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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?
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
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 asked you to conduct interviews with the key stakeholders of Green Elk to assess the business strategy. You are planning to interview the owner of the business unit of finished goods. Which of the following sets of questions would you ask?
In the context of Green Elk & Company's strategic goal to expand in emerging markets, the most pertinent set of questions to ask the owner of the business unit of finished goods would focus on the transformation of the value chain and the competitive advantages that can be leveraged. Therefore, the best set of questions is represented by option C:
How is the value chain transformed?This question aims to understand the changes required in the current value chain to support the new business model targeting smaller farms with limited budgets. It's essential to identify which processes and interactions need to be adapted or redefined to meet the needs of the emerging markets.
Which parts of the value chain must be optimized?Optimization efforts should be directed towards the most impactful areas of the value chain that can drive efficiency, reduce costs, and improve service delivery in the context of the new markets.
What is the competitive advantage and what are the value potentials that can be realized through the transformation?Understanding the unique strengths of Green Elk & Company and how they can be harnessed to create value in the new business environment is crucial for the success of the expansion strategy.
Which business capabilities will be required or need to mature to support future business models?The company must assess its current capabilities and determine which ones need to be developed or enhanced to support the strategic goals effectively.
These questions are designed to elicit information that will help in crafting a business strategy that is aligned with the company's vision of feeding the world and achieving significant revenue growth in the targeted emerging markets.
SAP. (n.d.). SAP Enterprise Architecture Framework. SAP Community.
The Open Group. (2018). TOGAF Version 9.2: Enterprise Architecture Framework.
Porter, M.E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
Green Elk & Company is the world's leading manufacturer of agricultural and forestry machinery. The former company slogan "Eik always runs has recently been changed to "Eik 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 decision was taken to implement regional S/4HANA productive systems while ensuring a high degree of standardization. Which of the following implementation approach would you consider best in this case?
As the Chief Enterprise Architect for Green Elk & Company, the strategic goal of expanding into emerging markets with a new business model tailored for smaller farms requires a careful and considered approach to implementing S/4HANA productive systems. The best implementation approach in this scenario would bePhased by Application.
This approach allows for a gradual rollout of the S/4HANA system across different applications, which can be prioritized based on the most critical business needs and the unique requirements of each regional market. By implementing in phases, the company can ensure that each application is tailored to support the new business model effectively while maintaining a high degree of standardization across the regions.
The benefits of a Phased by Application approach include:
Risk Mitigation: By deploying one application at a time, the company can minimize the risks associated with a large-scale implementation.
Focused Attention: Each phase allows the project team to focus on specific applications, ensuring better quality and alignment with business needs.
Feedback Incorporation: After each phase, feedback can be gathered and incorporated into subsequent phases, aligning with agile principles.
Resource Optimization: Resources can be allocated more efficiently, with expertise focused on specific applications during each phase.
The other options, such as Big Bang, would involve a high-risk, all-at-once implementation, which is not suitable given the strategic and operational changes required. Small buck is not a recognized implementation strategy in the context of enterprise architecture. Phased by Company could be considered if the organizational structure was the primary concern, but given the focus on application alignment with the new business model, Phased by Application is the most appropriate.
SAP SE. (n.d.). Implementing SAP S/4HANA: A Framework for Planning and Executing SAP S/4HANA Projects. SAP SE.
The Open Group. (2018). TOGAF Version 9.2: Enterprise Architecture Framework.
SAP SE. (n.d.). SAP Activate Methodology. SAP SE.
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?
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.
What are important factors of the SAP BTP. Cloud Foundry environment during runtime that you need to consider?
In the SAP BTP Cloud Foundry environment, several factors are critical during runtime to ensure optimal application performance and scalability. The correct answer, A, highlights two fundamental aspects:
Programming language: This determines the specific buildpack to be used, as Cloud Foundry supports multiple programming languages through different buildpacks which provide framework and runtime support for applications.
Buildpacks: These are key components in the Cloud Foundry architecture that provide runtime and framework support necessary to build and deploy applications in various programming languages effectively.
These elements are crucial as they directly impact how applications are built, deployed, and run within the Cloud Foundry environment, influencing performance, compatibility, and scalability.
SAP BTP Cloud Foundry documentation.
Buildpacks and programming language support in SAP BTP.
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