Resources and Capabilities are strategic assets of each service provider to enable goods or services to be produced. The resources are a direct input parameter for the service delivery. These could be finances, infrastructure, applications and information. On the other hand the management, the organization, people and their knowledge are necessary for the conversion of these resources.
Capabilities are skills and help the organization to develop and control the resources in order to generate added value. Typically these capabilities are based on experience and information, are knowledge intensive and therefore closely linked to an organization’s people, the systems, processes and technologies and have to be enhanced over the course of time. Capabilities are part of the non-tangible assets of an organization (human capital).
Combined resources and capabilities constitute the basis for the value of a service.
The capabilities of an organization cannot produce any value without appropriate and adequate resources. The productive capacity of a service provider depends on the availability of the resources. The capabilities are needed to enhance, implement and coordinate the productive capacity .