Overview

Does business have a shape?
Yes. The shape of business (at its core) is a stream.

Why?
Because time flows like a stream. Since we cannot control time, we manage the flow of activities instead. In essence, a business manages a stream of activities (or "value stream") to create value for its stakeholders.

Are shapes important?
In nature, we see that shape and structure directly impacts an organism's ability to survive and thrive. A business system is no different.

Do people view the shape of business as a stream?
Mostly not. The default view in describing the structure of a business is an organizational chart (like a pyramid.) While the flow-centric view continues to grow (lean manufacturing, supply chain, etc.), the people-centric view tends to dominate (and I'm speculating here because it represents the hierarchical power structure), which is equally important.

Why is this a problem?
Getting shape and structure right is important because if we have a flawed understanding of the physical shape, then we are likely to create a flawed digital replica (digital twin) of the business itself.

How real is this risk?
CIOs estimate that technical debt amounts to 20 to 40% of their total technology portfolio. All too often, the business pressure to move fast has resulted in digital architectures that are burdened by "Frankenstein integrations" adding more technical debt in a vicious cycle. Furthermore, such Frankenstein architectures are an obstacle to realizing the full potential of an AI-enabled future due to unreliable data quality and inability to scale.

Do you know about Conway's Law?

Is the integration strategy of your digital transformation journey largely shaped by your organization's communication structure (people-centric view)? Or does it need to be complemented (improved, balanced, etc.) with the flow-based view? And will a better structure and shape help reduce technical debt, leading to a more sustainable digital architecture?