Abstract
When speaking about enterprise modularity it seems at it is something owned by IT
Modularized architecture is not something that solely belongs to IT, it is as important for Business ArchitectureIf you have been involved in an Agile transformation, you have likely seen the struggle to implement Cadence and Sync. This ability to deliver in Cadence and Sync means that usable Features can be deployed within Value Streams and ultimately across Value Streams. Without Cadence and Sync, Alignment through short feedback loops will halt. And without the short feedback loops, the dream of Business Agility flies out the window.
A huge obstacle to reaching the Alignment is the legacy structure including supporting systems. Especially in large organizations that produce complex products, the development of supporting systems is a challenge. Regardless of well you succeed in Agile abilities, 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.
While the whole world is talking about Digitalization and the Fourth Industrial Revolution where Value Networks have an entirely different shape and scope.
An Enterprise Macro Structure is overlaying business ideas and the formation of business units and their interfaces to external parties.
Any organization has a business idea that defines what
and the formation of business and their interfaces to external parties.
At most companies, IT support for business processes has been cobbled together in a series of unrelated IT projects. Some projects build application silos; others link them together. The result is a highly inflexible IT architecture. Most IT and business executives agree that a more modular architecture—where IT-enabled business processes are plug-and-play components that can be used to meet changing business demands—provides far more capability for companies to grow rapidly and profitably. But inflexible legacy systems and processes are impeding progress in building modular IT and business capabilities. Firms wanting to move toward a modular enterprise architecture face a multi-year evolutionary process.2 Building modular capabilities is a gradual process and is often slowed down by the tendency to invest in immediate business needs rather than long-term capabilities. As a consequence, few companies have achieved a modular IT and business environment.A strategic obstacle is the long tail of legacy systems and outdated structures
An Enterprise’s foundational structure, Macro Structure, is the strategic prerequisite that controls the workings of an organization. form Business Models, Value Streams, and other fundamentals needed to develop and operate a business.
control the workings of an organization
This article will touch on typical challenges when transforming a business and how Enterprise Jet Streams can reduce the complexity of a legacy structure to enable success in the new digital era. I will show how well-known architectural patterns can be used at the highest management level.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.A strategic obstacle is the long tail of legacy systems and outdated structures
Large organizations that produce complex products, naturally have the biggest challenges. Over time, their supporting systems that enable operations have become a legacy that heavily interferes with Business Agility. Regardless of excellency in transforming into Lean-Agile development, the burden of the legacy structure is a strategic obstacle that inhibits execution in cadence and synchronization. Thus, removing the benefits of enabling short feedback cycles as the underlying idea in Lean and Agile.
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.
...
To unleash innovation and get a new product out the door, it is not just the product development in itself that needs to become faster and more reliable. It is also the long long tail of supporting systems that must be upgraded. But, there is no time to investigate what operative structures are needed nor how the supporting systems should work. The focus needs to be on exploring what customers want.
When speaking about enterprise modularity it seems at it is something owned by IT
Modularized architecture is not something that solely belongs to IT, it is as important for Business Architecture.
The figure below shows the high-level structure of two businesses where the flow of value a forced to take very different routes. In both alternatives, there are Operational Value Streams (OVS), Development Value Streams (DVS), and the Supporting Systems and Products needed for development and operations.
...
https://en.wikipedia.org/wiki/Federated_architecture
Old
Large organizations that produce complex products, naturally have the biggest challenges. Over time, their supporting systems that enable operations have become a legacy that heavily interferes with Business Agility. Regardless of excellency in transforming into Lean-Agile development, the burden of the legacy structure is a strategic obstacle that inhibits execution in cadence and synchronization. Thus, removing the benefits of enabling short feedback cycles as the underlying idea in Lean and Agile.
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.
At most companies, IT support for business processes has been cobbled together in a series of unrelated IT projects. Some projects build application silos; others link them together. The result is a highly inflexible IT architecture. Most IT and business executives agree that a more modular architecture—where IT-enabled business processes are plug-and-play components that can be used to meet changing business demands—provides far more capability for companies to grow rapidly and profitably. But inflexible legacy systems and processes are impeding progress in building modular IT and business capabilities. Firms wanting to move toward a modular enterprise architecture face a multi-year evolutionary process.2 Building modular capabilities is a gradual process and is often slowed down by the tendency to invest in immediate business needs rather than long-term capabilities. As a consequence, few companies have achieved a modular IT and business environment.