AI Utopia, Meet Data Reality

AI Utopia, Meet Data Reality

Prominent futurist Azeem Azhar asserts that AI has put us at the cusp of a new "vibe work" era – a continuous dialogue between humans and genAI models that drives the next great leap forward in knowledge worker productivity. He's not all wrong. A GitHub survey found 97% of programmers use genAI, improving productivity by 15-55%. These numbers will rise with accelerating AI capabilities. 

But generalizing "vibe" assertions to precision tasks like industrial automation is massively premature. Asking genAI to handle forecasting or quality control is like asking my Labrador retriever to shop for dinner. He'll need training. And training needs data. Yet fewer than 11% of global supply chain executives say their data is ready for AI at scale. 

We have work to do. But it's getting easier. 


Article content

Data Business Case Gets a Modern Makeover 

In the previous decade, over 70% of "Master Data Management" initiatives failed through big-bang, IT-led approaches. Today's leaders take a value-led, federated approach that unifies data initiatives with business imperatives: 

  • P&G centered data in its Supply Chain 3.0 initiative (2022), piloting driverless trucks and robots across five distribution centers. Real-time IoT data feeds proved predictive maintenance value while inline audits ensured ERP coherence. By 2024, these efforts cut supply chain touchpoints by 60%, grew India sales by 8%, and unlocked $50 million in executive investment. 
  • Lenovo deployed a data lake integrating planning and risk analytics across Asia-Pacific when shipping delays rose by 15%. Leadership dashboards at quarterly town halls showed a 12% lead time reduction within six months. By highlighting inventory shortages costing $10 million monthly, it secured $5 million for broader rollout. 
  • Nestlé integrated data from 15+ sources into Microsoft Azure, decommissioning 17 siloed systems and serving 400+ reports to 800+ sales users. This generated $200 million in four years, with a 3% sales increase for major customers. The company also created a self-serve BI platform for 1,000+ vendors, implementing robust CI/CD and MLOps processes to minimize failures. 

Channel Your Inner Total Quality Manager 

Helping data owners see themselves as data creators with customers explains linkages essential to data value at scale. Chevron discovered this during a data crisis when drilling teams couldn't determine if projects finished on budget. Data management leader Nikki Chang: 

  • Redefined quality with zero tolerance: "If one value in a data record was wrong and nine were correct, that record scored 90%. But we can't use the record when it has even one error. It should score zero." 
  • Implemented progressive targets (95% correct first-time entry in year one, 100% in year two), transparent scorecards, and locally driven innovation. 
  • Drove daily data reviews, Lean Sigma workflows, and inter-group competitions. 

Result: 13 of 15 business units achieved 95% accuracy within eight months by focusing on quality at creation rather than downstream cleanup. 

With Modern Tech 

Data leaders leverage lakes and lakehouses from Snowflake, Databricks, Google Cloud, and Amazon AWS to unify data from disparate sources. This breakthrough has revolutionized AI solution speed and flexibility: 

  • Siemens implemented data mesh architecture using dbt Cloud and Snowflake, emphasizing domain ownership while integrating AI-powered transformations. Its Nanjing factory's system yielded 20% higher productivity, 30% more manufacturing flexibility, and 40% better space efficiency. 
  • Zalando and Schneider Electric decentralized data ownership using centralized platforms. Zalando enhanced e-commerce agility by syncing logistics across 15 warehouses while Schneider cut data ingestion from days to hours across 80 sites. 
  • P&G leverages SAP S/4HANA's AI features for data cleansing, anomaly detection, and predictive analytics, automating manual tasks and enhancing data reliability. 

Beyond Quick Wins – "Significant" Wins That Stick 

Quick-win efforts often take shortcuts that increase failure risk when scaling. One SVP of supply chain strategy at a global industrial products company counters this by: 

  • Only pursuing pilots with "$100M+ revenue or margin potential" 
  • Securing management committee, HR, marketing, and corporate communications buy-in upfront 
  • Moving beyond "promotional fluff" with specific action-focused training delivered in person 

Data leaders at J&J, Toyota, and Amazon reinforce scalability through federated governance, aligned incentives, and fusion teams that bridge operations, data science, and technology. 

Bridging the AI-Data Divide 

The revolutionary productivity promise of AI and the reality of data are converging – but not as fast as AI futurists suggest. But concrete $100M+ proof points from leaders like Nestlé, P&G, and Toyota suggest a less “vibey” human-machine partnership may be even more hip. 

Mario Guerendo

Enterprise Transformation | Strategic Visionary | Driving Growth & Value Realization

1mo

A clear-eyed reality check! AI without enterprise-grade data is just theater. Great article.

To view or add a comment, sign in

More articles by Zero100

Insights from the community

Others also viewed

Explore topics