Business capability refers to structured modeling, which provides a high-level overview of the business. Business capabilities are the top layer of the business architecture and belong to the business domain. We can split a monolithic application into services based on their business capabilities. These services have broad context boundaries, including user interface, persistent storage, and any external collaborations. Consequently, the teams are cross-functional and include the full range of skills required for the development: user experience, database, and project management.

A business capability refers to how a business architecture model behaves in order to achieve a business goal. A business capability is similar to a business object. Let's define the services of our application based on its business capabilities: