Modularity 4.0
Modularity (def): the degree to which a system's components may be separated and recombined, often with the benefit of flexibility and variety in use.
A new standard for business architecture
Connecting and transforming the extended enterprise
Business Architecture is a holistic blueprint that articulates structure of an enterprise in terms of its governance, capabilities, client propositions and journeys, revenue streams and operating model. It subdivides the whole into parts, called performance cells, which are then managed in portfolios for higher value creation.
Governance Architecture
“What makes us sustainable?”
Strategy Architecture
“What are our aspirations”
Revenue
Architecture
“Where do
we play?”
Client
Architecture
“How do
we win?”
Capability
Architecture
“What people, process and systems do we need”
Operating Architecture
“What management systems to implement?”
Connecting and transforming the extended enterprise
Business Architecture is a holistic blueprint of an extended enterprise. It articulates the structure of an enterprise in terms of its governance, its capabilities, its client propositions and journeys, its revenue streams and its operating model. It subdivides the whole into parts, called performance cells. These performance cells are then managed in portfolios for higher value creation.
Develop the capability to manage the enterprise
Modularity 4.0 is an approach for designing, planning, implementing, and managing the business architecture.
In Modularity 4.0:
The Modularity Architecture
The Modularity Architecture
Business Architecture Layers/Stacks
There are several frameworks available that provide a structure for blueprints. Following a framework will give guidance on how to assemble and organize a cohesive set of models for use across the enterprise. As teams mature, they may adjust the framework or structure to suit their organization or culture as needed. Modularity 4.0 seeks to align the business architecture stack with the cascading choices strategy model.
A new way to construct building blocks
An organization can be seen as a collection of mutually exclusive, but interdependent building blocks. These building blocks are elements of the different dimensions of the business i.e. objectives, customer segments, business processes, client journeys, applications, etc.
Each building block is a performance cell i.e. a value-creating unit. A building block can be broken down into smaller building blocks. Each building block has certain attributes and contains a closed feed-back loop between effort and impact. The building block/performance cell contains variables such as purpose, goals, potential, KPIs, research, analytics, initiatives and risks.
A new way to connect building blocks
Business architecture is the art of deciding on the relevant building blocks and connecting them flexibly across multiple dimensions, so that the whole delivers more than the sum of the parts. We leverage the ingenuity of a matrix within a matrix to connect and align building blocks. A modular, plug and play architecture.
A new way to flow and share intelligence
Separating intelligence from the building blocks into libraries, allows the sharing of information between building blocks, strengthens collaboration and gives speed to learning. An information highway that feeds the building blocks.
A new way to manage resources in a more flexible way
Ergonomics (or the human factor) is about understanding and optimizing the interactions between humans and other elements of a system. It is the profession that applies theory, principles, data and methods to optimize human well-being within the context of a systems design.
A new way to govern an agile and fast paced organization
Effective governance is based on entrenched habits, rituals and ceremonies which support the strategic direction through agility and adaptability. It is about management routines, meetings, and key events to drive the strategic agenda. It should balance continuity with flexibility and enable decision-making at the right time and place.
