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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?
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 a result of solution mapping, business capabilities might require services which partners have implemented in SAP BTP. Which SAP components and services, if any, are required to integrate such BTP partner services with an on-premise SAP S/4HANA system (hybrid scenario)?
In a hybrid scenario, where business capabilities require services which partners have implemented in SAP BTP and an on-premise SAP S/4HANA system, the following SAP components and services are required to integrate such BTP partner services with the on-premise system:
SAP Cloud Connector:The SAP Cloud Connector is a software component that allows you to connect your on-premise SAP systems to SAP BTP. The Cloud Connector provides a secure connection between your on-premise system and SAP BTP, and it also makes your on-premise system available to applications and services in SAP BTP.
SAP BTP Destination Service:The SAP BTP Destination Service is a service that provides a single point of entry for accessing on-premise systems from SAP BTP. The Destination Service makes it easy to manage and secure connections to on-premise systems, and it also provides a way to federate data from different on-premise systems.
In order to integrate BTP partner services with an on-premise SAP S/4HANA system, you will need to install the SAP Cloud Connector on your on-premise system and register the Cloud Connector with SAP BTP. You will also need to create a destination in the SAP BTP Destination Service for your on-premise system. Once you have done this, you will be able to access the on-premise system from applications and services in SAP BTP.
It is important to note that you can also use other SAP components to integrate on-premise systems with SAP BTP. However, the SAP Cloud Connector and the SAP BTP Destination Service are the most commonly used components for this purpose.
A custom web application developed with SAPUI5 and running on SAP Business Technology Platform uses large custom data objects deployed in a central data store (SAP HANA Cloud). The solution architect of the application is unsure about which tools to use for integration of this data from different SAP Sources into the central data store and asks you as the Enterprise Architect for guidance. Under which conditions is a data-oriented integration approach (Data Integration) preferable to other integration styles?
A data-oriented integration approach is optimal when dealing with diverse data sources and complex data requirements. This includes scenarios where the data is both structured and unstructured, changes rapidly, and needs significant processing such as cleansing, correlation, and partial recalculation. The advantage of this approach is that it centralizes data handling and transformation logic, allowing for more efficient data processing and integration into a central store like SAP HANA Cloud. Reference = SAP's guidelines on data integration recommend this approach when handling large and complex data sets that require intensive processing and are sourced from a variety of SAP and non-SAP systems. It is supported by SAP's data management and integration tools that are designed to handle such complexity and frequency of change.
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 new business model for smaller farms with smaller budgets. Given the principle and statement, which of the following combinations of rationale and implication do you consider well-defined?
A)
B)
C)
D)
The rationale and implication in this combination are well-defined because they both support the principle of using packaged solutions in a standard way. The rationale explains the benefits of using packaged solutions, while the implication outlines the steps that need to be taken to ensure that packaged solutions are used in a standard way.
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, a principle is a general rule or guideline that expresses a fundamental value or belief, and that guides the design and implementation of the architecture. A principle consists of four elements: a name, a statement, a rationale, and an implication. The name is a short and memorable label that summarizes the principle. The statement is a concise and precise description of the principle. The rationale is an explanation of why the principle is important and beneficial for the organization. The implication is a description of the consequences or impacts of applying or not applying the principle.
The principle in option D is:
Name: Use packaged solutions, in a standard way.
Statement: Buy packaged solutions that support our business requirements and use them in a standard way.
Rationale: Process and solution will be simplified by using packaged software in a standard way. Adherence to standard will allow better maintenance and lower the total cost of ownership. Increase the capability to adopt technology innovation.
Implication: In case custom developments are required, adhere to defined best practices, standards, and guidelines (extensibility concept, side-by-side extensions). Reuse before buy, before build. Enable easier transition to the cloud in the future.
This combination of rationale and implication is well-defined because it clearly and logically explains the benefits and consequences of following or not following the principle. The rationale shows how using packaged solutions in a standard way can simplify the process and solution, reduce the cost and effort of maintenance, and increase the ability to adopt new technologies. The implication shows how custom developments should be minimized and standardized, how reuse should be preferred over buying or building new solutions, and how cloud readiness should be considered for future scalability.
The other options (A, B, C) are not correct for the combination of rationale and implication that is well-defined because they either mix up or confuse some of the elements of the principle. For example:
Option A is not correct because it mixes up the rationale and implication elements. The first sentence of the rationale (''Process and solution will be simplified by using packaged software in a standard way'') is actually an implication of following the principle, not a reason for following it. The first sentence of the implication (''Reuse vendor and industry best practices, reference architectures and pre-delivered content'') is actually a rationale for following the principle, not a consequence of following it.
Option B is not correct because it confuses the rationale and implication elements. The first sentence of the rationale (''In case custom developments are required, adhere to defined best practices, standards, and guidelines (extensibility concept, side-by-side extensions)'') is actually an implication of following the principle, not a reason for following it. The first sentence of the implication (''Process and solution will be simplified by using packaged software in a standard way'') is actually a rationale for following the principle, not a consequence of following it.
Option C is not correct because it confuses the rationale and implication elements. The second sentence of the rationale (''Adherence to standard will allow better maintenance and lower the total cost of ownership'') is actually an implication of following the principle, not a reason for following it. The second sentence of the implication (''Reuse before buy, before build'') is actually a rationale for following the principle, not a consequence of following it.
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
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