SAP Master Data Governance


Master Data Governance: An Overview and Key Considerations

What Is Master Data?

The Data Governance Institute (DGI) defines master data as “the ‘nouns’ upon which business transactions take action.”

Master data, explains DGI, “describes core entities of an enterprise that are used by multiple business process and IT systems. Examples are parties (e.g., customers, employees, vendors, and suppliers), places (e.g., locations, sales territories, and offices), and things (e.g., accounts, products, assets, and document sets).”

Master data, also known as data domains, is often thought of as the core building blocks upon which your business is built.

What Is Master Data Governance?

Master data governance can help a business achieve high-quality master data and visibility into its processes.

Master data governance can, for example, allow for a standard and consistent definition to be created to define “customer,” resulting in a single customer view across multiple lines of business. It does this by allowing a glossary of agreed terminology to be created, along with specific metadata attributes.

Master data management (MDM) can be used as a tool to support master data governance strategy; however, MDM and master data governance should not be confused as the same thing.

The master data governance solution provided by SAP, SAP Master Data Governance, allows organizations to pull together master data from all parts of the organization and manage it centrally. The SAP Master Data Governance application can be implemented on SAP S/4HANA and can be deployed on-premise or in the private or public cloud.

Key Considerations for SAPinsiders

Master Data Governance: An Overview and Key Considerations

What Is Master Data?

The Data Governance Institute (DGI) defines master data as “the ‘nouns’ upon which business transactions take action.”

Master data, explains DGI, “describes core entities of an enterprise that are used by multiple business process and IT systems. Examples are parties (e.g., customers, employees, vendors, and suppliers), places (e.g., locations, sales territories, and offices), and things (e.g., accounts, products, assets, and document sets).”

Master data, also known as data domains, is often thought of as the core building blocks upon which your business is built.

What Is Master Data Governance?

Master data governance can help a business achieve high-quality master data and visibility into its processes.

Master data governance can, for example, allow for a standard and consistent definition to be created to define “customer,” resulting in a single customer view across multiple lines of business. It does this by allowing a glossary of agreed terminology to be created, along with specific metadata attributes.

Master data management (MDM) can be used as a tool to support master data governance strategy; however, MDM and master data governance should not be confused as the same thing.

The master data governance solution provided by SAP, SAP Master Data Governance, allows organizations to pull together master data from all parts of the organization and manage it centrally. The SAP Master Data Governance application can be implemented on SAP S/4HANA and can be deployed on-premise or in the private or public cloud.

Key Considerations for SAPinsiders

The following points can help you implement effective master data governance:

  • Establish master data governance business processes flows. According to the author of this technical article, “An Introduction to SAP Master Data Governance,” Mohammad Assad Shaik, says developers can use rule-based workflow (RBW) templates to configure master data governance business process flows. “RBW uses the Business Rules Framework Plus (BRF+) component as the configuration engine. Although the SAP Business Workflow is the foundation for the RBW, the look, feel, and configuration mechanism vary,” writes the author. “RBW not only supports the approval processes but also executes validations at defined steps.”
  • Create a use case. In his article, Shaik describes a scenario where an enterprise is operating three SAP ECC systems, one for each business unit. The steps listed describe how the enterprise selected a deployment model for material master data maintenance using SAP Master Data Governance. Read the use case.
  • Improve supply chain operations with the right master data governance tools. The data governance team at Ascend Performance Materials was tasked with improving multiple supply chain processes to help its supply chain technicians, mechanics, and other employees find the data they needed faster. To address the challenges, Ascend worked with Winshuttle (acquired by Precisely in 2021) to implement Winshuttle Foundation, a business process automation and data management platform with deep SAP integration capabilities. It also implemented Winshuttle Studio. Read how these solutions enable a flexible and iterative approach into the business.

1264 results

  1. Efficient Data Management in Healthcare Using SAP Master Data Governance

    SAP’s Master Data Governance application provides an integrated data management capability for the creation, maintenance, validation, and distribution of master data across the enterprise. If you already have an SAP ERP system, then adding SAP Master Data Governance accelerates the master data maintenance process, leading to enhanced quality of your master data by leaps and…

  2. An Introduction to SAP Master Data Governance

    Published: 25/April/2012

    Reading time: 5 mins

    Discover the conceptual architecture of SAP Master Data Governance (MDG) and its capabilities. Learn from a comparison of MDG and SAP NetWeaver Master Data Management (MDM) and then step through a use case scenario of maintained master data with MDG. Key Concept SAP Master Data Governance provides a strong master data governance capability for finance,...…

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    Published: 04/June/2010

    Reading time: 22 mins

    Poor data management can lead to many problems, from incorrect data, to a lack of integration, to bad analysis. Learn ways an effective data management strategy can help you in your efforts to optimize your system’s performance while increasing your compliance and reducing cost. Key Concept Data management is a critical component of running a...…

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    Matthew Wagnon, Senior Product Manager at BackOffice Associates, answers readers’ questions on setting and enforcing data policy decisions and discusses why this is critical for your business. Read the transcript to learn about: What the initial design and best practices architecture for information governance looks like, and what it will take to establish How policy execution…

  5. Building a Robust Master Data Foundation with SimpleMDG

    A robust Master Data governance platform is not only critical for the business process and analytics excellence of an enterprise but has a key role to play in the migration to SAP S/4HANA. Deepa Salem, Vice President and Research Director, SAPInsider With the explosion of data generated across the enterprise, we have entered an era...…

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    Published: 09/June/2017

    Reading time: 21 mins

    Learn how to configure and use SAP master contract referencing requirements and copy rules to optimize the administration of customer contracts in SAP sales and distribution (SD). Discover how to resolve some related customer contract issues. Key Concept The SAP master contract functionality makes it possible for the values in certain defined fields in an...…

  8. Introduction to the ABAP Data Dictionary and Managing Data Dictionary Objects (Chapter 5)

    Published: 21/November/2016

    Reading time: 94 mins

    This sample chapter (chapter 5) from Faisal Altaf’s book, “Introduction to ABAP: A Project-Driven Guide,” is an overview of the ABAP Data Dictionary. The book uses the example of a point of sale project to introduce ABAP. As a current SAP Experts member you can read the eBook (online or download) with no extra charge...…

  9. Growing Need for Financial Master Data Management Automation  

    Finance and accounting (F&A) teams must efficiently access accurate and reliable information in today’s fast-paced environment. This way, F&A teams can generate the organizational visibility to make timely decisions on various fronts, from revenue growth or cost-cutting initiatives to strategic planning for new business models or corporate transactions. Finance master data is the foundation for…

  10. Part 2: Data Modeling Strategies to Avoid Data Inaccuracy and Ensure Consistency

    Published: 01/March/2007

    Reading time: 38 mins

    Overcome the challenge of retaining the original master data attribute validity from when transactions occurred. Key Concept Developers only tend to use time-dependent master data attributes when a source system provides them as time dependent. However, SAP NetWeaver BI can also record time-independent master data from a source system as time dependent. This can greatly...…