Pattern: Decompose by business capability



You are developing a large, complex application and want to use the microservice architecture. The microservice architecture structures an application as a set of loosely coupled services. The goal of the microservice architecture is to accelerate software development by enabling continuous delivery/deployment.

The microservice architecture does this in two ways:

  1. Simplifies testing and enables components to deployed independently
  2. Structures the engineering organization as a collection of small (6-10 members), autonomous teams, each of which is responsible for one or more services

These benefits are not automatically guaranteed. Instead, they can only be achieved by the careful functional decomposition of the application into services.

A service must be small enough to be developed by a small team and to be easily tested. A useful guideline from object-oriented design (OOD) is the Single Responsibility Principle (SRP). The SRP defines a responsibility of a class as a reason to change, and states that a class should only have one reason to change. It make sense to apply the SRP to service design as well and design services that are cohesive and implement a small set of strongly related functions.

The application also be decomposed in a way so that most new and changed requirements only affect a single service. That is because changes that affect multiple services requires coordination across multiple teams, which slows down development. Another useful principle from OOD is the Common Closure Principle (CCP), which states that classes that change for the same reason should be in the same package. Perhaps, for instance, two classes implement different aspects of the same business rule. The goal is that when that business rule changes developers, only need to change code in a small number - ideally only one - of packages. This kind of thinking makes sense when designing services since it will help ensure that each change should impact only one service.


How to decompose an application into services?


  • The architecture must be stable
  • Services must be cohesive. A service should implement a small set of strongly related functions.
  • Services must conform to the Common Closure Principle - things that change together should be packaged together - to ensure that each change affect only one service
  • Services must be loosely coupled - each service as an API that encapsulates its implementation. The implementation can be changed without affecting clients
  • A service should be testable
  • Each service be small enough to be developed by a “two pizza” team, i.e. a team of 6-10 people
  • Each team that owns one or more services must be autonomous. A team must be able to develop and deploy their services with minimal collaboration with other teams.


Define services corresponding to business capabilities. A business capability is a concept from business architecture modeling. It is something that a business does in order to generate value. A business capability often corresponds to a business object, e.g.

  • Order Management is responsible for orders
  • Customer Management is responsible for customers

Business capabilities are often organized into a multi-level hierarchy. For example, an enterprise application might have top-level categories such as Product/Service development, Product/Service delivery, Demand generation, etc.


The business capabilities of an online store include:

  • Product catalog management
  • Inventory management
  • Order management
  • Delivery management

The corresponding microservice architecture would have services corresponding to each of these capabilities.

Resulting Context

This pattern has the following benefits:

  • Stable architecture since the business capabilities are relatively stable
  • Development teams are cross-functional, autonomous, and organized around delivering business value rather than technical features
  • Services are cohesive and loosely coupled


There are the following issues to address:

  • How to identify business capabilities? Identifying business capabilities and hence services requires an understanding of the business. An organization’s business capabilities are identified by analyzing the organization’s purpose, structure, business processes, and areas of expertise. Bounded contexts are best identified using an iterative process. Good starting points for identifying business capabilities are:

    • organization structure - different groups within an organization might correspond to business capabilities or business capability groups.
    • high-level domain model - business capabilities often correspond to domain objects


Copyright © 2024 Chris Richardson • All rights reserved • Supported by Kong.

About is brought to you by Chris Richardson. Experienced software architect, author of POJOs in Action, the creator of the original, and the author of Microservices patterns.

New workshop: Architecting for fast, sustainable flow

Enabling DevOps and Team Topologies thru architecture

DevOps and Team topologies are vital for delivering the fast flow of changes that modern businesses need.

But they are insufficient. You also need an application architecture that supports fast, sustainable flow.

Learn more and register for my September 2024 online workshops....


I help organizations improve agility and competitiveness through better software architecture.

Learn more about my consulting engagements, and training workshops.

LEARN about microservices

Chris offers numerous other resources for learning the microservice architecture.

Get the book: Microservices Patterns

Read Chris Richardson's book:

Example microservices applications

Want to see an example? Check out Chris Richardson's example applications. See code

Virtual bootcamp: Distributed data patterns in a microservice architecture

My virtual bootcamp, distributed data patterns in a microservice architecture, is now open for enrollment!

It covers the key distributed data management patterns including Saga, API Composition, and CQRS.

It consists of video lectures, code labs, and a weekly ask-me-anything video conference repeated in multiple timezones.

The regular price is $395/person but use coupon WURMXAJV to sign up for $95 (valid until July 19th, 2024). There are deeper discounts for buying multiple seats.

Learn more

Learn how to create a service template and microservice chassis

Take a look at my Manning LiveProject that teaches you how to develop a service template and microservice chassis.

Signup for the newsletter

BUILD microservices

Ready to start using the microservice architecture?

Consulting services

Engage Chris to create a microservices adoption roadmap and help you define your microservice architecture,

The Eventuate platform

Use the platform to tackle distributed data management challenges in your microservices architecture.

Eventuate is Chris's latest startup. It makes it easy to use the Saga pattern to manage transactions and the CQRS pattern to implement queries.

Join the microservices google group