Optimize master data management

In the past, many organizations have developed customized solutions with the aim of optimizing processes around SAP master data management. In this context, customer-specific workflow solutions were often developed for the approval processes surrounding the submission, enrichment and approval of master data requests. In the meantime SAP has developed a fully-fledged standard alternative: SAP Master Data Governance (MDG). This blog discusses the functionality of SAP MDG.

What is SAP Master Data Governance?

SAP Master Data Governance is an advanced, out-of-the-box master data management solution with domain-specific master data management for centrally maintaining, modifying and distributing master data. It provides the ability to consolidate all master data across the IT landscape. It makes use of various technologies present in the SAP NetWeaver platform, such as Workflow, Fiori, BRFPlus, etc.

SAP MDG ensures data integrity in both SAP and non-SAP systems to optimize business processes. This will lead to higher productivity, process consistency and time and money savings.

Important aspects within SAP MDG are:

  1. Governance - Enables governance, compliance and transparency of master data during creation and change requests through integrated staging, approval and central audit logging.

  2. Consistency - Enables consistent definition, authorisation and replication of master data. Eliminates error-prone manual maintenance processes for master data in multiple systems.

  3. Consolidation - consolidate master data from your business systems, create the best records and key mapping between duplicates, and consolidate with centralized management for high quality master data.

  4. Integration - Provides integration into SAP solutions, including reuse of data models, business logic and configuration for validation, while providing openness to integrate third-party services.

  5. Flexibility - Standard models can be extended to create governance for your own master data from your SAP and non-SAP environments.

  6. Data quality - measure process quality using SAP Smart Business and integrate with SAP Data Services & Information Steward quality, enrichment and recovery capabilities.

SAP Master Data Governance basically consists of 2 sub-solutions: a consolidation and a central management solution.

The figure below describes a simplified process flow of the governance functionality.

The advantages of SAP MDG

  1. SAP Master Data Governance out-of-the-box applications

  2. One trusted, "single version of the truth" of all system master data.

  3. Approval workflows for all your master data creation and change requests.

  4. Central creation and maintenance of master data across all SAP and non-SAP systems.

  5. Compliance around master data management.

  6. Audit trails when creating and modifying master data.

  7. Improvement of data quality.

  8. Reduce costs.

MDG User interfaces

SAP MDG uses role-specific user interfaces to simplify access to your master data. Tailor-made user interfaces support the efficiency of your users:

  • Each expert can use a special, role-specific user interface that best suits their role

  • Role-specific user interfaces can be configured within SAP MDG. No programming is required

SAP Fiori can be used for mobile use:

  • Simplify your master data management and involve all relevant people to participate directly in master data request processes;

  • Create efficient scenarios to request new master data, approve changes to master data or monitor KPIs and trends;

  • Accelerate your data provision and decision making by involving people anytime, anywhere in the process.

SAP MDG Architecture

Below is an overview of the SAP MDG architecture.

There are several SAP MDG implementation options. The most common are a central hub or co-deployment:

  • SAP MDG as stand-alone system: one dedicated master data hub;

  • SAP MDG as an add-on to an existing operational SAP ERP system

The main SAP technologies used within SAP MDG are:

The role of MDG in the context of SAP S/4HANA

The SAP MDG roadmap is fully integrated and aligned with the S/4HANA roadmap.

The role of a SAP MDG hub in a system landscape does not change:

  • Distribute master data to all systems in the landscape: non-SAP systems, SAP Business Suite systems or SAP S/4HANA systems, ...

  • Implementation on premise or private cloud support

  • Most companies use a SAP MDG system as their hub. Co-deployment with an existing SAP system is also supported.

A SAP S/4HANA migration is a perfect opportunity to validate your data quality:

  • Optimal business processes and accurate analyses depend on the high quality of your master data;

  • Supports your transition to SAP S/4HANA with master data consolidation in SAP MDG;

  • Supported after commissioning to guarantee the quality of your master data also in the longer term.

For questions or additional information on this subject, please contact Sander van der Wijngaart.

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