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The most prevalent supporting system is the ERP system needed in all organizations. On top of the built-in functionality, an ERP system can have numerous system integrations and adaptions associated with internal working procedures. Maintaining, developing, and sometimes replacing an ERP system can consume a lot of effort with internal and external resources. How long time does it to adapt the ERP to a new business model in your organization?
The image below shows the generic Value Creation Structure of any product-developing organization. The model is a summary of Value Streams and Systems. The latter in yellow is divided in
The Product may be ; usually is a wide range of systems facing the customer.
The internal Product Development platform is closely connected to the Product and is sometimes created maintained by the same people as in the Product Development Value Stream.
All other supporting systems for development and operations . This is construct the long tail of legacy that occasionally gets disconnected from the productProduct.
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When governing an organization that develops end-user products, all levels of the Value Creation Structure must be considered. The crucial connection between core Product Development Value Streams and Supporting Development Value Streams is difficult challenging to manage and often overlooked. But, there is no time to investigate new operative structures or how the supporting systems should work.
To unleash innovation and create new attractive products, it is not just the product development in itself that must become faster and more reliable.
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To counter the market competition, the long tail of support systems needs to be in shape, which requires upgrades. A technical perspective, such as Life Cycle Management, security, and system integration, gives many reasons why existing systems must be invested in. Unfortunately, the structural view is a significantly more extensive scope than the technical one. It involves the thinking of a company's product offering and the tacit knowledge any organization has built up.
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Many companies also invest in transforming how their infrastructure is maintained and developed. There are many Many success stories of show how Lean, Agile, and DevOps have reduced lead time, increased quality, and other business benefits. Regardless of how well you succeed in improving system development, the tale of legacy is very long and complex.
In my experience, excellent product development abilities are not enough for these large organizations with a long history.
to be organized around value with effective Development Value streams, in most cases, far too long to manage a Value Stream Network and achieve Business Agility.
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 following image demonstrates a typical scenario where the development of the Product, including the internal platform, has reached Cadence and Sync. The Supporting Systems are still scattered in different development models and are far from reaching any Cadance and Sync.
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You may think that the Supporting Systems is a platform with a well-defined interface that does not need to be in Sync with Product Development. Then imagine a consumer product that has:
retail and service shops worldwide,
100 variants,
30,000 physical parts,
One thousand suppliers and five factories.
one million lines of code in distributed in 30 embedded computers,
emerging digital services,
100 critical integrated supporting systems,
a hurried need for a new product and pricing structure.
Does your organization have an overview of what systems need to be developed in Cadence and Sync to benefit from full feedback in your Value Stream Network?
Modularization
The solution to for an improved Product Development Flow in a very complex enterprise setup cannot only be to work harder on defining value streams and continue to accelerate the Product Development flowValue Streams and improve ways of working. Instead, a macro-level view on value streams and the formation of modularized business entities of Value Streams and Modularized Business Entities can clarify business targets structures and create far better options for a successful Lean enterprise.
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When speaking about enterprise modularity, it seems at as it is something owned by IT.
Modularized architecture is not something that solely belongs to IT, it is as important for Business Architecture.
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The power needed to rebuild fundamental organizational structures belongs to the highest level of decision-making. The board is usually determined to form new business entities to engage in organizational design and decide about the business model and principles for operations.
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Unfortunately, board members seldom engage in business architecture, nor do they have the expertise to model and explore alternatives. Their alternative is to expand the C-level's strategic authority and reshape business structures.
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An enterprise in the automotive market has operational Value Streams much the same as any product-oriented business. However, the Product is very complex with eager competitors, a global market, long life, demanding customers, regulations, and more.
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Therefore the systems, supporting the operational systems are also very complex and integrated with internal and external systems, as well as the car, which in itself is the most important system.
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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
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Coaches running around helping to coach individuals and teams, facilitate and trainitraining.
Not saying it's going bad. A lot of nice things are emerging, people are happier and organizations can measure their progress. But compared to the outcomes that are reachable, what we celebrate is far from….
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https://en.wikipedia.org/wiki/Federated_architecture
Disruptive innovation
Niels Plegel
Old
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.
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The focus needs to be on exploring what customers want.
But, there is no time to investigate new operative structures or how the supporting systems should work.
To unleash innovation and create new attractive products, it is not just the product development in itself that must become faster and more reliable.
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.
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