SAP

Master Data Goverance

Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

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Customer Voice for Master Data Management within Organization
Challenges in Master Data Governance Business Impact across LOB

• Decentralized Master Data Management resulted Business

Business process
process disruption
disruption
in inadequate process standardization

• Inability to define and exercise own business rules

to ensure master data integrity Accuracy
Accuracy of
of business
business transaction
transaction

• Lack of people and process collaboration allows to

creates incomplete or erroneous master data
Reporting
Reporting Quality
Quality
records

• Identifying and preventing duplicate master data

records from being used in business transaction Business
Business Decisions
Decisions

• No provision for Continuous Data Quality

Monitoring to identify anomalies and fix it Operational
Operational Excellence
Excellence
• Required KPI to track in the turn around time,
master data record accuracy and cost per master
Customer
Customer Satisfaction
Satisfaction
data record

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Key expectations from Master Data Management initiative
• Collaboration of Master Data Stewards across LOB in seamless manner to innovate the MDM processes

• Maintain master data record, only once, at central place and propagate to multiple ERP systems (OC and OP)

• Seamless MDG operation through integrated workflow, connected assets (interfaces) and process automation

• Validation while creating or changing master data records as company's business rules to ensure data integrity

• Auto duplicate check while creating or changing the master data records to fix the problem at source

• Parallel processing of master data records (singe vendor extend to 2 company codes via 2 separate work item

• Continuous data quality monitoring based on self-defined business rules for active master data accords

• Tools to cleansing of duplicate, obsolete or unused master data records from existing legacy ERP systems

• SLA based monitoring of master data change request to reduce the turn around time

• Simple to track the changes to master data records with old and new field values

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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

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Customer Voice for Master Data Management within Organization

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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 9

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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 15

SAP MDG : Solution Architecture

SAP Portal SAP NW BC SAP FIORI

SAP Master Data Goverance

User Interface Authorization /Roles Work Center

SAP IS
Workflow Material Master Business Partner DRF SAP ERP
6 Validations 1
1
Finance Master Custom Objects1 Key Mappings 5
Data SAP S/4HANA
SAP BODS Staging Area Value Mappings 44
Custom Object 2 Custom Object N
Data Model Business Process Model Unser Interface Model
DQ Adapters Search & Duplicate Checks Analytics
SAP DQM /DQR SAP MDGC / Mass Microservices /AL
Change

Legends Solution Hotspots

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Master Data Deployment Strategies key decision factor
Key Business Criteria HUB Co-Deployment Influencing Parameters
Sustainable and Scalable Solution for • Clean and Lean approach
heterogeneous system landscape • Easy to manage Custom attributes to quality
reporting

Simple to upgrade to deploy new • Upgrade in-dependency on ERP in case of co-

business innovations from latest version deployment (which becomes roadblock)

Prerequisites (for backed ERP systems) • Example (for SAP MDG)

to operate key Planned Master data • SAP ECC EHP8 for Master Data Consolidation
Innovations • HAND DB for Fuzzy search
• S/4HAAN for Quality Remediations

Speed and User Experience • Hana database and associated benefits

• Hana Search functionalities
• SAP FIORI available on HANA
• Data Quality remediation works on HANA
TCO ( Deployment + Operating) • Additional hardware
• Meta Data Synchronization
• Data Distribution Framework Management

Most favorable Least favorable

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Architecture Principle

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We recommendation to run SAP MDG on S/4HANA
Why S/4HANA is 1st preference to RUN MDG
======================================

• Advance search and duplicate detection by

using SAP HANA fuzzy search

• SAP HANA information management services

for standardization & matching for high-
speed master-data consolidation

Preferred recommendation … • SAP HANA-based analytics providing real-

time “insight to action” through reliable
MDG process analysis (SLA compliance in
change request processing)
What is right choice to run SAP MDG…..! • In order to be on the competitive edge in
the digital age, SAP MDG on SAP S/4HANA • SAP’s overall strategy, the primary focus of
• MDG HUB on SAP ERP running any DB, will is clearly the way to go for new upcoming MDG innovations is on SAP
not have any impact, if S/4HANA added to installations, S/4HANA
solution landscape
• Existing implementations there is no rush • The only difference is that SAP MDG on SAP
• SAP ERP-based MDG can replicate data to SAP for conversion S/4HANA additionally provides a product-
S/4HANA systems in the landscape. data quality remediation capability which the
SAP ERP-based SAP MDG doesn’t.
• There is continued support for SAP MDG on
SAP ERP and on non-HANA databases, no • Today the functional gap is still small, but it is
need to change the database on which MDG expected to get wider and wider in the
is running future

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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 23

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 24
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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 26

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 27
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Content
• Challenges and Business Expectations in Managing Master Data

• Business use case for SAP MDG or Real-life challenges in manage the ECO-Systems

• Typical Approaches for Master Data (Consolidation and Central Goverance)

• SAP MDG Solution Architecture

• SAP MDG - Master Data Quality

• SAP MDG Capability / Solution Feature

• In Nutshell …What business will get out of MDG

©Larsen & Toubro Infotech Ltd. Privileged and Confidential 29

MDG : Value Proposition Canvas

3
y
2 Data Qualit
n
1 Remediatio
t h o f Version onitor the
Sin ge Tr u Facility to m
e c tiv e business from active
leads to e ff data quality
and quality s to remove
intelligence king data record es
decision ma the anomali

5 6

4
wn
m ewo r k to define o
Fra les
Business Ru
and
grity checks &
eck in te gr ity data inte fo r rev iew
Ch ta steward s
e th e da
determin Data
approve the

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 Key Success Criteria’s
and
Watch-outs for
Master Data Management
On-Cloud (OC) v/s On-Premise (OP) deployments
Key Criteria On-Premise On Cloud
Licensing Model • Traditional Licensing Subscription Licensing

Lower TOC ( by eliminating • System Infrastructure, deployment and System infrastructure and maintenance is
Infrastructure & Maintenance) maintenance is responsibility of a responsibility of SAP’s control
customer
Upgrade efforts • Planning, Upgrading , testing and • The automatic latest innovation upgrades
(Speed of Innovation) controlling is full responsibility of a happen quarterly without customer’s
customer participation
• Greater agility, flexibility and faster upgrades
cycle
Flexible and extensible data • High compliance with individual business Predefined best-practice configuration with limited
models to meet the business requirements and customization specialization
requirement
Functional Scope • Full range of features consolidated with • Medium companies who prefer light and flexible
highly flexible customization database platform to scale while growing
• Perfect for large enterprises with very • best option for companies that require a high-
well-proven business processes, which performance offer that covers their core business
they are not interested to change strategies
• Makes sense for rapidly growing enterprises

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Key Success Factors
• Effective change management is a focal area (MDG initiatives will transform business process & will change the way of managing
MDM)
• Success of MDG initiative is daunting without effective conversion strategy (Identify the data that is valuable & need to carryforward)
• It is decisive and should not underestimate the master data cleansing scope & effort, as it will makes or breaks the MDG initiative
• Create new master data records, as per new governance policies, instead of wasting time in cleansing unwanted master data
• Compromise to initial master data quality is compromise with planned business benefits
• Identifying, monitoring and executing the changes required in source ERP systems
• Policies to carry forward un-cleansed master data (to save the time) and continuous cleaning it in SAP MDG HUB
• Business Process demos during “Fit to Standard” workshops accelerate the buy-in process
• Monitoring and balancing the business benefits from process automation v/s required customization
• Lean and simple meta data management ensures smooth data replication
• Availability of SME for planned business workshops and UAT
• Stability of business requirements and quick alignment with SMEs avoids delays in freezing the requirements
• Effective communication to all stake holders to ensure required inputs in time

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Watch Outs…!!!
Balance between Process automation and Custom Development

Data Cleansing efforts and Schedule overruns

Tracking of failed messages and easy resolutions

Alters to track the anomalies from active records to corrections

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 Let’s
Solve