Difference between Consolidation, Harmonization and Central master data man

[Former Member]

Hi ..Expertise

Consolidation is use to identify duplicate records and merge them into one record.

Harmonization is the process of pushing the new cleansed data back out to your partner systems.

Central master data management means you create records within MDM and then you distribute (Syndicate) this centrally created data to your Remote Systems.

My Question is her after Consolidation both Harmonization and Central master data management is doing the same thing i.e. sending the clean data to the other system. What is the difference between these two? Please explain me with an example or scenario..

[Former Member]

Thanks for each and every one for giving me clear reply for my ques....

Thanku very much experts ...

regards

yuga

[Former Member]

Hello Yugandhar,

In addition,

1. Master Data Consolidation

To effectively aggregate data from various SAP and non-SAP sources and do the Cleansing , Matching and Merging (de-duplication)

Data normalization including categorization

2. Master Data Harmonization

To improve the quality of master data within the entire system landscape through de-duplication and distribution of consolidated data to clients. It involves:

Data upload, consolidation, and distribution processes

Achieving data integrity through de-duplication.

3. Central Master Data Management (cMDM)

Creation of Master Data in MDM

MDM becomes the only source of record for Master Data in the entire system landscape. MDM, hence becomes u201CSingle Version of Truthu201D

Master Data can then be distributed to various client systems.

I hope this will clear your doubt.

TNR,

Saurabh...

[Former Member]

Hi Yugandhar

My Question is her after Consolidation both Harmonization and Central master data management is doing the same thing i.e. sending the clean data to the other system. What is the difference between these two? Please explain me with an example or scenario..

to add to other replies: CMDM means creating new records and modifying records in MDM which can be done via workflow(Approval or Business data governance) and all this can be done using a thin client like Enterprise Portal. Imagine a master data entity with say huge no(100k) records and any new record being added or modified need to follow business steps for approval before getting streamlined. Here CMDM along with Portal will come handy.

hope this helped.

regards

Ravi Kumar

[Former Member]

Hi Yugandhar,

Difference between harmonization and CMDM is that CMDM is creating data directly in MDM and maintaing single version of truth in MDM.But new data which we create in MDM can be guranteed to be in clean form as when it is created it has to pass through many validations and checked for duplicacy through match and then created .But as Data is maintained centrally local system may require data for transcation so as per request we syndicate data from MDM(maintained centrally )which is nothing but harmonization.Before implementing CMDM pre existing data in System is consolidated and Maintained in MDM.

Hope it will help you.

Thanks and Regards,

Neethu Joy

[Former Member]

Hi Yugandhar,

Data consolidation , harmonization and central master data management are the key capabilities/functionalities of MDM.

Master Data Consolidation u2013 In this scenario, SAP NetWeaver MDM collect master data from several systems at a central location (REPOSITORY), detect and clean up duplicate and identical objects, and manage the local object keys for cross-system communication.(Using import manager we upload/import data from different system to MDM repository Here we use field and value mapping etc. Using matching, merging and validation we can validate and discard duplicate data)

Master Data Harmonization u2013 This scenario enhances the Master Data Consolidation scenario by forwarding the consolidated master data information to all connected, remote systems, thus depositing unified, high-quality data in heterogeneous system landscapes. With this scenario, we can synchronize globally relevant data across your system landscape. For example, we can assign the same address to all occurrences of a particular customer.

Central Master Data Management u2013the Central Master Data Management scenario focuses on creation and maintenance of data in the central data repository. It then distributes the newly created data to the connected application systems where it can be complemented with locally relevant information.In this scenario we don't need to collect the data or import the data from different heterogenious sytem to MDM repository. Using Data Manager we can create records centrally.

Thanks

Dola

[Former Member]

Hi Yugandhar,

There are three basic scenarios that we follow in MDM:

Data Consolidation

Data Harmonization

Central Master Data Management

Consolidation :

Conolidation (matching , normalization, cleansing) and storage of master data imported from client system. Entails capabilities to identify identical and similar objects spread across the local systems , build consolidated master data.

Key Capabilities:

1. Cleansing and de-duplication

2. Data normalization including categorization and taxonomy management

3. New interactive consolidation capabilities

Data Harmonization :

In case of Harmonization we generally aim at reaching high quality master data within heterogeneous system landscapes. Here the main focus is on ensuring high quality of master data within the connected systems and then distributing the Master data

Key Capabilities:

1. Automated synchronization of globally relevant master data information

2. New Interactive distribution capabilities

Central Master Data Management :

In case of CMDM, it is not always the scenario that the Client wants to go for the above two scenario`s, but CMDM is always required as it helps us to maintain the Business data effectively and efficiently.

After MDM is put into the business scenario all the operations related to the Master records are done in MDM only. For Eg: Creating a record, Deleting a record, Distributing a record etc.

Now it is the work of CMDM to centrally maintain the data and check that no duplicate enteries can be created.

And all the various systems that are attached to MDM gets the updates from CMDM with the help of Syndication Process or Distribution Process.

Key Capabilities:

1. Central creation and maintenance of data

2. Ongoing master data quality

Hope this would be helpful !!!!!!!!!

Regards,

Parul

[Former Member]

Hi Yugandhar,

The explaination you have given for the 3 business scenarios is exactly correct.

To answer your question:

1. Central master data management means creating/editing the record only in MDM. It involves both consolidation activties like matching, merging & harmonisation activties like syndicating the consolidated data to remote systems.

2. Generally after CMDM is implemented no records will be created in remote systems.

Regards,

Pramod.

[Former Member]

Hi Yugandhar,

This is a good question and there had been a debate for quite some time but you need to understand the bigger picture that CMDM is implicable where a lot of systems are involved in the landscape and the emphasis is on the creation getting done at a central place .

In CMDM only that information will be considered that will be common to all the satellite sysytems(transactional systems) and globally maintained at the central place.

For eg . if Material Master is considered the Basic Data 1 Basic data2 and the classification fields may be considered only and not all the fields in a matrerial master coz these information is maintained at client level.This will constitue the Global General Information.

For more clearance on this matter and landscape clarification, please go through the below link by Klaus David.

[https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/20c5eb85-f070-2910-6e9f-c8c97cb93638]

I hope this will help.

Regards

Deepankar

[Former Member]

Yugandhar,

Businesses with Silos of Master data can use two approaches :

1.Distributed Governance

2. Central Governance.

In Distributed Governance, each silo maintains its own Matser data and the central SOR will be fed with that info and then all other systems within the landscape will be relayed with that 'Central version ". So on this front, the SOR , i.e in your case SAP Netweaver MDM, is said to be used for Master Data Harmonization.

In Central Governance, SAP Netweaver MDM itself is used to Create/ Maintain Master Data and then all the downstream systems get this "Central version". So on this front, the active SOR , i.e in your case SAP Netweaver MDM, is said to be used for CMDM.

One can fork into two branches at this point,

->whether this central version can have Local additional attibutes maintained in discrete systems (or)

->on the active SOR itself,

and that is dictated by the people/process layer of Business,

->if the Business already has a central Master Data team then that team can be assigned the later duties, meaning use the second branch( or)

->if seperate business units of the organization own their own local attibutes and want to make them transparent to everyone then they can use the first branch.

And Consolidation is a necessary "evil" (jus kiddin!) for any of the above.

Hope it gave a high level perspective/cause for all these jargon.

-Sudhir

[Former Member]

Hi,

My Question is her after Consolidation both Harmonization and Central master data management is doing the same thing i.e. sending the clean data to the other system. What is the difference between these two? Please explain me with an example or scenario..

You have rightly mentioned the meaning of all the 3 IT scenarios in MDM. Consolidation , Harmonization and Central Master Data Management are called as the IT scenarios in MDM.

Now, coming to your question, CMDM means creation of data and distribution of data. After creating records in MDM, they are needed to be sent back to the source systems which is nothing but Harmonization. Hence in other words you can say that CMDM is a bigger picture which involves Harmonization of data.

Consolidation is taking data from the source systems and consolidating in MDM. Then its role is over.

The pre-rerquisite to Harmonization is Consolidation. Then the next step is to distribute whatever data is present in MDM. It is done after Consolidation.

Please follow the link below to understand the 3 terms clearly.

http://help.sap.com/saphelp_mdm550/helpdata/en/43/d7b1ee058201b4e10000000a11466f/frameset.htm

The above mentioned link will clearly menmtion the process steps in all the 3 IT scenarios and you will be able to understand the scope of each of them.

Additionally, to know more about CMDM, please follow:

Central Master Data Management - An Overview :

https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/101cba73-993b-2b10-b5a2-a6ef5846...

CMDM Process - Community Profiles - Wiki :

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/profile/cmdm%2bprocess

Hope it helps.

Thanks and Regards

Nitin Jain