Abstract
Behind the scenes in a traditional enterprise with a large legacy with a complex consumer product be transformed?
What is really under the hood of a a traditional enterprise with a large legacy with a complex consumer product be transformed?
The answer
Need control of supply chain, production, development, finance, sales, distribution and aftermarket. All tighs together in a product structure which is the backbone for making it all work.
Large enterprises struggle to get their product out the door, faster and with quality. New competitors with less legacy are just around the corner to introduce entirely new services. The all too well-known disruptive pattern will play faster in the digital age.
Long-tail of supporting systems which are needed on the front of new product development.
Entirely new and innovative products require speed. There is no time to investigate how what operative structures are needed nor how the supporting systems should work. The focus needs to be on exploring what customers want and making sure structures are flexible and may be adapted afterward.
Regardless of Agile team performance, the Development Value Streams are too long and too far away from where the customer actions are.
The enterprises that have been around for a while, normally have plenty of legacies, both technical and structural. The legacy is hindering business agility because the systems are not designed for the complex area of digital services.
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Succeed with the projects that are always the top decisions and
Monolith enterprise with Value Streams & Systems
The concept of value streams can help to understand how an enterprise operates.
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In one monolith enterprise, the lead time for creating the required new structures is far too long compared to what speed of the market.
Modularized business models
We have seen this happen in many industries before. Telecom is maybe the clearest example where there are infrastructure providers, operators, and then Google and Apple at the top. Also, the automotive business has modularization in their blood and the industry is based on component suppliers that work for a multitude of brands. But will the brand owners be able to take the next leap to the top of the value pyramid, or will they become a commodity?
Modularized enterprise with Value Streams & Systems
To modularize a large business and work with a well-defined interface between the basic product and the customer-facing digital services would create many advantages.
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Conway’s law is another applicable guide for understanding how the organization and products should be set up.
Advantages of a Modularized enterprise
To modularize a large business and work with a well-defined interface between the basic product and the customer-facing digital services would create many advantages.
Separate ERP systems that can support different business models
Time to invest in quality rather than rebuilding the structure of legacy systems
Possible to create fast end-to-end customer delivery and feedback
Shorter time to market
Keep structures and make sure there is time for quality enhancements
More choices
Separate decision making
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Separate compliance responsibility
References
https://www.pega.com/insights/articles/applying-microservices-principles-your-business-architecture
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