You design a Solution Architecture, based on SAP S/4HANA, for an internationally active customer that has a national subsidiary in China and other countries that have special requirements for data storage. As the responsible Enterprise Architect, your task is to propose a solution that takes these special requirements into account. How do you proceed when your customer's Architecture Guideline calls for following a "cloud-first" approach?
Answer : C
The customer's architecture guideline calls for following a 'cloud-first' approach, but this does not mean that all solutions must be deployed in the cloud. In some cases, private cloud or on-premise options may be necessary to meet the customer's data protection requirements.
For example, if the customer's subsidiary in China requires that data be stored within China, then a private cloud solution in China may be the best option. Similarly, if the customer's other subsidiaries have different data protection requirements, then a hybrid solution that combines cloud and on-premise deployments may be necessary.
The Enterprise Architect must carefully consider the customer's specific requirements and constraints before making a decision about the deployment environment.
Here are some of the factors that the Enterprise Architect should consider:
The customer's data protection requirements:The Enterprise Architect must understand the customer's specific data protection requirements and ensure that any solution meets those requirements.
The availability of cloud-based solutions that meet the customer's requirements:Not all cloud-based solutions meet the same data protection requirements. The Enterprise Architect must ensure that the cloud-based solutions that are being considered meet the customer's requirements.
The cost of different deployment options:The Enterprise Architect must consider the cost of different deployment options, including cloud, private cloud, and on-premise.
The scalability and performance requirements of the solution:The Enterprise Architect must ensure that the solution meets the customer's scalability and performance requirements, regardless of the deployment environment.
By carefully considering all of these factors, the Enterprise Architect can make a decision about the deployment environment that meets the customer's specific requirements and constraints.
Topic 2, Case Study -- Wanderlust
Introduction
Wanderlust GmbH, headquartered in Germany but with manufacturing facilities and sales globally, is a leading global manufacturer of conventional fuel driven cars. They are renowned for their best-in-class engineering, but not so much for aftermarket customer service. In recent years, Wanderlust has had limited success expanding into the market of electric vehicles. Following is Wanderlust's geographical manufacturing and supply spread:
Wanderlust offers one compact electric Sedan (model ELAN) and one compact electric SUV (model ELUV), each with three variants -- basic (LX), mid-range (VX) and high-end (ZX). Customers can also choose from a range of five metallic colors, two drive trains and two battery ranges.Overall, 50 different combinations are offered for all segments and variants put together.
Extracts from CEO Interviews -- Business Environment
Constraints/Issues
o Stiff water consumption regulations and enormous penalties for violation -- Lithium extraction is a
heavy water intensive process and mine locations are in very arid areas like the Australian outback
and Atacama Desert
o Significant dependence on external suppliers of Lithium batteries due to limited number of
manufacturing units, long lead times and high carbon footprint in all car manufacturing facilities except
Brazil.
o Long delays in spare battery availability, leading to an avalanche of unresolved battery related
customer complaints for vehicles under warranty
o Limited charging infrastructure, long charging cycles (as compared to refilling fuel) and slow resolution
of battery related complaints.
o Dwindling in store footfall due to pandemic (for feature-based vehicle selection prior to test drive)
Wanderlust offers one compact electric Sedan (model ELAN) and one compact electric SUV (model ELUV), each with three variants -- basic (LX), mid-range (VX) and high-end (ZX). Customers can also choose from a range of five metallic colors, two drive trains and two battery ranges.Overall, 50 different combinations are offered for all segments and variants put together.
Extracts from CEO Interviews -- Business Environment
Constraints/Issues
o Stiff water consumption regulations and enormous penalties for violation -- Lithium extraction is a
heavy water intensive process and mine locations are in very arid areas like the Australian outback
and Atacama Desert
o Significant dependence on external suppliers of Lithium batteries due to limited number of
manufacturing units, long lead times and high carbon footprint in all car manufacturing facilities except
Brazil.
o Long delays in spare battery availability, leading to an avalanche of unresolved battery related
customer complaints for vehicles under warranty
o Limited charging infrastructure, long charging cycles (as compared to refilling fuel) and slow resolution
of battery related complaints.
o Dwindling in store footfall due to pandemic (for feature-based vehicle selection prior to test drive)
Extracts from CIO Interviews -- IT Environment
Extracts from CIO Interviews -- IT Environment
Strategic Priorities - IT
o Ease of usage
o Ease of Maintenance
o Total Cost of Ownership Optimization
o Time to Value Acceleration
Transformation Status
o Only at a conceptual stage -- no planning done yet
o Nascent architecture practice
o Unclear on supported processes, required capabilities, applications, and transition path
o Yet to identify, prioritize and sequence initiatives
As-Is Architecture
Wanderlust has a separate organization and setup for their Automobile and Aftermarket businesses
o Wanderlust is reluctant to consider cloud for Core applications due to data privacy concerns, but are
open for Collaboration applications
o Automobile business started off in Europe and grew through acquisitions in Asia and Americas
o Automobile business runs on three continental SAP ECC instances with inherited, disparate
processes, which need to move to S/4HANA
o Automobile business is also looking to harmonize their processes across the continents, adopt a
seamless, transparent global supply chain for batteries and consolidate the continental instances into
a global single instance, data regulations permitting
o Automotive business uses a highly complex custom developed dealer management solution on ECC,
which needs to be replaced
o Automotive business uses SAP APO, which is nearing end of lifecycle and needs to be replaced by
IBP (DP & SNP) & S/4HANA (PP-DS)
o Automotive business uses several bespoke non-SAP applications, which are considered
irreplaceable, except for the Marketing and Sourcing applications, whichare expensive to maintain,
seldom used and henceneed to be replaced
o Aftermarket business processes are largely uniform and handled through a single ECC instance which
also should move to S/4HANA
o Aftermarket business uses SAP SCM which is nearing end of lifecycle and needs to be replaced by
S/4HANA AATP (gATP) and eSPP (SPP)
Extracts from Interview with Enterprise Architect
Enterprise Architecture Dimensions & Maturity
o Wanderlust's Key EA Dimensions, their overall purpose and current maturity level
Top three priorities given the current maturity level, are as follows
o Stakeholder Involvement is the topmost priority, to create a Stakeholder Map that'll identify all key EA stakeholders within Wanderlust
o Business-IT Alignment is also a top priority, to anchor every IT initiative to a Business Strategy Map,
consisting of clearly defined strategic business objectives, tangible goals and measurable value drivers
o Architecture Development is the next priority, beginning with development of business architectures, followed by application architectures and finally opportunities & solutions planning
Enterprise Architecture Practice Structure (Current)
Enterprise Architecture Principles
o Wanderlust's Enterprise Architecture Principles are a collection of crisp and precise one liners
pertaining to business, application, information, integration, technology and security aspects of
transformation
o Some of the EA Principles in the repository are
These EA Principles serve as high level directional statements and long term guard rails to the above
six aspects of transformation programs & projects
o They should ideally correlate (many to many) with the Strategic Objectives, defined in the Business-IT
alignment EA Dimension -- this is yet to be done though
Which of the following are the best architectural decisions for an extension application in S/4HANA?
Answer : A
The decision for the extension model in S/4HANA should be based on the nature of the extension required. Developer Extensibility (in-app extensibility) is suitable for data-intensive extensions that need to operate within the context of S/4HANA. This is because it allows for direct access to S/4HANA's digital core and leverages the power of the HANA database. It is the recommended approach when the extension requires tight integration with core data and processes, ensuring high performance and data consistency.
On the other hand, Side-by-Side Extensibility on SAP BTP ABAP Environment is recommended when the extensions need to utilize additional SAP BTP services such as advanced analytics, machine learning, IoT services, or when creating new user experiences with SAPUI5. This decouples the extensions from the S/4HANA core, which can be beneficial in terms of flexibility, agility, and reducing the impact on the core system during upgrades.
Reference = These practices are supported by SAP's extensibility guide for S/4HANA, which explains the two extensibility models and their appropriate use cases. SAP documentation on ABAP Platform extensibility options provides further insights into when to choose each extensibility approach. SAP Best Practices for Extensibility in SAP S/4HANA guide provides a comprehensive view on how to extend the digital core effectively while maintaining system integrity and upgradeability.
Green Elk & Company is the world's leading manufacturer of agricultural and forestry machinery. The former company slogan "Elk always runs" has recently been changed to "Elk feeds the world". One of Green Elk's strategic goals is to increase its revenue in the emerging markets of China, India, and other parts of Asia by 80 % within three years. This requires a new business model that caters to significantly smaller farms with limited budgets. You are the Chief Enterprise Architect and the CIO asks you to assess the now business model for smaller farms with smaller budgets. By applying the Sustainable Business Model Canvas, which sequence of steps is best practice?
Answer : C
The Sustainable Business Model Canvas approach for assessing new business models, especially for smaller farms with smaller budgets, starts with understanding the unique value propositions tailored to the needs of small-size farm owners. This is crucial in creating offerings that resonate well with the target market's requirements and constraints. Following this, detailing customer relationships and channels becomes essential in establishing and maintaining a strong connection with the market segment, ensuring the delivery mechanism aligns with their preferences and capabilities. The next step involves identifying the key activities, resources, and partnerships necessary to deliver on the value proposition effectively, which is critical for operational execution and sustainability. Subsequently, defining the revenue streams and cost structure is paramount to ensure financial viability and strategic pricing that aligns with the target market's budgetary limitations. Lastly, delineating the eco-social benefits and costs integrates the broader impact of the business model, aligning with sustainable and ethical business practices, which is increasingly important for modern enterprises. Reference = This sequence is aligned with the methodologies proposed by Alexander Osterwalder in the context of business model development and specifically tailored by SAP for digital business modeling and value engineering within the SAP ecosystem. This approach encompasses strategies for optimizing business processes through value discovery workshops and the application of value management processes across various lifecycle phases (Source: SAP Enterprise Support Services documentation, Digital Business Modelling guidelines, and SAP Value Engineering methodologies).
The Wanderlust CIO, along with you, the Chief Enterprise Architect, are in the process of deciding on the application that can potentially replace your existing online marketing application, and you are trying to create the artifact Business Footprint Diagram for decision support ( See table below) Which of the following combinations of goals, business capabilities, and applications would you recommend? Note: There are 2 correct answers to this question,
Answer : C, D
Green Elk & Company is the world's leading manufacturer of agricultural and forestry machinery. The former company slogan "Elk always runs has recently been changed to "Elk feeds the world". One of Green Elk's strategic goals is to increase its revenue in the emerging markets of China, India, and other parts of Asia by 80% within three years. This requires a new business model that caters to significantly smaller farms with limited budgets. The CIO asks you, the Chief Enterprise Architect, to present an Architecture Roadmap that addresses the business challenge. According to the SAP Enterprise Architecture Framework, what is the best answer?
Answer : D
The SAP Enterprise Architecture Framework (EAF) defines an Architecture Roadmap as a 'high-level plan that describes the sequence of activities and deliverables required to achieve the target architecture.' The roadmap should be based on the artifacts of the previous phases of the EAF, such as the Business Strategy Map, the Solution Concept, and the Baseline Business and Solution Architecture.
The first step in creating an Architecture Roadmap is to define the initiatives that will be needed to achieve the target architecture. These initiatives should be aligned with the business outcomes that the organization is trying to achieve.
The next step is to detail the business capabilities and solutions that will be needed to support the initiatives. This will help to ensure that the roadmap is realistic and achievable.
Finally, the roadmap should be created in two versions: an outcome-based roadmap and an application-specific roadmap. The outcome-based roadmap will show how the initiatives will achieve the business outcomes. The application-specific roadmap will show how the solutions will be implemented.
By following these steps, you can create an Architecture Roadmap that will help you to achieve your organization's strategic goals.
Here are some of the benefits of creating an Architecture Roadmap:
It can help you to visualize the sequence of activities and deliverables required to achieve your goals.
It can help you to identify dependencies between activities and deliverables.
It can help you to track progress and to make adjustments as needed.
It can help you to communicate your plans to stakeholders.
Therefore, an Architecture Roadmap can be a valuable tool for managing complex transformations.
According to the SAP Enterprise Architecture Framework, which is a methodology and toolset by the German multinational software company SAP that helps enterprise architects define and implement an architecture strategy for their organizations, the steps involved in creating an Architecture Roadmap are:
Reuse the artifacts of previous phases as input for creating roadmaps. The previous phases of the architecture development cycle are: architecture vision, business architecture, information systems architecture, and technology architecture. The artifacts of these phases provide the information and guidance for defining the scope, objectives, stakeholders, requirements, constraints, and solutions of the architecture project. Some of the artifacts that can be reused for creating roadmaps are: stakeholder map, business strategy map, solution strategy, solution context diagram, solution component diagram, solution application use-case diagram, solution value flow diagram, etc.
Start with a roadmap construction table, by defining initiatives and business outcomes, and detailing the business capabilities and solutions. A roadmap construction table is a tool that helps to structure and organize the information and elements that are needed to create a roadmap. It consists of four columns: initiatives, business outcomes, business capabilities, and solutions. Initiatives are the strategic actions or projects that are planned to achieve the business goals and drivers. Business outcomes are the measurable results or benefits that are expected from implementing the initiatives. Business capabilities are the skills, resources, and competencies that are required or need to mature to support the initiatives and outcomes. Solutions are the products or services that are used or delivered to enable the capabilities and outcomes.
Create two versions of a roadmap (outcome-based and application-specific). A roadmap is a visual representation of the transition architectures that will move the organization from its current state (baseline architecture) to its desired future state (target architecture). A roadmap shows the sequence and timing of the transition architectures, as well as the deliverables, resources, and risks associated with each transition architecture. There are two types of roadmaps that can be created: outcome-based and application-specific. An outcome-based roadmap focuses on the business outcomes that are achieved by implementing the transition architectures. An application-specific roadmap focuses on the solutions or applications that are implemented or changed by the transition architectures.
The other options (A, B, C) are not correct for how to present an Architecture Roadmap that addresses the business challenge because they either skip or misrepresent some of the steps in creating an Architecture Roadmap. For example:
Option A is not correct because it does not include reusing the artifacts of previous phases as input for creating roadmaps, which is an important step to ensure alignment and consistency with the architecture project. It also suggests creating a work breakdown structure instead of a roadmap construction table, which is not a tool in this framework.
Option B is not correct because it does not include creating two versions of a roadmap (outcome-based and application-specific), which is an important step to provide different perspectives and levels of detail for the roadmap. It also suggests focusing on the target architecture instead of the transition architectures, which is not a logical approach since the latter determine how to achieve the former.
Option C is not correct because it does not include starting with a roadmap construction table, which is an important step to structure and organize the information and elements that are needed to create a roadmap. It also suggests focusing on the business strategy map instead of the initiatives and outcomes, which is not a sufficient level of detail for creating a roadmap.
While discussing the Smart Battery initiative in greater detail with the appropriate stakeholder, as Chief Enterprise Architect of Wanderlust, you discover that several key areas such as value proposition, cost structure, revenue streams, partners, and channels have been worked upon in isolation and therefore do not tally with each other. Which artifact would you recommend to bring all the above key dimensions together in a single window, to have a unified, consistent, holistic view of the Smart Battery initiative?
Answer : D
Value Proposition: The value that you deliver to your customers and the problem that you solve for them.
Customer Segments: The different groups of people or organizations that you aim to reach and serve.
Channels: The ways that you communicate with and deliver value to your customers.
Customer Relationships: The types of relationships that you establish and maintain with your customers.
Revenue Streams: The sources of income that you generate from your value proposition.
Key Resources: The most important assets that you need to create and deliver your value proposition.
Key Activities: The most important things that you do to create and deliver your value proposition.
Key Partnerships: The network of suppliers and partners that help you create and deliver your value proposition.
Cost Structure: The most significant costs that you incur to create and deliver your value proposition.
A Business Model Canvas is a useful artifact to bring all the key dimensions of the Smart Battery initiative together in a single window, to have a unified, consistent, holistic view of the initiative. By using a Business Model Canvas, you can:
Visualize the entire business model of the Smart Battery initiative on one page.
Identify the gaps, inconsistencies, or conflicts among the different elements of the business model.
Align the value proposition, cost structure, revenue streams, partners, and channels with the customer segments and their needs.
Test and validate your assumptions and hypotheses about the business model.
Iterate and improve your business model based on feedback and data.
As the Chief Enterprise Architect of your company you have been asked by the CIO to apply agile principles instead of following the sequential phases of TOGAFS ADM. How do you respond?
Answer : D
In the context of incorporating agile principles into the TOGAF's Architecture Development Method (ADM), Option D is accurate. The TOGAF ADM is inherently iterative and dynamic, which means that it doesn't strictly have to be a linear process. It allows for feedback at any stage of the development cycle and can be adapted to include agile practices. The SAP Enterprise Architecture (EA) Framework is built to be flexible and can incorporate agile principles, supporting rapid iterations and adaptive planning. The agile approach is integrated into the SAP EA Framework to enhance responsiveness and to enable a continuous delivery model that aligns with the iterative nature of the ADM. Agile principles can be applied within and across the different phases of the ADM, promoting a more flexible and responsive architecture development process that is suited for organizations following agile methodologies.
TOGAF documentation outlining the iterative nature of ADM.
SAP EA Framework documentation discussing integration with agile methodologies.