What is SAP MDG

Introduction to MDG (master data governance)

SAP master data governance (MDG) is considered a state-of-the-art data management solution. The master data governance provides the out-of-the-box and domain-defined master data management to create, distribute, and modify the data across the complete enterprise system landscape.
The SAP MDG guarantees data integrity across both the SAP R/3 system as well as non SAP systems. SAP MDG is also known for its integrated foundation for the optimized business process that leads to higher productivity, is cost-effective, and is also time-consuming.

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Overview of Master data governance:

In the definition section, you have seen the definition of the SAP master data governance. The SAP MDG creates the out-of-the-box ability to optimize, create, modify, and transfer the business data within the organization. In the ERP environment we can run the MDG as a central hub, and later can be deployed on the respected operating system. For example;

• ERP on HANA or any other database management system.
• S/4 HANA environment

When it comes to the functional perspective, SAP MDG on S/4 HANA 1809 version correlates to the ERP 6.0 version SAP MDG 9.2 release.

The main purpose of using the master data governance in any ERP environment is to establish the best quality business data to optimize performance.

In the next section, we will see the purpose of using Master data governance.

The purpose of using the SAP master data governance:

• The below are the important benefits of using MDG (master data governance) in any ERP organization.
• The SAP MDG ensures data centralization, compliance, transparency, master data creation, integrated staging, central auditing, and data approval.
• SAP MDG helps in the delivery of consistent data, authorization, and replication of the master data key representatives.
• Helps to eliminate the error-prone manual maintenance process for the master data across multiple systems.
• Enables organizations to create centralized data to define the key records and mapping between the duplicates.
• Defines the master data quality, consistent data usage across all data entry points monitors the data quality, and analysis.
• Helps organizations to observe and investigate the master data management quality to enable data optimization.
• Offers native integration and openness to integrate with 3rd-party services.
• Reusing SAP data models, business logic, and data validation configurations.
• It acts as an open application to manage master data, and also check for the flexibility of the non-SAP environments.

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Now we would like to discuss the business benefits of using master data governance:

• Low cost: SAP MDG fully integrates with other modules, and also offers integration services to the SAP client systems.
• Flexible to use: SAP MDG also offers flexible workflow integration with other frameworks, and also helps to define the business values.
• Offers ease of consumption: SAP master data governance helps to deliver process-centric and web-based UI (user interfaces).
• SAP mdg also provides predefined data quality services.

Important modules of SAP Master data governance:

It’s mandatory for any functional module to comprise sub functionalities to produce profitable outcomes. So we can see below are the important sub-functional modules of master data governance.

• Master data governance
• Data consolidation
• Governance
• Information governance
• Master data management

Let’s brief them one by one;

Master data governance:

The following are the major functionalities of the master data governance:

• Master data governance can be considered as a linear, workflow, and distributed-based sub-module.
• Helps to extend the business process functionalities, and also adds the business logic that improves the data quality.
• Helps to optimize, create, modify, and distribute the business data within the organization.
• All the business data are stored in a separate repository, once get approval, it will be stored in an operational database server.
• With the help of the master data governance, users are allowed to adopt the data as per the customer requirements.
• Flexible data usage across the organization to perform the necessary tasks.

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Master data consolidation

The master data consolidation means;

• Data consolidation helps to load the master data from the client systems.
• Helps in the identification and consolidation of identical or similar data objects.
• Provides services like provision key mapping for the unified data mapping, company-wide analytics, and business operations.
• It helps to aggregate the master data across the SAP and non-SAP centralized repositories. Once the data is consolidated, users are allowed to search for the data across the linked systems.
• Offers the key mapping for the reliable company, and reporting.

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