Everything you need to know about PIM systems

A PIM system serves as a central platform for managing, enriching and distributing product data across all sales channels. It enables the central storage of information such as technical specifications, prices, images, marketing texts and translations and ensures that they are available quickly and in consistent quality. At its core, a PIM system is about managing the entire life cycle of product information - from input and maintenance through to publication and distribution.

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

• • Centralized data storage
  • Comprehensive data management
  • Categorization and classification
  • Multichannel publishing
  • Workflow management
  • Integration into the system landscape
  • 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 unfolds its full potential when the following criteria are relevant:

Volume and complexity of product data

• Large product diversity and variants
• Diverse product attributes and metadata
• Linking of product data with media

Multichannel sales and playout

• Multiple sales channels
• Channel-specific data customization

Data quality and consistency

• Problems with data inconsistencies
• Missing or incomplete data
• Lack of transparency and history

Multilingualism and internationalization

• Maintenance of multiple languages and regions
• Integration with translation systems (TMS)

Integration with other systems

• Connection to ERP, MAM/DAM and store systems
• Automated data imports and exports

Increased efficiency through automation

• High manual maintenance effort
• Workflow and release control
• Publishing functions
• AI-supported functions

Growth and scalability

• Growing product portfolio
• Users and departments

Improving time-to-market

• Delays in product launches
• Quick adaptation to market requirements

Compliance and legal requirements

• Compliance with legal requirements

Dissatisfaction with existing solutions

• Excel spreadsheets or isolated solutions
• Lack of transparency and control

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.

Advantages

• 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 in the following areas in particular:

• Error reduction
• Less rework

• Automation of processes
• Faster time to market

• Optimized workflows
• Reduction of duplication of work

• Standardized data distribution
• Scalability

• Quality control
• Better decisions

• Simplified IT landscape
• Less maintenance effort

The introduction of a PIM system requires careful planning and preparation.

The idea that a PIM system automatically leads to smooth multichannel or omnichannel communication and efficient data management is a misconception. Although a PIM system provides the technical basis for the central management and distribution of product information, even the best software cannot reach its full potential without optimized processes and clearly defined responsibilities.

The implementation of a PIM system requires thorough planning and preparation. It is often overlooked that internal processes need to be reviewed and optimized if necessary.
Before implementing a PIM system, companies should carry out a comprehensive analysis of current processes to identify weaknesses and make the best use of technological possibilities.

Another key factor for the success of a PIM system is the assignment of clear responsibilities. It is not enough to introduce a new software solution and expect the data quality to improve on its own. Who is responsible for data entry? Who checks the completeness and accuracy of the data? These questions need to be clarified in order to ensure efficient use of the PIM system.

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. Data Model and Data Maintenance

2. Translation and Multilingualism

3. Media asset Management (MAM)

4. Import/Export and Interfaces

5. Workflows and Rights Management

6. Reporting and Analysis

7. System Technology and Operation

8. User Manual, Support and Training

9. References and Experience Reports

10. Costs/Editions

Our PIM guide covers this important point in detail. It also contains a recommendation on how to proceed when selecting a PIM system. You can request it free of charge at the top of this page.

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:

2. • Unclear requirements and objectives
   • Poor data quality
   • Lack of user acceptance
   • Technical challenges
   • Poor project management
   • Lack of support from management
   • Insufficient test phases
   • Over-complexity
   • Long-term maintenance and support

The introduction of a PIM system can appear 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. Here are some specific areas in which AI can support users of PIM systems.

During the selection phase, ask PIM providers to demonstrate the available AI functionalities using specific examples. In this area, it is also important to have them show you the roadmap with functionalities that are about to be introduced and those that are planned.

• Automation of data maintenance
• Error detection and correction
• Natural language processing
• Image and video processing
• Virtual assistants
• Visual dashboards

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
compete in a dynamic and highly competitive market environment.

The involvement of managing directors and employees is essential for the successful implementation of a B2B software solution. Managing directors should be strategically involved to ensure resource allocation and strategic alignment, and employees should be involved in the requirements analysis and implementation to promote acceptance and ensure that the solution meets their practical needs.

Through close collaboration and communication between managing directors and employees, you can ensure that the software solution not only meets the company's strategic goals, but also effectively addresses the daily needs of users
.

Our PIM guidelines describe how you can take managing directors and employees with you on the path to a PIM system.
Request a free copy using the form on this page.

The decision between an on-premise and a cloud solution for a Product Information Management (PIM) system depends on various factors relating to the specific needs and framework conditions of your company.

You can find out more about the main differences, advantages and disadvantages of both approaches as well as criteria for making a decision in our PIM guidelines.

We have also looked at the topic in more detail in several blog posts:

→Why a PIM system in the cloud is worthwhile

→ On-premise or cloud - why you shouldn't make this decision lightly

Open source PIM systems offer cost benefits, flexibility and independence, but require technical expertise and in-house resources for operation and further development. Licensed PIM software scores points with its comprehensive range of functions, professional
support and lower complexity in operation and maintenance, but is associated with ongoing costs and greater provider loyalty.

The choice depends largely on the company's individual requirements, resources and IT strategy.

The advantages and disadvantages of both options are discussed in detail in our PIM guidelines.