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The Product; usually is a wide range of systems facing the customer. New products are continuously presented in the competing market at the same time as existing products need to be maintained,
The internal Product Development platform is closely connected to the Product and is sometimes maintained by the same people as in the Product Development Value Stream.
All other supporting systems for development and operations construct the long tail of legacy that occasionally gets disconnected from the Product.
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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 Product Development Value Streams and Supporting Development Value Streams is challenging to manage and often overlookednot understood.
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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The solution for an improved Product Development Flow in a very complex enterprise setup cannot only be to work harder on defining Value Streams and improve ways of working. The problem with a complex monolith organization is in principle the same as system architecture.
When speaking about enterprise modularity, it seems as if it is something owned by IT.
Modularized architecture is not something that solely belongs to IT, it is as important for Business Architecture.
Instead, a macro-level view of Value Streams and Modularized Business Entities can clarify business structures and create 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.When speaking about enterprise modularity, it seems as 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.
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It requires skills in Business Architecure, mandate to make strategic decisions and the guts to do it.
Any business is built on Operational Value Streams (OVS), Development Value Streams (DVS), and the Supporting Systems and Products needed for development and operations.
Executives on enterprise-level and below continuously put a lot of effort into improvement programs. Consultants are hired, change initiatives are launched, the staff is trained, and much more is done.
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.
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.
and making sure structures are flexible and may be adapted afterward.
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By taking a high-level view of value streams in a typical automotive business we can explore the challenges in business architecture.
The
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The power needed to rebuild fundamental organizational structures belongs to the highest level of decision-making. Determination to form new business entities is often for the board to engage in organizational design and decide about the 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.
The human side of Modularization
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Separate compliance responsibility
The right decision level
The power needed to rebuild fundamental organizational structures belongs to the highest level of decision-making. Determination to form new business entities is often for the board to engage in organizational design and decide about the 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.
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.
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.
It requires skills in Business Architecture, a mandate to make strategic decisions, and the guts to do it.
Waste of investment
Coaches running around helping to coach individuals and teams, facilitate and training.
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Organize for Complexity, Niels Plegel
Project to Product, Mik Kersten
Principles of Product Development FLowFlow, Don Reinertsen
Brave new work, Aron Dignan
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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Compliance is another field taThe 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.
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