Everything you need to know about PIM systems

In today's globalised and digitised world, where products are often offered through multiple sales channels, it is vital that the product information provided is consistent, up-to-date and accurate.

A Product Information Management (PIM) system greatly simplifies this process by facilitating the exchange of data between different departments and systems, and ensuring the quality and consistency of product data.

A PIM system offers a central platform for these requirements, which supports companies in efficiently managing, structuring and distributing all product data.

A PIM system provides a central platform for these requirements, helping companies to efficiently manage, structure and distribute all product data.

PIM systems are often used in companies that sell many products and whose data comes from different sources. These systems ensure that all relevant information, such as product descriptions, prices, technical specifications, images and videos, as well as translations, are stored centrally in one place. The aim is to keep product data consistent and up to date for different sales channels (e.g. e-commerce websites, marketplaces, print catalogues).

PIM systems improve data quality, reduce redundancy and facilitate collaboration between teams and departments. They also enable product information to be adapted and extended to new markets more quickly, reducing time-to-market and optimising customer communications.

There are a number of features and functions that all PIM systems have in common:

• Centralised data storage
• Data management
• Categorisation and classification
• Multi-channel publishing
• Workflow management
• Integration
• Analysis and reporting

A PIM system is required by companies that need to manage large volumes of product data in an efficient and structured manner.

It is particularly important for organizations that need to keep their product information synchronized across different sales channels (e.g. online stores, marketplaces, catalogs, stores) and for whom accurate and consistent product presentation is crucial.

A PIM system is particularly worthwhile for the following types of companies:

1. companies with extensive product portfolios

These companies need to manage huge amounts of product information across different countries, target groups and channels. With a PIM system, this information can be collected and maintained centrally, which significantly reduces the effort and complexity of data management.

This category includes, for example

• Manufacturers who manage numerous product variants, configurations or technical specifications
• Wholesalers with thousands of products in different categories

2. companies with complex products

In industries with technically demanding products or products that require explanation, it is important to provide detailed and accurate information about specifications and functions. A PIM system can clearly structure complex product data so that customers and sales partners always have access to complete and accurate information.

Exemplary companies here are

• Electrical and mechanical engineering companies with many technical details and configurations

3. manufacturers with variable products

Many manufacturers offer individualized products or variants of their standard products. A PIM system makes it possible to manage these variants clearly and to update all relevant data quickly, which supports both sales and production.

These manufacturers include, among others

• Industrial suppliers who offer solutions for the construction of machines, operating equipment and/or systems

4. companies with many distribution channels

When a company markets its products across many sales channels (e.g. own e-commerce platforms, marketplaces, stores, printed catalogs, mobile apps), it is crucial that product information is consistent and up-to-date. A PIM system ensures that the same, correctly maintained data can be provided for all channels.

There is also the question of traceability: when and in which channels were which products and information published?

This type of company includes, for example

• Industrial service providers for mechanical engineering components that sell their products to their customers via multiple channels
• Manufacturers of automation technology that use various channels to sell their products and services to industrial customers

5. companies with international sales

A PIM system should significantly manage translations and country-specific requirements. Companies operating in multiple countries or regions need to provide their product information in different languages and adapt to regional differences. PIM systems offer tools for managing and automating these tasks.

This is worthwhile, for example, for

• Manufacturers and retailers with different regional subsidiaries and/or sales channels

6. companies that rely on high data quality

In industries where precision and data quality are crucial, a PIM system is essential. These include companies in the healthcare, medical technology or food industries, for example. The PIM system ensures that product information always complies with legal requirements and industry-specific standards.

This is important, for example, for

• Medical technology companies that have to meet regulatory requirements in order to bring their products to market

7. companies that want to create personalized customer experiences

A PIM system makes it possible to adapt products and their information precisely to the target groups and use them for personalized offers. This is particularly important in e-commerce, where relevant, detailed product information and filter functions increase customer satisfaction and sales.

In this area, there are

• Lifestyle brands that want to offer personalized product recommendations and individual shopping experiences

To summarize: The use of a PIM system is particularly important for companies that:

• manage a large number of products and product variants
• offer products via different channels and in several markets
• make regular changes and updates to product data
• have high data quality and consistency requirements
• offer customized or personalized product offerings

A well-implemented PIM system helps these companies to increase efficiency, reduce manual errors and provide consistent, high-quality product information.

A PIM system is particularly useful for companies with numerous products that require explanation and extensive product catalogs, as well as for companies that need to manage their product information consistently and efficiently across different sales channels. However, a PIM system is not just a technical tool, but above all a strategic instrument for optimizing product data management.

Not using a PIM system leads to inefficient processes, higher costs, delayed market launches and reduced competitiveness. Companies that want to be successful in the long term should consider the implementation of a PIM system as a central measure to improve their business processes and market position.

What are the specific benefits of using a PIM system?

• Centralized data management
• Consistency across all sales channels
• Faster time to market
• Improved data quality
• Efficient collaboration
• Personalization and localization
• Reduction of redundancies
• Better customer communication

The introduction of a PIM system can lead to considerable indirect and direct cost savings. These can be achieved primarily through

• Reduction of errors and rework
• Increased efficiency
• Better utilization of resources
• Cost-efficient multichannel strategy
• Improved data quality and decision-making
• Reduced IT costs

Studies and field reports

Studies by market research companies such as Gartner and Forrester have shown that companies that have implemented PIM systems have been able to achieve significant cost savings and efficiency gains.

Many companies report concrete cost savings and a positive return on investment (ROI) following the introduction of a PIM system. These savings result from improved data quality, increased efficiency and faster time to market.

In summary, it can be said that the introduction of a PIM system offers numerous opportunities to save costs and increase efficiency, which in turn can have a positive impact on overall company performance.

The introduction of a PIM system requires careful planning and preparation. When selecting and implementing an appropriate solution, pay attention to the following points, for example, to ensure smooth integration into your existing systems and processes.

Why processes and responsibilities are crucial

Implementing a PIM system requires thorough planning and preparation. Internal processes need to be reviewed and optimized if necessary. Before implementing a PIM system, companies should carry out a comprehensive analysis of their current processes to identify weaknesses and make the best use of the technological possibilities.
The quality of the data depends crucially on the processes used to capture and maintain the data. In the absence of clear workflows and standards, there is a risk that the data stored in the system will be incomplete or outdated, which can have serious consequences in multichannel environments.

Another key factor for the success of a PIM system is the assignment of clear responsibilities. Employees need to know exactly what their tasks are when using the PIM system.

Understanding the importance and benefits of a PIM system

The introduction of a PIM system should be seen as part of a comprehensive change process. The entire company must understand the importance and benefits of the system and be prepared to implement the necessary changes in work processes.

Ultimately, the success of a PIM system depends on the people and processes that support it. Without the appropriate organizational adjustments and the commitment of the employees, the investment in a PIM system may remain ineffective and become a costly bad investment.

In summary, a PIM system is not a panacea. However, it can be a powerful tool if optimized processes and clear responsibilities are in place. Companies that pursue this holistic approach benefit from more efficient processes, higher data quality and ultimately better market positioning.

Decisive selection criteria

When selecting an appropriate system, several criteria should be taken into account to ensure that the system meets the company's specific requirements.

We recommend the following approach when selecting a PIM system:

1. needs analysis and objectives

2. system selection

3. data management and migration

4. integration into existing systems

5. processes and workflows

6. user acceptance and training

7. project management and resources

8. testing and quality assurance

9. maintenance and support

10. monitoring and optimization

Implementing a PIM system can present numerous challenges and potential problems. Here are some of the most common pitfalls and risks that should be considered:

• Unclear requirements and objectives
• Poor data quality
• Lack of user acceptance
• Technical challenges

Introducing a PIM system can seem complex at first glance, as it requires careful integration into existing processes. However, with an experienced partner at your side, well thought-out planning and a competent project team, this challenge becomes manageable. With a structured approach, potential obstacles can be identified at an early stage and effectively avoided so that the implementation can be carried out smoothly and successfully.

Artificial intelligence (AI) has the potential to significantly support PIM systems in many areas and considerably increase the efficiency and quality of product data management. Some specific areas in which AI can support users of PIM systems in the future are

• Automation of data maintenance
• Error detection and correction
• Personalization and recommendations
• Natural language processing (NLP)
• Image and video processing
• Customer support and chatbots
• Integration and interoperability
• Data analysis and visualization
• Compliance and security management

These applications of AI in PIM systems can help to increase efficiency, improve data quality and optimize the user experience in the future. AI will increasingly become an integral part of modern PIM systems to help companies thrive in a dynamic and competitive market environment.

During the selection phase of a PIM system, ask providers to demonstrate the available AI functionalities using concrete examples. In this area, it is also important to have the roadmap with upcoming and planned functionalities shown to you.

A well-founded and precise catalog of requirements forms the core of every successful introduction of a PIM system. It ensures that all functional, technical and organizational requirements and expectations of the system are clearly and comprehensively documented.

A well-prepared catalog lays the foundation for the entire selection and implementation process and enables all relevant stakeholders - from IT and product management to marketing - to be involved at an early stage. This ensures that the different needs and perspectives are taken into account in order to select an optimal system that meets the company's objectives.

The requirements catalog not only serves as a guide for selecting a suitable PIM system, but also as a basis for the successful implementation and subsequent evaluation of the system. With a detailed catalog, potential PIM solutions can be precisely compared, possible risks identified at an early stage and the long-term performance of the system ensured. The catalog thus creates clear criteria to ensure that the selected system manages product data efficiently, supports the multi-channel strategy and sustainably improves data quality.