Professional Documents
Culture Documents
Introduction To SAP Master Data Governance
Introduction To SAP Master Data Governance
Public
Agenda
Public 2
Tackling the master data challenge
Typical structural business challenges
Master Data Management is an integral part of the solution
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
Public 4
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
Public 5
All lines of business
Are impacted by master data quality issues
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
master data in local financial manage master data in different ▪ Customer transactions are supplier selection and
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
Public 6
Typical approaches to master data management
Central governance and distribution / de-central ownership and consolidation
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
Public 7
SAP Business Technology Platform: Data and Analytics
Includes SAP Master Data Governance
Application
Analytics &
Planning
User SAP Analytics ➔ Third-Party
Business Intelligence Enterprise Planning Augmented Analytics
Cloud Data Lakes
• Microsoft Azure
• AWS
• Google Cloud
Analyst
Business • Alibaba Cloud
SAP Datasphere SAP Master Data
Data Fabric
(Converging SAP Data Warehouse Cloud and SAP Data Intelligence Cloud) Governance ➔ SAP
Applications
Data Modeler / Self-service Data Processing and
Orchestration Data Ingestion Data Master Data Data Quality
Engineer data access discovery persistency Governance Consolidation Management ➔ Unstructured Data
➔ Streaming Data
Database
SAP HANA Data Multi-Model Data Federation Intelligent Data
Cloud Storage Engines Replication Applications ➔ Non-SAP
Developers Applications
& DBAs
Lifecycle Management Machine Learning Security & Authorization Data Privacy & Protection
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
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
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
projects, …
► Experts collaborate to define Strategic: enable achievements,
► Tools to fix data and to improve
needed quality level and required ► Rule-based checks in all define new initiatives
checks at point of entry
checks processes of SAP MDG
► Easy to consume monitoring
► The system helps to identify and trend reporting
additional meaningful rules
Business value
Define Quality Enter Quality Monitor Quality Improve Quality
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 Records” Validate best records Provide consolidated
smart data integration, and check data address data on customer-specific based on approved against backend master data for
non-HANA based SAP quality based on matching rules match groups customizing to verify analytical or
Possibility to connect
ETL mechanisms, backend whether records can operational use
to 3rd party tools for BRF+ can be used for
non-SAP ETL options, customizing Review match result be activated
standardization and customer-specific
or data import from Option to activate
enrichment Best Record
file Validate against directly, or indirectly
Calculation
Usage of BRF+ for ctrl. governance triggering post
standardization and Review Best Record checks (BAdI, BRF+) processing using
enrichment Calculation result central governance
Public 15
Master data consolidation
Create a single source of truth of your customer, supplier, and product data
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
Public 16
Mass processing
Effective process to execute mass changes for attributes
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
Public 17
SAP Master Data Governance, Central Governance
Process flow
Business Processes
5
Adapt
Adapt
Adaptation / enrichment
in local systems
Public 18
Central master data governance (classic mode)
Create master data in-line with business processes
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
Public 19
SAP Master Data Governance
Application for Enterprise Master Data Management
Commodity
Order Type Bank Code Currency Code Dunning Key Divisions Inco Terms
Code
Public 20
SAP Master Data Governance
Integrated Object Model
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
Maintenance Items Purchase Info Record
Purch.
Cost Center / Document Link
Supplier Attributes Customer Attributes Purchasing Org / Vendor / Site
Hierarchies Measuring Points
Sales Data General Data General Data
Profit Center / Task Lists Stores Distribution Cntrs.
Bill of Material
Company
Purchasing Data Tax Indicators Additionals Article Hierarchy
Validity Data, Material Data, Texts
Production Version Substitution Additional Texts
MRO
Consolidation:
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 Prometheus Group *** SAP MDG, retail & fashion mgmt. extension
by Prometheus Group
Public 21
SAP Master Data Governance Application Foundation
Tailor and extend content and processes in central governance (classic mode)
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
▪ Preconfigured 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
Public 22
End-to-end integration in heterogeneous landscapes
SAP Master Data Governance
SAP S/4HANA
Some examples of SAP Master Data MDG co-deployed on SAP S/4HANA,
Governance integration scenarios: MDG feeding SAP S/4HANA systems
(e.g. provide MDG key mapping for Central Finance)
Business-led integration
SAP Master Data Governance External Authorities
Procurement
provides interfaces based on a Integration of supplier onboarding
Validate addresses versus external references,
tax jurisdiction codes via Vertex, or identify denied
(e.g. integration with
process choreography for easy end- SAP Ariba Supplier Lifecycle Experience (SLP)
parties, etc..
(e.g. SAP Business Partner Screening to check
to-end integration… against lists of persons and organizations
published by governments
…not just technical interfaces and institutions across the world)
Customer
Knowledge Providers
Not only for SAP Relationship Mgmt. / CX
SAP Master Data Governance Allow for de-central look-up and ad-hoc SAP Use trusted information for data creation
and change processes, etc.
replication, or for de-central creation
provides open interfaces to integrate and subsequent global governance
(e.g. SAP CX integration when
MDG (e.g. Data Provider Integration to take over trusted
reference data in master data creation and change)
with every solution as needed prospects become customers)
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
using extendable SOA services
Customers
Prospects
Cloud
• 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
Move to the cloud at your own speed
Key
mapping
SAP ERP…
Inquiries
• A master data hub (like MDG) that synchronizes master data across on- Fulfillment …
premise and on-demand solutions is a prerequisite for your system landscape Invoicing …
Public 24
SAP Master Data Governance
Prepare and govern your data for a successful migration to SAP S/4HANA
Leverage data profiling and Gain valuable experience Centrally govern master data
assessment to understand in your new SAP S/4HANA creation, maintenance and
current makeup and quality to environment with master data distribution to help ensure quality
provide proactive assurance consolidation across and reduce effort.
of high-quality data assets to sources and domains.
drive business transformation.
Universal Journal
SAP HANA Entry
Public 26
Latest Key Innovations and Summary
Introducing “Cloud-Ready Mode” and Federated MDG
With SAP Master Data Governance on SAP S/4HANA 2023 See blog post on SAP MDG on S/HANA 2023
governed where it is best understood: SAP MDG on SAP master data governance
Globally harmonized: Not used: Not addressable: Core master data: Application master data:
Public 29
Summary
Public 30
Learn more about SAP Master Data Governance
► SAP Community
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.