Challenges for CDOs and CIOs During SAP HANA Migration 

How MDM can smoothen the transformation process 

Summary:  

Perhaps no one has realized the importance of business-critical master data integrity as those dealing with SAP ERP Central Component (SAP ECC) evolving into SAP HANA. Chief Data Officers (CDOs) and Chief Information Officers (CIOs) have been seeking Master Data Management (MDM) solutions to navigate this change effectively, especially with the end of life of SAP MDG (Master Data Governance) coming in 2027. 

Enterprise transformation can be challenging for executives 

Embarking on the journey of enterprise transformation is both exhilarating and daunting, as organizations strive to adapt to new technologies and market demands while maintaining operational excellence. Central to this transformation is the role of master data –ensuring that it continues to be accurate, consistent, and reliable to fuel every aspect of the business. 

CDOs and CIOs face a myriad of challenges during enterprise transformation, each requiring strategic foresight and agile decision-making. Here are some of the most significant hurdles they encounter: 

1. Data Silos and Integration: One of the primary challenges is breaking down data silos and integrating disparate systems. Legacy systems often store data in isolated databases, making it difficult to achieve a unified view of the organization’s data. 

2. Data Quality and Governance: Ensuring data quality and implementing robust data governance practices are critical. Poor data quality can lead to inaccurate insights and poor decision-making, while weak governance can result in compliance issues and security risks. 

3. Technology Selection and Implementation: Choosing the right technologies and ensuring smooth implementation is crucial. The market is flooded with options, and making the wrong choice can lead to project delays and cost overruns. 

4. Security and Compliance: Ensuring that data is secure and compliant with regulations such as GDPR, HIPAA, and others is a constant concern. CDOs and CIOs must balance innovation with stringent security measures. 

5. Scalability and Flexibility: As the business grows, the transformation must be scalable and flexible enough to adapt to changing market conditions and technological advancements. 

SAP HANA transformation causes its own set of unique challenges 

In addition to the issues mentioned above, CDOs and CIOs have to deal with a specific set of issues with the transformation to SAP HANA:  

• Challenges with integrating supplier and product master data into downstream systems.
• Delays in time to market due to poor vendor collaboration and trouble with omnichannel product distribution. 
• Lack of synchronization between internal collaboration processes and business partners. 
• Uncertainty in data quality during the migration to SAP HANA and beyond. 
• Consolidating multiple SAP systems across the organization. 
• Dependency on SAP’s waiting times causing operational delays. 

In addition, issues raised by customers include the shortcomings of SAP in areas of multi-domain control, SAP’s lack of experience when it comes to building e-commerce content out of data; and contextual intellectual property management limitations in the SAP MDM data model. 

Master Data Management (MDM) is a more modern, scalable tool  

At its core, MDM is a holistic approach and a suite of best practices that organizations employ to centralize and standardize their vital data, often referred to as “master data.” This includes crucial information about customers, products, employees, suppliers, locations, and other core entities pivotal to your business operations. 

For an enterprise looking to implement elements of enterprise transformation – like digital transformation, technology upgrades, streamlining data flow, improved analytics, etc – MDM is a powerful tool that enables significant bottom-line growth. A few areas that MDM adds value to an enterprise are as follows: 

1. Data Consistency: MDM ensures that master data remains consistent, accurate, and up-to-date across all departments and systems, minimizing errors and discrepancies.  

2. Improved Decision-Making: Clean, reliable master data forms the bedrock of data-driven decision-making, empowering leaders to make informed strategic choices. 

3. Enhanced Customer Experience: MDM consolidates and harmonizes customer data, enabling organizations to provide superior customer service, personalized marketing, and stronger customer relationships. 

4. Regulatory Compliance: Compliance with data accuracy, privacy, and security regulations becomes smoother with MDM’s focus on data integrity and traceability. 

5. Efficiency and Cost Reduction: By eliminating duplicate records and streamlining data management, MDM reduces operational inefficiencies and lowers data maintenance costs. 

6. Support for Digital Transformation: In the age of digital transformation, MDM is pivotal for seamlessly integrating new technologies such as AI, IoT, and analytics. 

7. Facilitating Mergers and Acquisitions: When companies merge or acquire others, MDM simplifies the integration of systems and data, realizing synergies efficiently. 

8. Risk Mitigation: Accurate master data mitigates the risk of decisions based on outdated or erroneous information, protecting both finances and reputation.

Syndigo MDM : Leadership Across Industries 

Syndigo MDM is a valuable tool in making the transition to SAP HANA. With its cloud-native multidomain capabilities, Syndigo MDM had been an industry leader in serving as the golden record for numerous enterprises looking to improve their enterprise’s commercial and operational performances. Here are how retail and manufacturing specifically benefit from Syndigo MDM: 

• Retail: When retailers transition to SAP S/4 HANA, achieving a continuous data integration process is essential. Syndigo’s MDM offers a highly flexible and scalable transition scenario that connects the old and new worlds seamlessly. This ensures the creation of a golden record for master data during a multi-year SAP HANA migration program, impacting not only SAP solutions but also third-party systems connected to SAP. 
• Manufacturing: Historically, product item creation in manufacturing started in SAP and then moved to MDM or PIM. However, a new trend is emerging, with material master creation happening within master data solutions like Syndigo’s MDM and then pushing the data to SAP HANA or various SAP systems. This streamlined approach simplifies the process. 

Integration Concepts with SAP 

Syndigo’s integration framework facilitates batch and real-time integration scenarios, offering scalability without boundaries. Pre-built connectors by Syndigo Partners with SAP experience, including IDOCs, message queues, APIs, and Azure Blob storage, make integration smooth and efficient. 

Conclusion: 

In the ever-evolving landscape of SAP HANA transformation, Syndigo MDM has become the cheat code for CDOs and CIOs. It not only addresses the challenges of data integrity but also offers a pathway to a seamless transition, enhancing the efficiency, accuracy, and compliance of your enterprise. With Syndigo MDM, your journey to SAP HANA becomes a story of success, adaptability, and control, ultimately shaping the future of your business. Contact us to learn more about Syndigo MDM can make your transition to SAP HANA smoother.