Capability management in business stack rank investments, for example advantage capabilities with high heat move to the top of the agenda, followed by business essential capabilities with large inefficiencies. Capability management in business Capability management is the approach to the management of an organization, typically a business organization or firm, based on the "theory of the firm" as a collection of capabilities that may be exercised to earn revenues in the marketplace and compete with other firms in the industry. "Capability Management" seeks to manage the stock of capabilities within the firm to ensure its position in the industry and its ongoing profitability and
Business service management departments and IT service providers may only deliver IT services, or may also be providers of business services. Many software vendors offer products which aim to support ITSM and/or BSM. These tools are often described as BSM tools, but they should not be seen as BSM in themselves. The tools may underpin and support a service management capability which includes people who execute service management, their portfolio of services and the process framework. BSM, ITSM, and Service Management in general, are not a set of software tools or products. They are all activities and approaches to the management of services