What is SAP MDG - Federated Governance ?

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Overview view

Starting from SAP MDG on S/4HANA - 2023 Release, SAP has introduced a new feature called Federated Governance Process Capabilities.

Federated Master Data Governance is an alternative approach to centrally managing master data within an organization’s system landscape. Instead of centralizing all data management, it enables the distribution of data ownership across multiple MDG instances. Each instance is responsible for maintaining a specific subset of the master data.

This feature includes the capability to activate SAP Master Data Governance on operative SAP S/4HANA systems, designating them as Application Data Owners (ADO). These ADO systems own and govern specific data subsets while collaborating with the central MDG instance.

This approach strikes a balance between centralized and decentralized master data processes by providing a clear and structured data ownership model, which enhances flexibility, governance, and scalability in managing master data.

Reference Architecture

• Using the Business Partner as an example, one MDG instance is responsible for the core data (for example, name, address, tax numbers, identification numbers), and several other MDG instances can have ownership of the application-specific data (for example, master data that controls sales and financial business processes).
• Customers can define the ownership according to their specific landscape.

Process Overview:

1. Customer Creation: Sales representatives create customer master data in the Sales Cloud system.

2. Replication to MDG: The customer master data is replicated to the SAP MDG system.

3. BP Creation & Approval in MDG: SAP MDG processes the customer master data to create and approve the Business Partner (BP) core data only.

4. Application Data Replication: The Application BP data is sent to the Application Data Owner System.

5. Application Data Validation: The Application Data Owner System receives, checks, corrects, and approves the BP data.

6. Data Replication to Core System: Approved application data is replicated back to the core data system.

7. BP Activation in Core System: The core system activates the BP data.

8. BP data is sent back to the Sales Cloud.

9. BP data is replicated to all connected subsystems.

10. Subsystem Processing: Application Data Owner System receive BP and activate it

11. Subsystem Processing: Subsystems receive and create the BP data