sap master data governance - all questions...sap master data governance capabilities – element 1...

SAP Master Data Governance Overview

May 2014 – including SAP Master Data Governance 7.0 SP02 (Feature Pack)

© 2013 SAP AG. All rights reserved. 2 Customer

Master Data Challenges Materialize Across the Organization

Reduced Sales Effectiveness

Lack of consolidated view of customer data across all channels

Customer transactions are compromised due to limited view of the facts

Sub-optimal Procurement Decisions

Lack of transparency relating to suppliers and products

High costs due to insufficient supplier selection and rationalization

Delayed Go-to-Market Process

Failure to capitalize on market opportunity when introducing new products

Lack of real-time collaboration with front office, thus hindering customer services

Ineffective Business Decisions

Lack of consistent information impedes to make critical decisions supporting innovation

Compromised business dynamics with negative impact on managing resources effectively


All Lines of Business are Impacted by Master Data Quality

High master data

maintenance costs

Need for multiple systems

to manage master data in

different domains

Lack of flexibility in dynamic

business environments

Lack of consolidated view of customer data across all channels

Customer transactions are compromised due to limited view of the facts

Lack of transparency relating to suppliers and products

High costs due to insufficient supplier selection and rationalization

Loss of potential for benefit realization (i.e. discounts, conditions, central contracts)

Limited availability of up-to-date master data in my business network

Inconsistent financial

master data across the

enterprise

Manual efforts to update

financial master data in

local financial systems

Risk of non-compliance to

IFRS, SOX etc.

Slow group closes

Lack of transparency about

changes (Who, what, when,

why?)

Organizations & Roles

Challenges

IT

CIO CFO VP of Supply Chain,

VP of Planning

Financials Sales

(S)VP of Sales, (S)VP

of Sales & Marketing

Supply Chain


SAP Master Data Governance Centrally Govern Master Data on top of SAP Business Suite

SAP MDG is a natural extension of the business processes running in

SAP Business Suite, providing out-of-the-box, domain-specific master data

governance to centrally create, change and distribute master data.

Governance Enables governance, compliance and transparency through integrated staging, approval and central audit trail

Consistent Data Delivers consistent definition, authorization and replication of key master data entities for SAP. Eliminates error prone manual maintenance processes for master data in multiple systems

Integration Native integration with SAP Business Suite and SAP ERP, as well as supplier qualification (via SAP SLC), and NW MDM

Re-use Re-use of SAP data model, UI and existing business logic and configuration for creation and validation of master data

Flexibility Allows to extend the existing models or define new objects and related processes in order to govern own master data domains

Data Quality Leverages SAP Data Services for data quality and enrichment as well as SAP Information Steward for data remediation


Maintain Validate Approve Replicate

Adapt

3rd party systems

Business

Suite

systems

Business Processes

SAP Master Data Governance Process Flow Archetype

Master Data Governance

Central

maintenance of

master data in

staging area

Automatic replication to

non-SAP and SAP

systems

Adaptation /

Enrichment in

local systems 5

Maintain Validate Approve Replicate

Adapt 5

External Providers External Services

Re-Use existing business logic

Integrate external services

Data Enrichment, Address

Cleansing, Duplicate Check

Collaboration

Adaptable Workflow

Auditable Change Process


User Centered Design Work Center Provides Work Lists, Search and Applications


Creating a Change Request Let the System Check for Business Consistency and Duplicates


Role-specific User Interfaces For Example, a Lean Request for a new Vendor

Lean Request for New Vendors

Very easy / intuitive user interface

focusing on the data to get the

process started

Enable all people in the company to

submit a request for a new vendor,

also people without ERP knowhow

Can replace any forms or paper-

based process, with full integration

into data validation, workflow

process, e.g. no “move” of data

from a form to the master data

management system needed

Specialist will pick-up the process

and then complete the data

Several attributes can be derived

automatically from data provided by

the user


SAP Master Data Governance Capabilities Establish Best Quality Master Data to Optimize Business Processes

Re-Usability

& Extensibility

Governance,

Collaboration

& Data Quality Robust Data

Replication

Integrated

Object Model

Deliver

Out-of-the-Box

SAP Master

Data Governance

1

2

5

4 3


SAP Master Data Governance Capabilities – Element 1 Deliver Out-of-the-box

Out-of-the box data replication mechanisms, using stable mechanisms

Deliver a Data Model proven by several applications & industries

Workflow flexibility closely integrated to a framework for defining business rules

Deliver roles on a web based UI Deliver process-centric solution

Deliver predefined Data Quality Services

Reuse of existing processing logic

Full Integration to SAP Systems as a client

Offer integration services for non-SAP client

systems Low TCO

Flexibility

Ease of consumption

Best Practice

Process Transparency

Integration


Bas

ic &

Cla

ss

ific

ati

on

Data

Material

SAP Master Data Governance Capabilities – Element 2 Integrated Object Model

Ac

co

un

tin

g ,

Co

ntr

oll

ing

an

d C

on

so

lid

ati

on

Financials

Business Partner Attributes

Central Data

Bank Details

Tax Numbers

Roles

Industry Sectors

Supplier Attributes Customer Attributes

General Data

Comp. Code Data

Purchasing Data

Addresses with Usage and Versions

Supplier & Customer

Lo

gis

tics

Da

ta

Va

lue

Classification

General Data &

Descriptions

Units of Measure

Sales Data

Storage &

Warehouse Data

Valuation &

Costing

EAN, UPC

Business Partner Relationships

Identification

General Data

Comp. Code Data

Sales Area Data

Tax Indicators

Plant Data

Quality Data

Cost Element/

Hierarchies

Cost Center/

Hierarchies

GL Account/

Chart of Accounts

Company

Profit Center/

Hierarchies

Consolidation:

Item, Group &

Hierarchies, Unit,

Break Down Category

Financial Reporting

Structures:

Balance Sheet,

P&L Statement


SAP Master Data Governance Capabilities – Element 3 Governance, Collaboration…

Can be adapted and tailored based on customer needs

Linear or distributed & workflow based

Has roles and responsibilities and also Task authority (e.g., create, change, approve)

Flexible enough to respect the distributed responsibilities existing in a company across various business units

Business Logic

Possibility to extend the process by adding business logic and thereby bringing in data quality

Data in process stored in a separated repository, will be transferred to operational database after final approval

Approval


SAP Master Data Governance Capabilities – Element 3 …and Data Quality

Prevent creation of duplicates for in-

creased effectiveness and efficiency

Checked early and embedded in the process

High detection quality of matching using

Enterprise Search or SAP Data Services

Validations

Re-use of existing validation logic in ERP

Custom validations can be modeled and

programmed (e.g. code lists, simple checks,

or modeled rules via SAP BRF+)

Address Enrichment

Simple check and selection lists

Integration with content provided by

SAP Data Services

Automatically adding Tax Jurisdiction Code

re-using existing interfaces / providers


SAP Master Data Governance Capabilities – Element 4 Robust Data Replication

Replication

Automatic or manual replication to SAP and non-

SAP systems

Peer-to-peer or mediated

Replication Techniques

DRF controlling replication mechanisms like

ALE for SAP ECC, R/3 and non SAP systems

SOA service for SAP and non SAP systems

RFC and File for SAP and non SAP systems

CIF for SAP SCM and MW for SAP CRM and SRM

Replication Features

Flexibility to replicate selected data only to a specific

client system by defining filters (controlled by DRF)

Support of different object IDs or customizing keys

between hub and client systems (via mapping in

MDG or NW PI)

Monitoring and error handling

Process

User

Data Replication

Non-SAP System SAP System


SAP Master Data Governance Capabilities – Element 5 Reusability & Extensibility

Reuse standard content

Reuse existing data structures and

functionality of SAP Business Suite

Enhance functionality

Be able to enhance MDG

functionality based on predefined

content (e.g. plant or sales data) or

customer-specific extensions

Extend data structures

Provide easy-to-use extensibility

capabilities for enhancing nodes and

fields

data model

user interface

processes

data replication

Central Team

Core Processes

Extended

Individual Processes

Tasks

Reused


Govern Financial Master Data Speed-up Your Financial Close With Consistent and Reliable Data

Manage financial master data centrally

• Out-of-the-box master data governance application to centrally

create, change and distribute financial master data with focus on

SAP Business Suite

• Upfront accuracy of chart of accounts and other elements such as

general ledger, hierarchies, org units etc.

• Change requests organized as Editions to steer approval process

• Deliver consistent data across corporate group and local systems

• Pre-built validation against SAP business logic

Release

Edition

Distribute

Edition

Adjust in

Target System

Create

Edition

Collect

Comments

Create

Change

Request

Change

Requests Final

Approval

Approval

by

Business

Execute

Changes Corporate Master

Data Steward

Corporate Master

Data Responsible

Master Data Council

BI Responsible

Local Accountant

Local Accountant/

Corporate Accountant

Head of Corporate

Master Data

Local Accountant

Corporate

Accountant

Head of Corporate

Master Data

Now that master

data is consistent

throughout, creating

a new cost center

takes less than 30

minutes instead of

several days.”

Jian Ming Se,

Global IT

Associate Director,

Colgate-Palmolive

“


Central creation and maintenance of supplier

master data as a governed process within

supplier lifecycle management

• Reduce procurement costs based on global visibility of

relationships

• Improve cycle time for new contract creation by creating and

maintaining supplier master data as a governed process across

supplier management processes

• Centralized supplier management as part of procurement to ensure

SLAs are met, simplify contract management, and mitigate risk

Govern Supplier Master Data Manage Mission Critical Data for Procurement Organizations

Requestor • Central Data

• Comp. Code

• Purch. Org

Specialist • Review

• Complete

Info

Purchasing


• Purch. Info

Financial


• Finance Info

Reject/Rework

Purchasing Org

Data Required?

Submit for

approval

Approve

Cancel/Change

Request Company Code

Data Required?

Stop

SAP solutions for

information

governance have

brought many

benefits, such as

visibility into global

spending per

supplier, which

improved price

negotiation

leverage.”

Global Data Lead,

Oil & Gas Company

“


Central creation and maintenance of customer

master data as a governed process within

customer lifecycle management

• Obtain insight across customer interactions and leverage this

insight to align marketing and sales and focus sales efforts on the

most profitable customer opportunities

• Maintain the integrity of CRM processes allowing for improved

campaign effectiveness, opportunity management, sales, and

customer service

• Improve sales force productivity by eliminating duplicate customer

records, duplicate opportunities, and ensuring complete contact

information

Govern Customer Master Data Enable Consistency Towards Your Clients Across all Business Units

Requestor Maintain

Central Data

Reject/Rework

Submit for Approval Approve

Cancel/Change

Request

Stop

Activate

Data &

Replicate

Master Data


Central Data

Central Data

Thanks to SAP we

have a solid

customer data

foundation to

support our growth

objectives.”

VP Sales,

Telecommunications Provider

“


Govern Material Master Data Integrated, Centralized Product / Material Data for Process Excellence

Manage material master data centrally

• Reduce time to market through central creation of consistent,

correct and complete material master data as a governed process

throughout design and enterprise operations processes

• Reduce cost of new product development and introduction through

centralized governance of material data from engineering to

manufacturing resulting in stable and high quality product

• Reduce manufacturing cycle time through central creation of

product master data as a governed process as part of enterprise

planning and control processes feeding trusted master data

through plant-level operations and manufacturing execution

Request

Creation/

Change

Complete

Material

Data

Review

Change

Request

Complete

Material

Data

Approve

Change

Request

Enrich in

Local

System

Business User MD Experts Business User MD Steward Local MD Steward

Revise

Material Creation

Business Workflow

Material ID 4711

Change Request A1

By deploying SAP

Master Data

Governance, we

are able to meet

our high

requirements for

the quality of our

master data.”

Bjoern Ebeling,

Associate Director,

Merck KGaA

“


SAP Master Data Governance Application Foundation The Basis for Your Central Master Data Management

Extend SAP’s data model

Standard models provided

Pre-configured data models, user

interface configurations, workflows, and

data distribution are available

Changes expected

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

Define your own

Tools allow you to define new objects and

related processes in order to govern your

own master data domains


SAP Master Data Governance High-level Architecture Overview

Portal / NetWeaver Business Client

SAP Information

Management Suite

Central System for Master Data Processes Client

Systems

ERP

SRM

CRM

SCM

Cloud

Systems

3rd Party

NetWeaver MDM

AS ABAP

Enterprise Search

Data Services

Information Steward

Optional

Parts

SAP ERP 6.0

SAP Master Data Governance

On Premise

Apps

Financials

User Interfaces, Roles, Work Centers

Change Request, Governance Model, Search & DQ Adapters,

UI Framework, Analytics, Replication, Key / Value Mapping

Material

Business Partner Custom Objects

Workflows

Staging

Validation

Integrate services for data cleansing, matching & consolidation

Client systems are integrated via various channels (such as SOA, ALE, RFC, File)

Tight integration into SAP Business Logic and leveraging standard AS ABAP

SAP HANA


SAP SCM

3rd party

systems, …

SAP SRM

…

SAP ERP, SCM,

CRM, SRM …

3rd party

systems, …

SAP MDG Deployment Options Consciously Decide for a Central hub or Co-deployment

Deploy SAP MDG…

… as standalone system /

master data hub

… on top of an

operational ERP

Customers typically choose to…

… create a dedicated master data hub and distribute to all operative systems from there, or

… co-deploy*) with their single instance SAP ERP (or pick one of their SAP ERP’s as the

master for a particular domain) and create and distribute master data from there

SAP MDG SAP ERP

SAP MDG

& SAP ERP

*) if speed of innovation in their ERP systems does not allow for quick introduction of SAP MDG, some customers create a separate system first, and re-combine later


Using SAP HANA in the Context of SAP MDG as Primary or Secondary Database

SAP MDG 7.0 can be installed on both EhP6 or EhP7 for SAP ERP 6.0

If installed on EhP7, it can run on SAP HANA as primary database

SAP MDG 7.0

SAP HANA

SAP MDG 7.0

SAP HANA Any Database

duplicate-detection and

similarity-ranked search

Option 1: HANA Side-by-Side Option 2: MDG on HANA

replicate

EhP6 or EhP7

for SAP ERP 6.0

EhP7

for SAP ERP 6.0


What’s new in SAP Master Data Governance? SAP Master Data Governance 7.0 SP02 (Feature Pack) – RTC May 2014

HANA-based innovations – Advanced duplicate-detection and similarity-ranked search based on SAP HANA’s fuzzy search capabilities

– Find instead of search using multi-attribute drill-down selection

– Enable SAP Smart Business providing “insight to action” through process and quality analytics

Strengthening the core – Parallel change requests on different parts of the same master data object allow more agile governance

– Continued enhancements across all out-of-the-box master data domains, now also for generic SAP Business Partner

– Flexible Edition Management with enhanced scheduling, intuitive access and better transparency (i.e. for Financial data)

– Improved mass data import into MDG’s “flexible mode” models, i.e. for Financial master data and custom objects

– Enriched integration scenarios, e.g. with SAP CRM for Customer master data, or replication of SAP Configuration data

Enabling broader usage – SAP FIORI applications enabling business users to request new master data

– Data cleansing through merging and correcting duplicate business partners

– Improved usability: highlighting data changes, offering an undo / redo feature, dedicated Work Centers for Accounting,

Controlling and Consolidation, improved user interfaces for maintenance of Financial master data and custom objects

– Dedicated user interface for multiple-record processing with a first focus on Material master data

– Support usage of SAP ERP Document Management System for attachments to material master data

Faster search with SAP HANA, search, duplicate detection, cleansing and matching

Better usability providing easy access, insight, and follow-up actions for the business

More flexible foundation for higher business efficiency and refined process control


SAP Master Data Governance 7.0 Summary of the key Capabilities

Master Data Governance for Financial Data

Create or change Chart of Accounts, GL Accounts, Companies,

Profit and Cost Centers, Cost Elements and respective hierarchies

Data distribution to operational systems via Services (SOA) or ALE

Master Data Governance for Material Data

Create or change a broad range of material master data attributes,

including governed classification

Mass data upload and mass change capabilities

Data quality services such as duplicate check

Data distribution to operational systems via ALE

Master Data Governance for Supplier and

Customer Data

Create or change a broad range of supplier or customer master data

attributes as well as the underlying business partner attributes

Mass data upload and mass change capabilities

Data quality services such as duplicate check and address validation

Data distribution to operational systems via SOA or ALE

Master Data Governance for Custom Objects

Framework for data modeling, UI configuration, validation, and

distribution of custom-defined master data objects


Benefits Through SAP Master Data Governance

Up-front, central creation of master data

enables high data quality and leads to

significant business improvements.

Out-of-the-box, process-centric applications

provide centralized governance for master

data domains such as financial data, supplier

data, customer data, material data.

Native integration with SAP Business Suite

using existing business logic and

infrastructure leads to low TCO.

SAP Master Data Governance provides

flexibility, from configurable workflows and

extensible data models, up to custom built

applications.

© 2013 SAP AG. All rights reserved. Internal

© 2014 SAP AG. All rights reserved.

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