Centralized or Federated? Select the MDG Architecture Best Suited for Your Needs

  • by Mohammad Assad Shaik, Enterprise Information Management Lead
  • March 10, 2014
Compare SAP’s master data governance (MDG) architecture options and determine which is suitable for your project. The options work for both a centralized operating model and a federated operating model.
Learning Objectives

Reading this article you will learn:

  • How to select the best architecture option for master data governance
Key Concept

Master data governance (MDG) introduces controls over the data maintenance process, minimizes data quality issues, and eliminates redundant data.

The IT operating model of a company should reflect the business operating model. For example, in a company in which business unit operations are executed by a plan set by the corporate office, it makes more sense for the IT operating model to be centralized. In companies in which business units have control over their operations, it makes sense to have a federated IT operating model.

In either case, clean and non-redundant master data is the key for the decision-making process. SAP provides a master data governance tool (MDG) to accomplish that goal. Most enterprises considering implementation of the MDG solution first struggle to understand if it’s the optimal solution for them. Once that dilemma passes, decision makers must identify the SAP MDG implementation architecture that best meets current needs, aligns with the enterprise roadmap, and minimizes implementation effort, cost, and maintenance.

Following are SAP MDG implementation architecture options suitable for both the centralized operating model and federated operating model.

Mohammad Assad Shaik

Mohammad Assad Shaik is a senior enterprise information management lead. He is an engineer with expertise in computers and IT architecture. Assad provides expertise to medium-sized and large organizations in diverse industries that include oil and gas, consumer goods and services, financial, manufacturing, chemical, high-tech, telecommunications, insurance, power and energy, and safety and security. Assad is the author of Enterprise Master Data Management Using SAP NetWeaver MDM, which is available in paperback from Amazon.com.

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