The increasing number of sales channels and trading partners, the need to maintain multiple language versions of product descriptions, the creation of data sheets and product catalogs, the rapid correction of errors and inaccuracies in the descriptions, the integration of product data with your own website or online store and the transfer of selected product data to partners, increasing product data quality in general - all these requirements can cause numerous problems. A PIM system can be helpful in this case.
Choosing the right PIM software is challenging. The most important criteria for PIM selection are:
- Total Cost of Ownership (TCO) - the costs of acquisition, implementation and subsequent support are important and should be affordable. These are the first to be assessed.
- Integratability - the system should be fully automatically synchronizable with all necessary internal systems and fit into the current system infrastructure, otherwise the main goal of a PIM, namely to ensure data sovereignty for product data, is not fulfilled.
- Functionality - the system should be able to implement your most important requirements. Think in advance about which requirements are the most important for you.
- Implementability - you should be able to implement a PIM project based on the selected software together with the selected service provider.
- User-friendliness - The software should be easy to use and get every user to their destination quickly.
It is particularly important that the system can map your business processes without compromise - because that is the main goal of a PIM system. If these points are right, the decision is much easier.
What actually is a PIM system?
PIM systems (Product Information Management) enable a company's product information to be processed quickly and efficiently - regardless of whether it manufactures the products itself or sells them. PIM software is particularly interesting for all those who have mainly worked with Excel to date in order to manage product data, create print catalogs from it later or pass the data on to online stores, websites or other channels. A PIM system should help all employees and partners who work with your products to organize product data more efficiently and gain quick access to it.
Type of PIM system as a factor in PIM selection
Cloud-based vs. on-premises
If you don't want to deal with hosting, you should consider a cloud-based solution. However, the biggest disadvantage here is the limited flexibility - with on-premises solutions, almost all customization requirements can be implemented. However, if you are still in the decision-making process, other factors could have a greater influence on your choice.
Commercial vs. open source
Software with a free license is growing in popularity today, as open source systems offer a variety of benefits. These include:
- support from an active community,
- open source code that can be customized,
- High modularity - ready-made modules can be used or developed individually,
- Future-proof - even if the original provider disappears from the market, you will still find experts who can support your solution in the long term,
- easy integration and synchronization with other systems.
A limited budget is by no means the only reason to opt for open source software. There are currently three established open source PIM solutions: Pimcore, Akeneo and AtroPIM. Each of these systems has its own strengths and weaknesses, which should be carefully considered when selecting a suitable PIM solution.
Functionality of the PIM system
A PIM system is designed for the effective management of all product information and associated processes. It is the functions that are ultimately decisive for one PIM software or another, as the functions should reduce the amount of manual work. To this end, three major task areas should be scrutinized.
Consolidation of information
For a wholesaler, consolidating product information can be a much greater challenge than for a manufacturer, as they have to deal with product data in a wide variety of formats and layouts, whereas a manufacturer only has to keep their own product information in order.
Not all PIM tools can master this task well, the "small ones" provide almost no help with standardization, while "the really big ones" have almost the same functionality as fully-fledged ETL (Extract Transform Load) systems.
When selecting a PIM system, the following must be taken into account during consolidation:
- What data sources are there?
- Can the data be imported automatically?
- What other automation is conceivable?
- How and which data validations are carried out during import?
- Should the suppliers be connected via a self-service solution?
Processing of product information
The processing of information in the PIM system has three objectives: Structuring, classification and preparation for subsequent forwarding.
The more clearly all the information received is structured, the fewer errors it contains, the easier it is to prepare product descriptions, articles, texts for third-party platforms or promotional videos. The purpose of such a solution is to create a standardized version of the data that everyone will use later.
When selecting a PIM system, the following should be taken into account when processing data:
- How many users will be working in the system at the same time?
- How can collaboration be best organized?
- Can translations be carried out directly in the solution?
- How time-consuming is it to localize the product descriptions?
- How will the text and images be processed? Is quick editing required directly in the system?
- How and which quality controls are carried out?
- Is it possible to implement user workflows?
- Are any analytical evaluations required?
Publication of the information
The PIM system should enable the simultaneous publication of information via all Internet sources used by the company or at least the majority of these sources. These internet sources include websites, catalogs, price directories, marketplaces, social networks and newsletters. The classic import function alone is not sufficient for this.
The following questions should therefore be asked:
- Which channels should the PIM system serve and in what way?
- Which synchronizations should take place (semi-)automatically?
- How can the data be updated?
- Should retailers be connected via a self-service solution?
Usability
The main purpose of the PIM implementation is to make life easier for all employees who deal with product information of all kinds and thus save their working time. The software should be clear and understandable for these users and solve their problems without them having to attend dozens of training courses and study a thick book full of rules.
It is worth asking the opinion of your employees at an early stage, also with regard to the user-friendliness of the system under consideration. The PIM program should be clear and understandable and at the same time motivate employees to achieve results in a more targeted, efficient and faster way.
Technical feasibility
It is not enough for employees to be able to use the new PIM system. The system should be able to perform very specific work tasks. Workflows and work processes should be formulated and implemented correctly in the system. If it is only possible with a workaround, such a tool may not turn out to be a good solution in the long term.
The following questions should be asked with regard to technical feasibility:
- What could be made fundamentally simpler and faster?
- Which work processes and steps need to be implemented?
- Which routine processes consume the most time and need to be optimized?
- In which work processes can the quality of the work results be improved?
- Where should the selected solution be adapted?
- Which systems should the selected PIM software be integrated with and how?
- What technical resources are required (computers, operating systems, pre-installed software) to use the software?
Costs
The budget is very important for a PIM implementation, because a PIM is not a cheap solution. The costs for a PIM implementation should not be underestimated.
These are incurred in the following areas:
- PIM consulting - if applicable - if you bring in consultants for a PIM implementation,
- Implementation - one-off costs for the introduction of a PIM solution,
- Hosting and infrastructure - depend on the number of SKUs to be managed and can vary greatly depending on the setup,
- License costs,
- Updating, maintenance and support.
Implementation costs
To ensure that the implementation is not underestimated, a catalog of requirements should be drawn up and all requirements should be discussed in detail with the PIM provider before an offer is obtained. If implementation costs play a major role, open source PIM systems such as AtroPIM, Akeneo or Pimcore will be a good alternative.
License costs
There are one-off and recurring license costs, depending on whether these are purchase or rental licenses. It is best to calculate the costs you will have over a longer period, e.g. five years of use, to get a good feel for the costs.
Costs for maintenance and support
The costs for software updates, maintenance and support are the most underestimated, and depend very much on the terms of the contract with the software provider and the scope of services covered by the contract. Over a longer period, such costs can be higher than the total cost of implementation, because implementation is paid only once, while maintenance and support are paid regularly. As a rule of thumb, you should expect to pay around 20% of the implementation costs each year for updates, maintenance and support.
Best practices
A project for the introduction of a PIM system is doomed to failure from the outset if: Project goals are defined too imprecisely, incompletely or even incorrectly (unintentionally). Here are some important tips to help you make the right choice.
Tip 1: Define clear objectives for the introduction of a PIM system
It is a big mistake to believe that a PIM implementation automatically solves all problems related to product information and / or omnichannel commerce. It is people and processes that need to be organized with the help of PIM software. Only when people are using a PIM system productively and efficiently can we talk about a successful PIM implementation.
The following goals can be pursued
- Create a central repository for product data
- Improve the quality of product information
- Aggregation of product data from different suppliers
- Automatic creation of product data sheets and product catalogs
- Automatic updating of product data via all connected channels etc.
Also think about future goals that could soon become relevant. These should definitely be taken into account when selecting a PIM - otherwise you will quickly reach the limits of the scalability of the chosen solution.
Only when the goals have been clearly defined should you work out the most important requirements for the PIM selection. You will inevitably come across critical questions that are worth thinking about carefully - even if they seem unpleasant at first.
Tip 2: Don't write to all PIM providers straight away
Communicating with service providers takes a lot of time - whether by phone or email. That's why you shouldn't contact all providers first and then decide who to exclude. It's better to do this preliminary work yourself.
Evaluate the PIM providers using publicly available information and create a shortlist based on the previously defined criteria. Only then is it worth making personal contact to clarify the questions that are really relevant to your decision.
Tip 3: Hire a PIM consultant - it pays off
If you are unsure whether your internal resources are sufficient for the introduction of a PIM system, seek external support at an early stage. An experienced PIM consultant thinks along with you, knows comparable projects and helps you to avoid typical mistakes - during the selection, planning and implementation phases.
Pay attention not only to the price, but also to professional expertise, industry knowledge and trust. The right consultant will save you time, money and nerves.