Abstract

As companies Companies strive to build a competitive advantage in a world obsessed with Digitizing, and they find that it’s it's all about getting products out the door. Their top people must be able to transform the organization into a more Agile delivery model, where both speed and quality are achieved. This That means a fundamental change in leadership culture, and executives need to get their hands dirty in the strategic building of an organization made for Product Development Flow.

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To thrive in our increasingly complex world, companies must challenge their existing structures and rethink what they do to create value. But most remain in a setup that is far too complex setup to allow frequent product releases with short feedback loops. The new digital age is characterized by a A Value Network in constant movement characterizes the new digital age, and long-term planning and big deliveries are not an option.

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Executives at the highest level of decision-making must understand in detail how an organization built around value should operate and create the prerequisite for a customer-focused Value Network with the power to adapt. The

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 see you use should identify the leadership roles needed to shape the future of the company put the right people in those rows emphasize the drive for transformation and take ownership of their top teams Behaviorresponsibility to develop the fundamental structures that control the responsibility and scope of Value Streams typically belongs to the board.

The steps to follow

This article will touch on typical challenges when transforming a business and how Enterprise Modularization can reduce the complexity of a legacy structure to enable success in the new digital era. This is a description of how well-known architectural patterns can be used at the highest management level.

Background

Large organizations that produce complex cyber-physical systems have, like 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 defenseIndustries like Automotive, Aircraft, Aerospace, Defense, and more have an increasing need to deliver with both speed and 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.

Leaders and change agents need to recognize the operational systems and structures that enable organizations to perform. Especially companies with long-lived consumer products have a substantial legacy.

Under the hood of these large organizations, many systems are needed to control the entire operational value stream, which typically consists of the 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. Especially companies with long-lived consumer products have a substantial legacy.

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.

The legacy structure, including supporting systems, is a huge obstacle to reaching cross-domain alignment. Especially in large organizations that produce complex products, the development of supporting systems is a challenge. Regardless of how 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.

If you have been involved in an Agile transformation, you have likely seen the struggle to deliver working Features within a short period. It can be hard enough for an Agile Release Train to finalize Features within a Program Increment. But, in a sizeable Lean-Agile organization, the ability to quickly deliver working Features across several domains in multiple Release Trains is needed to accomplish Cadence and Sync.

Cadence and Sync is the way to create alignment through short feedback loops that provide the necessary learning. Without the fast and frequent feedback, the dream of Business Agility flies out the window.

The legacy structure, including supporting systems, is a huge obstacle to reaching cross-domain alignment. Especially in large organizations that produce complex products, the development of supporting systems is a challenge. Regardless of how 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.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

When speaking about enterprise modularity it seems at it is something owned by IT

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The classic architectural principle of low coupling and high cohesion can be used for driving organizational design.

Conway’s Conway's law is another applicable guide for understanding how the organization and products should be set up.

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Everyone is working closer to the end business case

Smaller “tribes” "tribes" with collaboration on the right level

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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.

An Enterprise’s 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.

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