Currently only locations support hierarchical structures. The data model of groups seems to be prepared but the system currently does not support hierarchical structured groups.
Since the the organizational departments are configured in SMA-X via "Organizational Groups" the hierarchical structure is a key requirement.
Organizational Data is very relevant within the entitlement rules to control the audience of e.g. knowledge articles or catalog offerings. Without the support for hiearchical structured organization groups an knowledge administrator or catalog administrator would need to add each single group (department) to an entitlement rule which is not realistic.
data is configured sin