SAP MDG Version Comparison: Understanding Your Deployment Options

Introduction

Master Data Governance is a cornerstone of any effective data management strategy, ensuring data quality, consistency, and compliance across an organization. SAP MDG offers several deployment options, each tailored to different business needs and technological environments. In this article, we explore the various versions of SAP MDG, highlighting their features, benefits, and limitations to help you determine the best fit for your organization.

SAP MDG On-Premise

Overview

I think the on-premise version of SAP doesn’t need a specific introduction. SAP MDG is installed directly on your organization their existing SAP S/4 HANA or ECC infrastructure. This approach offers significant flexibility and control over your SAP system and thus also over you own data governance processes.

Customization and Extensibility

One of the primary advantages of an on-premise deployment is the ability to extensively customize and extend the data models to meet specific business needs. This includes adding custom fields and configuring governance workflows to suit your operational requirements.

Integration with Existing SAP Systems

On-premise SAP MDG integrates seamlessly with your current ECC or S/4 HANA systems, ensuring a smooth operation without the need for complex server integrations.

Data Model and Governance

The on-premise deployment supports the full range of data models, including Business Partner (BP), Customer, Vendor, Material, and Finance models. However, certain data governance features, such as consolidation are limited and data quality management is non existant in ECC environments.

Pros and Cons

Pros:

• Extensive customization and flexibility
• Seamless integration with existing systems
• Full support for all data models

Cons:

• Limited data governance features on ECC
• Higher initial setup and maintenance costs

SAP MDG Cloud Edition

Overview and Benefits

The SAP MDG Cloud Edition is a cloud-based solution for managing business partner data governance using the SAP Business Technology Platform (BTP). This deployment offers a pre-configured environment with lower upfront costs and simplified maintenance. You can read more about it in our in depth overview here.

Data Governance Capabilities

The Cloud Edition provides robust data governance features, including central governance, consolidation, mass processing, and data quality management, albeit with some limitations in customization compared to the on-premise version.

Customization Flexibility

While the Cloud Edition offers a pre-configured setup, it has limited customization options. This trade-off can be beneficial for organizations looking to reduce the complexity and overhead associated with extensive customizations.

Data Model Support

Currently, the Cloud Edition supports the Business Partner (BP) model, which includes customers and vendors. Other data models are not available in this deployment option.

Pros and Cons

Pros:

• Lower upfront costs and simplified maintenance
• Robust data governance features

Cons:

• Limited customization options
• Only supports the BP data model

SAP S/4HANA Public Cloud with MDG

Overview and Benefits

In my opinion one of the least known options to deploy SAP MDG. SAP S/4HANA Public Cloud with MDG integrates essential MDG functionalities within a standardized cloud environment. This deployment is suitable for organizations seeking a cost-effective solution with simplified maintenance, albeit with some limitations in central governance, customization and data model support.

MDG Features in Public Cloud

The public cloud deployment includes key MDG functionalities such as consolidation, mass processing, and data quality management. However, it lacks central governance capabilities, which means there are no governance flows for single object creation or maintenance.

Customization and Data Model Extensibility

Due to the standardized nature of public cloud environments, customization and data model extensibility are limited. This can be a drawback for organizations requiring tailored solutions.

Data Governance Limitations

While the public cloud deployment offers robust data quality management and mass processing capabilities, howevre it does not support central governance, restricting the ability to govern individual data objects effectively. See the table below.

Pros and Cons

Pros:

• Access to essential MDG features
• Simplified maintenance and lower costs

Cons:

• Limited customization and extensibility
• No support for central governance

SAP S/4HANA Private Cloud with MDG

Overview and Benefits

The SAP S/4HANA Private Cloud with MDG provides a dedicated environment that combines the flexibility of on-premise setups with the benefits of cloud deployment. This option offers full MDG functionalities with greater control over customization and flexibility.

Full MDG Functionalities

This deployment unlocks the full potential of MDG, including central governance, consolidation, mass processing, and data quality management. It supports all data models, including BP, Customer, Vendor, Material, and Finance.

Customization and Flexibility

Similar to the on-premise version, the private cloud environment allows extensive customization and extensibility, enabling organizations to tailor the system to their specific needs.

Integration Requirements

Deploying MDG on a new S/4HANA private cloud necessitates integration with your existing SAP system for data exchange, which can involve additional setup and configuration.

Pros and Cons

Pros:

• Full MDG functionalities
• Extensive customization and flexibility
• Dedicated cloud environment

Cons:

• Requires integration with existing systems
• Higher initial setup and maintenance costs