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The complexity dilemma in organizational design is the same as in IT systems design, and IT architects have since long mastered the various patterns that prevent complex systems from collapsing. This article will touch on typical challenges when transforming a business and how Enterprise Modularization can reduce the complexity of legacy structure to enable success in the new digital era. Executives need to must take advantage of well-known architectural patterns and enforce forms relevant to the Digital Age.
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"Organizations that manage IT delivery as projects instead of products are using use managerial principles from two ages ago and cannot expect those approaches to be adequate for succeeding in this one. Visionary organizations are creating and managing their Value Stream Networks and product portfolios to leapfrog their competition in the Age of Software."
― Mik Kersten, Project to Product: How to Survive and Thrive in the Age of Digital Disruption with the Flow Framework
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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 simultaneously as existing products need to must 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 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 All levels of the Value Creation Structure must be considered 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 not understood.
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Many companies do invest in transforming how their infrastructure is maintained and developed. Many success stories show how Lean, Agile, and DevOps have reduced lead time, increased quality, and other business benefits. Regardless of how well you succeed in improving improve system development, the tale of legacy is, in most cases, far too long to manage a Value Stream Network and achieve Business Agility.
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Modularization is a fundamental concept in nature as well in business. Modularizations reduce complexity by clarifying purposes, interfaces, and responsibilities. A modular description makes it possible to understand one single entity in-depth without detailing whole systems. While At the same time, Modularization is pretty much intuitive for a human brain the conscious usage surprisingly low.
Alright, IT architects are on top of the Modularization concept, which is also widespread in Product Management. But when moving to business architecture it is hardly mentioned nor can I find any principles into Business Architecture, Modularization is hardly mentioned in industry-standard frameworks and organization charts. Instead, the focus is on processes and functional silos.
The concept of Modularization is a prerequisite for making it all work in many industries, like the automotive business with its large clusters of component suppliers.
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Because standardized interfaces exist, different companies can provide products for each system piece of the system.
https://en.wikipedia.org/wiki/Conway%27s_law
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Unfortunately and surprisingly, modularization Modularization is not a top-of-mind guide to organizational design. Executives seem to be more eager to create functional responsibility than modular responsibility. Nor is taking into account consultants scaled agile ect
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When speaking about enterprise modularity, it seems as if it is like something owned by IT.
Modularized architecture is not something that solely belongs to IT, it is as essential for Business Architecture.
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When modules are done right, ready-made, and reusable, they shorten Value Streams and enable cadence and syncSync.
The solution for an improved Product Development Flow in a very enterprise setup cannot only be to work harder on defining Value Streams and improve ways of working.
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We have seen this happen in many industries before. Telecom may be the clearest example of infrastructure providers, operators, and then Google and Apple at the top. Also, the automotive business has modularization Modularization in its blood and the industry is based on component suppliers that work for a multitude of brands. But will the brand owners be able to take the next leap to the top of the value pyramid, or will they become a commodity?
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Not saying it's going bad. Many nice things emerge, people are happier, and organizations can measure their progress. But compared to the reachable outcomes, what we celebrate is far from….
Summary
References
https://en.wikipedia.org/wiki/Modularity
https://www.pega.com/insights/articles/applying-microservices-principles-your-business-architecture
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