Embedding is accomplished by integrating your product directly into customer operations so the customer can't rip you out and replace you with a competitor without incurring significant cost in time, energy, or both. In other words, embedding directly heightens switching costs as part of the process of user adoption.

Embedding can work with network effects to make your business more defensible, but they are separate concepts.

Examples of embedding include Workday, Oracle, or SAP - and as these examples show, embedding is more prevalent when customers are organizations, not individuals (it's difficult to embed in personal life "operations"). That being said, embedding does exist for B2C products - think of Google drive or iCal.