The Three Levels of Embedding: From Data Dependency to Identity Layer — Each Level 10x the Switching Cost

Embedding operates at three distinct levels, each representing an order of magnitude increase in switching costs and organizational dependency.

The Three Levels of Embedding

Level 1: Data Dependency (6-12 months to switch)

Other systems read your data as their source of truth. You become the canonical record.

Level 2: Workflow Integration (18-36 months to switch)

Processes cannot complete without passing through your system. You become a mandatory checkpoint.

Level 3: Identity Layer (Indeterminate — often irreversible)

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

The Critical Insight:

At Level 3, switching isn’t migration — it’s philosophical reconstruction. What does “customer” mean in the new system? Organizations discover they don’t actually know what their core concepts mean independent of the system that defined them.


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

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