This content is 1 year old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.
In our rapidly changing world, sophisticated ERP solutions are becoming more crucial than ever for organisations looking to streamline operations and strive for operational excellence. But whilst the ERP plays an instrumental role in that, it’s vitally important to recognise that it’s not just the ERP system that holds value – the real treasure is the data within these systems.
For years now, IT leaders have been talking about a “data-centric world” and how to “democratise” access to the hidden treasure that an organisation’s data contains. And it’s still the case that the monumental value and potential of business data should not be understated. But since 2023, we’ve seen a shift. No longer is it just about the data – the rise of generative Artificial Intelligence (AI) tools has moved the conversation on to how AI can be used to help us better understand and use the data that we hold.
When I’ve spoken to our clients, I’ve seen their thirst for AI-driven insights. AI, coupled with robust data, holds the potential to shift paradigms, drive smart decisions and boost operational efficiency. However, before we can unlock this vast potential, the data needs to be structured and labelled correctly.
The value of structured data and correct labelling
When correctly structured and labelled, data empowers organisations to accurately understand their operations, pinpoint potential bottlenecks and unleash the value nestled in their ERP solutions.
In refining this data, we allow AI models to consume it effectively, driving insights that empower organisations to predict trends, anticipate customer needs, enhance supply chain processes, reduce overhead and foster innovation. Essentially, we convert the commonly inaccessible gold beneath the ERP systems into a well-drilled, fully accessible mine that yields precious insights — the real treasure.
But there’s another source of data that exists outside the core business systems. The ERP holds a trove of operational data that we can index, query and search, but our unstructured data has potential, too. We can ingest it to a modern data platform where it can be cleansed and interrogated. The raw information, once difficult to analyse and gain insights from, becomes useful, and the rise of AI assistants like Microsoft Copilot means we need to think about how these new tools can and should be used.
Getting ready for Copilot
As one of the largest Microsoft partners in the UK, Node4 hears a lot of buzz about Microsoft’s Copilot AI Assistants (of which there are several).
Just as Delve taught organisations to think about what could be indexed and searched in SharePoint and elsewhere, there are some preparatory steps needed for Copilot too. Copilot can only see what an individual can see, but often that’s more than was intended.
Node4 can work with clients to assess readiness including privacy, policies, monitoring, integration and training. And, of course, we’re constantly monitoring developments so we can advise on new announcements, like Copilot+.
The spectre of ransomware
Another trend that we’re seeing is the rise in ransomware attacks. Cyber-insurance data from September 2023 showed not only a 12% increase in ransomware claims frequency; but that that 36% of claimants paid ransoms (often after negotiating down the amount).
In 2024, ransomware attacks are expected to evolve with more sophisticated techniques. And, in the same way that more extreme weather events have demonstrated we really can’t ignore climate change, the rise in ransomware means we can’t say “they won’t go after us” anymore. Ransomware is not just an issue for large multinational organisations – it’s increasingly a problem for small and medium enterprises too.
What this means is that all that data that we’re talking about unlocking value from needs to be protected. Our clients are talking to us about resilience and immutability – the ability to protect their data from attack.
Data resilience and immutability: the cornerstones of a data-centric approach
Data resilience and immutability (the ability of data to endure and remain unchanged, respectively) are vital. They ensure businesses can withstand unexpected events and safeguard their strategic intelligence. This is particularly true in the light of today’s escalating threats, such as ransomware attacks, which have jeopardised many businesses’ operations globally.
Every data-generated insight within an ERP environment is a precious source of intelligence. This intelligence can provide an invaluable competitive edge, and so it’s not surprising that it’s become an enticing target for malicious attacks. Ransomware, in particular, can hold this treasure hostage, dramatically disrupting a business’ operations and possibly leading to insurmountable financial or reputational damage.
In this context, it’s crucial to secure data with impregnable defences against such threats. At Node4, we prioritise data protection, resilience and immutability as cornerstones of our service offerings. The prosperous mine of business intelligence in ERP systems demands top-notch security protocols and safeguards.
The critical necessity of securing data
Just as an ERP system is valueless without correctly structured and labelled data, the impact and efficiency of this data can be catastrophically neutralised without adequate backup and security measures. Recovering data after a devastating event like a ransomware attack can be a painful, costly and time-consuming undertaking. However, these hurdles can be significantly mitigated, if not entirely avoided, through effective backup strategies and stringent data security policies.
At Node4, we believe that securing and regularly backing up data is not just an option – it’s a critical necessity. That’s why we’ve invested in state-of-the-art data centres with high performance interconnects and immutable storage options. The fact that we run our own data centres, as well as being one of Microsoft’s strongest UK partners means we’re able to work with clients for private, hybrid or public cloud. Our business continuity and recovery solutions cover all aspects of data resilience, and this comprehensive protection is imperative to maintain the integrity and availability of data essential to ERP processes.
The journey ahead: from ERP to data-driven intelligence
ERP solutions are undoubtedly substantive components of a robust business structure. They serve as the backbone of operational processes and hold potential to streamline business workflows. Yet it’s crucial to shift our focus beyond the ERP system and unlock the real source of value residing within – structured, organised, and secured data.
As we continue to take organisations on a digital transformation journey, the true winners will be those who understand and master the mechanism that turns raw data into decisive insights. These forward-thinking organisations will harness the power of AI effectively, backed by well-structured and secure data, to drive efficiency, innovation and competitive advantage, while diligently protecting their treasure from emerging threats. This is what we call AI transformation.
The journey from ERP to data-driven intelligence is underway. Embarking on it will not only shape the future of organisations across the world, but also dictate their survival in an increasingly interconnected and data-driven world. In the orchestration of this transformation, the ERP may conduct the score, but it’s the data that composes the symphony and, ultimately, steals the show.
This post was originally published on the Node4 blog.
Featured image by yatsusimnetcojp from Pixabay.
