SAP Master Data Harmonization

In today’s world, businesses need to provide and maintain process transparency. However, from an IT perspective you require a well-defined, structured, and consistently configured SAP landscape which many companies lack. Running a company based on such a basis ultimately results in inefficiencies. To address this issue, SAP Master Data Harmonization provides a solution to create a unified data foundation.

Definition

SAP Master Data Harmonization describes the process of consolidation, standardization, and cleansing of master data in an SAP system such as customer, vendor, and material master data. Master data quality is ensured by eliminating inconsistencies and inaccuracies. At the end of this harmonization exercise, master data can be verified as correct, meeting business process requirements.

At a glance

Increased efficiency of internal processes	Eliminated data inconsistency and redundancy	Reduced costs through process efficiency	Stronger customer relationships

 

During an IT system update, consolidation, or modernization, master data often needs to be transferred from one system to another. Such migration projects should consider SAP Master Data Harmonization as one effective measure to ensure data correctness and consistency, meeting the new system’s requirements.

Typical use cases

	The key to system integration is your master data. You can achieve seamless integration of ERP systems through harmonization of master data. And in particular through revising master data when transitioning from a legacy to a new SAP system. Such a situation requires incorrect and inconsistent data to be identified and cleansed, ultimately ensuring the quality of your master data.
	With a well-orchestrated approach to customer and vendor data, the unified view of your business partners improves processes. Relationships with customers and suppliers reach a new level, facilitating a smooth collaboration among the involved parties.
	By harmonizing your human resource master data, you may improve HR processes, keeping data consistent and up to date. It will simplify the administration of your personnel, including data management and payroll.
	When transitioning to the new SAP platform you must review your chart of accounts. SAP Master Data Harmonization supports this activity and allows you to create a unified and consistent data foundation. By following this approach, for example, you eliminate redundant data and improve overall data quality.

Your five steps to succeed

The way you approach SAP Master Data Harmonization may vary depending on your company’s requirements. In general, however, the process consists of the following five steps:

Tools are used to efficiently manage master data. There are specific solutions for master data harmonization and data analysis. When selecting the right solution, you validate capabilities, taking into consideration your company’s requirements. A very common solution in this context is SAP Master Data Governance (SAP MDG) that provides functionality to organize and maintain your master data. This solution can be complemented with tools such as Natuvion SOPHIA that offers further analytical capabilities.