Introduction To SAP Master Data Governance
Introduction To SAP Master Data Governance
on SAP S/4HANA
Overview
SAP
January 2025
Public
Agenda
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Tackling the master data challenge
Typical structural business dynamics
Master data management is an integral part of the solution
Digital Transformation
Integrating digital technologies and solutions into every area of business, RISE with SAP
Mergers/Acquisitions or Divestitures
Acquisition, joint venture vs. reorganized business area (for example, as independent company)
Corporate Restructuring
Change organizational units in landscape accordingly
Digital transformation is a game changer that inevitably triggers activities to improve and harmonize master
data across the enterprise. The same applies for ongoing business dynamics.
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Digital transformation and master data
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Typical business process challenges
Master Data Management is an integral part of the solution
Consistent master data helps to avoid process disruptions and unreliable analytics across lines of
business. Automation in the provisioning of consistent master data is crucial.
Optimized Asset Utilization
Sales Effectiveness
▪ Ability to use technical assets to capacity
▪ Consolidated customer view across all
channels ▪ High product quality due to well maintained
production systems
▪ Transactions driven by full picture of the facts
▪ Minimized safety risks for maintenance staff
▪ Collaborative sales and promotion planning
and operators
LoB customer LoB procurement LoB finance LoB production Other LoB
qu
fin
Create master data in line with business
alit
De
processes (such as integrated product
y
Enterprise
development or supplier management)
master data
SAP Master Data Governance
Imp
y
a lit
application – consolidation
rov
qu
qu r SAP Master Data Governance
e
Consolidate master data into a single view a lit i to
y M on – data quality management
for accurate analytics and operational
insight (continuously or on request, such as Manage master data quality by defining,
for initial load or mergers and acquisitions) enforcing, monitoring, and improving quality
Systems not under central governance
Legacy systems Reporting and analytics Business networks Cloud
Typical approaches are supported: Central governance with distribution, decentralized ownership with consolidation, and data quality monitoring with remediation.
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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 geared towards automation. It
provides preconfigured, domain-specific master data governance to monitor and correct potential data quality issues, to
centrally create, change, and distribute, or to consolidate master data across your 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
Organizations running
Organizations running SAP Organizations running hybrid
SAP S/4HANA Cloud private edition
S/4HANA Cloud public edition landscape; focus: aligned core data
(or SAP S/4HANA on-premise)
SAP S/4HANA Private Cloud Edition, SAP S/4HANA Public Cloud Edition, SAP Master Data
master data governance master data governance Governance, cloud edition
Target state across all versions: same processes, user experience, extensibility, different data models (based on the underlying platform)
Public *) Scope enhancements to cover central governance planned according to SAP Roadmap Explorer. Initially for business partner, then product. 9
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.
SAP Master Data Governance, product portfolio and key capabilities
Options to centrally-manage or federate your master data governance
SAP S/4HANA Private Cloud Edition, master data governance and SAP Master Data Governance on SAP S/4HANA
▪ Can be used as one enterprise-wide hub to centrally-manage core and application attributes based on S/4HANA data models, for
customer, supplier, product, financial, enterprise asset and retail master data, and is open for custom-defined objects
▪ Is provided on SAP S/4HANA on-premise or private cloud edition
▪ Open for federation: Can be used as the core data owner and application data owner in federated MDG deployments
This presentation is about SAP S/4HANA Private Cloud, master data governance and SAP Master Data Governance on SAP S/4HANA (on-
premise)
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SAP Master Data Governance
Product description
All domains and processes
Service and
Order to cash Procure to pay Design to order Acquire to retire
maintain
Key capabilities
Enterprise
The application for master data
Customers Finance Vendors Products Assets Location
the entire enterprise
master data management All use cases and implementation styles
Manage data quality
Continuous quality management and remediation
Ensure high data quality by continuously measuring, analyzing and correcting quality issues
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
SAP Master Data Governance ensures high-quality master data in SAP Master Data Governance
heterogeneous and hybrid application landscapes, providing the
basis for flawless business transactions across LoBs, and reliable Central Data
Governance
Master Data
Consolidation
Data Quality
Management
enterprise analytics.
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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
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
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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
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SAP Master Data Governance, Central Governance
Process flow
Business Processes
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Adapt
Adapt
Adaptation / enrichment
in local systems
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Central governance
Effective governance in single and mass processing
In a nutshell…
Centrally govern the creation, change, and distribution of master data across the complete enterprise system landscape to
ensure that master data complies with company standards when it is activated.
Business value
• Proactive approach to ensure that master data complies with
company standards when it is activated
• Organizations can ensure flawless business processes and
trustworthy analytics right from the start
• Out-of-the-box business content (data models, UI, process
templates)
• Broad domain coverage and extensibility
• Single and mass processing
• Geared towards automation (for example, automated field
population in creation or change processes via data provider
integration or rule-based derivation
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SAP Master Data Governance on SAP S/4HANA and its rich business content
Not a toolbox, but a suite of tailored applications according to business needs
*Solution extension
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SAP Master Data Governance on SAP S/4HANA
Integrated object models in detail
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
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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
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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)
There are two key aspects in the context of master data management
and automation incl. artificial intelligence (AI):
1. Master data management plays a pivotal role for digital
transformations.
➢ For example, by providing the underlying high-quality data layer for
AI-based processes.
2. For effective master data management, SAP Master Data
Governance has various features for process automation in the
provisioning of high-quality data. For example:
➢ Detect and make use of hidden patterns in master data processing using
ML-based rule mining
➢ Integrate services for automated address validation
➢ Auto-populate fields in master data processing via attribute
recommendation or derivations
➢ Use proven reference data from external sources to prefill fields in
business partner processing
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SAP Master Data Governance in hybrid landscapes
Synchronized master data across on-premise and on-demand solutions
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 …
On-Premise
Systems
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SAP Master Data Governance for business transformation (example use case)
Prepare and govern your data for a successful migration to SAP S/4HANA
Know prevailing data quality to Gain valuable experience Centrally govern master data
provide proactive assurance of in your new SAP S/4HANA creation, maintenance and
high-quality data assets to environment with master data distribution to help ensure quality
drive business transformation. consolidation across and reduce effort.
sources and domains.
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MDG Supporting Central Finance (SAP S/4HANA Finance)
Data consistency in central finance scenarios
Universal Journal
SAP HANA Entry
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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
*Further domains planned for future releases, please see SAP Road Map Explorer.
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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.
Deployment options: centrally-managed or federated governance
Centrally-managed MDG:
Central Owner Application 1
Typical deployment variant where organizations take centralized control on all
enterprise-wide relevant master data attributes.
• SAP MDG can be the central hub that owns (centrally governs) core and Application 2
application data and distributes these accordingly in the application landscape.
• Many centralistic organizations take this monolithic hub-and-spoke approach. Core Data and
Application Data
Owner Application 3
Federated governance:
Optional deployment to add agility for organizations with several SAP S/4HANA
systems:
• Applications can form an MDG network with clear data ownership concept Unit 1 Application Data Owner
Core Data Owner
orchestrating the data processes between a central core data owner (CDO) and
contributing application data owners (ADOs).
Unit 2 Application Data Owner
• Best suited for organizations pursuing to balance central and de-central control Corporate
on master data according to the business context
• Combines advantages of central master data management with advantages of
Unit 3 Application Data Owner
a decentralized approach. Application Data Owner
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Summary
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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.
Learn more about SAP Master Data Governance
► SAP Community
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