Introducing SAP Master Data Governance

Objectives

After completing this lesson, you will be able to:
  • Explain the SAP Master Data Governance solution.
  • Explain the SAP Master Data Governance product portfolio.

SAP Master Data Governance Capabilities

The SAP Master Data Governance cycle consists of 5 steps. It starts with an out-of-the-box delivery, offers an integrated object model, enables governance, collaboration, and high-quality data, delivers robust data due to replication, and allows the reusability and extensibility of the data domain, depending on your needs.

The following figure shows the main capabilities of SAP Master Data Governance.

The image shows the 5 steps of SAP Master Data Governance cycle: out-of-the-box delivery, integrated object model, governance, collaboration, and high-quality data, robust data replication, and reusability and extensibility.

Out-of-the-Box Delivery

This section introduces the out-of-the-box capabilities of SAP Master Data Governance that speed deployment and lower total cost of ownership. It previews how preconfigured workflows, best‑practice data models, data quality services, and built‑in integration deliver flexibility, transparency, and easy consumption across SAP and non‑SAP landscapes.

Out-of-the-box delivery means low TCO, workflow flexibility, ease of consumption due to pre-delivered configurations, best practices, process transparency, and integration.

The high cost of implementing and running software solutions increases total cost of ownership (TCO). A co-deployment of SAP Master Data Governance on an existing SAP ERP or SAP S/4HANA system reduces the TCO.

Flexibility is one of the biggest advantages of SAP Master Data Governance. SAP Master Data Governance allows you to customize almost everything. For example, change request types, rule-based workflows, screens, and even the underlying data model can be extended.

SAP Master Data Governance is easy to consume and ready to run. It comes with standard roles, workflows, and pre-defined workflow inboxes for processing change requests, with user interfaces for data maintenance or approval, interfaces for integration to SAP BusinessObjects data services, and so on. This allows customers to immediately start with a proof-of-concept. It avoids what is often one of the most costly parts of any other master data management implementation - the reuse of existing processing logic in the back end.

The pre-delivered, best practice data models of SAP Master Data Governance are based on the models in the SAP Business Suite. Hence, they are already proven in the SAP business context across multiple applications and industries.

Master data governance behaves similarly to master data applications in SAP Business Suite, especially in the sense that master data governance uses the exact same validations that existing master data transactions use.

To replicate data from master data governance into other systems, it uses established replication mechanisms (such as existing IDoc templates), thus providing an out-of-the-box integration mechanism into SAP Business Suite. Additionally, it provides the means to replicate to non-SAP systems (for example, using Enterprise Services).

Integrated Object Model

The figure illustrates the available domain-specific, out-of-the-box solutions, provided by SAP, and the implementations, performed by customers, using the application framework.

SAP Master Data Governance is an out-of-the-box solution offering different domains, such as Business Partner, Customer, Supplier, Material, and Financial master data. Additionally, customers can license partner offerings for retail and fashion management master data and technical asset master data. You can extend all domains using the SAP Master Data Governance application framework.

The out-of-the-box domain solutions include:

  • SAP Master Data Governance for customer data (corporate, company, and sales related data, partner functions)

  • SAP Master Data Governance for supplier data (corporate, company, and purchasing related data, partner functions)

  • SAP Master Data Governance for material data (corporate, sales org, plant, storage, warehouse, valuation and costing data)

  • SAP Master Data Governance for financial data (financial accounting / consolidation data, companies, profit and cost centers)

  • SAP Master Data Governance for retail and fashion management* (single and generic article, listings, hierarchies, characteristics for variants, and so on)

  • SAP Master Data Governance for enterprise asset management data* (equipment, functional location data, MRO bills of material, and so on)

Note

The solution extensions (marked with *) are available as add-ons. They are not an integral part of the SAP S/4HANA shipment. However, the software license for the solution extension can be purchased directly from SAP and support is provided through the SAP Support Portal.

The figure provides an overview of the out-of-the box delivery of proven data models for operational and financial master data used in central governance with SAP Master Data Governance.

SAP Master Data Governance Integrated Object Model provides an overview of the out-of-the box delivery of proven data models for operational and financial master data used in central governance. Master Data for Enterprise Asset Management and Master Data for Retail and Fashion Management are partner solutions.

SAP delivers data models for Financials, Material/Product, and Supplier/Customer (based on the overarching business partner model). Extensions for Enterprise Asset Management and for Retail and Fashion Management are partner offerings.

Governance and Collaboration

The SAP Master Data Governance solution strategy uses principles that represent the people-centric and flexible goals of the solution.

In general, the processes of the solution can be adapted and tailored to the customer's needs.

This includes the following:

  • Workflows can be linear, distributed, or started immediately.

  • Clear roles and responsibilities follow a task-oriented approach.

  • Process steps can be added using either a flexible rules-engine or reusing existing logic.

  • Data in the governance process is separated but can be transferred to the operational database in a very controlled mode.

In summary, this fosters flexibility and user acceptance while ensuring governance.

The SAP Master Data Governance solution offers linear or distributed workflows, which can be adapted to customer needs. Depending on roles and responsibilities, different persons on the customer side are allowed to create, change, or approve change requests. While working on the data, SAP Master Data Governance ensures data consistency due to different data repositories.

Data Quality

Prevents the Creation of Duplicates
  • Checked early and embedded in the process
  • High detection quality of matching using SAP S/4HANA or Enterprise Search
  • Increases effectiveness and efficiency
Enables the Reuse of Existing Validation Rules
  • Existing validation logic can be reused
  • Custom validations can be modeled and programmed (for example, code lists, simple checks, or rules using BRFplus)
  • Rules can be integrated from Data Quality Management in Master Data Governance
Shows What's Changed
  • Changes by earlier processors, along with your own (unsaved) changes, are shown in two colors
  • Previous, changed, and last-saved values exist per attribute
  • Available for all fields, including table cells, rows, navigation elements, and so on.
Helps People do their Tasks
  • Supports the processor to decide on their next action
  • Supports approvers to quickly spot what they need to approve
  • Supports auditors to easily see what was changed
Provides Transparency on What's Happened in the Past
  • Change documents provide information on who changed which attribute, when they changed it, and from what value to what other value
  • Workflow logs show who was involved in the change request process and who approved which data change
High data quality prevents the creation of duplicates, allows for the reuse of existing validation rules, tracks when a change of master data occurs and shows what changed, and supports people to do their tasks.

Data Replication

Once you have maintained and approved the master data on the central master data governance system, you can replicate it to the relevant SAP and non-SAP systems. Master data governance offers the Data Replication Framework (DRF) that supports you to organize and execute the data replication.

The DRF framework sits on top of established replication mechanisms, such as ALE/IDoc and Enterprise Services. The purpose of the DRF is to support you in keeping track of what needs to be distributed and what has been distributed successfully or not, regardless of the various replication mechanisms. In DRF, systems can subscribe to the distribution of master data based on certain filter criteria; for example, only materials for plant 1000, with material type FERT, are distributed to system XYZ.

DRF also helps in monitoring the distribution and in resolving errors.

In addition, master data governance can handle things like key mapping (keeping different historical keys for existing master data in decentralized systems, while only maintaining the data once centrally). It also manages value mapping (allowing distribution to systems that might have a different understanding of the values of an attribute. For example material type FERT in one system might be called PROD in another systems).

The Data Replication Framework (DRF) allows a robust data replication using different replication techniques, such as Application Link Enabling (ALE), Services Oriented Architecture (SOA), or the Core Interface (CIF). It allows flexibility in replicating master data as well as monitoring and error handling.

Replication Status Information

Replication Status Information:

  • Overview of replication status per customer/supplier to all relevant target systems
  • Status per target system:
    • Green: OK
    • Yellow: OK, but answer from target system still pending
    • Red: Error occurred
  • Detailed log per target system available.
Find more information regarding the replication of master data in the Replication Status Monitor.

Selection of Target Systems

Activate option per Change Request type in IMG under Master Data Governance→Central Governance→General Settings→Process Modeling→Change Requests→Create Change Request Type.

You can enter the required target system explicitly during Change Request processing. These target systems are considered in addition to the target systems automatically determined by the filter logic.

Pooled or Direct Replication

You can decide if you want to enable direct replication or pooled replication for each combination of business object and target system. With direct replication, the messages are sent with the activation of the change request. With pooled replication, the messages are sent periodically using the DRF change pointer:

  • Direct Output

    Changes are directly transferred to a target system.

  • Pooled Output

    Changes are collected and transferred in a mass process at a later point in time.

DRF allows two replication methods: direct replication or pooled replication for each combination of business objects and target systems.

You can trigger the mass process for pooled output by starting or scheduling the report Execute Data Replication (RDRF_MESSAGE_OUT) for the relevant replication models.

Reusability and Extensibility

A major focus has been put on reuse and extensibility in master data governance.

You can reuse extensions in the SAP Master Data Governance data model that were made on SAP Master Data in the SAP Business Suite. You can also reuse business logic that you created in SAP Business Suite, for example, to validate newly created master data.

SAP Master Data Governance offers flexibility and extensibility features to adapt the standard to your needs. That means you can benefit from the out-of-the-box capabilities of SAP Master Data Governance, which can be extended.

The reusability and extensibility of SAP Master Data Governance allows customers to reuse the existing data structures and functionality of SAP S/4HANA. You can enhance the functionality of SAP Master Data Governance based on predefined content or customer-specific extensions. You can also extend data structures, such as data models or user interfaces, by nodes and fields.

SAP Master Data Governance Solutions

A Single Application for Enterprise Master Data Management

SAP Master Data Governance supports various use cases and implementation styles leveraging central governance, consolidation, mass processing, and data quality management.

SAP Master Data Governance supports various domains and processes, such as Order to Cash, Procure to Pay, Design to Order, Service and Maintain, and Acquire to Retire. It also supports different use cases and implementation styles, such as continuous quality management and remediation, periodic consolidation for analytical purposes, consolidation for Initial load before central governance, consolidation for M&A, central governance only, or a coexistence hybrid approach.

SAP Master Data Governance - Central Governance Process Flow

Central Governance with SAP Master Data Governance allows domain-specific enterprise master data management to centrally govern the creation, change, and distribution of master data across your complete enterprise system landscape.

The main steps of the central governance process are Maintain, Validate, Approve, and Replicate your master data. If required, you can adapt or enrich master data in local systems.

Central governance enables you to do the following:

  • Provide central ownership of master data in line with a company’s business rules and processes.

  • Work with out-of-the-box master domains or use the built-in framework to create your own master data domains.

  • Put change request-based processing of master data in place in your enterprise with integrated workflow, staging, approval, activation, and distribution.

  • Deploy SAP Master Data Governance as a separate hub system or co-deploy it with SAP S/4HANA. In both cases, SAP Master Data Governance can use SAP and company-specific business logic to create master data ready to be used in a company’s business processes.

An example of a process flow is as follows:

  1. An LoB user requests the creation or change of a master data object by opening a change request.

    This starts the central maintenance of master data in a staging area.

  2. The entered data is validated by business rules (also open for integrating third-party data providers).
  3. Domain experts give their approval until the data is complete and ready for final approval.
  4. Only then, the data can be activated and replicated to subscribing systems.
  5. In the local systems, information that is locally relevant, and therefore not under central governance, can be added.

SAP Master Data Governance - Consolidation

Consolidation is a highly effective capability for master data specialists seeking a single source of truth for customer, supplier, and product data.

The figure shows the process flow of the consolidation process.

The consolidation process consists of the following steps Data Load, Initial Check, Standardize, Match, Calculate Best Record, Validate, and Activate.

Business Value

SAP Master Data Governance enables consolidation for customer, supplier, and product data, based on an intuitive and flexible process with a consumer-grade user experience, through the SAP Fiori user interface.

Some key benefits of the SAP Master Data Governance consolidation process are as follows:

  • A highly effective data processing option for master data specialists

  • An easy-to-use UI to visualize all data during a consolidation process (drill-down, show changes, match review, best record review)

  • Confidence and transparency when loading large volumes of data through statistics, change indicators, and the ability to validate prior to activating the data

  • Configurable matching capability to identify duplicates inside loaded records and against existing records

  • A wizard-like UI to upload source data into the system

  • Background execution that enables users to close the application while processing continues

    Users can check the status or proceed with their work later.

SAP Master Data Governance - Mass Processing

Mass processing with SAP Master Data Governance provides a highly effective mass change process, enabling master data stewards to perform bulk changes in business partner, customer, supplier, and product data.

The figure shows the Mass Processing process flow.

The Mass Processing process consists of scope definition, selection of master data, maintenance of the selected data, a validation step, and lastly the activation of the master data.

Business Value

The SAP Master Data Governance Mass Processing solution enables you to:

  • Update multiple master data records at a time

  • View statistics on changed fields and validate the data for business transaction use before activating the changes

  • Upload changed records from a CSV or Microsoft Excel © file to incorporate offline processing and other information sources

Some key benefits of the SAP Master Data Governance mass processing process are as follows:

  • Highly effective data processing option for master data specialists

  • Efficiently edit individual fields or make bulk changes 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 the 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 a CSV or Microsoft 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

SAP Master Data Governance - Data Quality

Data Quality Management with SAP Master Data Governance is a business-user application used to define master data quality rules. Data Quality Management strives for consistent usage across all points of entry and enables data quality monitoring and remediation.

The figure shows the corresponding process flow.

The Data Quality Management process in SAP Master Data Governance consists of the following steps: Define Quality, Enter Quality, Monitor Quality, and Improve Quality.

SAP Master Data Governance - Process Analytics

Process Analytics with SAP Master Data Governance is a business user application to analyze the performance in master data processing.

Process Analytics in SAP Master Data Governance provides a summary dashboard and analytical list pages displaying relevant process information, such as the number of open change requests, the total number of change requests, overdue change requests, or the number of processed business partners.

Business Value

Some key benefits of the SAP Master Data Governance Process Analytics process are as follows:

  • One-stop information on prevailing process quality in central governance, consolidation, and mass processing

  • Intuitive navigation and drill-down for detailed analysis of process-quality issues

  • SAP Fiori-based process analytics for governing master data

  • Summary dashboard and analytical list pages displaying relevant process information at a glance

SAP Master Data Governance - Application Foundation

SAP Master Data Governance provides a framework that allows you to tailor and extend processes in central governance. That is, extending data models, creating your own custom objects, or adjusting processes and UX to tailor the central governance processes to your needs.

With the application foundation, you can extend existing data models with your own master data attributes. You can change the UI configuration depending on your users' needs or customize the workflow and distribution.

Business Value

Some key benefits of the SAP Master Data Governance Application Foundation are as follows:

  • Pre-configured data models, user interface configurations, workflows, and data distribution are adjustable.

  • Extend existing data models with your own master data attributes.

  • Change the UI configuration to your users’ needs.

  • Customize the workflow and distribution to define your specific governance processes.

  • Tools allow you to define new objects and related processes to govern your own master data domains.

SAP Master Data Governance Product Portfolio

SAP Master Data Governance is a state-of-the-art master data management solution. It provides out-of-the-box, domain-specific master data governance to centrally create, change, and distribute, or consolidate master data across your complete enterprise system landscape.

Customers can choose between several installation options for SAP Master Data Governance. SAP offers SAP S/4HANA Cloud Private Edition, master data governance for organizations running SAP S/4HANA Cloud private edition or SAP S/4HANA on-premise. SAP S/4HANA Cloud Public Edition, master data governance is the choice for organizations running SAP S/4HANA Cloud public edition. Last but not least, organizations running hybrid landscapes focusing on aligned core data can run SAP Mater Data Governance, cloud edition.
SAP S/4HANA Cloud Private Edition, master data governance and SAP Master Data Governance on SAP S/4HANA
  • Use this option as an enterprise-wide hub to centrally manage core and application attributes, based on SAP S/4HANA data models for customer, supplier, product, financial, enterprise asset and retail master data, and for custom-defined objects

  • Available on SAP S/4HANA (on-premise) or SAP S/4HANA Cloud Private Edition

  • Open for federation: Use it as the core data owner and application data owner in federated master data governance deployments

SAP S/4HANA Cloud Public Edition, master data governance

  • Enables master data management in SAP S/4HANA Cloud Public Edition

  • Applicable for business partner (customer, supplier) and product master data

SAP Master Data Governance, cloud edition

  • Offers governance on core attributes for business partner master data, based on the SAP One Domain Model (more domains planned)

  • Available as a subscription to a SaaS solution in the public cloud

  • Enables kick-start of master data governance initiatives for business partner data at low entry barriers

Deployment and Landscapes

There are two ways of deploying SAP Master Data Governance on SAP S/4HANA:

  1. Hub Deployment: SAP Master Data Governance can be deployed as a hub system with master data from one or more systems fed into the solution for verification before being replicated to the source systems and other systems. This deployment option can use SAP S/4HANA database technology depending on requirements.

    Advantages:

    • Fresh start with cleansed data

    • Not tied to other system maintenance cycles

    • No additional load on existing systems

    • Higher flexibility with mapping

    • Increased flexibility for master data lifecycle management

  2. Co-Deployment: SAP Master Data Governance can be co-deployed on a number of local SAP S/4HANA systems or co-deployed on a single SAP S/4HANA system and reused across the landscape for central governance.

    Advantages:

    • No latency for data replication and no cross-system monitoring

    • No system integration required and no implementation and monitoring for replication

    • No additional integration of additional external services

Install SAP Master Data Governance either as hub deployment or as a co-deployment on your SAP S/4HANA or SAP ERP.

SAP Master Data Governance in the context of SAP S/4HANA

The SAP Master Data Governance roadmap is fully aligned with the SAP S/4HANA roadmap.

SAP Master Data Governance allows you to consolidate or distribute your master data across all systems.

SAP S/4HANA does not change the role of SAP Master Data Governance.

Distribute or consolidate master data across all systems in the landscape:

  • SAP Business Suite Systems
  • SAP S/4HANA Systems
  • Other SAP Systems
  • Non-SAP Systems

SAP Master Data Governance can be integrated with SAP S/4HANA:

  • SAP S/4HANA can be a distribution target for SAP Master Data Governance
  • Central finance can leverage master data governance’s centralized master data and key mapping for aligned postings
  • SAP Master Data Governance can be co-deployed on SAP S/4HANA (on-premise)

In preparation for moving to SAP S/4HANA, use the SAP Master Data Governance Consolidation process to prepare a high-quality master data repository without duplicates. Use the SAP Master Data Governance Central Governance process prior to, or in parallel with, SAP S/4HANA go-live to keep data clean in the long term.

Use SAP Master Data Governance, Consolidation, for preparing a high-quality, master data repository without duplicates in preparation phase for the SAP S/4HANA implementation. Switch to SAP Master Data Governance, Central Governance, prior to, or in parallel to go-live with SAP S/4HANA to keep high-quality data clean in the long term.

SAP Master Data Governance helps to get and keep master data clean. SAP Master Data Governance ensures data quality and readiness before an operative SAP S/4HANA implementation and reduces the risks for deployment and operations. It is a good way to establish strong governance processes that will help you maintain master data quality after SAP S/4HANA go-live. It is also a good way to get experience with a controlled subset of SAP S/4HANA before a full blown implementation.

Master Data Governance Integration: Heterogeneous Landscapes

SAP Master Data Governance stands for business-led integration by providing interfaces based on a process choreography for easy end-to-end integration (not just technical interfaces).

SAP Master Data Governance provides open interfaces to integrate with every solution as needed. In addition, for SAP-to-SAP integration, the solution provides out-of-the-box integration content.

SAP Master Data Governance stands for business-led integration by providing interfaces based on a process choreography for easy end-to-end integration (not just technical interfaces). It provides open interfaces to integrate with every solution needed. Additionally, SAP Master Data Governance provides out-of-the-box integration content.

Synchronized Master Data Across On-Premise and On-Demand Solutions

Use SAP Master Data Governance to keep all systems in sync in cloud or on-premise systems. Master data creation can happen in on-demand systems, on-premise systems, or in SAP Master Data Governance on SAP S/4HANA. Decentralized creation triggers a process in SAP Master Data Governance on SAP S/4HANA. After approval, enriched high-quality master data is replicated to all relevant cloud and on-premise systems.

Out-of-the-box, yet adaptable integration can be implemented based on standard capabilities and synchronization. For example, using extendable SOA services. Any system can be involved as the source and/or target system, with pre-built integration for selected SAP systems.

A master data hub (like master data governance) that synchronizes master data across on-premise and on-demand solutions is a prerequisite for your system landscape simplification and your step-by-step move to the cloud.

Use SAP Master Data Governance to keep all systems in synch in cloud or on-premise systems. With this prerequisite you can simplify your system landscape and move step-by-step to the cloud.

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Business Example

You want to maintain a business partner in your SAP S/4HANA system. As the business partner does not exist in your system, you have to replicate the business partner from your master data governance system to the connected client system.

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