Managing digital transformation strategies, technology upgrades, and transitions to cloud-based software is a tough job in itself. Try thinking about how to keep your master data safe, secure, and organized in one place simultaneously, and you’ll probably feel a little overwhelmed.

Fortunately, this is where SAP Master Data Governance comes in. With simplified data management, governance, and consolidation capabilities, this solution will change how your master data is managed, making your life easier and the quality of your data better.

This article will give you an SAP Master Data Governance overview, highlight some of the key features and benefits of the solution, and help you understand how our SAP consultants can help.

What is SAP MDG?

SAP Master Data Governance (MDG) is a data management solution made to govern data across your entire organization and build the foundation for core data handling processes. SAP MDG makes it easier for companies to create, consolidate, change, and distribute data from a centralized location to their entire workforce.

SAP Master Data Governance’s automated workflows and centralized master data quality management solutions enable companies to improve data quality, integrity, and transparency across their organization. With more centralized, accurate, and relevant data, employees, managers, and company executives can make better, more informed decisions.

Master Data Governance on SAP S/4HANA

SAP Master Data Governance on S/4HANA, also known as the “Private Cloud Edition,” is based on the SAP S/4HANA data model and is delivered on-premise or in a privately owned cloud. This solution can help you not only improve the quality and accuracy of your master data record, but it can also reduce your total cost of ownership (TOC).

Here are a few main components of the S/4HANA-based SAP Master Data Governance solution:

  • Enterprise-wide, multi-domain master data management
  • Business Partner, Financials, Custom Objects, and Material data domains
  • Centralized Data Replication Framework
  • Quality master data management, consolidation, and central governance

Master Data Governance Cloud Edition

The SAP Master Data Governance Cloud Edition is based on the One Domain Model, focuses on core attributes only, and is delivered through the public cloud. The cloud SAP Master Data Governance solution has minimal barriers to entry. It offers the cloud functionality needed to control only master data governance scenarios at a pace that works for you and your team.

Here are the main features of the cloud-based SAP Master Data Governance solution:

  • Based on the SAP Business Technology Platform (SAP ABAP) architecture
  • Modular Master Data Management (MDM) approach
  • Customer and Supplier data domain
  • SAP Master Data Integration (MDI) replication framework
  • Centralized data governance, consolidation, and quality management

Key Benefits of Master Data Governance Software

Now that you know a little more about SAP Master Data Governance and its main editions, let’s chat about the major benefits of Master Data Governance for your organization.

  1. Central governance: Workflow routing and connected system notifications allow different organizational teams to govern their data more effectively. With MDG, SAP users can own and control their harmonized master data attributes, improving the transparency and compliance of essential data in the process.
  2. Data consolidation: Data governance in SAP makes mass updating and processing of large amounts of data easier by providing a single source of truth to connect all SAP and non-SAP data sources. SAP MDG consolidates master data within your system, simplifies duplicate mapping, and builds the most accurate record for your data.
  3. Quality of data and analytics: Integration with SAP Smart Business and Data Services simplifies data measurement to improve data quality across your organization. SAP data governance solutions help users build and manage business rules to control data quality and analyze the performance of essential master data.
  4. Seamless integration: SAP Master Data Governance comes with the capability to integrate seamlessly with other SAP modules and applications, including the reuse of data models, business logic, and validation standards. The solution also leverages a standard model to integrate SAP and non-SAP systems with ease.

How is SAP Master Data Management (MDM) Different?

While the SAP Master Data Governance tool helps govern the data across your entire organization, SAP Master Data Management (MDM) is used on specific platforms to perform master data validation and reconciliation across multiple systems.

With a solution like SAP S/4HANA MDM, your organization can take charge of its master data management initiative and leverage the robust integration and distribution functionality to manage and maintain data more effectively and efficiently.

SAP Master Data Management enables your team to:

  • Distribute data directly to your ERP system using process integration
  • Keep track of data changes with the functional MDM tool
  • Build context for complex data
  • Cleans, restructures, and rationalizes data within your SAP S/4HANA environment
  • Stores master data objects from SAP S/4HANA and non-SAP sources
  • Provides a central place to manage, maintain, and store important business data

Challenges and Key Considerations for SAP Master Data Implementation

Implementing SAP Master Data Governance (MDG) or Master Data Management (MDM) solutions can present several common challenges.

Data quality is often a significant issue, as organizations struggle to clean and maintain accurate master data across different systems and departments. Data governance is complicated by the need to establish data ownership and stewardship, as well as to enforce data standards and policies consistently.

Technical challenges may include data integration, data migration, and ensuring the scalability of the MDG/MDM system to handle growing volumes of data. Resistance to change within the organization can also be challenging, as employees may be accustomed to existing data management practices.

Tips for addressing SAP MDG challenges and mitigating risks

Data Governance Framework: Develop a robust data governance framework that includes data ownership, stewardship roles, and clear policies for data maintenance and quality.

Data Quality Tools: Implement data quality tools and practices to clean, validate, and standardize master data. Continuously monitor data quality to ensure ongoing accuracy.

Change Management: Develop a comprehensive change management strategy to address resistance to new data management processes. Communication, training, and user involvement are key components of successful change management.

Technical Expertise: Invest in technical expertise to manage data integration, migration, and system scalability. Engaging skilled professionals or consultants can help navigate complex technical challenges.

Data Migration Planning: Create a meticulous data migration plan to ensure a smooth transition from existing data systems to SAP MDG/MDM, minimizing disruptions and data inconsistencies.

Navigating regulatory and compliance concerns

Regulatory and compliance concerns are crucial when implementing SAP MDG/MDM, as organizations must comply with industry-specific regulations and data privacy laws. Companies should consider:

Regulatory Audits: Perform audits to identify relevant regulations and compliance requirements, such as GDPR, HIPAA, or industry-specific data protection laws.

Data Privacy Controls: Customize SAP MDG/MDM to align with specific regulatory requirements, such as data encryption, access controls, and data retention policies.

Continuous Monitoring: Establish processes for continuous monitoring and reporting to ensure ongoing compliance and address changes in regulatory requirements.

By taking proactive steps to address these common challenges, following best practices, and remaining vigilant about regulatory compliance, organizations can increase the likelihood of a successful SAP MDG/MDM implementation and achieve improved master data management across the enterprise.

How Can We Help?

Your company. Your needs. Our expertise. That’s the way we roll at Surety Systems.

Whether your team needs help building a corporate master data management strategy, an extra hand consolidating large volumes of data between systems, additional support integrating SAP Master Data Governance strategies across your organization, or anything in between, Surety Systems can help.

Our team of senior-level, US-based SAP consultants has the skills and experience needed to guide your team through complex data governance, consolidation, and analysis processes.

Even better, we’ve included a sample profile of one of our top-tier SAP Master Data Governance consultants to give you a better idea of what to expect when partnering with our team.

Surety Senior SAP Master Data Governance Consultant

  • US Citizen
  • 25+ years of SAP MDM/MDG experience
  • Optimized and standardized SAP Supply Chain, Production Planning, and Finance applications design
  • Well-versed in handling the majority of SAP Master Data Objects; Srong with SAP Master Data Workflows
  • Experience with large-scale system Implementation, Integration, Interfaces, and Data Conversion
  • Comfortable in SAP S/4HANA, including Fiori Applications, Data Governance, & Data Strategy

Contact us today to learn more, or get started with one of our SAP experts.