Implement product data management correctly

Product Data Management – Why Data is Becoming More and More Important

Creating and managing products and their descriptive data is a core discipline of our work. We manage, structure, enrich, and distribute with dynamicPIM® – PRODUCT INFORMATION MANAGEMENT. Because data is the asset of today and tomorrow.

All data that describes products, makes them interesting, and ensures they are found through SEO, is a significant driver for visibility on the web. It's about having relevant content quickly and in top quality available to the retailer – both offline and online. Time-to-Market and Quality-to-Market – the two essential factors for success at the POS, whether online or offline.

The PIM system is more than just a logistical data pool

Product Information Management systems were originally established to transport product data necessary for listing products in retail. In short: to manage product data. Employees of the companies specialized in knowing these trading practices. Everything was calculable and somewhat clear.

Nothing is as it once was, as eCommerce quickly made it clear that pure basic data is no longer sufficient. The requirements have now expanded considerably. Images are needed, not just one image but multiple representations of the product, optimized for online and responsive viewing and usability. Analyses show that Add-to-Basket rates increase significantly when more images are available that enhance the consumer experience.

Marketing texts need to be created, refined, and SEO-optimized. Videos are required. Not just the frequently used branding videos but real application videos that are much closer to the actual customer than the lofty brand films.

Branding is, of course, important, but it serves a different purpose. In the shopper's interest, the main concern is: How do I use it, what does it look like, what does it do for me… top-styled models from the glamor world do not help here. This is simply too far removed from the small personal universe.

Consumers want to explore the product as comprehensively as possible before purchasing.

This is possible online, but only if sufficient information and visual material are available. Yes, and then please tailored differently for each retailer, as I've heard something about "Duplicated Content" – so, another requirement. And this is exactly where effective product data management can make a difference.

The skills are changing – the old rules no longer apply

Thus, a whole bundle of new tasks is ahead of content creation. And I'm only talking about product data, certainly not further editorial content. It's not the system that is the weak point, but the understanding of the market, circumstances, requirements, and necessities.

Often, I hear: "Well... the online market accounts for an absolutely small share of the overall business, is very modern but not yet so important." Without commenting on this: A new era has also begun in offline retail, and all types of data are needed there as well, particularly for on-site POS marketing.

Excursus: The LMIV – Food Information Regulation

For one of our clients, using a good PIM like our dynamicPIM® is an essential driver in product data management. The LMIV, that is, in short, the essential EU requirements regarding the distribution of products and the associated information obligations, require structured and accurate data from a single source. If done efficiently and correctly, it should be available in one system.

Decentralized vs. centralized (global) product data management

Even if many managers cannot comprehend: The decentralized system is very often the right decision. Markets are different – often not even comparable in principle. Just the DACH market and Benelux or Italy differ fundamentally. When it becomes global, these differences grow disproportionately.

Single Point of Information – the approach for decentralized systems?

Sounds paradoxical, but it makes a lot of sense when comparing the systems and their respective purposes. Global product data management primarily serves to transfer central data of a language into the respective market conditions. This primarily means a translation – let's call it localization. In many cases, it is fed by SAP, possibly like Hybris, which is directly from the SAP world.

But for whom are the data intended? For managers in the local units? For their customers and partners, meaning retailers and service providers? This always raises a fundamental question: Can we make the global PIM outwardly accessible, meaning directly reachable for target groups outside the organization?

Or are there possibly data included that have a high sensitivity, which must not be reached by certain target groups under any circumstances? Is everyone in the organization aware of what this means and who has the authority to manage the permission structures – let's say for 100 countries simultaneously? Just the fundamentals of a digitized world tell us what counts today: Flexibility, Speed, and Outstanding Content.

Then, have fun trying to keep up. I predict to everyone that they will fall far behind and will never meet local requirements outstandingly.

API Connect and the possibilities of decentralized systems in product data management

We recommend: Use your global systems to have a central repository and thus the basis for all connected local applications – this is the Data Tank that holds all the data from the global business system.

In the markets/countries, it now makes a lot of sense to access only what the sales and marketing units, but especially the agencies and retailers need, through API (interface). Nothing more and nothing less. This is the Data Speedboat.

Enriched with outstanding local content, refined in the local language by SEO experts. All this in a system like dynamicPIM®, which is slim, easy to use, and always efficiently and quickly expandable.

Identifiable and updatable through primary features like GTIN/EAN, item numbers, ISBN, PZN, etc. This keeps it manageable and understandable.

The distribution to further distributors like Markant, GDSN, etc. is included in this software for product data management. And... also inclusive of all media data, as dynamicDAM®, our Media Asset Management system, can be linked as well. An ideal combination for today's challenges.

Access for all via local groups and permission structures

As mentioned above in the article: Making global systems accessible to external parties is a major security issue and cannot really be controlled. If you take the path just sketched out, it looks very different.

Now retailers, agencies, partners, internal employees, etc. access a system. All the data they need for the local market is there. Quickly. Efficiently. Simply. And anytime adaptable to the next challenge of the digital world. Because it comes faster than you think.