Introduction to SAP Master Data Governance

Most people get perplexed by the discrepancies while handling the SAP MDG and SAP MDM Data. This guide will talk about the differences between the SAP Master Data Governance and MDM offerings. MDM and MDG are tools that share the same goal of managing the organization’s master data. However, their way of distributing the Data is different. 


Most organizations are now expanding globally, and social media has become a major part of the business environment. Digital marketing now poses an increased risk of master data management due to increased complexity and volume. Therefore it is imperative to have a solid structure to manage, govern, organize and optimize the master data management. 

What is Master Data?

The Master data can be used in all the applications and systems. It is primarily used to maintain the integrity of the data, reduce cost, and provide a single source of truth for all business functions like FI, MM, and SD. A centralized master database always helps the organizations to make informed decisions and ensure transparency. These solutions enable the organizations to manage all the master data while providing consistent, relevant, and comprehensive data across all the business operations. 


Usually, SAP offers two different approaches to MDM and SAP MDG, which are integrated with an embedded governance framework, assign the responsibility to master data personnel through role assignments, help enterprises define a business rule, and ensure that the Master Data Management cycle can be monitored and controlled through the workflows. 


SAP Master Data Governance is an SAP ECC pre-installed solution that inherits the native SAP ECC business rules and roles. This also allows workflows to be created around this process. The Audit trails, Validations, and checks are all part of the Information Management Process. The Master data is used to replicate the data for all ERP and target systems. 

What is SAP Master Data Management?

SAP Master Data Management ensures that the master data is authentic. The SAP MDM Solution utilizes a service-oriented design to deliver the data to SAP and non-SAP systems. The Master Data Management solution distributes the master data directly to the ERP systems through process integration. Master Data updates are only captured from the Master Data Management. Later it gets updated in the ERP systems. 


What is SAP Master Data Governance? 

SAP Master Data Governance manages the organizational data. It lays the foundation for big data management and operationalizes the data to optimize the business benefits. SAP Master Data Governance automates and accelerates maintenance and business operations. It also acts as a storehouse for all the information where the data circulates within a circuit. The ERP system then provides the data, and it is adjusted and consolidated to meet the Master Data Governance. The Data Addition and changes are made here, and the Data is distributed via the process integration. 

What are the advantages of SAP Master Data Management?

  • The ERP system updates the master data from the MDM tool
  • Process Integration enables master data to be immediately given to the ERP systems 
  • Master Data Management is a data distribution and integration tool used with both SAP and other platforms. 
  • Master Data Management requires third-party middleware to connect with other systems. 
  • Master Data Management permits all master data objects to be stored regardless of their origin in an SAP environment. 
  • A central repository stores the master data as well as rich content connected to it 
  • Restructures, cleans, and rationalizes the Data as a part of the data import process. 


What are the advantages of SAP Master Data Governance?

  • Master Data is added/ changed in Master Data Governance and distributed to Process Integration.
  • The Data is moved in a circuit within the Master Data Governance system. The Data is obtained from the ERP and then adjusted and consolidated by Master Data Governance. 
  • Master Data Governance can be an add-on component to SAP. It can share the SAP-ERP server and provide centralized data. It is not compatible with non-SAP systems. 
  • Master Data Governance can be integrated with SAP to send and receive the data from all systems, including CRM, ERP, and SRM. 
  • Master Data Governance is only accessible in SAP and ERP configurations. This allows for a dynamic sync and storage of master data objects. 
  • SAP Master Data Governance aids in the management of big data in hybrid locations, both on-premise and in the cloud. 
  • It secures, manages, and ensures that the data changes are reported to appropriate functions. 
  • It provides reliable data and lowers the total cost of ownership. 


How does SAP Master Data Governance enhance Quality and Data Management? 

SAP Master Data Governance offers a wide range of features for handling the master data assets and associated data policies and terms from a central location. Master Data Governance is a repository-based data governance device specially designed to support the master data quality and data policy management requirements of the organization. Companies can easily manage and identify the key data assets utilizing the personalized glossary terms and metadata and determine the data rules and policies. This way, it is possible to easily trace the lineage of their data and define the data ownership. 

How does Master Data Governance authorize business with authenticated data? 

The SAP Master Data Governance application provides the customer with a solid Master Data foundation for increased process flexibility, business efficiency, and simplified operations. In addition to customer and supplier data, the current version of Master Data Governance extends the consolidated function of Master Data to the domain of material data. By assisting customers in better managing data across on-premise and hybrid cloud processes and applications, new integration approaches enable data switching across the Ariba supplier and performance management solution, SAP S/4 HANA, and Hybrid e-commerce solutions.

Final Thoughts 

Since accurate and complete Master Data is the primary requirement for agility and competitive functions across all lines of business, putting all relevant stakeholders in the driver’s seat is critical. Therefore it has become essential to incorporate the SAP Master data governance to control the data-oriented tasks without requiring multiple frameworks. At TekSkilled, we offer you a self-paced online training program on SAP Master Data Governance. Enroll today and take the next leap in your career. 


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