Introduction To SAP Master Data Governance
Introduction To SAP Master Data Governance
Functional overview
August 2022
PUBLIC
Contents
Company Carve-
out Company Carve-
out
Divestitures
Business area organized as independent company, subsidiary spun off, part of company sold
Corporate restructuring
Change organizational units in landscape accordingly
Consolidate IT landscapes
Merge systems, harmonize system landscape, provide cross-system functions, reduce TCO
Ongoing business dynamics and one-off events like M&A, divestitures or corporate restructuring
inevitably trigger activities to improve and harmonize master data across the enterprise
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Typical business process challenges
Master Data Management is an integral part of the solution
Operational excellence across LoBs is always fueled by consistent master data helping to avoid
process disruptions and unreliable analytics.
▪ Consolidated customer view across all ▪ Ability to use technical assets to capacity
channels ▪ High product quality due to well maintained
▪ Transactions driven by full picture of the facts production systems
▪ Collaborative sales and promotion planning ▪ Minimized safety risks for maintenance staff
and operators
▪ Enabled real time collaboration with partners ▪ Readiness to cope with information needs
in supply chain and product development from IoT and Big Data
▪ Faster throughput of higher volumes through ▪ Ability to exchange trusted master data
supply chain to the end customer
Enterprise with business partners
MDM ▪ Ability to respond to mobile needs
Procurement Decisions
Finance Effectiveness
▪ Transparent picture of suppliers and products
▪ On-time group closes
▪ Cost savings due to fact-based supplier
▪ Accurate IT resource planning
selection and rationalization
▪ Business flexibility
Challenges
▪ Inconsistent financial master data ▪ High master data maintenance ▪ Lack of consistent consolidated ▪ Lack of transparency relating to
across the enterprise costs view of customer data across suppliers and products
all channels ▪ High costs due to insufficient
▪ Manual efforts to update financial ▪ Need for multiple systems to
▪ Customer transactions are supplier selection and
master data in local financial manage master data in different
compromised due to a limited rationalization
systems domains view of the facts ▪ Loss of potential for benefit
▪ Risk of non-compliance to IFRS, ▪ Lack of flexibility in dynamic realization (i.e. discounts,
SOX etc. business environments conditions, central contracts)
▪ Slow group closes ▪ Limited availability of up-to-date
▪ Lack of transparency about master data in my business
changes (who, what, when, why) network
LoB customer LoB procurement LoB finance LoB production Other LoB
All typical approaches are supported: central governance with distribution, decentralized ownership with consolidation, data quality monitoring with remediation
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *) not available with SAP MDG on ERP 7
SAP Master Data Governance
Consistent high-quality master data for your entire organization
SAP Master Data Governance is a state-of-the-art master data management application, providing preconfigured,
domain-specific master data governance to monitor and correct eventual data quality issues, to centrally create, change,
and distribute, or to consolidate master data across your complete enterprise system landscape.
Quality Management
▪ Define master data quality rules, striving for consistent usage across all points of data entry,
and enabling data quality monitoring, analysis and remediation
▪ Observe and investigate master data management process quality to enable optimization
This presentation is focused on SAP Master Data Governance on S/4HANA Lead to Source Recruit Design to
NEW
Cash to Pay to Retire Operate
SAP Master Data Governance, cloud edition
▪ Offers governance of core attributes for customer and supplier master data
based on the SAP One Domain Model (more domains planned)
▪ Is provided as a subscription to a SaaS solution in the public cloud
▪ Cornerstone for federation: Enables federation by orchestrating master data mgmt.
capabilities in MDG on S/4HANA, as well as other application-specific components*
Get data clean Consolidation for M&A (or for MDG rollout to more regions/units)
Enable data consistency via consolidation every time it comes to an acquisition or, for example,
Keep data clean when onboarding master data for more regions, while continuously running central governance
“The solution is ensuring far greater transparency and a much sharper risk focus.”
Alex McDonald, AIT Forensic & Compliance Manager, Imperial Tobacco
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Functional overview of
SAP Master Data Governance on S/4HANA
SAP Master Data Governance, Data Quality Management*
Process flow
Requirements are defined based on Ensure quality at point of entry Operational motivation: detect Correct data and drive the
your company’s business processes issues before processes fail correction process
Consider all entry-points: single
Priorities are set according to value, changes, mass changes, load Tactical: ensure progress and Fix data entry processes
impact, and quality evolution scenarios, in daily business, performance of current activities
Evolve the definition of quality
► Experts collaborate to define needed projects, …
Strategic: enable achievements,
► Tools to fix data and to improve
quality level and required checks ► Rule-based checks in all define new initiatives
checks at point of entry
► The system helps to identify processes of SAP MDG
► Easy to consume monitoring
additional meaningful rules and trend reporting
Karl Singer
Steven Olsen
Steven Olsen
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *) not available with SAP MDG on ERP 14
Master data quality management*
Improve the quality of your business partner and product data
In a nutshell …
Business user application to define master data quality rules, striving for consistent usage across all points of entry
and enabling data quality monitoring and remediation.
Business value
Define Quality Enter Quality Monitor Quality Improve Quality
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *) not available with SAP MDG on ERP 15
SAP Master Data Governance, Consolidation
Process flow
Calculate Best
Data Load Initial Check Standardize Match Validate Activate
Record
Open to SAP HANA View loaded data Validate and enrich Find duplicates based Create “Best Validate best records Provide consolidated
smart data integration, and check data address data on customer-specific Records” based on against backend master data for
non-HANA based quality based on matching rules approved match customizing to verify analytical or
Possibility to connect
SAP ETL backend groups whether records can operational use
to 3rd party tools for
mechanisms, customizing Review match result be activated
standardization and BRF+ can be used for
non-SAP ETL options, Option to activate
enrichment customer-specific
or data import from file Validate against directly, or indirectly
Best Record
Usage of BRF+ for ctrl. governance triggering post
Calculation
standardization and checks (BAdI, BRF+) processing using
enrichment Review Best Record central governance
Calculation result
In a nutshell …
Highly effective data consolidation option for master data specialists seeking the single source of truth for
customer, supplier, and product data.
Business value
Enable consolidation for customer, supplier, and product data Data Initial Calculate
based on intuitive and flexible process with consumer-grade Load Check
Match
Best Record
Validate Activate
In a nutshell…
Highly effective mass change process enabling master data stewards to perform bulk changes in business
partner, customer, supplier, and product data.
Business value
▪ Highly effective data processing option for master data specialists
▪ Efficiently edit individual fields or make bulk changes by using a tabular UI
with the ability to filter and sort data
▪ Confidence and transparency when changing large volumes of data through
statistics, change indicators and ability to validate prior to activating changes
▪ Packaging, queuing, and parallelization contribute to enhanced performance
even when processing large volumes of data
▪ Upload changed records from CSV or Excel© file to incorporate offline
processing and other information sources
▪ Background execution enables users to close the application while processing
continues. Users can check the status or proceed with their work later.
Business Processes
5
Adapt
Adapt
Adaptation / enrichment
in local systems
In a nutshell …
Domain-specific enterprise master data management to centrally govern creation, change, and distribution of
master data across your complete enterprise system landscape.
Business value
Maintain Validate Approve Replicate Adapt
Out-of-the box applications and openness to extend the scope
▪ SAP MDG for financial data
(financial accounting / consolidation data, companies, profit & cost centers)
▪ SAP MDG for supplier data
(corporate, company, and purchasing related data, partner functions)
▪ SAP MDG for customer data
(corporate, company, and sales related data, partner functions)
▪ SAP MDG for material data
(corporate, sales org, plant, storage, warehouse, valuation & costing data)
▪ SAP MDG for enterprise asset management data*
(equipment, functional location data, MRO bills of material,…)
▪ SAP MDG for retail and fashion management*
(single & generic article, listings, hierarchies, characteristics for variants,…)
▪ Foundation for flexible adjustments of data models, processes, user
interfaces, and to define governance for custom-defined master data objects
* available as Solution Extension for selected SAP MDG releases
Sales Distribution
Country Code Tax Code Material Group Activity Type Document Type
Organization Channel
Commodity
Order Type Bank Code Currency Code Dunning Key Divisions Inco Terms
Code
Out-of-the box delivery of proven data models for operational and financial master data
Financials Material Supplier & Customer Enterprise Asset Mgmt. ** Retail & Fashion Mgmt. ***
Asset Structures
GL Account* /
Basic & Classification Data
General Data & Work Centers Descriptions Units of Measure
Chart of Accounts Descriptions Central Data Roles
Tax Bill of Material
Equipment Master
Work Management
P&L Statement Classification Business Partner Relationships
& Procurement
Purch.
Maintenance Items Purchase Info Record
Cost Center / Document Link
Supplier Attributes Customer Attributes Purchasing Org / Vendor / Site
Hierarchies Measuring Points
Sales Data General Data General Data
Profit Center / Stores Distribution Cntrs.
Bill of Material
Company Header: Identifying and Quantity,
Purchasing Data Tax Indicators Additionals Article Hierarchy
Validity Data, Material Data, Texts
Production Version
MRO
Consolidation: Substitution Additional Texts
Item, Group & Contract Account Attributes Item: Detail, Quantity, Status, Document Management System
Value
FMS
Break Down Category Material Ledger General Data Partner-specific Data Text and Document Assignment Segmentation Seasons
* User interface integration between GL Account and Cost Element only supported in SAP MDG on SAP S/4HANA ** SAP MDG, enterprise asset mgmt extension by Utopia *** SAP MDG, retail & fashion mgmt. extension by Utopia
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22
SAP Master Data Governance Application Foundation
Tailor and extend content and processes in central governance
Feature description
Extend data models, create your own custom objects or adjust processes and UX to tailor the central governance
processes to your needs.
Business value
▪ Pre-configured data models, user interface configurations,
workflows, and data distribution are adjustable
▪ You can extend the existing models with your own master
data attributes, change the UI configuration to your users’
needs, and customize the workflow and distribution to
define your specific governance processes
▪ Tools allow you to define new objects and related
processes in order to govern your own master data domains
Customer Enterprise
Not only for SAP Relationship Mgmt Resource Planning
SAP Master Data Governance Allow for de-central look-up and ad-hoc SAP Material master data validated and ready to
replication, or for de-central creation be used in purchasing, production, storage,
provides open interfaces to integrate and subsequent global governance
(e.g. user interface in de-central SAP ERP
MDG sales, transportation, accounting, etc.
(e.g. re-use of SAP ERP validations in MDG)
with every solution as needed to search customers remotely in MDG hub)
All systems always in synch Real-life customer example: SAP MDG managing prospect
and customer data between cloud and on premise systems
▪ Master data creation can happen in on-demand systems, on-premise
systems, or in SAP MDG on S/4HANA
▪ De-central creation triggers a process in SAP MDG on S/4HANA
▪ After approval, enriched high-quality master data is replicated to all
relevant cloud and on-premise systems
Opportunities
▪ Can be implemented based on standard capabilities, synchronization
Customers
Prospects
Cloud
e.g. using extendable SOA services
▪ Any system can be involved as source and/or target
▪ Pre-built integration for selected SAP systems Enrich Validate Approve
SAP ERP
SAP Master Data Governance SAP ERP
Key
mapping SAP ERP…
Inquiries
▪ A master data hub (like MDG) that synchronizes master data across on- Invoicing …
On Premise
Systems
Hybris,
SAP S/4HANA does not change the role of SAP Master Data Ariba
Governance
▪ Distribute or consolidate master data across all systems in the landscape: SAP SAP ERP
Business Suite systems, SAP S/4HANA systems, other SAP and non-SAP
systems… SAP SRM,
SAP MDG SAP CRM, …
Integration with SAP S/4HANA is available today
... ...
▪ SAP S/4HANA can be a distribution target for SAP Master Data Governance
SAP S/4HANA
▪ Central Finance can leverage MDG’s centralized master data & key mapping for
aligned postings
▪ SAP Master Data Governance can be co-deployed on SAP S/4HANA on 3rd Party
Systems
premise
3rd Party
Cloud
Systems
Usage scenario:
▪ Use MDG, Consolidation, for preparing a high-quality,
1
Get data clean de-duplicated master data repository in preparation
phase for the SAP S/4HANA implementation
▪ Switch to MDG, Central Governance, prior to, or in
parallel to go-live with SAP S/4HANA to keep high-
2 quality data clean in the long term
Keep data clean
Universal Journal
SAP HANA Entry
The clean master data from SAP MDG enables you to accelerate your enterprise software
journey, and to enable new digital business models. For example:
▪ SAP MDG supports your system landscape simplification and move to the cloud with synchronized
master data across on-premise and on-demand applications
▪ Leverage SAP MDG’s harmonized master data and SAP’s platform capabilities to connect
transactional and IoT or other big data, and derive real business value
▪ Mobilize your business with simplified master data access and efficient scenarios
for request, approval, or to monitor KPIs and trends
▪ MDG helps preparing a SAP S/4HANA move: get experience with a controlled subset, ensure master
data quality before the implementation and maintain quality after go live
– Video
Extended Portfolio and Additional Deployment Options for SAP Master Data Governance,
discussing the concept of federation and the purpose of SAP MDG, cloud edition in this context
– Article
Extended Portfolio and Additional Deployment Options for SAP Master Data Governance,
very similar content as in the above video for everyone who prefers reading
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