SAP Master Data Governance

on SAP S/4HANA 2023

Introducing Federated MDG with
SAP MDG on S/4HANA as Core
Data Owner for Business Partner

SAP Master Data Governance, Product Management

October 2023

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Disclaimer

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Agenda

01 04
Federation in a nutshell Application Data Owner
A short introduction to the topic Everything you need to know about
“Federation” Application Data Owners.

02 05
Implementing Federation - Overview Other Applications
An overview of the main implementation How to integrate Other Applications within
steps Federation

03 06
Core Data Owner Processes Templates & Workflows
Everything you need to know about the SAPs rich out-of-the-box content for MDG
Core Data Owner process templates and workflows

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Federation in a nutshell
MDG Federation – Key Concept(s)
Federation

Master Data Management Master Data

Central De-centralized Core Application

Federated MDG combines the advantages of central master
data management with the advantages of a decentralized
approach, allowing master data to be managed where it is
best understood.
Core data continues to be maintained centrally, while
application data can now be expanded and checked de-
centrally in the same process.
All master data management processes keep the data in sync
and give the owners full control.

How do we achieve this?

Definition of Master Data Ownership, centrally and easy within SAP Master Data Integration (MDI).

Core Data Owner (CDO), Application Data Owner (ADO),

controls the whole process Need to approve their data and
involving the Application Data distribute back to CDO
Owner(s)

In this way, master data can be maintained by any application system while all relevant data owners are asked for approving their data.
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Federation of master data governance
Setting the right level of centralization and harmonization for effective master data management

Challenge Corporate Unit 1

▪ The heterogeneity of different business units and complex system MDG
landscapes add undue complexity to corporate MDM Application data owner
MDG
▪ While core attributes can typically be harmonized across all units, Core data owner
application master data is very diverse by nature
▪ Difficulties to centrally harmonize all application data and translate
back to de-central understanding
Unit 2
Solution MDG
Application data owner
▪ Manage the data where it is best understood:
▪ Manage core attributes only once centrally
▪ Manage application-specific attributes in the context of homogenous
business units (as centrally as possible, as de-centrally as needed)
▪ Federate processes across all contributing applications, to flexibly Unit 3
address all corporate and business units needs
MDG MDG
Benefit Application data owner Application data owner
▪ Faster time to value, largely increased flexibility enabling broader
MDM scope, due to less upfront harmonization needs

Core m aster data Application m aster data

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Reimagined: Federation with SAP Master Data Governance
To-Be (future)

Comprehensive Data Management offers end-
to-end master data management, incremental
implementation for new customers, investment
security for existing hub users, and cost-efficient
cloud transitions.
Maximizing Value for Existing* MDG Customers, MDG offers
investment security through federated landscape upgrades,
installation of MDG components with low effort, and a focus on
minimizing Total Cost of Ownership (TCO), ensuring maximum
value. Continue with the current governance scope on existing
MDG. Add (additional) units, LOB’s or countries in the federated
model without the need to harmonize all application-specific master
data on one central master data hub
Maximizing Value for New MDG Customers, Implementing
MDG components step-by-step, and helping customers to
transition to the cloud. Low entry barrier by starting with
governance of core master data on one central system.
Increase governance scope step-by-step e.g. per unit, LOB’s
or country without the need to harmonize all application-
specific master data on one central master data hub

MDG for all solutions along Intelligent Flexibility Easy to implement

Enterprise Solution (IES)
Companies can start with using the existing SAP S/4HANA
system as Application MDG, later also applicable for
S/4HANA Cloud.
For the future we plan to have Application MDG for other
SAP applications beyond S/4HANA and support non-SAP
solutions as well
Can be implemented according to customer landscape /
situation
Easy to enhance by additional systems / applications
Offers path towards Master Data Management in the public
cloud, supports hybrid approach
Application master data does not need to be harmonized on
an MDG hub, but can be managed by the application
Application MDG on an existing operational S/4HANA can
be implemented with a few steps
Master data, basic business rules, configuration, user
administration, etc. already available on operational
S/4HANA

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* Existing MDG on ECC customers need to move to MDG on S/4HANA to benefit from Federation
 Federation with MDG on S/4HANA as Core Data Owner
Create Customer in SAP Sales Cloud: Landscape (example)

Trigger for Creation/Change Core Data Owner Application Data Owner, Other Applications
e.g. by region

ECC
System Landscape

SAP Master Data Governance on

SAP Sales
Cloud SAP Master Data Governance on

or Business Suite
US

SAP Master Data Governance on

EU
…
SAP Sales Cloud

Europe
US

Replicate to
Replicate to Create / Merge Replicate to
Create customer application Correct data
MDG BP
data owners
core data owner
Overall Process

Receive Changes Replicate to all Receive and

Activate BP connected apps Activate BP

Receive and
Receive and Create BP
Change BP
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Implementing Federation
Overview
Main Implementation Steps - Federation
1.
Choose Core Data Owner (CDO)
Choose the CDO, which controls and
orchestrates the federation processes.
MDG on S/4HANA as core data owner
▪ Preferrable for existing MDG on S/4HANA
customers
▪ Usage of existing integration possible
▪ Core data and application data like e.g.,
Financials or Procurement data can be
owned in MDG on S/4HANA
MDG, cloud edition as core data owner*
▪ Preferrable for new MDG customers and
existing MDG, cloud edition customers
▪ SaaS solution with lower costs
▪ Integration via MDI and SOAP
▪ Only core data can be owned in MDG,
cloud edition
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2.
Choose Application Data Owner (ADO)
Choose the ADOs to maintain and validate
application specific data
Data Owners can be separated e.g. by
▪ LOBs (Sales, Procurement, Finance, …)
▪ Business Units (Unit 1, Unit 2, …)
▪ Regions (Americas, Europe, Asia Pacific, …)
Furthermore, “Ownership” can be defined:
▪ Based on Field-Groups
▪ For selected Field Groups based on various
filters e.g. per Sales Organization,
Purchasing Organization, Company Code
3.
Choose Other Applications
Choose Additional Applications from the system
landscape, involved in business processes
Each application, even if not a CDO nor
ADO, can initiate a master data request.
▪ Maximum flexibility to model federation
scenarios
▪ It can be used to be built on different
landscapes, which secures investments
done
Other applications will delegate creations
and changes to the CDO.
▪ Validated data will be sent back by the
CDO
▪ Incoming matches from CDO will be
merged or duplicates will be processed (if
merge is not possible).
4.
Choose Processes and Workflows
Various Process and Workflow templates are delivered
out of the box for best-practise federation scenarios.
Process Templates for CDO and ADOs
▪ Manual processes
Manual interaction by user required for each
step
User is informed via workflow task
▪ Automated processes
Automatic execution of all steps
Manual interaction by user in exceptional
cases only (e.g. ambiguous address, open
match group, erroneous data)
User is informed via workflow task
Workflow Templates
▪ Approval
▪ Rework
▪ Review
* Future topic, see section “Roadmap” 10
Implementing Federation – Overview of Transformation Steps
Transformation Overview – SAP Master Data Governance on SAP S/4HANA or SAP Master Data Governance,
cloud edition
Existing Customer System Landscape Transformation Step 1: Centrally Managed Landscape Transformation Step 2: Federated Landscape
CDO for core data only ADO(s) for financials, procurement, and
sales of Business Units 1 and 2

Financials Sales Business Financials Sales Business

Unit 1 Unit 1
Sales Business Unit 1
Financials
MDG2 MDG4

SAP Master Data Governance on

SAP Master Data Governance on

Core
Core
… or
SAP Sales Cloud or SAP Master Data Governance, cloud
SAP Master Data Governance, cloud
edition
edition Other Applications (OA)
MDG1
MDG1

Procurement Sales Business Unit 2

Sales Business Sales Business

Procurement Procurement
Unit 2 Unit 2

MDG3 MDG5

The customer starts with managing his core data only Build MDG for Financial Data and Procurement Data:
Example separate S/4HANA systems for:
▪ Implement MDG1 on S/4HANA or MDG, ce ▪ Implement MDG2 and define ownership for Financial Data
Financials, Procurement and
▪ Build up the data integration via MDG on S/4HANA or MDG, ce ▪ Implement MDG3 and define ownership for Procurement Data
Sales
▪ Define MDG on S/4HANA as core data owner Build MDG for each Sales Channel:
▪ Business Unit 1
At this point, you have the same situation as in a centrally managed ▪ Implement MDG4 and define ownership for Sales BU1
▪ Business Unit 2 landscape. The main difference will come when additional data owners
come into play. ▪ Implement MDG5 and define ownership for Sales BU2
Now the federation process can be performed.

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Implementing Federation – Overview of Transformation Steps continued
Transformation Overview – SAP Master Data Governance on SAP S/4HANA as Core Data Owner
Existing Customer System Landscape Transformation Step 1: Centrally Managed Landscape Transformation Step 2: Federated Landscape
CDO for core, financial and procurement data ADO(s) for sales of Business Unit 1,2

MDG2

Sales Business Unit 1

Sales Business Unit 1 Sales Business Unit 1
MDG1
MDG1

• Core Data
• Financials • Financials • Core Data
• Procurement … • Procurement … • Financials
SAP Sales Cloud SAP Sales Cloud
• Procurement …
SAP Sales Cloud

Other Applications (OA)

Sales Business Unit 2

Sales Business Unit 2

Sales Business Unit 2

MDG3

Example separate S/4HANA systems for: Customer starts with managing his core data together with Build MDG for each Sales Channel:
financial and procurement data.
Financials / Procurement and ▪ Implement MDG2 and define ownership for Sales BU1
▪ Implement MDG1 on S/4HANA
Sales ▪ Implement MDG3 and define ownership for Sales BU2
▪ Build up the data integration via MDG on S/4HANA
▪ Business Unit 1 Now the federation process can be performed.
▪ Define MDG on S/4HANA as core data owner and owner for
▪ Business Unit 2 financial and procurement data
At this point you have the same situation as in a centrally managed
landscape. The main difference will come when additional data
owners come into play.

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Implementing Federation
Core Data Owner
 Implementing Federation – Core Data Owner (CDO)
Transformation Overview
Existing Customer System Landscape Transformation Step 1: Centrally Managed Landscape Transformation Step 2: Federated Landscape

Definition of Core Data Owner Definition of Application Data Owner and Other
Applications
MDG S/4HANA or MDG, ce
MDG S/4HANA

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Implementing Federation – Core Data Owner (CDO)
Details of the CDO within the Federation what are the main characteristics?

Characteristics of the Core Data Owner (CDO) Two options of choosing the Core Data Owner (CDO). What is equal or different?

Core Data Ow ner

SAP Master Data Governance on
SAP Master Data
Governance, cloud edition *

There can only be one core data owner in the system landscape.

During the Federation process, the core data owner will inform every
additional data owner to check and enhance their data.
When MDG, cloud edition is in the system landscape, MDG on S/4HANA can assume the role of core
it automatically assumes the role of core data owner. data owner for…
Core data only (general information, addresses, roles, … Core data + procurement, sales and financial
identification, bank accounts etc.) data

The core data owner is the only system that can decide on the Application Data Owners can be connected via Application Data Owners can be connected via
matching of records, since the matching is based on core data SOAP integration. SOAP integration.
such as name, address and Tax / ID-numbers. Systems only consuming data from core data owner Systems only consuming data from core data
can be integrated either via SOAP or MDI. owner can be integrated either via SOAP or MDI
SOAP REST or RFC/IDOC
The core data owner ends the process after receiving all approvals
SOAP REST RFC / IDOC
from the application data owners and then starts distribution to all
connected systems.
Public Cloud On-Premise, Private Cloud
The core data owner will be configured within the Ownership
definition (more details see in the section “Application Data Owner”)
Similar process flows for federation with SAP MDG on S/4HANA and SAP MDG, cloud edition as core
Ownership Definition data owner.

Field Group System Filter

Central ODE000 n/a
Public * Future topic, see section “Roadmap” 15
Implementing Federation – Core Data Owner (CDO)
What you need to configure?

Definition of the Core Data Owner (CDO)

The system ODE000 gets the role of the
CDO by simply assigning the field group
central as Data Owner.

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Implementing Federation – Core Data Owner (CDO)
Choosing the best option is easy, as Federation offers flexibility. Some indicators to consider…
Core Data Owner
SAP Master Data Governance, cloud edition*
Customers who are looking for a step-by-step entry into master data
management by first focusing on the core master data and then
gradually adding application systems in order to place further application
data under governance. (low entry barrier)
Customers who are seeking a faster time to value by deploying a SaaS
solution for the governance of core data.
Customers who has a more decentralized approach and wants to
harmonize as less as needed.
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SAP Master Data Governance on
Customers who have already implemented SAP MDG on S/4HANA and
want to enhance their governance scope by further application-specific data
via federation.
Customers with S/4HANA focus in their landscape, e.g. to first clean their
ERP data and only want to add other application systems in a federated
landscape later.
Customers which wants to harmonize more as the core data in the MDG
system, which owns the core data. With MDG on S/4HANA it is possible to
harmonize also application data, when it makes sense from a business point
of view.
* Future topic, see section “Roadmap” 17
Implementing Federation
Application Data Owner
 Implementing Federation – Application Data Owner
Transformation Overview
Existing Customer System Landscape Transformation Step 1: Centrally Managed Landscape Transformation Step 2: Federated Landscape

Definition of Core Data Owner Owner and Other

Definition of Application Data Owner
Applications
MDG S/4HANA or MDG, ce
MDG S/4HANA

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Implementing Federation – Application Data Owner (ADO)
Details of the ADO within the Federation what are the main characteristics, and what does Ownership within
Federation mean?
Characteristics of the Application What does Ownership mean within Federation?
Data Owner (ADO)
Core Data Ow ner (CDO) Application Data Ow ner (ADO)

There can be several application data owners in For some master data attributes, it makes more sense to verify and check them where the business context is available. For
the system landscape. many application-specific data, this is not the central master data system.

During the Federation process, all data owners To configure this, define the ownership according to your system landscape, for example, as follows:
will be informed by the core data owner to be
able to check and enhance their data.
SAP Master Data Governance on
▪ Master Data System is the owner of the core data
The application data owners process incoming
Financials Sales Business
Unit 1 ▪ Procurement System is the owner of the
matches from the core data owner and decide ADO ADO
purchasing data
on merging their owned data under the best ▪ Financial System is the owner of the financial data
record. ▪ Sales System BU1 owns the data of sales
SAP Master Data Governance on organization 1
The application data owners replicate their
Core
▪ Sales System BU2 owns the data of sales
changes of their owned data back to the core organization 2
data owner. CDO

The definition of ownership can be done in Master Data

At the end of the federation process the SAP Master Data Governance on Orchestration (is part of MDI). A prerequisite for
application data owners receive the validated Procurement
Sales Business
choosing a system as owner is that MDG is available.
Unit 2
record from the core data owner.
ADO ADO

Other Landscape Examples (see on the following pages)

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Implementing Federation – Application Data Owner (ADO)
Core, Financials and Procurement data are managed centrally

Separate ownership per business unit / region Separate ownership per business unit / region
1 2
Procurement data on same system Procurement data on separate system

SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU S/4 data BU
1+2 SAP Master Data Governance on 1+2

ADO ADO
• Core
• Financials
SAP Master Data Governance on
SAP Master Data Governance on SAP Master Data Governance on
• Core
CDO
• Financials S/4 data BU 3 S/4 data BU 3
• Procurement

ADO ADO
CDO

SAP Master Data Governance on SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU 4 Procurement S/4 data BU 4

ADO ADO ADO

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Implementing Federation – Application Data Owner (ADO)
Core, Financials data managed centrally

3 Separate ownership per business unit / region 4 Separate ownership per line of business (LoB)

SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU 1+2

S/4 data all LoB
Sales,
Procurement
Procurement

ADO ADO

SAP Master Data Governance on SAP Master Data Governance on SAP Master Data Governance on

• Core S/4 data BU 3 • Core

• Financials Sales, • Financials
Procurement

CDO ADO CDO

SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU 4
S/4 data all LoB
Sales,
Sales
Procurement

ADO ADO

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Implementing Federation – Application Data Owner (ADO)
Core data managed centrally

5 Separate ownership per business unit / region 6 Separate ownership per line of business (LoB)

SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU 1+2
• Sales S/4 data all LOB
• Procurement Financials
• Financials

ADO ADO

SAP Master Data Governance on SAP Master Data Governance on

SAP Master Data Governance on SAP Master Data Governance on
S/4 data BU 3
Core • Sales Core S/4 data all LOB
• Procurement Procurement
• Financials
CDO CDO
ADO ADO

SAP Master Data Governance on SAP Master Data Governance on

S/4 data BU 4
• Sales S/4 data all LOB
• Procurement Sales
• Financials

ADO ADO

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Implementing Federation – Application Data Owner (ADO)
Core data & selected Business Units managed centrally

7 Separate ownership for selected business

units / regions

SAP Master Data Governance on

S/4 data BU 3
- Sales
- Procurement
- Financials

ADO
SAP Master Data Governance on

• Core
• S/4 data BU 1,2
- Sales
- Procurement
- Financials

SAP Master Data Governance on

CDO
S/4 data BU 4
- Sales
- Procurement
- Financials

ADO

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Implementing Federation – Application Data Owner (ADO)
Defining Ownership within Federation – Details

Defining Ownership within Federation? An example for a sales area…

Application Data Ow ner (ADO) Core Data Ow ner (CDO) Sales Areas

US01 MX01

Ownership can be defined for each system in the landscape

Sales Business Unit 1

01 02 01 02
There can only be one core data owner in the system Sys2 SAP Master Data Governance on
landscape.
Core Data

There can be several application data owners in the system

landscape. Sys1 Ownership Definition
Field Group System Filter
Sales Business Unit 2
Ownership is defined on Field Groups like, e.g., Central, Central ODE000 n/a
Identification, Bank account, etc. Sys3
Sales ODE200 SO: US01

…and the connected high-level process. Sales SAL000 SO: MX01

A Field Group, e.g. Identification, can be assigned to several
systems, ensuring with appropriate filter settings the absence Replicate to Create / Merge Replicate to all
Create BP
of overlaps core data owner BP connected apps

Receiv e and
When defining ownership on a hierarchical structure, the Activ ate BP

definition applies from the selected node down to the leaves.

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Implementing Federation – Application Data Owner (ADO)
What you need to configure?

Field Group “Sales Data” is

assigned to two Application
Data Owners based on Sales
Area Filter. The Field Groups
are predefined and can be
chosen to define the ownership
of data in a very detailed way.

The assignment filters can be populated to ensure Application Data Ownership.

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Implementing Federation
Other Applications
 Implementing Federation – Other Applications
Transformation Overview
Existing Customer System Landscape Transformation Step 1: Centrally Managed Landscape Transformation Step 2: Federated Landscape

Definition of Core Data Owner Definition of Application Data Owner and Other
Applications
MDG S/4HANA or MDG, ce
MDG S/4HANA

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Implementing Federation – Other Applications
Connecting Other Applications like Ariba, Sales Cloud etc. to federation processes

Other Applications within Federation? An example landscape…

Other Applications Core Data Ow ner (CDO) Application Data Ow ner (ADO)

…
SAP Sales Cloud
The maintenance of master data can also be started by other
applications (neither core data owner nor application data
Sales Business Unit 1
owner).
Sys2
The other applications replicate their creation / changes to the SAP Master Data Governance on
core data owner. SAP Sales Cloud
Core Data

At the end of the federation process the other applications

Sys4
receive the validated record from the core data owner. Sys1

Sales Business Unit 2

The other applications process incoming matches from the
core data owner by merging BP’s or updating duplicates in Sys3

parallel (if merge is not possible). …and the connected high-level process.

Replicate to Create / Merge Replicate to application Correct data

Replicate to
Create customer BP data owners core data owner
MDG

Receive Changes Replicate to all Receiv e and

Activate BP connected apps Activ ate BP

Receive and
Change BP
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Implementing Federation – Other Applications
What you need to configure?

What should happen when the Sales Cloud

system sends a creation or a change of a
business partner? Here, you configure how
the system shall handle these requests.

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Choose Process Templates and Workflows
Implementing Federation – Process Templates
MDG Process Templates are controlling the federation process – SAP delivers rich predefined content…

Process Templates for Federation? Summary of pre-delivered content:

Core Data Ow ner (CDO) Application Data Ow ner (ADO)

Process Templates for CDO and ADOs

manual automated manual automated

Manual processes:
▪ Manual interaction by user required for each step
▪ User is informed via workflow task The processes involve These process goals These processes involve These processes goals
consolidating and entail automating the the approval and focus on automating the
maintaining Business consolidation of source merging of Business approval and merging of
Automated processes: Partner (BP) Federation records and the Partners (BP) within the Business Partners (BP)
▪ Automatic execution of all steps records, with a focus on maintenance of Business ADO Inbound process, within the A DO Inbound
▪ Manual interaction by user in exceptional cases only (e.g. both centralized and Partner (BP) Federation encompassing both process, while also
ambiguous address, open match group, erroneous data) decentralized data, utilizing both mass and single request addressing mass and
▪ User is informed via workflow task approaches. This decentralized creation processing for BP data. single request
includes mass and single and update methods. processing for BP data
request processing for Additionally, they involve through automation.
BP Federation automating mass and
operations. single request
processing for BP
Federation operations.

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Implementing Federation – Process Templates
What you need to configure?

Pre-defined templates for Core Data Owner

Pre-defined templates for Application Data

Owner

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Implementing Federation – Workflow Templates
MDG Workflow Templates are controlling the user involvement – SAP delivers rich predefined content…
Workflow Templates for Federation?
Approval: Approve BP creations and changes.
Rework: Send back to creator of a process to rework
BP details
Review: Review automated step results, like match groups
etc.
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Summary of pre-delivered content:
▪ MDG Cloud: Approval with Rework: This workflow is used for both single request and mass
request processes, focusing on business partner data management, including display, creation,
editing, and mass changes.
▪ MDG Cloud: Basic Approval: This simplified workflow version of MDG Cloud: Approval with
Rework does not include the rework step and is not tied to a specific process template.
▪ MDG Cloud: Rework: This workflow comes into play during inbound processes when validation
detects erroneous records, primarily during the initial load of business partner core data from SAP
S4/HANA.
▪ MDG Cloud: Confirm Match Groups: This workflow is employed within inbound processes to
review open match groups, supporting the process of matching and merging business partner core
data from external systems.
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Implementing Federation – Processes and Workflows
Bring it together: Create BP in any application, a detailed Process Flow

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Implementing Federation – Processes and Workflows
Bring it together: Create BP in any application (manual), a detailed Process Flow

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Roadmap
All MDG Deployments are Evolving in Line with Our Overall Strategy

2023 2024 2025 2026

Check the SAP Roadmap Explorer to find out
about implemented and planned innovations
across the MDG portfolio, incl.:

• SAP Master Data Governance on SAP

S/4HANA, private cloud edition (and on
premise)

• SAP Master Data Governance, cloud edition

• SAP S/4HANA Cloud

for master data governance (public cloud
edition)

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Appendix
Used Abbreviations

MDG Master Data Governance

Federated MDG Federated Master Data Governance

MDG, cloud edition SAP Master Data Governance, cloud edition

MDG on S/4HANA SAP Master Data Governance on S/4HANA

S/4HANA Cloud for MDG S/4HANA Cloud for SAP Master Data Governance

MDG Core data owner SAP Master Data Governance system in the role of the core
data owner

MDG Application data owner SAP Master Data Governance system in the role of the
application data owner

MDI SAP Master Data Integration

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Thank you.
Contact information:

SAP MDG Product Management

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