Capability management in business 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 survival. Prior to the emergence of capability management, the dominant theory explaining the existence and competitive position of firms, based on Ricardian economics, was the
Business service management Service Management approach and the business services to be offered by the IT Service Provider (whether an internal IT department or an external service provider). According to the 2011 edition of ITIL, business service management is "the management of business services delivered to business customers. Business service management is performed by business units." ITIL, according to the ITIL books themselves, is "a set of best-practice publications for IT service management". ITIL does not, therefore, give guidance on Business Service Management or Service Management outside of the IT domain. A BSM approach can be used to understand the impact of business