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Disruptive Innovation through SAP MDG! Is your Organization ready?

By Promodh Narayan Ravichandran

Before MDM became what MDM is today data ownership had little conflicts as most of the responsibilities were clearly defined in Enterprise Applications and the Data Warehouse as far as Master Data was concerned. With the advent of enterprise applications it orchestrated applications as per functions such as SAP ECC, SAP SCM, SAP CRM and suddenly data governance that was taken for granted earlier took an ugly turn as far as data territories were concerned. It propagated composite applications, service oriented architecture and suddenly organizations were forced to resolve conflicts that spanned length and breadth of the enterprise.

With this conflict it also gave birth to various data governance models across all types of Data Governance setup such as Operational Governance, Solution Governance and Project Governance. The various models of data governance included -

1) Centralized Data Governance - A model with Central Data Management Organization and respective function Business Users place a change order workflows and request for approval before Master Data is consumed.

2) Decentralized Data Governance - A model where Business Users within each function are responsible within their own system to maintain Master Data based on established standards and guidelines. There is no Master Data Management organization to establish a uniform set of guidelines and procedures. 

While Centralized model enables economies of scale and synergies by bring people who are doing the same thing into a group with a common focus, objectives, and metrics the Decentralized model gives Business areas greater visibility and control of setup and maintenance process and avoids "Watering down" of area (BU, Product Class, etc.) expertise.
Enter the Digital Transformation age it has caused more than a few disruptive innovations breaking the ranks of conventional notions and practice. SAP MDG is one of them and could be akin to what Apple has done to its own products- Obsolete one's own product with new product. The case here is what if SAP MDG could replace SAP MDM?


About the Author: Promodh is a Principal Consultant with Manufacturing vertical. He has spent more than 12 years in solution consulting and implementation in domains like master data management (MDM), core merchandising, supply chain and logistics systems.


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