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 Business service management Business service management or business studies and management (BSM) is an approach used to manage business IT services. BSM promotes a customer-centric and business-focused approach to service management, aligning business objectives with IT or ICT from strategy through to operations. A BSM approach is most commonly applied in an Information and communications technology (ICT) environment, positioned above IT Service Management (ITSM) (which is often exercised according to guidance such as the Information Technology Infrastructure Library - ITIL). BSM is distinctive in ensuring that business and customer objectives provide an input which is considered when defining the IT