Oil & Gas industry is one of the largest asset-intensive industries in the world. The industry is characterized by heavy investments, complex organizations, tremendous technical challenges, political and work-related risks.
Also, it is witnessed by the deployment of niche talents across the world to extract the scarce resource. The number of stakeholders involved in the upstream, midstream, and downstream sectors are huge.
One can feel the need to consolidate the data generated from each of the business units & cost centers centrally. And then convert them into holistic, real time information for effective decision making.
Many Oil & Gas industry giants have achieved it and have become agile by mastering both stability as well as dynamism with the help of effective master data governance solutions. Implementation of SAP MDG to the business processes and to the entire master data life cycle can be a game changer and a best practice for Oil & Gas industries.
It is an extension of business processes in the SAP Business suite to centrally govern the master data. It is an add-on feature with master data hub which provides governance mechanisms to manage various master data centrally. Once it is installed in the landscape, all the master data governance will be done from the hub system of MDG. From there the data will be circulated to all the connected systems in the landscape.
It is a targeted tool to reduce silos in various master data and allow masters function better with its rich features listed below.
01. Customer Master
Companies use customer masters to enable them to manage customer data and customer relationships. These attributes are shared across multiple systems, departments and business units. It includes data pertaining to address, terms of payments, captures how business transactions are posted to customers and how the transactions are processed.
02. Material Master
The material master is being used by companies to manage data on all the materials that a business procures, produces, stores, sells. It is the material storehouse and the company’s central source for retrieving material specific data. Information like the base unit of measurement, weight, purchasing data, accounting data, description of the materials are captured in the master data.
03. Supplier Master
It is normal in projects to manage data pertaining to its suppliers through vendor masters. The quality of data contained improves the accounts payable process. It includes all relevant information about the goods & services sourced from the suppliers including procurement history, supply categories, inventory data, purchase, contract records and other key information regarding the supplier and the business relations.
Hence Implementing SAP MDG is certainly one of the best practices especially for oil & gas industries. And it is increasingly becoming a bloodline for many industries in this era of data oriented business governance.
