Interview I asked Adastra MDM/PIM consultant Daniel Fisla to elaborate on 10 topics about PIM based on his experience as a consultant in the industry. Mr. Fisla provides a valuable perspective coming from many years of interaction with companies and implementation of enterprise solutions including PIM. Definition of Product Information Management (PIM) Product information management or PIM refers to processes and technologies focused on centrally managing product information, with a focus on the data required to market and sell the products. PIM provides the combination of processes and technology to manage product data in one central hub and then synchronize it across the organization and supply chain. The goal of PIM is to streamline the data acquisition process from supplier and internal organizations, centrally manage and enrich that data, and then communicate consistent, accurate and up-to-date information to all required distribution channels such as web sites, print catalogues, ERP systems, and electronic data feeds to trading partners in order to generate sales and market products.

2. Which group(s) within a company should be driving the adoption of this technology? 
Given the enterprise approach behind Master Data Management (MDM), it is important that MDM initiatives be driven by both business and internal IT teams. Meeting the needs of these different groups requires a clear and direct approach to MDM/PIM. Solutions must satisfy the broad enterprise requirements and, at the same time, deliver obvious benefits for both business and IT tiers. In this sense, MDM/PIM initiatives are no different from other strategic initiatives; their success depends on the overall organization structure and culture, and how well these are aligned to overall business goals.

3. What areas and topics does PIM support within an enterprise?
The role of PIM is twofold: it allows organizations to deal with the rising volume and complexity of product information related to day-to-day operations, and supports or supplements services for their ERP systems. Additional issues that must be addressed are: data quality, data integration, integration with BI, and corporate data governance.

4. What bad habits (or dated best practices) have you found to still be in place in organizations you have worked with?
Most common is a lack of detailed and up-to-date documentation with respect to business processes, expert knowledge sealed off in silos, and subject matter experts relying on a rigid process and organization structures that make it difficult to adjust to both internal and external changes.  Organizations need to invest in more flexible data management platforms that are designed with change in mind so that less time is spent on constant re-engineering. This is especially true for PIM and integration with ERP systems.

5. Have you experienced resistance/hesitation to PIM solutions? If so, what?
I think the biggest challenge is both in connecting the dots and in painting customers a clear picture of how PIM solutions will solve their challenges.  Most companies have built internal solutions on their own with varying degrees of success.  In almost all cases, most custom-built solutions lack the challenging aspects of PIM such as business process definition and modeling, business performance management, process automation, data quality and validation, parametric search, and other functionality necessary to elevate PIM to the top tier of an organization.

6. Everyone talks about ROI. What can companies expect to see over time?
ROI is very important part of PIM project justification; however, exact calculation of ROI is challenging: if it’s easy to calculate, then you are probably doing something wrong. Often, the biggest gains are in the most challenging parts of the return on investment calculations. Benefits such as improved worker productivity and data quality metrics are usually easier to determine; benefits from better enterprise integration and governance processes are lot harder to quantify.

7. What are the main ingredients of a good PIM provider?
A good PIM provider organization must have broad experience across different segments of the PIM market. Since out-of-the box solutions are not available, a good PIM provider is expected to leverage experience from similar projects across PIM industries. Even the best practice approaches and architecture models need to be customized on deployment. A good provider has the ability to execute and will provide the client with a number of options and will educate the client about potential benefits and/or trade-offs.

8. The economy is a touchy subject today. What advice do you have for companies with regards to considering a PIM solution in these times? The economic climate we are faced with puts additional market pressures on organizations and will likely have a long-term impact on the industry as a whole. Nevertheless, every crisis produces multiple opportunities to innovate and push the envelope both with respect to technology and business. In particular, this is the time to invest in PIM solutions so that organizations are better prepared to grow their business in the long run and through the next economic boom cycle.  It is a common misconception that MDM/PIM projects have to originate as large and expensive endeavours. With proper scoping, and an iterative approach methodology, we often help our clients to get started right away and deliver actual benefits at each iteration of the overall MDM/PIM initiative. With respect to MDM/PIM tools and architectures, a wide range of solutions exist for both medium and large enterprises. As consultants, we often conduct real-life POCs and make recommendations in order to help clients pick the right tool/platform for the right job.

9. Many companies are content with their ERP system in handling product information. How does ERP and PIM fit? Is PIM a luxury, or a necessity today with ERP systems
Historically speaking, as ERP systems have grown both in functionality and complexity, the master data management specialization evolved out of the gaps in managing product information within the ERP systems. ERP systems are designed to facilitate large volumes of business transactions such as general ledger, accounts payable, accounts receivable, and order fulfilment transactions, with a focus on narrow data and process definition. Inversely, PIM systems are designed to handle a large number of data types, product definitions, taxonomies, and business work flows, with a focus on flexibility and configurable approach to product and process definition. As a result, PIM systems complement ERP systems and even ERP vendors are beginning to offer PIM solutions as external components of existing ERP solutions.

10. Is PIM a revenue generator or a cost/time saver or both?
PIM definitely saves both cost and time. Obviously, replacing legacy systems eliminates much of the re-work required due to poor data quality and management of product information. At the same time, when looking at organizations that implement good data governance, data quality, and implement efficient business process, there is a positive correlation been the sales personnel, the revenues, and an efficient implementation of PIM as a whole.

Conclusion

Although the concept of PIM is not new, the increasing focus around product data is driving this technology to surface and grow rapidly.  Providers are increasing R&D budgets to meet the growing demand and complexities of companies that are ultimately trying to satisfy the demand from customers for high quality, accurate, and up-to-date information.  PIM saves both cost and time and in turn provides additional revenue generating opportunities through marketing and sales channels. For this sake, this project must be fronted by both the business teams and the IT team. Best practices around PIM are showing companies today how to leverage their data as a corporate asset. Are you working for your data or is your data working for you?