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Product and Topic Expert
Product and Topic Expert

Following up on my blog post about the latest SAP Master Data Governance on SAP S/4HANA 2023 release, I would like to shed more light on the new cloud-ready mode that was introduced with this release.

To set the stage...

In September 2021, harald.kuck, SAP Head of ABAP Platform, explained the way forward with ABAP, which finally led to the announcement of ABAP Cloud one year later. He puts it as follows:

"Going all-in when refactoring ABAP was exactly the right move. ABAP Cloud is a state-of-the art development model to build cloud-ready business apps, services or extensions. It thrives on SAP’s long-lasting business competence, comes with SAP BTP and SAP S/4HANA, and works with public or private cloud, and even on-premise.”

As SAP Master Data Governance (MDG) is based on ABAP, we naturally adopted this future-geared technology and developed cloud-ready mode in MDG which is based on ABAP Cloud.

Current versions of SAP Master Data Governance are ready to use cloud-ready mode

Since SAP Master Data Governance, cloud edition runs in the public cloud, it is based on cloud-ready mode. SAP S/4HANA Cloud for master data governance also is a public-cloud deployment. We are planning on increasing its functional scope and providing it fully based on ABAP Cloud according to the timelines specified in the SAP Roadmap Explorer.

Cloud-ready timelines2.png

SAP Master Data Governance on SAP S/4HANA Cloud 2023, private edition and SAP Master Data Governance on SAP S/4HANA 2023 (on-premise) now feature cloud-ready mode for business partner (incl. customer and supplier) data as an additional possibility to use master data governance processes like central governance, mass processing, consolidation, and data quality management. It is an alternative to the existing use of SAP MDG processes, which are now referred to as classic mode. Customers can use cloud-ready mode and classic mode for central governance in parallel  (see graphic below). Cloud-ready mode currently supports the business partner domain only.

What are the benefits from a platform perspective?

When all current versions of SAP Master Data Governance are based on the same development model and technology for on-premise, private cloud and public cloud, that is ABAP Cloud, it facilitates the re-use of extensions and coding across the various MDG deployment versions. The cloud-ready mode in MDG strictly follows clean core principles. Extensions can only be done through well defined, upgrade-stable interfaces in a cloud-compliant way. This supports organizations on their path towards the cloud.

Building on a common base also increases the output and performance of SAP development for our customers' benefit.

Functional highlights of cloud-ready mode in MDG

Cloud-ready mode in MDG enables a consistent process design and SAP Fiori-based user interfaces across all MDG processes. It allows for end-to-end automation of processes.

  • Workflow is possible for all relevant processes, including consolidation and mass processing.
  • It enables direct editing within the mass processing UI (spreadsheet-like UI) for any process step.
  • It provides seamless navigation between mass processing and single processing UIs for data maintenance.
  • It ensures consistent field extensibility across all applications, incl. key user adaptation in Fiori UI.

New features based on cloud-ready mode include:

  • Data provider integration (i.e. with CDQ AG)
  • Enablement of federated governance
  • Attachments for all processes
  • Process visualization for overall insight into the current processing state plus cross-system monitoring in federated governance 

Fig: Process visualization to reveal processing state in workflow. Based on SAP Build Process Automation app 

Fig: Process visualization for cross-system monitoring of MDG workflows. Based on SAP Build Process Automation app

Quick comparison of cloud-ready mode and classic mode for business partner processes

This comparison is focused on the differences in scope between cloud-ready mode and classic mode. Capabilities with no or only minor differences (such as data quality management and consolidation) are not listed.

Capability/FeatureClassic mode Cloud-ready mode
Process and UI design

    • MDG Framework for central governance (based on change requests) using SAP WebDynpro UI

    • Mass processing, consolidation and data quality management based on common framework using SAP Fiori

    • Common framework and SAP Fiori based UIs for consistent process design across central governance, consolidation and data quality management, e.g.,
      allowing workflows for all relevant processes, or seamless navigation between mass-processing and single-processing user interfaces


    • Change request based processes only

    • Based on local SAP Business Workflow

    • Support for all processes

    • Workflow based on SAP Build Process Automation

Process insight

    • Process analytics for change requests

    • Process visualization of all MDG workflow processes

    • Cross-system monitoring in federated MDG

Use of attachments

    • Applicable to central governance

    • Applicable to all MDG processes

Data provider integration-+
Enablement of federated MDG

    • Simple replication-based federation on record level

    • Advanced federation based on data ownership definitions


Who can take the most benefit from cloud-ready mode for business partner data in SAP Master Data Governance on SAP S/4HANA Cloud, private edition or on-premise?

For companies starting with SAP MDG on S/4HANA for the governance of business partner data (incl. customer / supplier) we recommend starting with cloud-ready mode in MDG as the default. Existing MDG customers can continue to use MDG in classic mode and may evaluate if the outlined benefits of cloud-ready mode are reason enough to additionally use cloud-ready mode for business partner data.

Usage of cloud-ready mode in MDG for business partner with regards to companies that already use MDG:​

  • Classic mode and cloud-ready mode in MDG can be used for central governance in any combination at the same time (in parallel, on the same objects). Cloud-ready mode requires the use of the new consolidation app.
  • Functionality can be rolled out to users gradually over time; users can even use both concepts in parallel.​
  • Companies can implement new scenarios with cloud-ready mode in MDG or decide to convert selected existing scenarios.
  • Companies can run cloud-ready mode for business partner while using classic mode for other domains

Companies with a need to govern product data may check the SAP roadmap for planned timelines for cloud-ready mode for product data.

Activation of cloud-ready mode for business partner in SAP Master Data Governance on SAP S/4HANA Cloud, private edition or on premise

The cloud-ready mode enables new SAP Fiori apps for:

  • Central Governance (Single Processing + Mass Processing)
  • Consolidation
  • Consistent common framework for central governance, consolidation and data quality management based on SAP Fiori
  • Co-existence of central governance (classic mode) and cloud-ready mode is possible for a transition phase
  • Data Quality Management apps can be used in both modes

Fig: MDG processes in classic mode and in cloud-ready mode. When cloud-ready mode has been activated, classic mode for central governance can run in parallel during a transition phase.

Process Automation

Cloud-ready mode in MDG is geared towards consumer-grade user experience and more automation. This means that processes are enabled to run fully automated, and human process intervention is limited to cases where master data specialists must actively be involved in the process - for example, during data creation or change when an approval by a master data specialist is mandatory, or when a validation reveals erroneous data that needs to be investigated by a specialist.

Overview of the processes and key features

Key processes include:

Central Governance

    • Create/change business partner

    • Change multiple business partners


    • Load business partners

    • Consolidate business partners

    • Mass creation of business partner relationships

Data Provider Integration

    • Support automated creation and change of business partner data based on external reference information

Process Visualization

    • Insight into processing status plus cross-system monitoring in federated MDG and, on the one hand, this provides you with the big picture of current workflow processes in MDG and, on the other hand, when running federated master data governance, it allows you to look beyond system boundaries into workflow processes of connected application data owners

Data Quality Management

    • Manage validation rules

    • Configure, analyze, and remediate data quality

    • Rule mining

Derivation scenarios

    • Derive the values of fields or create and update dependent entities for automation in data creation and change (for example, create purchasing org. data when you create a supplier)

Field Extensibility

    • Configure custom fields for use in central governance, consolidation, or data quality management

Data Replication

    • Enabling decentral maintenance and integration with MDG (based on SOAP)

In summary, this functional scope also enables the usage of SAP Master Data Governance on S/4HANA Cloud, private edition or on-premise as core data owner in a federated master data governance context.

For details about the functional scope of cloud-ready mode in SAP Master Data Governance on SAP S/4HANA Cloud, private edition and on-premise, check the deep-dive presentation and the FAQ page.

Key Takeaway

Cloud-ready mode in MDG for business partner data supplies seamless and consumer-grade user experience across the individual MDG processes (central governance, consolidation, and data quality management). It enables, for example, data provider integration, process visualization, and federated governance with clearly defined communication based on data ownership.
With ABAP Cloud as the underlying technology of cloud-ready mode, and with cloud-ready mode being the common platform of MDG development for all deployment versions (on-premise, private cloud, public cloud), cloud-ready mode in MDG is future-oriented and supplies the right means for organizations on the move to the cloud.
The cloud-ready mode in MDG was initially announced in a roadmap session at SAPPHIRE 2023 as outlined in this blog post
For information on SAP’s plans about evolving cloud-ready mode also to other domains, see the SAP Roadmap Explorer. 
To stay up to date with MDG, simply follow the SAP Community Topic Page for SAP Master Data Governance, join the Questions & Answers forum and Blog space, and check the MDG roadmap for all deployment versions.