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Author's profile photo Srinivasa Rao Sesham

SAP MDG – Federated Deployment Option and its importance

Business Case

In the process of Digital Transformations, Large Enterprises are opting Private, Public, Hybrid cloud-based applications.  This gives the business processes are spread across various application systems that runs on wider application systems.

Data flows across different systems that gyrates around Master data. Some of the master data is Transaction dependent. Managing Golden set also a key to support Boardroom Analytics. Hence managing master data is a great challenge.

Enterprise Resource Planning(ERP) Business Process are running on on-premises/cloud-based ERPs by various industries. Some scenarios may need Master Data Management at ERP Application system level with no or very minimal governance.

Now the question comes How, Where, at What level, By Whom master data will be managed. In normal world, Head Quarter(HQ) Driven policies, process will be in place, while Business Units(BU) follows it. Sometimes Complete BU’s Driven Roles. Also need has come to diversify the role in cloud-based Applications. This leads to take a decision on the approach for MDM Deployment. Below are the variables that drives the decision.

  1. Corporate Strategy on Master Data and Analytics & Insights (MDAI)
  2. Business Strategy (Industry type like Manufacture, Life science, Retail, Pharma )
  3. Type Cloud ( Private, Public, Hybrid)
  4. Application Systems (like SAP S/4HANA ,SAP Ariba, SAP Concur, Sales Force, CRM, PLM, E-Commerce)
  5. Global / Local / Business Transaction based attributes

 

Analysis

To come to decision on option, data driven analysis will provide a view to come to decision. The analysis can change based on customers requirement. Below are some examples:

Any option shall consider the big picture of Enterprise landscape. I remember, during early Industry3.0 Revolution, many processes and analysis supported Industries, like ISO,TQM (base for CMM). These can be leveraged now in Industry4.0 as well. It’s good to go through below options which are still good that were used in early 1980’s & 1990’s.

TOWS analysis on Industry, Business Process, Option.

For Example:

  • Decision
    • Fishbone Cause & Effect Analysis

Conclusion

Global Attributed are managed by HQ Personas and Local Attributes are managed by Bus. Sometimes Attribute will be Global but the data for the attribute will depend on local business. For an example Shoe product is same, but classification like Size, Raw Material to manufacture, Price etc.  could be based on Region (NA,EU,APJ,AMEA). In this case Local Business Process will be varied and hence Master Data is depending on Local Conditions/Process which will be performed by BUs. Pricing also will be changed based on variables like Business Transactions, Season etc. in many scenarios, this is underneath siloed problem and hence leads to ‘Federated’ option. There might be increase in infrastructure but will meet local master data needs. Below picture

The option can be calibrated in a most pragmatic way that help local business needs and clear ownership of master data.

 

Next steps

Future step can be migration of global attributes to SAP BTP based SAP MDG Cloud Edition based on availability matrix for data domains.

 

Useful References: 

https://www.sap.com/documents/2021/02/16a5ee8d-cc7d-0010-87a3-c30de2ffd8ff.html

https://help.sap.com/viewer/9a18c98eb30b491485f73dba0ec8d73e/PROD/en-US/162cbbb845ae4fce8f2a71ff7057a680.html

https://www.sap.com/documents/2021/02/da6ca064-cc7d-0010-87a3-c30de2ffd8ff.html

 

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      Author's profile photo Senthilkumar Moorthy
      Senthilkumar Moorthy

      Hello Srinivasa Rao Sesham ,

      Interesting blog. But, the MDI layer is missing in this complete setup, which i feel is a mandatory layer when we are talking about Federated MDG. Otherwise, i agree with this and thanks for Sharing.

      Regards

      Senthil.