McKinsey & Company
Show full slide
Illustrative retail example
Map business capabilities and identify value.
Bespoke/microservices
ERP and standard software
Differentiating
Commodity
How to map business capabilities to identify value.
Get started
Focus on capabilities
Next
To unlock value, look at business capabilities rather than IT systems or business processes.
Identify sources of differentiating value
These functionalities are commodities and covered by the ERP system. There is little value in accelerating their upgrade.
Next
Prioritize differentiating capabilities
In this case, promotion management is critical to the business. Some priority capabilities may be developed outside the ERP and not even use standard software. Prioritize these differentiating capabilities and avoid using standard software solutions that simply reflect state of the art in the industry.
Next
Combine software approaches for differentiation
In some cases, standard ERP functionality is combined with a differentiating capability, such as demand forecasting in this case. Determine how best to combine the low cost of standard ERP software with the possibility to differentiate with bespoke software.
Next
Review channels through the lens of their value to the business
In this case, point of sales is a dedicated system, but it will be integrated into an e-commerce platform on the front end.
Start over