Digital Insights: Managing Product Information with PIM Systems
As our world becomes increasingly digital, effective management of product information has become a critical factor for business success. Medium-sized companies, in particular, face the challenge of efficiently handling ever-growing volumes of data. Product Information Management (PIM) systems offer a central solution, unlocking new opportunities for increased efficiency, better customer engagement and sustainable growth.
The Importance of Consistent Data
Digitalization is advancing at a rapid pace. By 2025, global data volume is projected to grow from 33 zettabytes in 2018 to 180 zettabytes. Sectors like manufacturing, retail and finance generate enormous amounts of data, and this growth is matched by rising customer expectations: more channels, more personalized products, and faster access to information are now standard demands.
Without centralized systems, businesses quickly encounter limitations. Dispersed data silos, manual processes and inconsistent information lead to inefficiencies, errors, and ultimately, dissatisfied customers.
What is a PIM system?
A PIM system is a central platform designed for the structured management and maintenance of product data. It allows businesses to efficiently distribute consistent, up-to-date product information across various output channels, such as e-commerce sites, print catalogs and marketplaces. PIM systems streamline data collection, refinement, and output, ensuring accuracy and consistency.
For example: Staples Canada reduced time-to-market for new products from 24 hours to just 15 minutes using Akeneo. Würth Electrical Wholesale manages 4 million products across seven languages with Pimcore. And Bofrost integrates 130,000 digital assets with product data in 16 languages.
Benefits of a PIM system
The advantages of a PIM system are clear:
- Single Source of Truth: A centralized, standardized data source eliminates silos.
- Improved Data Quality: Structured data management reduces errors.
- Enhanced Collaboration: Teams can work seamlessly on a common platform.
- Faster Time-to-Market: Products reach the market faster.
- Scalability: Systems grow with the business.
For customers, consistent product information directly translates into higher conversion rates (by 20-50%) and lower return rates, as over 60% of returns are caused by unclear or inaccurate product data.
Challenges and Success Factors During Implementation
Implementing a PIM system presents its own challenges, including:
- Designing a clear product data model
- Integrating with existing IT landscapes
- Allocating sufficient time and resources for implementation
- Ensuring user acceptance
A structured approach is key: begin with a thorough pre-selection of systems and a high-level definition of requirements. Demos, workshops and an agile project methodology with a clear MVP (Minimum Viable Product) can significantly enhance success.
The MVP Approach: Start Small and Scale
Medium-sized businesses benefit most from starting with a clearly defined, smaller-scale implementation. Rather than migrating all data and integrating every channel at once, begin with a selected product group or sales channel. The MVP approach has many advantages:
- Quick Wins: Early users can start working productively right away.
- Early Feedback: Potential issues and optimization areas become visible early.
- Flexibility: Extensions can be based on real user experiences.
- Risk Reduction: Time and costs are more predictable.
Once the MVP is successfully implemented, the system can be expanded gradually to include more product data and output channels.
Selecting the Right PIM System
Choosing the right PIM system is crucial for long-term success. Helpful resources for system selection include:
- Gartner Peer Insights / Magic Quadrant for PIM and MDM
- Forrester Wave
- IDC MarketScape
- OMR Reviews
- Software Reviews
Given the market's diversity in systems, it's wise to seek independent, agnostic advice that focuses solely on your company's unique needs. When evaluating systems, don't just consider licensing and implementation costs - include ongoing operational costs, support, maintenance and scalability in your TCO (Total Cost of Ownership) analysis.
Technological Considerations for PIM Systems
The PIM market offers diverse technological solutions. Key decisions for your business include:
- Best-of-Breed vs. Best-of-Suite: Should you integrate specialized solutions or opt for an all-in-one platform?
- SaaS vs. On-Premise: Do you prefer a cloud solution for rapid scalability or a locally hosted system for greater control?
- API-First Architecture: Modern systems rely on open APIs for flexibility and seamless integration.
- Performance & Scalability: Ensure the system can handle growing volumes of product data.
- Data Security & Compliance: Ensure systems meet GDPR and security standards, especially for international operations.
Given these differences, a precise requirements analysis is critical to finding a system that supports current needs while allowing for future growth.
Future Trends: Digital Product Passports and AI
PIM systems will become even more integrated into broader strategies, such as Information Supply Chain Management (ISCM). Emerging trends like the Digital Product Passport - which provides transparency about product origins, manufacturing processes and environmental impact - are gaining prominence.
Artificial Intelligence (AI) will also enhance PIM processes by
- Automating data collection and enrichment
- Improving data quality
- Automating classification and translation
- Generating product recommendations and personalized content
Conclusion
PIM systems are essential for digital transformation in SMEs, helping to manage complexity, meet customer expectations and future-proof the business. Starting small with an MVP and carefully considering technological options will set the foundation for long-term success in the digital era.
About the author
Christof Zahn joined our team in 2022 and has been Director of the Consulting Business Unit since 2023. Christof has many years of experience with software projects and is a proven digitalization expert.
