Enterprise AI: Performance First, Then Scalable AI

ByDr. Philipp Herrmann,Dr. habil. Matthias Georg Will
Time to read: 4 minutesIndustrial goods, Article
// At a Glance

Many companies are currently under intense pressure to deliver results. Costs must be cut, liquidity secured, inventory reduced, and processes made more efficient. At the same time, there is a growing need to transition artificial intelligence from pilot projects to productive and scalable use.

These two topics are often viewed separately: the short-term performance program on one hand, and the long-term AI agenda on the other. But it is precisely this separation that is problematic. Companies that consistently optimize costs, efficiency, and working capital in a data-driven manner often create the very conditions they will later need for enterprise AI.

This requires a shift in perspective. The starting point here is not AI. The starting point is operational performance.

Reduce Costs and Build AI Capabilities —Through Transparent End-to-End Processes

Anyone who wants to reduce inventory, shorten lead times, leverage FTE potential, or free up working capital needs transparency throughout end-to-end processes. They need reliable master and transaction data, up-to-date information, clear responsibilities, and harmonized control logic. Without these fundamentals, efficiency programs remain superficial, and AI initiatives cannot be scaled later on.

This is precisely where the strategic opportunity lies: Cost and efficiency initiatives are now designed — in line with best practices — to deliver short-term results while also improving the operational data and process foundation for AI.

Our approach involves optimizing along the value chain wherever costs arise, capital is tied up, manual tasks hinder efficiency, or process disruptions slow down decision-making. The focus is on improving the organization’s ability to manage itself: master data is harmonized, the quality of operational data is improved, information relevant to decision-making becomes available more quickly, and complex processes become transparent and manageable.

From AI Readiness to Innovation with Profit-and-Loss Potential

In this first step, AI is deliberately approached from a performance-driven perspective. The question is: How can data, analytics, and AI help to better plan and automate existing processes and support decision-making within them? For example, through better forecasts, smarter inventory management, faster deviation detection, more efficient resource utilization, or automated decision support. This makes AI concrete and tangible, and its immediate benefits lie in measurable cost, efficiency, and liquidity effects.

At the same time, this creates a solid foundation for the next step. When data, processes, and control logic are reliable, AI can have an impact beyond mere performance improvement. Then, on the one hand, existing workflows can be optimized, and on the other hand, new processes, services, products, and business models can be developed.

A Concrete Real-World Example: From a Performance Program to AI Readiness

The following real-world example shows how a traditional performance program can gradually evolve into the foundation for scalable enterprise AI, with measurable results and improved manageability.

Initial Situation:

A leading global mechanical engineering company with approximately 6 billion EUR in revenue, 22,000 employees across 30 sales units and 10 manufacturing plants faced the challenge of sustainably improving its operational performance while simultaneously laying the groundwork for scalable AI adoption. The technological landscape was dominated by SAP as the central ERP system, but was supplemented by numerous in-house developments and legacy applications.

Compounding these issues were highly heterogeneous processes across country organizations and business units, differing data models, and inadequate master data quality. There was no company-wide single source of truth, and interface problems between the systems further hindered transparency and control.

Our Approach

The first step was not to introduce new AI solutions. Rather, a package of measures was put together to leverage specific FTE potential and reduce working capital through data-driven end-to-end process optimization.

Across the core value-added processes, process variants were analyzed, inefficiencies were identified, and harmonized target processes were developed. At the same time, standardized master data objects and a comprehensive data governance framework were established to clarify data responsibilities, improve data quality in the long term, and create a consistent basis for management.

On this basis, a company-wide data and AI strategy was subsequently developed. In collaboration with the business units, specific use cases along the value chain were prioritized — ranging from forecasting and inventory optimization to intelligent decision support and the automation of administrative processes. The identified use cases, in turn, served as a roadmap for the further development of the data and process models.

This led to the gradual creation of a scalable enterprise AI foundation that was not built in isolation from a purely technological perspective. It was developed as a “side effect” of the company’s operational performance goals.

Enterprise AI Starts with Data-Driven Performance

The realistic path to enterprise AI therefore does not necessarily begin with a large-scale AI program. It often begins with a consistently data-driven performance program. When implemented correctly, this initially reduces costs, increases efficiency, and improves working capital. At the same time, it builds AI readiness, and building on that foundation, AI evolves from a performance lever to a driver of innovation.

Ready to take the next step?

Whether you’re just starting to think about it or have concrete plans — we’ll listen, ask questions, and work with you to develop your ideas further. In a no-obligation initial consultation, we’ll assess where you stand and how we can support you.

Discover Our Expertise in Data-Driven Process & Performance Optimization

Learn more about how data-driven process optimization creates transparency, unlocks efficiency potential, and enables measurable performance improvements.

//About the authors

//You might also be interested in

06. August 2026
After the S/4HANA-Transformation: Realizing the Promised Efficiency Gains
After the ERP Transformation: How Companies Identify and Realize Efficiency Gains Using Process Analytics and a Structured Efficiency Program.
Read more
14. April 2026
End-to-End Development as a Strategic Success Factor in Global Competition
End-to-end development, automotive product development, optimizing development processes, shortening time-to-market, reducing development inefficiencies, product development process, automotive innovation, software-hardware integration
Read more
07. April 2026
Comprehensive cost and performance program to strengthen the company's competitive position
Holistic cost and performance programs to sustainably strengthen your competitive position. Click now and boost efficiency.
Read more