not exist in the traditional broadcast business. ▪ Technology Rationalization: Connecting capabilities to applications identified 37% redundancy in content management systems that could be consolidated. ▪ Investment Prioritization: Capability maturity assessment shifted transformation investment toward audience data capabilities, which showed larger gaps than content production. ▪ Operating Model Redesign: The capability model informed a new organizational structure that established cross- functional teams around critical capabilities. ▪ Transformation Roadmap: A three-year capability enhancement plan guided technology investments, process redesign, and talent acquisition initiatives. www.capstera.com 19

20. Getting Started: Your First 90 Days 15 Implementing capability mapping requires a structured approach that delivers incremental value while building toward comprehensive coverage. This 90-day plan provides a practical starting point for media organizations. ▪ Executive Workshop: Conduct a leadership session introducing capability concepts and securing commitment for a pilot mapping initiative. ▪ Pilot Domain Selection: Choose one strategic domain (e.g., content lifecycle or audience engagement) for initial capability mapping to demonstrate value. ▪ Capability Documentation: Document Level 1 and 2 capabilities across the enterprise, with deeper Level 3 decomposition in the pilot domain. ▪ Initial Maturity Assessment: Conduct a rapid assessment of pilot domain capabilities to identify high-priority gaps and quick wins. ▪ Visualization and Communication: Create executive-friendly visualizations that communicate findings and recommended next steps. www.capstera.com 20

21. Takeaway Business capability mapping provides media and entertainment companies with a powerful tool for navigating industry transformation. By creating a comprehensive, shared understanding of the enterprise through a capability lens, organizations can break down silos between content, technology, and business functions while prioritizing investments in the capabilities that truly differentiate them in the marketplace. Most importantly, capability mapping shifts the conversation from "how we're organized" to "what we need to excel at" – focusing energy on the capabilities that directly drive audience engagement, content performance, and financial results in an increasingly competitive landscape. 21 www.capstera.com 21

22. Next Steps 1. Assemble your capability mapping team with representation from content, technology, audience development, and finance to ensure comprehensive perspective. 2. Define your capability taxonomy with clear guidelines for what constitutes a capability versus a process, function, or technology in your organization. 3. Consider leveraging industry reference models to accelerate development while ensuring your map incorporates media industry best practices. 4. Conduct a pilot mapping exercise focused on one strategic domain to demonstrate value and refine your approach before enterprise-wide implementation. 5. Connect your capability map to strategic priorities by assessing current maturity against required future state for capabilities most critical to your strategic objectives. 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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