Enterprise Architecture

TOGAF® Agile Architecture in Practice: Understanding Landscape and the Three-Layer Model (Strategy, Segment, Capability)

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.

Summary Classification Model for Architecture Landscapes

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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