Why Data Centrality is a Prerequisite for AI

First, there was the shockwave from the emergence of generative AI, then there was the hype. But as the hype dies down and businesses begin fully exploring how best to exploit this game-changing technology, it is becoming clear that only some businesses are prepared to deeply leverage AI.

One of the big sticking points for fully taking advantage of AI innovation is good data management. AI can provide answers and perform a wide range of business tasks today, and this functionality will only get better over the next couple of years. But beyond using general-purpose AI for common queries, businesses need strong data management and centrality.

AI can only copilot and perform meaningful business tasks when it has access to all company data. Yes, employees can feed spreadsheets or bits of data into an AI solution and get help, but those benefits are trifles compared with AI that fully understands a business and can both suggest and act on actual, real-time business dynamics.

In other words, the businesses that will truly take advantage of AI are those that have data centrality and a unified backend system for connecting AI into actual business applications and processes.

Data Centrality is Important for Business Efficiency, Too 

AI isn’t the only reason that data centrality and proper data management are critical for businesses today. There are many other benefits to having all of a company’s data in one place and accessible across the enterprise.

• Removes silos. When business data is centralized, it breaks down departmental silos and connects all parts of a business since all business activity is accessed from the same place.
• Ensures consistency. Storing data in a single, centralized system ensures that business data is accurate and cross-referenced with other data. Data is ingested into just one place, not isolated and sometimes duplicated in multiple systems.
• Provides a single source of truth. Having a single place where employees can access all business data improves decision-making and analysis, and speeds up reporting and forecasting.
• Gives applications needed data. Data centrality helps applications act more intelligently and easily connect with the necessary data for higher levels of productivity. 
• Eliminates data export security concerns. Exporting data wastes time and creates data security risks. When data is centralized, there’s no need for exporting behavior.
• Enables deeper automation. Centralized business data means that more complex automations can be deployed across an organization. By having all data in one place, automation can be more intelligent and wide-ranging.
• Helps with holistic decision-making. Collecting data in one place means that decision-making and analysis are informed by all dynamics within an organization. This leads to better, more holistic decision-making.

Cloud ERP is How Businesses Centralize Data

Centralizing business data and making it available both to AI and applications within a business is why enterprise resource planning solutions (ERP) have moved from a niche product for manufacturing to a foundational backend technology widely used across businesses, large and small.

The emergence of cloud ERP has expanded the use of ERP solutions for data centrality and unified operations in particular, because it has reduced the cost and implementation time necessary to put one of these systems in place. Even smaller businesses can now roll out an end-to-end ERP solution in as little as 90 days with cloud ERP, and then they can expand their system and backend functionality as they grow.

Modern ERP solutions such as SAP Cloud ERP, formerly known as S/4HANA Cloud Public Edition, make it particularly easy for businesses to centralize data and expose it to leading AI engines such as ChatGPT, Google Gemini, or Anthropic’s Claude LLM.

This is because the SAP Cloud ERP solution is integrated into SAP Business Suite, a technology stack that includes not just the cloud ERP for orchestration, an application marketplace for all needed functionality, and a centralized data cloud for centrality, but also an overarching business AI layer that connects these applications and data with any of the popular AI engines.

With SAP Business Suite, an organization brings together operations and data so agent-based AI can answer questions, work with data, and act on this data through the applications within the system when authorized to do so. Giving AI engines such as ChatGPT both the data and application controls within a business opens up levels of automation and operational efficiency that were purely theoretical until recently.

Is Your Business Ready for AI?

AI innovation is progressing rapidly, and it is more than hype. Only businesses with data centrality and a flexible backend will be able to participate meaningfully, however.

If you want to ensure that your business is AI-ready, contact one of our experienced consultants by calling 801) 642-0123 or writing us at info@nbs-us.com. Things are changing fast, and we’d love to help you ensure your business is ready to fully take advantage of what’s to come.