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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 Modularity can reduce the complexity of legacy structure to enable success in the new digital era. Executives must take advantage of well-known architectural patterns and enforce forms relevant to the Digital Age.
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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
Modularization
Modularity
Besides the chain of events in a system, the dimension of Modularity isvitalt to understand the relations, purpose, and responsibilities of systems thinking
https://en.wikipedia.org/wiki/Systems_theory
Modularity is a fundamental concept in nature as well in business. Modularizations reduce Modularity reduces complexity by clarifying purposes, interfaces, and responsibilities. A modular description makes it possible to understand one single entity in-depth without detailing whole systems. At the same time, Modularization Modularity is pretty much intuitive for a human brain the conscious usage surprisingly low.
Alright, IT architects are on top of the Modularization Modularity concept, which is also widespread in Product Management. But when moving into Business Architecture, Modularization Modularity is hardly mentioned in industry-standard frameworks and organization charts. Instead, the focus is on processes and functional silos.
The concept of Modularization Modularity 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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Unfortunately and surprisingly, Modularization Modularity 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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Modularized architecture is not something that solely belongs to IT, ; it is as essential for Business Architecture.
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The solution for an improved Product Development Flow in a very same enterprise setup cannot only be to work harder on defining Value Streams and improve ways of working.
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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 Modularity 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.
The figure below shows the high-level structure of two businesses where the flow of value a forced to take very different routes. There are Operational Value Streams (OVS), Development Value Streams (DVS), and the Supporting Systems and Products needed for development and operations in both alternatives.
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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 human side of
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Modularity
Managers want to be a part of an organization that faces a new market. Where the money is
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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 Modularity 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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