...
In large organizations that produce complex products, the supporting systems that enable operations are a legacy that heavily interferes with Business Agility. Regardless of excellency, the tale of legacy is far too long to be organized around value with effective Development Value streams that can execute in cadence and sync.
The solution to a very complex enterprise setup cannot be to work harder on defining value streams and continue to accelerate the Product Development flow. Instead, a macro-level view on value streams and the formation of modularized business entities can clarify business targets and create far better options for a successful Lean enterprise.
Modularization with viable business interfaces will reduce the complexity and remove the limitations any system ultimately will reach. The strategic forming of new business entities requires decisions on the highest level of authority and must be supported by business architecture competency.
Background
Large organizations that produce complex cyber-physical systems have, as all other organizations, a need to transform their ways of working. Typical industries where development speed and quality are essential are automotive, aircraft, aerospace, and defense. 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.
...
The power needed to rebuild fundamental organizational structures belongs to the highest level of decision-making. Many times it is Determination to form new business entities is often for the board that needs to engage in organizational design and decide about business model and principles for operations.
Unfortunately, board members seldom engage in business architecture nor do they have the expertise to model and explore alternatives. Their alternative is to expand strategic authority for the C-level and to reshape business structures.
Monolith enterprise with Value Streams & Systems
...
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.
Enterprise and business architecture frameworks offer little support for the high-level models needed. The frameworks seldom cover strategic relations and interfaces between entities within a corporate group.