Level 3 Embedding: Identity Layer — When You Define What “Customer” Means Across the Organization

Definition: You define what entities ARE across the organization. You become the ontology.

Level 3: Identity Layer

The Mechanism:

This is the deepest form of embedding. The system doesn’t just store data about customers, employees, or products — it defines what “customer,” “employee,” or “product” means.

The data model becomes the organizational mental model.

Example — Snowflake:

Snowflake defines what “a customer” means across data science, finance, operations, and executive reporting through shared data models and semantic layers.

  • When finance says “customer,” they mean Snowflake’s definition
  • When data science builds a churn model, they use Snowflake’s customer entity
  • The word itself carries the system’s assumptions

The Existential Crisis:

Without you, the organization doesn’t know what things ARE CALLED. Switching isn’t migration — it’s philosophical reconstruction.

Switching Cost Profile: Indeterminate. Many organizations at this level effectively cannot switch.


This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.

Scroll to Top

Discover more from FourWeekMBA

Subscribe now to keep reading and get access to the full archive.

Continue reading

FourWeekMBA