Difference between Consolidation, Harmonization and Central master data man

[#1]

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]

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