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Federated Business Services: Escaping the Functional Monolith, One Event at a Time
- Functional monoliths in organizations, such as central billing teams, create bottlenecks and dependencies on other departments for tasks like invoicing.
- Federation in business services involves decentralizing ownership of processes like pricing, invoicing, and communication to enable autonomy and speed.
- Central teams shift from doing the work to providing tools and rules for other teams to execute tasks within boundaries in a federated model.
- Federated systems require clear ownership, well-defined events, and good observability to scale autonomy and reduce integration costs.
- Events serve as the backbone of federated business capabilities, ensuring communication and coordination among different teams.
- Contracts, clear ownership, and visibility are essential components for successful implementation of federated business capabilities.
- Federation promotes a cultural transformation in organizations by fostering trust, autonomy, and shared language among teams.
- The shift to federated business capabilities extends beyond invoicing to areas like pricing logic, communication triggers, document generation, and data ownership.
- Organizations that embrace federated models move faster, reduce coordination costs, and improve scalability and flexibility in their core business operations.
- Embracing federation in business services shifts the focus from control to empowerment, leading to more efficient, robust, and adaptable systems.
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