Flow

Flow coordination describes companies whose primary function is moving resources through systems. These organizations do not fundamentally transform what they handle—they relocate it, transmit it, or facilitate its passage from one point to another.

The resources being moved can take many forms. Physical goods travel through logistics networks, ports, and delivery systems. Money flows through payment processors, wire services, and transaction networks. Energy moves through pipelines, grids, and transmission infrastructure. Data travels through telecommunications networks and internet backbones. In each case, the company's core role is enabling movement, not transformation.

Flow-coordinated companies typically exhibit certain structural characteristics:

• Network effects — The value of a flow system often increases with its reach and connectivity. More nodes mean more possible routes and greater utility.
• Infrastructure dependency — Moving things requires physical or digital pathways. Pipelines, cables, vehicles, warehouses, and routing systems form the operational foundation.
• Throughput economics — Revenue often correlates with volume moved. The business model depends on maintaining and increasing flow.
• Reliability requirements — Systems that others depend upon for movement must function consistently. Disruption cascades through connected systems.

The coordination challenge for flow companies is managing capacity, routing, and reliability under variable demand. They must balance the cost of excess capacity against the risk of congestion, and the efficiency of standardized routes against the flexibility to serve diverse needs.

Flow is distinct from production because it preserves what moves rather than changing it. A shipping company delivers the same goods it receives. A payment processor transfers the same money. The value added is in the movement itself—getting resources to where they are needed, when they are needed.

Many companies participate in flow activities, but not all are primarily defined by them. A manufacturer with its own distribution network still transforms products as its core function. Classification focuses on the dominant coordination role.