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SAP two-tier ERP Integration

Integration is essential in two-tier scenarios. A comprehensive understanding of end-to-end business processes, including both master data and transactional data flows, is crucial for ensuring customer success. It's important to identify and address integration requirements early in the process. 

Data is broadly categorised as three areas. Master data, Transactional data, and Configuration data. Here in this blog we will be looking at master data replication options for two-tier ERP.

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Master Data Replication

Master data is the core data that is absolutely essential for running operations within a business enterprise or unit. It is data about key business entities that provides context for business transactions and operations.

Master data replication between headquarters and subsidiaries is essential for following reasons:

  • Data Consistency: Ensures that both headquarters and subsidiaries have access to the same up-to-date information, minimising discrepancies and errors in data.
  • Operational Efficiency: Streamlines processes and operations by maintaining synchronized data, reducing the need for manual data entry and reconciliation.
  • Regulatory Compliance: Helps in maintaining compliance with regulatory requirements by ensuring that all parts of the organization adhere to the same standards and data practices.

Master Data Replication Option 1 - SAP Master Data Integration (MDI)

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Customers with following cases should opt for MDI

  • Customers with Headquarter in SAP S/4HANA Cloud Private Edition and multiple subsidiaries in SAP S/4HANA Cloud Public Edition 
  • Customers utilises other SAP cloud solutions such SAP Ariba, SAP SuccessFactors, SAP Concur or non-SAP solutions that needed integration
  • Customers with requirement to harmonise master data across their system landscape
  • Customers who have SAP Business Technology Platform account

SAP Master Data Integration (MDI)

The SAP Master Data Integration service is a cloud service that enables you to handle distributed and federated sets of master data in a heterogenous landscape. Thus, SAP Master Data Integration is the central point for master data integration with the SAP Intelligent Suite.

The service uses SAP One Domain Model as the exchange format to achieve a consistent view of master data across end-to-end business processes in the integrated SAP Intelligent Suite.

SAP Master Data Integration provides reliable real-time replication in a hub-and-spoke approach. This allows every business application to have its own copy of the relevant master data.

 

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MDI guiding principles

 Central Integration Point

MDI follows central integration point, often called a hub-and-spoke model, MDI acts as centralized system (hub) to manage data exchanges between multiple systems (spokes). Instead of connecting systems directly to each other which comes with centralised management, scalability, reduced complexity, and easy error handling.

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One Domain Model

The SAP One Domain Model is an integrated data model that standardizes the representation of business objects across the SAP ecosystem. ODM ensures that these business objects are defined consistently across all SAP applications, including SAP S/4HANA, SAP SuccessFactors, SAP Ariba, and others.

ODM decouples from application specifics, provides well defined semantics for business objects.

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Predefined Integration Flows

Predefined Integration Flows are ready-to-use, out-of-the-box integration scenarios designed to connect different systems efficiently. These flows are created based on best practices and include mappings, transformations, and communication settings, reducing the time and complexity involved in building custom integrations. 

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Master Data Replication Option 2 – Data Replication Framework

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Customers with following cases should opt for MDI

  • Customers with Headquarter in SAP S/4HANA Cloud Private Edition and subsidiaries in SAP S/4HANA Cloud Public Edition
  • Customers has requirement to integrate only S/4 solutions
  • Customers with simple landscape

Data Replication Framework

  • The Data Replication Framework (DRF) is a local business object change event processor that decides which business object instances will be replicated to defined target systems. 
  • The DRF is complemented by the key mapping framework and the value mapping framework to support non-harmonised identifiers and code lists.
  • DRF is hosted on SAP S/4HANA Cloud Private Edition which doesn’t require additional license
  • Applicable only for SAP S/4HANA Cloud Private Edition and SAP S/4HANA Cloud Public Edition

The options presented here are not the only approaches to data replication, but they represent the most relevant and prioritized solutions. 

For transactional data replication options refer the blog https://community.sap.com/t5/enterprise-resource-planning-blogs-by-sap/two-tier-erp-transactional-da...