MDM and PIM: Bundle Your Data Power

1. What is a Product Information Management (PIM) System?
2. What is a Master Data Management (MDM) System?
3. PIM vs. MDM - How do the two systems differ from each other?
4. What similarities do the two systems have?
5. When should a PIM system be used and what are the tasks of a PIM system?
6. When should an MDM system be used and what are the tasks of an MDM system?
7. What should companies look out for when choosing the right system?
8. Which tools are suitable?
9. Conclusion: Individually great, indispensable in combination.

Data is the key to success. With MDM and PIM systems, you organise and optimise corporate data and draw full advantage from it.

In an era where data forms the backbone of modern businesses, MDM and PIM play an indispensable role in organising and optimising your information. In this post, we will grapple with the differences, similarities and respective fields of application of MDM and PIM systems. If you're curious about how these systems can elevate your business to the next level, read on and dive into the world of data-driven excellence.

What is a Product Information Management (PIM) System?

A Product Information Management (PIM) System is the headquarters of your product data. Companies usually have a variety of different products, each with its own information such as descriptions, images, prices, sizes, and colours. Here is where the PIM system comes into play. It consolidates all information in one place and keeps an overview of it.

In addition, a PIM system allows you to update product information in a jiffy and distribute it across different sales channels - from the website to online marketplaces. This not only helps keep your data clean, but also saves considerable time. Regardless of whether you have few or numerous products, the PIM system makes things easier.

What is a Master Data Management (MDM) System?

A Master Data Management (MDM) System is the custodian in your data universe. Within a company, there are data about customers, products, suppliers and much more. Even if this information is scattered across various departments and systems, the MDM ensures that the right data is always at hand, securing the so-called Golden Record.

For example, the MDM takes care that essential information like customer names, addresses and product details are uniform and correct, regardless of where they are used. This not only contributes to data quality but also supports decision-making. So if you want a clear overview of all your business data, the MDM system is your reliable partner.

PIM vs. MDM - How do the two systems differ from each other?

The Product Information Management System and the Master Data Management System are two different approaches to managing and organising corporate data, focusing on different aspects. While the PIM system focuses on managing product data for marketing and sales, the MDM has a broader orientation and ensures quality and uniformity of data in various areas of business.

PIM vs. MDM - Focus and Purpose:

• A PIM-System mainly focuses on managing product information and data. It collects, organizes and cleanses product data as well as other relevant information. This results in consistent and accurate product information for marketing, sales, and e-commerce.
• An MDM-System has a broader focus and deals with all types of corporate data, not just products. It aims to ensure high-quality, consistent and uniform data across various business areas. In addition to product data, this also includes customer data, supplier data, employee data, and other essential information that is used throughout the business.

PIM vs. MDM - Data Depth:

• A PIM system emphasises detailed product data to provide buyers with detailed information.
• The MDM system focuses on basic data elements used in various business areas to ensure accurate and uniform information.

MDM vs. PIM

What similarities do the two systems have?

Although PIM and MDM systems pursue different goals, they ultimately work together to improve data integrity and quality within the company and thus promote overall efficiency and business success.

Both PIM and MDM systems put a strong emphasis on ensuring data quality and consistency. They provide that the stored data is accurate, current, and conflict-free, regardless of whether it's product data or general corporate data.

Both systems offer a central platform for data management, creating a single reliable source for relevant data and thus leading to improved data integrity and availability.

PIM and MDM systems allow the integration of data from various sources and systems. This is crucial to ensure that the stored data is correct and up-to-date.

Both approaches contribute to optimising business processes by making data management efficient, streamlining processes and enabling informed decisions through accurate information.

In addition, both PIM and MDM have features for data cleansing and enrichment, to close data gaps, supplement missing information and ensure high data quality.

Overall, both systems contribute to making better decisions based on accurate and reliable data. They support the efficiency of workflows and facilitate quick access to relevant information.

When should a PIM system be used and what are the tasks of a PIM system?

A PIM system should be used in your company when a wide range is offered, be it in retail, e-commerce, manufacturing, or other sectors. When the diversity of products grows and the requirements for managing and presenting product data become more complex, a PIM system proves extremely useful.

The main tasks of a PIM system include:

• Central Data Storage
• Data maintenance and updating
• Data enrichment
• Consistent Publication
• Product variant management
• Translation management
• Workflow control
• Customer-oriented presentation

When should an MDM system be used and what are the tasks of an MDM system?

An MDM system should be used in companies that work with a variety of business-relevant data used across various departments and systems. When data quality, consistency and integration are paramount, an MDM system is extremely beneficial for avoiding redundancies and ensuring corporate-wide data integrity.

The main tasks of an MDM system include:

• Central Data Storage.
• Data quality and cleansing
• Data integration
• Consistency and Governance
• Data provisioning
• Change tracking and management
• Data synchronisation

What should companies look out for when choosing the right system?

When deciding between a Product Information Management (PIM) System and a Master Data Management (MDM) System, you should consider several factors to make the best possible decision for the specific requirements in your company.

Here are some aspects

Data type and scope

If you mainly work with product data such as descriptions, images, prices and technical specifications and your focus is on optimising product information for marketing and sales, a PIM system is useful.

If you have a variety of business-related data to be managed across different departments and systems, an MDM system is the better choice.

Objectives

If your main goal is to improve the quality and consistency of product information to optimise the sale and display of products, a PIM system fits well.

If you want to ensure data quality and consistency throughout the organisation to optimise business processes and ensure accurate reporting, you should consider an MDM system.

Data sources and integration

If your data is primarily from product data sources and you want to improve their consistency and quality, choose a PIM system.

If you need extensive data integration across various data sources and departments, an MDM system is the right choice.

Functionalities and flexibility

Also, check for your decision whether the selected PIM system provides the required functionalities for creating, managing, and distributing product information.

This also applies to the MDM system. Make sure that the tool offers comprehensive data integration, quality, and governance to ensure data consistency and integrity.

Scalability and future-proofing

Definitely take into account future data requirements. If you expect growing data volume, choose a system that is scalable and can grow with your business. In this regard, Open-Source can also be a good choice to flexibly respond to upcoming challenges.

Ease of use and integration

Make sure the chosen system is user-friendly and can smoothly integrate into the existing IT infrastructure and workflows.

Which tools are suitable?

The choice of the right MDM or PIM tool depends on your specific requirements, the size of your company, the type of data, and your budget. We also recommend requesting demos, checking references, and assessing the tools' features in relation to your business goals before making a final decision. The reviews from OMR Reviews provide a helpful way to identify the appropriate solution. Extensive reviews and descriptions provide the necessary support.

Here is a first-rate preselection:

Plytix

Akeneo

Pimcore

Contentserv

eggheads

mediacockpit

ANTEROS

Salsify

plentysystems

Conclusion: Individually great, indispensable in combination.

We conclude that both MDM and PIM play a significant role in modern corporate data management. While MDM aims to ensure the integrity and quality of company-wide business data, PIM focuses on the central management and maintenance of product data for consistent and efficient product communication. These two systems complement each other and each offer unique features and benefits. In an increasingly data-driven business world, MDM and PIM are indispensable tools to master data, gain insights, and increase value for both customers and companies.