Applying TOGAF® Agile Architecture in Practice: A Clear Guide Using Landscape and the Three-Layer Structure
1. Fundamentals of TOGAF® Agile Architecture: Landscape and the Three-Layer Model
To deepen your understanding of “Developing Architecture in an Agile Way” in TOGAF®, let’s explore a practical application example.
The Architecture Landscape in TOGAF® organizes architecture along two dimensions:
- Level of abstraction (granularity)
- Scope of application
This concept enables teams to maintain architectural consistency—even in Agile environments.
At the core of this approach is the three-layer model:
- Enterprise Strategic Architecture
- Segment Architecture
- Capability Architecture
These are not merely hierarchical layers. They form a decomposition and alignment structure that connects strategy directly to Agile delivery.
Quoted from The TOGAF® Standard, 10th Edition
2. Enterprise Strategic Architecture | Why: Why We Do It
Example Strategic Themes
- Ensuring profitability in the EV era
- Embedding profit at the design stage (target costing)
- Synchronizing global supply-demand and cost
Positioning
Defines enterprise-wide long-term vision and strategy.
Clarifies the “Why.”
Key Components
- Business strategy
- Digital strategy
- Enterprise KPIs / North Star
- Target Operating Model (TOM)
- Principles and governance
Relationship with Agile
This layer does not directly translate into sprints, but it defines all prioritization criteria.
Practical Example (Manufacturing / SAP)
- “Enable real-time global supply-demand integration”
- “Integrate PLM and ERP to enhance target costing”
→ These are decomposed into Segment and Capability layers
Key Takeaway
Do not leave strategy abstract.
It must be defined in a way that allows decomposition into capabilities.
3. Segment Architecture | Where: Where It Applies
Positioning
Defines architecture at the business domain or organizational level.
Clarifies the “Where.”
Example Segments
- Supply Chain Planning
- Procurement
- Manufacturing
- Finance
- PLM
Key Components
- Business processes
- Application landscape
- Data flows
- Organizational responsibilities
Relationship with Agile
Defines boundaries for:
- Teams
- Products
- Backlog classification
Example
- “Target Costing Product”
- “Supply-Demand Planning Product”
Practical Decomposition
PLM Segment
- Product planning
- Design
- Cost estimation
SCM Segment
- Demand planning
- Supply planning
- Inventory management
Finance Segment
- Cost management
- Profitability analysis
Each segment is further decomposed into Capabilities.
Key Takeaway
This is not the same as SAP module decomposition.
❌ Incorrect:
- SD / MM / PP
✅ Correct:
- Order-to-Cash (O2C)
- Source-to-Pay (S2P)
Focus on business value streams, not system modules.
4. Capability Architecture | What: What to Deliver
Positioning
Defines architecture at the business capability level.
Clarifies the “What.”
This is the most critical layer directly connected to Agile execution.
Key Components
- Business capabilities
- Functional decomposition
- Services / APIs
- Data ownership
Relationship with Agile
Forms the starting point of the backlog:
Capability → Features → User Stories
Practical Example (Supply-Demand Planning)
Capabilities
- Demand forecasting
- Supply simulation
- Constraint-based planning
Features
- AI demand forecasting
- Scenario comparison
- Available-to-Promise (ATP)
User Story
- “I want demand forecasts to be automatically updated weekly.”
Key Takeaway
Capabilities must be defined in terms of business outcomes, not system functions.
❌ Incorrect:
- “Run MRP”
✅ Correct:
- “Optimize supply planning based on demand”
5. Connecting the Three Layers in TOGAF® Agile
(Strategy → Segment → Capability → Sprint)
Step 1: Strategy → Segment
Break down strategic themes into business domains.
Example:
- “Reduce inventory” → SCM Segment
- “Ensure profitability at design stage” → PLM Segment
Step 2: Segment → Capability
Decompose business domains into capabilities.
Example:
- SCM → Supply-Demand Planning
- PLM → Target Costing
Step 3: Capability → Backlog
Translate capabilities into product modules and features.
Example:
- Supply-Demand Planning → SAP IBP
- Target Costing → SAP PLC
Key actions:
- Prioritize at the capability level
- Define MVP
- Align with sprint planning
Step 4: Backlog → Sprint Execution (Reference)
Translate into implementation plans.
Example:
- PLC configuration
- Master data setup
- IBP integration
6. Common Pitfalls in TOGAF® Agile and How to Avoid Them
① Disconnect Between Strategy and Agile
If strategy remains too abstract, it cannot be translated into Agile execution.
Solution:
Decompose strategy down to the capability level and ensure alignment before sprint planning.
② System-Centric Decomposition
Designing based on SAP modules instead of business value.
Solution:
Re-define capabilities based on business requirements.
③ Ambiguous Segments
When segments do not align with business value, team boundaries become unclear.
Solution:
Define segments based on value delivery and organizational accountability.
Conclusion
The essence of TOGAF® Agile is:
“A structured decomposition that enables strategy to flow directly into sprints.”
- Enterprise Strategic → Why (Direction)
- Segment → Where (Scope & Ownership)
- Capability → What (Execution Unit)
And most importantly:
“Capability is the bridge to Agile execution.”
By understanding this structure, organizations can maintain architectural consistency while effectively applying Agile in real-world scenarios.
Please refer to this article for topics related to Enterprise Architecture (EA).
Enterprise Architecture – Insight Arc | SAP, Enterprise Architecture & Supply Chain Strategy
Disclaimer
Parts of this article were developed with reference to generative AI suggestions and were reviewed, refined, and supplemented based on the author’s professional expertise and judgment.
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