Abstract
Large enterprises struggle to get their product out the door, faster and with 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.
Long-tail of supporting systems which are needed on the front of new product development.
The enterprises that have been around for a while, normally have plenty of legacies, both technical and structural. The legacy is hindering business agility because the systems are not designed for the complex area of digital services.
The development value streams of the legacy systems are far from the end delivery to the customer and need a new architecture to meet the needs. The uncertainty of features of a system that can support the development and execution of a business with complex products is high and no one knows how to specify the systems.
By taking a high-level view of value streams in a typical automotive business we can explore the challenges in business architecture.
Succeed with the projects that are always the top decisions and
Monolith enterprise with Value Streams & Systems
The concept of value streams can help to understand how an enterprise operates.
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.
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.
The development of the car and the supporting systems are two separate value streams with different characteristics. Nevertheless, the Value streams are very much interdependent and are steered towards the same objectives.
Selling new digital services in completely different channels and business models than in the past requires supporting systems with other structures and flexibility than in the past.
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
We have seen this happen in many industries before. Telecom is maybe the clearest example where there are infrastructure providers, operators, and then Google and Apple at the top. Also, the automotive business has modularization in their 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?
Modularized enterprise with Value Streams & Systems
To modularize a large business and work with a well-defined interface between the basic product and the customer-facing digital services would create many advantages.
The base component may develop a container interface to make it possible for the satellite component to deploy and execute code inside the car. Just as cloud computing where servers provide containers.
Services based on the in-car purchases will drive new revenue streams and partnerships.
The classic architectural principle of low coupling and high cohesion can be used for driving organizational design.
Conway’s law is another applicable guide for understanding how the organization and products should be set up.
Advantages of a Modularized enterprise
To modularize a large business and work with a well-defined interface between the basic product and the customer-facing digital services would create many advantages.
Separate ERP systems that can support different business models
Time to invest in quality rather than rebuilding the structure of legacy systems
Possible to create fast end-to-end customer delivery and feedback
Shorter time to market
More choices
Separate decision making
Different drivers
Flexibility
Clear and open dependencies
Goals and strategy
Adaptability
Mer passande architecture
Decentralizing
Grundare hierarchy
Everyone is working closer to the end business case
Smaller “tribes” with collaboration on the right level
Isolate failure
Understand business drivers
Separate compliance responsibility
References
https://www.pega.com/insights/articles/applying-microservices-principles-your-business-architecture
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