How does data management work with SAP MDG?

Data is of immense importance for organizations, after all, a large part of the strategic corporate decisions are made based on data. Nowadays, however, there are tons of internal and external data every day. This steadily increasing flood of data and different data formats present companies with enormous challenges. At this point, master data management with SAP comes into play. The SAP Master Data Governance (MDG) solution supports those responsible in the company in central care, administration and distribution of master data.

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What is SAP MDG?

Master data in companies are extremely diverse: You can include products, materials, cost centers or information about business partners, customers or suppliers, for example. For simple management and maintenance of this large amount of master data, SAP relies on the integrated Master data tool SAP Master Data Governance. The main goal of the solution is to achieve a high data quality in the system landscape of companies. This is guaranteed, for example, by transparent processes, duplicate tests and approval procedures. Of course, the solution also fulfills the current legal regulations such as the European General Data Protection Regulation (GDPR).

MDG can be flexibly inserted as a separate hub system (Hub Deployment) or integrated in an SAP ERP or S/4HANA system (CO deployment). In addition, there is the possibility of a hybrid approach in which both options (hub and co-deployment) are used. Although it is a SAP solution, the distribution of the data is also possible on non-SAP systems. The data can either be synchronized once or constantly. In continuous synchronization with other systems, MDG monitors changes to the master data and is responsible for the subsequent distribution.

Challenges of master data management

Two major challenges of master data management have already been mentioned at the beginning: the increasing data volume and various data types. Often these are in different systems without central access – a true data jungle! SAP MDG brings data of different origin (for example from a data warehouse) and formats.

Master data is often stored permanently in systems, so that compliance with the European General Data Protection Regulation must be observed. SAP MDG helps to comply with the GDPR by Data accuracy increases, more transparency ensures And supported in the handling of sensitive data, for example by introducing a authorization concept. Compliance regulations are complied with, since SAP MDG is only carried out by authorized persons and documented without gaps.

Solution approaches and advantages of data management

With SAP MDG, master data can be maintained and processed centrally. Data processes will be Uniformly controlled and automatedwhich leads to a significantly lower care effort as well as reliable and high -quality data. The High data quality is also ensured by an integrated data quality management. With this, rudimentary data records can be identified and change processes initiated. Without established data management, data is often in different systems. SAP MDG creates one uniform data situation -Migration does not matter whether the data is in a SAP or NON-SAP system. Transparency and authorization concepts help to meet compliance and governance requirements. SAPs solution for data management is also characterized by simple integration: Out-of-the-box are predefined data models, user interfaces and workflows for master data objects such as financials and material. In total, the advantages mentioned lead to faster processes at lower costs.

Target group: For which company is SAP MDG a suitable solution?

Master data is incurred in companies of various sizes, so SAP Master Data Governance is suitable for almost every company. Specialized MDG versions for the divisions customers, suppliers, material and finance offer adapted surfaces, data models and workflows in the respective area.

With SAP MDG for Customer Get a holistic view of their customers. Finding improvement options helps to optimize the customer journey. Support requests can be answered quickly and reliably by guaranteeing all employees access to current customer data.

SAP MDG for Supplier Supports the purchase in assessing suppliers internally and thus receiving an overview of their reliability. Thanks to qualitative data, the procurement process is optimized and the best possible prices and conditions are achieved with suppliers.

Corona pandemic has shown how important sophisticated material management is. With SAP MDG for Material If companies assign products and components a clear material number. Based on this, the product can be clearly assigned to the production, ordering or shipping at any time and read out product -specific data. The advantages are transparent procurement, production and sales activities.

Financial financial statements must meet numerous legal requirements. In SAP MDG for Finance the central administration and maintenance of data of the financial system is possible. It thus facilitates the coordination between individual companies and ensures detailed, error -free degrees.

The future of data management with SAP

The on-premise variant of SAP Master Data Governance usually runs on the same server as the SAP ERP or S/4HANA. However, the course has also been set to cloud in data management, so that one since 2021 Cloud version of the SAP solution available is. The way to the cloud is particularly interesting for smaller companies. You save costs because the operation and maintenance of software and hardware no longer have to be carried out yourself. In addition, artificial intelligence and machine learning are increasingly used in data management with SAP. In the future, they expand the functionality of SAP MDG or have already been implemented in some cases. For example, Machine Learning helps to improve data quality by proposing new rules.

Integration of SAP Datasphere for expanded master data management

Another innovative approach in the area of ​​master data management is the integration of SAP Datasphere. This platform serves as a central solution for data management and integration by enabling companies to efficiently manage their master data not only within SAP systems, but also via various cloud and on-premise sources. SAP DATASPHERE offers a seamless connection to SAP Master Data Governance (MDG), whereby Data from different systems harmonizes and consolidated in real time can become. This leads to significantly improved data quality, reduces redundancies and minimizes manual interventions.

SAP DATASPHERE supports the integration of data from various sources such as SAP S/4HANA, non-SAP systems and external cloud services, especially in complex, hybrid IT landscapes. By using machine learning and artificial intelligence within the platform, automated data quality tests can also be carried out, which identify and remedy inconsistencies at an early stage. The combination of SAP MDG and Datasphere enables companies to gain a holistic view of their master data and thus make well -driven decisions. In times of increasing digitization and cloud transformations, this connection offers a flexible and scalable solution that meets the increasing demands on agility and transparency in data management.

Conclusion

It is becoming increasingly important for companies to introduce data management such as SAP MDG. This is the only way they can Data treasures used efficiently and effectively in an organization become. Correct and complete data ensure high master data quality, which in turn is crucial for the success of a company and helps to adapt to the dynamic market conditions at any time.

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Niklas Ludwig has been Communication Manager at Conet since March 2020 and takes care of the internal and external communication of the Conet group of companies.