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

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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.

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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.

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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”

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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

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Step 2: Segment → Capability

Decompose business domains into capabilities.

Example:

• SCM → Supply-Demand Planning
• PLM → Target Costing

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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

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Step 4: Backlog → Sprint Execution (Reference)

Translate into implementation plans.

Example:

• PLC configuration
• Master data setup
• IBP integration

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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.

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② System-Centric Decomposition

Designing based on SAP modules instead of business value.

Solution:
Re-define capabilities based on business requirements.

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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.

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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

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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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