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SAP Netweaver Master Data Management

Here we need to answer what is Master Data, well if I will try to define it in a simple way I can say that Master Data is descriptive data regarding specific entity. The Master Data is fairly Static and it is not contains transactional information. For example let’s take the Supplier entity and see what information we save on it and what is the type of each one:

From the above table you can see that the transactional data is business process specific, for example the “Number of invoices” related to the company’s accounting business process but the “Next shipment date” is more related to the operational side, in most cases those business processes will be done by different IT systems/ modules, but both of them needs to have the same Master Data. Unfortunately this is not the case in the real world, and each IT system has its own way of saving and maintaining this Master Data. That leads to several problems in the organization that causes lose of Money like:
  • Duplicate maintenance efforts – maintaining master data can be quite complex and time consuming operation.
  • Unable to cross information like the same client owes money in one company division but we pay him in another division. If we known that it is the same client we can save the money we are paying him.
  • More
So Master Data Management systems came to solve those issues, by providing tools for:
  • Extracting master data from different IT systems
  • Consolidate master data coming from different sources meaning:
    o Identifying similar entities
    o Converting data from one terminology to another
    o Providing a way of building cross organization terminology without enforcing change to the different IT systems.
  • Central Management crosses IT systems.
  • Master Data Provisioning from and to the different IT systems in the organization.
  • More
Now you can see that the PCM is just a private case of MDM with some extensions like printing catalogs or image management. That is the same conclusion SAP drawn when it saw the xCat product now integrated into NetWeaver and called MDM5.5.

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